Models and Concepts for Industrialization/Urbanization (Region of Study – SubSaharan Africa and SE Asia) APHG Eubanks

The five sectors of economic activity Primary – The primary sector of the economy extracts or harvests products from the earth.(eg mining, farming, forestry) Secondary – The secondary sector of the economy manufactures finished goods. All of manufacturing, processing, and construction lies within the secondary sector.(textiles, electrical goods, car manufacture) Tertiary – The tertiary sector of the economy is the service industry. This sector provides services to the general population and to businesses. Quaternary (a sub division of Tertiary) – The quaternary sector of the economy consists of intellectual activities. (government, culture, libraries, scientific research, education, and information technology) Quinary (a sub division of Tertiary) – Some consider there to be a branch of the quaternary sector called the quinary sector, which includes the highest levels of decision making in a society or economy. This sector would include the top executives or officials in such fields as government, science, universities, nonprofit, healthcare, culture, and the media. – An Australian source relates that the quinary sector in Australia refers to domestic activities such as those performed by stay-at-home parents or homemakers.

Specialization and Comparative Advantage Specialization: The use of resources to product one or few products. Production Possibilities Analysis: "Specialization is economically desirable because it results in more efficient production." What do you think this means? Assumptions and comparative costs: Comparative advantage: A lower relative opportunity cost than that of another producer or country (different from absolute advantage) Absolute advantage: when a producer produces more total products than another producer Base on comparative advantage, we can find out which country is more fit for producing specific product with fixed resources. From Welkers Wikinomics Page

MEDCs (most economically developed countries) 1750 onwards providing conditions for economic growth: – Developments in farming Open fields enclosed & crop rotation – Invention of steam engine 1800 onwards – Fast industrial growth – industrial revolution New machinery & transport By % employed in manufacturing UK reached Stage 4 50 years before other countries 1900s – Knowledge spread to Europe – Countries with coal developed their coal industry – Migrants went to America, providing conditions for take off there 1950s – UK society became more consumer driven – Growth in hi technology

LEDCs (least economically developed countries) Many countries still in stage one – eg in Africa Factors affecting growth: – Political instability – Poverty – Lack of education – Poor infrastructure – Lack of natural resources Investment usually in form of aid – doesn’t promote growth a great deal Multinational investment in South/Central America (eg Brazil) has promoted growth Rapid growth in NICs (newly industrialized countries) (eg Singapore) – doesn’t follow the LEDC pattern

Rostow’s development stage model 1. Traditional society 2. Preconditions for take off 3. Take off 4. The drive to maturity 5. High mass comsumption Time Level Of Dev’t

1 Traditional Society Subsistence economy, agriculture, limited technology UKSingaporeIndia Up to 1750 Up to Precondition s for take off More commercial agriculture, transport improves, one industry dominates UKSingaporeIndia Take off Manufacturing develops rapidly, further transport infrastructure, more investment (up to 15% GDP) from abroad or internal UKSingaporeIndia Drive to maturity Growth is self sustaining and spreads to all parts of country & economy, linked to urbanisation, more range of industry UKSingaporeIndia High mass consumption Rapid growth of tertiary sector, a decline in manufacturing UKSingaporeIndia To come

The new capitalist world system was based on an international division of labor that determined relationships between different regions as well as the types of labor conditions within each region. In this model, the type of political system was also directly related to each region's placement within the world economy. As a basis for comparison, Wallerstein proposes four different categories, core, semi-periphery, periphery, and external, into which all regions of the world can be placed. The categories describe each region's relative position within the world economy as well as certain internal political and economic characteristics.

Hotelling’s Ice Cream Vendors

BEACH

1 Vendor?

BEACH 2 Vendors?

BEACH 3 Vendors?

Weber’s Model of Industrial location Assumption is still that individuals act to maximize profit and minimize cost Accounts for several different aspects of the change of raw material during the manufacturing process. – If weight loss occurred, best place for the factory would be the site of raw materials. – Processes that increase the bulk of the product, or make it either more perishable or fragile would be better sited close to the market. Assumption of 2 necessary raw materials and a single market for the finished product – First determined on a triangular board- three strings knotted together, with weights tied to their other ends. Where the knot was pulled to indicated where the factory should be located. Critique: – Obviously doesn’t account for differences in wages, taxation or incentives, etc.

The Market The Resource Furniture?Paper?Pianos? 1 23 Firewood? 4

Isotropic Plain!!! Even distribution of population with identical preferences Size and distribution of markets and service centers varies according to relative size (or population). A product’s range (or maximum travel distance of a consumer) is limited The minimum required market (or threshold) varies by product the range of higher order goods is greater than lower order goods the threshold for higher order goods is greater Range must surpass threshold for profitability Christaller’s Central Place Theory

A conurbation is an urban area or agglomeration comprising a number of cities, large towns and larger urban areas that, through population growth and physical expansion, have merged to form one continuous urban and industrially developed area. In most cases, a conurbation is a polycentric agglomeration, in which transportation has developed to link areas to create a single urban labour market or travel to work area