1. ECONOMIC GEOGRAPHY

2. ROSTOW MODEL OF ECONOMIC DEVELOPMENT
ROSTOW’S FIVE STAGES OF GROWTH OF SOCIETIES:
Walt Rostow, economist, advisor to President Johnson in 1960s.
Traditional Society – pre-Scientific revolution; incremental improvements, low technology
Preconditions for takeoff: Commitment to education, accumulation of capital, manufacturing sector develops, charismatic leader
Takeoff: economics motivate society more than traditions
Drive to maturity: economic development becomes self-sustaining. Less poverty, rising standards of living
Age of mass consumption: people and economy concentrate on consumer goods and maintaining a high standard of living.

3. ECONOMIC SYSTEMS
HOW PEOPLE ORGANIZE THEIR ECONOMIES
THREE TYPES

4. BARTER OR SUBSISTENCE Production for subsistence
Limited exchange within kin and tribe
Little use of currency
Uncommon in today’s world

5. MARKET ECONOMY Sometimes also called commercial
Production of goods for market
Law of supply and demand; prices fluid
Highly interactive and competitive
Seeks new markets

6. COMPARATIVE ADVANTAGE

7. COMMAND or PLANNED ECONOMIES
Government agencies make final economic decisions
Stable prices and supply
Communism, socialism, wartime capitalist economies
On decline in today’s world

8. PRIMARY ECONOMIC ACTIVITIES
HARVESTING AND EXTRACTING DIRECTLY FROM THE EARTH
INCLUDES: AGRICULTURE, FORESTRY, FISHING, MINING, OIL DRILLING

9. FORESTRY Tree farms Different types of forest
Demand for tropical woods for plywood
Clear cutting, logging in national forests
Value of some tree species

10. TOTAL FOREST COVER

11. FISHING
Danger of overfishing since 1970s – rise of factory ships (below)
Places where fish catches tend to be large?
Rise of fish farming

12. OIL DRILLING

13. MINING

14. AGRICULTURE Extensive subsistence Intensive sedentary Plantation
Mediterranean
Commercial

15. SWIDDEN or “SLASH & BURN”
Practiced in tropical rain forest areas of thin soils
Area is first burned
Ash fertilizes soil over a period of years
Area is planted until soil fertility decreases
Group moves on and process is repeated

16. MEDITERRANEAN In Mediterranean climate zones
Olives (right), figs, dates, vegetables of all kinds
Some of most productive agricultural areas in world

17. PLANTATION Usually introduced crops. Strictly commercial
Very labor intensive
Large tracts of land under cultivation
Areas tend to be oligarchic in structure

18. SEDENTARY INTENSIVE Village-based Subsistence
Based on grain cultivation – rice, maize
Supports large populations in East Asia

19. INTENSIVE AND EXTENSIVE COMMERCIAL
Intensive commercial e.g.– truck farming
Extensive commercial – e.g. cattle ranching

20. EXTENSIVE SUBSISTENCE
Includes swidden
Also herders in difficult climates
Requires large areas to support small populations

21. SECONDARY ACTIVITIES Manufacturing and refining
Changing and improving natural resources into other products

22. WEBER’S LEAST COST THEORY OF MFG. LOCATION
To be profitable, a manufacturer must choose a location where they can economize costs in:
Labor
Transportation
Agglomeration

23. TERTIARY ACTIVITIES Professional, retail, service Mobile and footloose
Usually educated
Middle class

24. QUATERNARY ACTIVITIES
“Knowledge workers”
Deal with information
Highly educated
“Think tanks”
Government capitols
Financial analysts
Research universities and hospitals