Yesterday did not quite go so successfully for everyone and there was a little bit of confusion, but that is okay that is what learning is about! So today, sit with the same groups and get your “product” you were working on yesterday.

Monday = Notes Day! Please take out your notebooks!!! Announcements: –I will be available after school Monday & Tuesday to make up exam FRQs OR get pass to come during 4 th period. –9 week grades go out Friday! –If you did not put your stamp sheet in your portfolio on Friday, please do so and turn your portfolio into the drawer at the door. –5 th – 7 th Periods if you did not take a quiz last week you need to get notes and come in and take that on your own time.

Soft Start Don’t get discouraged by a bad grade. We can work together to make it better. Always remember: Things could always be a little worse…

Let’s try to get this info today so we don’t have an epic fail on the next assessments…

Today’s Notes We are learning about some very important concepts today: –Brandt Line –Rostow’s Model of Development –Wallerstein’s World Systems Theory: Core- Periphery Model –The 4 Tigers of Development Note: Whatever notes we do not get through today you will be responsible for getting on your own.

Quick Review: What is Development? PLEASE START TO SHORT HAND TO TAKE YOUR NOTES MORE QUICKLY.

Let’s make some observations

What 3 indicators are used? Which did we find was weighed the most important? The HDI is worked out by putting together 3 important pieces of information: –Life expectancy –Literacy –Real GDP (Gross Domestic Product – is how much money earned) Human Development Index

Public awareness of the development gap is not new. It was first brought into the news headlines in the Brandt Report in This report by Willy Brandt, a German politician, drew a line on the map that separated the richer countries from the poorer ones. The Brandt Line

DRAW THE BRANT LINE ONTO YOUR CATEGORILLA MAP AND LABEL IT (ALSO ADD LABELS FROM THIS SLIDE)

The MEDC’s are situated mainly in the northern hemisphere. The LEDC’s are situated in the southern hemisphere. The line loops around Australia and New Zealand to include them in the richer half of the map. Is this still accurate today?

Road to Development

Different Routes to Success

Balanced Growth through Self-Sufficiency A country should spread investment as equally as possible across all sectors of its economy and in all regions. –Incomes in rural areas keep pace with urban incomes –Businesses remain independent of foreign corporations –Limit imports through tariffs and quotas

India followed this policy –Made imports difficult –Discouraged Indian businesses from exporting –Could not convert Indian money into other currencies –Encouraged production of consumer goods for Indian citizens –Provided subsidies for struggling companies

Problems Inefficiency: without true competition, companies have little incentive to improve techniques, technology, products, etc Large Bureaucracy: needed to administer the controls – complex and corrupt

Rostow’s Development (Modernization)Model through International trade A country can develop economically by concentrating scarce resources on expansion of its distinctive local resources Developed by W.W. Rostow (1950s)

Rostow - Stages of Growth 1.Traditional Society Characterised by –subsistence economy – output not traded or recorded –high levels of agriculture and labor intensive agriculture –Wealth allocated to nonproductive activities (religious, military Village in Lesotho. 86% of the resident workforce in Lesotho is engaged in subsistence agriculture. Copyright: Tracy Wade,

Rostow - Stages of Growth 2. Pre-conditions: –An elite group initiates development –Investments in technology and infrastructure –Commercialization of agriculture The use of some capital equipment can help increase productivity and generate small surpluses which can be traded. Copyright: Tim & Annette,

Rostow - Stages of Growth 3. Take off: –Increasing industrialization in limited areas (food or textiles) –Foreign investment increases –Infrastructure improvements –Some regional growth –Economy still dominated by traditional practices At this stage, industrial growth may be linked to primary industries. The level of technology required will be low. Copyright: Ramon Venne,

Rostow - Stages of Growth 4. Drive to Maturity: –Develops broad manufacturing and commercial base –Industry more diversified –Increase in levels of technology utilized As the economy matures, technology plays an increasing role in developing high value added products. Copyright: Joao de Freitas,

Rostow - Stages of Growth 5. High mass consumption –High output levels –Mass consumption of consumer durables –High proportion of employment in service sector Service industry dominates the economy – banking, insurance, finance, marketing, entertainment, leisure and so on. Copyright: Elliott Tompkins,

Example: USA Path to Development Stage 5: early 20 th century Stage 4: late 19 th century Stage 3: middle of 19 th century Stage 2: first half of 19 th century Stage 1: prior to independence

Criticisms Assumes LDCs will achieve each level of development before advancing Uneven resource distribution (Zambia’s one commodity market of copper developed trouble when world copper price fell) Market Stagnation – MDCs market are saturated, need to increase sales in LDCs Increased dependence on MDCs – when concentrating resources in a “takeoff” industry, then buy necessities from MDCs

Criticisms cont. Does not account for –Global politics –Colonialism –Physical geography –War –Culture –Ethnic conflict –Deindustrialization Cannot compare Nepal (stage 1) to Denmark (stage 5) to Saudi Arabia Development does not necessarily lead to high consumption, can mean social welfare

Possible 6 th stage – Postindustrial –Service replaces industry –Information replaces energy as key resource

International Trade Approach Some countries have switched from self- sufficiency approach to international trade –according to the World Bank – international trade countries have seen 4% growth, self- sufficiency countries 1% LDCs are exporting more manufactured goods rather than agriculture or mining goods

International Trade Approach Cont. World Trade Organization (1995) works to reduce barriers to international trade by –Negotiate reductions in trade restrictions, such as quotas & tariffs –Enforces trade agreements WTO has been criticized for being undemocratic (favor large corps over poor nations) and for threatening sovereignty

International Trade Approach Foreign Direct Investment (FDI) – investment made by a foreign company in the economy of another country Only 1/3 went from a MDC to a LDC (only 10% went to African nations) Transnational Corporations are major sources of FDI

Dependency Theory Structuralist alternative to Rostow’s model Political and economic relationships between countries and regions control and limit the economic development of less affluent regions Dependency helps sustain the prosperity of the dominant regions and the poverty of the lesser regions

Dependency Theory Cont. Little hope for economic prosperity in regions and countries that have traditionally been dominated by external power (colonialism) Based on generalizations that pay little attention to regional differences in culture, politics, and society

World-Systems Theory Immanuel Wallerstein Divide world into –Core –Semi-periphery –Periphery

Three Tier Structure Core Processes that incorporate higher levels of education, higher salaries, and more technology * Generate more wealth in the world economy Semi-periphery Places where core and periphery processes are both occurring. Places that are exploited by the core but then exploit the periphery. * Serves as a buffer between core and periphery Periphery Processes that incorporate lower levels of education, lower salaries, and less technology * Generate less wealth in the world economy

Core Periphery Model Core Regions –High levels of socioeconomic prosperity –Dominant players in global economic game  Anglo America HDI.94  Japan and the South Pacific HDI.93  Western Europe HDI.92

Core Periphery Model Periphery –Poor regions –Dependent on the core –Do not have much control over their own affairs

Periphery Regions  Latin America HDI.78  East Asia HDI.72  Southeast Asia HDI.71  Middle East HDI.66  South Asia HDI.58  Sub Saharan Africa HDI.47

Core Periphery Model Semi Periphery –Regions that exert more power than periphery regions but are –Dominated to some degree by the core

Development Indicators Economic: GNP, PPP(purchasing power parity), per capita energy consumption Noneconomic: HDI, gender equity, calorie intake

A must know: Four Dragons Aka Four Tigers or Gang of Four S. Korea, Singapore, Taiwan, and Hong Kong Lacked natural resources Strongly influenced by Japan’s success Concentrated on handful of manufactured goods Low labor costs Sell to MDCs

Practice: What major factor has led the Four Asian Tigers to economic success? A.Raw Materials B.Trading Goods C.Cheap Immigrant Labor D.Low Transportation Costs E.Low land costs

Journal Practice/Reflection: Rostow’s Model 1.Identify and discuss 2 critiques of Rostow’s model. 2.Discuss some similarties between the Rostow model and the Demographic Transition Model. Finish categorilla for Wednesday. Try the back from what we learned today for extra credit.

Millennium Development Goals Adopted by world leaders in the year 2000 and set to be achieved by 2015, the Millennium Development Goals (MDGs) provide concrete, numerical benchmarks for tackling extreme poverty in its many dimensions. The MDGs also provide a framework for the entire international community to work together towards a common end – making sure that human development reaches everyone, everywhere. If these goals are achieved, world poverty will be cut by half, tens of millions of lives will be saved, and billions more people will have the opportunity to benefit from the global economy.

Millennium Development Goals The eight MDGs break down into 21 quantifiable targets that are measured by 60 indicators. Goal 1: Eradicate extreme poverty and hunger Goal 1: Eradicate extreme poverty and hunger Goal 2: Achieve universal primary education Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women Goal 3: Promote gender equality and empower women Goal 4: Reduce child mortality Goal 4: Reduce child mortality Goal 5: Improve maternal health Goal 5: Improve maternal health Goal 6: Combat HIV/AIDS, malaria and other diseases Goal 6: Combat HIV/AIDS, malaria and other diseases Goal 7: Ensure environmental sustainability Goal 7: Ensure environmental sustainability Goal 8: Develop a Global Partnership for Development Goal 8: Develop a Global Partnership for Development