1. Economic Development

2. Division of Economic Activit ies Primary Sector (ag)– Secondary Sector (industry) - Tertiary Sector (services)- Quaternary Sector (service- research/development)

3. Comparative Economic Sectors -CIA World Factbook, 2010 Estimates CountryPrimarySecondaryTertiary England.5%23.7%75.8% Russia5.4%37.1%57.5% China12.5%47.3%40.3% Mexico3.8%25.9%70.2% Nigeria26.9%48.7%24.4% Iran11.6%42.4%46%

4. Economic Indicators of Development GDP Types of Jobs Worker Productivity Access to Raw Materials Availability of consumer goods **Usually economic development coincides with social development** WHY

5. Self-Sufficiency Model (Balanced Growth Approach) Money (investment) should be spread equally amongst all sectors and regions of a country Promoted by setting barriers that limit imports from other places…Taxes, quotas

6. Self-Sufficiency PRO Its fair Incomes in rural areas keep pace with incomes in cities Reducing poverty more important than individual wealth CON Protects inefficient businesses Large bureaucracy Local businesses don’t compete in world market

7. Modernization Theory- Rostow “ Economic prosperity is open to all countries” Traditional Stage – Families, tradition, subsistence farmers, lives similar to ancestors

8. Rostow Take-Off Stage – Producing goods to sell Industrial revolution Urbanization increases Greater individualism- willingness to take risks, desire for ‘things’ becoming consumers

9. Rostow Drive to technological maturity – Focus on obtaining higher standard of living Poverty reduced, cities grow, population slows- kids are more expensive to raise International trade

10. Rostow High Mass Consumption- Luxury items…now ‘necessities’ high incomes Majority of workers in the service industry

11. Rostow “Modernization” = “Westernization” Tradition is the greatest barrier to economic development

12. Rostow Pro -High income helps poorer countries -Control population growth -Increase food production -Take advantage of industrialized technology - Foreign aid Con -Justifies capitalist system…development of stratified society? -Harder for poor to get ahead -Suggests poor countries are to blame for their plight.

13. Dependency Theory- Wallerstein Capitalist World Economy – 3 types of nations 1) Core Countries – rich nations take raw materials channel wealth to NA, Eur. Aus., Japan 2) Countries of the Periphery – low income, drawn in by colonial exploitation, support with inexpensive labor large markets 3) Countries of the semi periphery- in between- exert more power than periphery but less than core.

14. Wallerstein Pro -No country is in isolation…pro?? Con -Responsibility for poverty on rich nations -Industrialized nations block development by exploiting poorer nations -Culture that discourages economic growth not taken into consideration

15. Compare and contrast 1.How are the theories similar? 2.How are the theories different? 3.Which one do you tend to think would work best?....or which parts of each do you agree with?

16. Key Issues Why do less developed countries face obstacles to economic development? What are those obsticles?