1. Agenda ► Questions? ► Review

2. Today  Test 1 reminder, October 6  Assignment 1  Regional Economic Change ► Growth Pole Theory and Lethbridge  World Levels of Development  Wednesday Chapter 4

3. Fundamental Issue: Concentrate Effort or Spread Effort? ► Regional economic policy in Canada: the role of the state, again! ► Agricultural rehabilitation ► Appalachia and “War on Poverty” ► DREE: Department of Regional Economic Expansion – 1969 – a new department ► Growth Pole theory: a new strategy ► Atlantic Canada and Quebec were main beneficiaries. See Thayer Watkins: ► http://www2.sjsu.edu/faculty/watkins/canada.htm

4. Lethbridge ► In 1970s, designated as the Growth Pole for the lagging region of southern Alberta ► Grants to Swift Canadian, Lethbridge Iron Works, Canadian Dressed Meats, Kirchner Machine, Western Canadian Seed Processing (now Canbra Foods). ► Later incentives to attract Palliser Distillers, Kawneer, among others ► Details?

5. Swift Canadian, 1971

6. (Sakai Spice, 2002

7. According to Donald Savoie in Regional Economic Development: Canada’s Search for Solutions (1992): “Outside firms lured into a region solely on the basis of incentives have not performed as well as initially envisaged. Indeed, we can confidently report that large cash grants to businesses to see them locate economic activities in slow-growing regions have never lived up to expectations.” (p. 257)

8. World Levels of Development GNP/capita (total value of good and services produced) in US$ to compare levels of economic activity (Wheeler et al. p. 39) An alternative economics…

9. An alternative definition of world levels of development ► ► People are the real wealth of nations. Indeed, ► ► the basic purpose of development is to enlarge ► ► human freedoms. The process of development ► ► can expand human capabilities by expanding ► ► the choices that people have to live full and creative ► ► lives. And people are both the beneficiaries ► ► of such development and the agents of the ► ► progress and change that bring it about. This ► ► process must benefit all individuals equitably ► ► and build on the participation of each of them. ► ► This approach to development—human ► ► development—has been advocated by every ► ► Human Development Report since the first in ► ► 1990.

10. How do we measure Human Development? ► A composite measure… ► Difficult to compare countries:  Life expectancy at birth  Adult literacy rate  Combined gross enrolment ratio for primary, secondary and tertiary schools  GDP per capita converted to US$ PPP ► Convert to indices and combine to HDI

11. Source: UNDP HDR 2004, p. 128

12. Source: UNDP HDR 2004, p. 134

13. Source: UNDP HDR 2004, p. 134

14. High human development group LE at birthGDPLifeEdGDP HD US$IndexIndexIndexIndex 1 Norway 78.9 36,600 0.90 0.99 0.99 0.956 2 Sweden 80.0 26,050 0.92 0.99 0.93 0.946 3 Australia 79.1 28,260 0.90 0.99 0.94 0.946 4 Canada 79.3 29,480 0.90 0.98 0.95 0.943 5 Netherlands 78.3 29,100 0.89 0.99 0.95 0.942 6 Belgium 78.7 27,570 0.90 0.99 0.94 0.942 7 Iceland 79.7 29,750 0.91 0.96 0.95 0.941 8 U.S. 77.0 35,750 0.87 0.97 0.98 0.939 9 Japan 81.5 26,940 0.94 0.94 0.93 0.938 10 Ireland 76.9 36,360 0.86 0.96 0.98 0.936