Chapter 9: Development

1. Chapter 9: Development Consumption, Health, Literacy, Services

2. Human Development Index (HDI) A combination of four factors: • Per capita Gross Domestic Product • Literacy rate • Amount of education • Life expectancy

3. Human Development Index: 1994 Green: mostly MDC, some transitional Red: mostly LDC, some transitional Yellow: some transitional, some LDC (changes over time) http://gw.eduhi.at/programm/dehmer/daten/hdi.gif

4. Countries:MDC vs LDC vs Transitional • MDC: More Developed Countries: • Europe, Anglo America, Japan • Demographic Stage 4, 5 • LDC: Less Developed Countries: • Africa, Most of Asia, Most of Latin America • Demographic Stage 2 • Transitional • China, Brazil, India (Maybe…) • Demographic Stage 2  3

5. Global Increase in HDI over time This is one global average estimate. Projected growth is a ‘best guess’. http://www.usmef.org/speeches/02_Other/02_0916_Seng_NewZealandPresentation_files/slide0147_image021.gif

6. Gross Domestic Product • http://earthtrends.wri.org/images/maps/5_m_GDPPPP_md.gif • Information: http://earthtrends.wri.org/text/economics-business/map-186.html

7. MDC vs LDC vs Transitional: Job Sectors: (Figure 9-3) • MDC: More Developed Countries: • (Greater than 2/3 tertiary sector employment) • LDC: Less Developed Countries: • (Greater than 2/3 primary sector employment) • Transitional • (Approximately equal primary, secondary, and tertiary jobs) • (In transition, so sector percentages are changing)

8. Gross Domestic Product (GDP) Gross Domestic Product (GDP): value of the total goods and services produced in a country per year. Per-capita GDP = GDP / country population • More Developed Country (MDC) • Less Developed Country (LDC) • MDC GDP ~ $20,000 • LDC GDP ~ $1,000

9. Gross Domestic Product(Total, not Per-Capita) • http://www.lib.utexas.edu/maps/world_maps/world_mktsize96.jpg

10. Why Per-Capita GDP? • Individual welfare and development. • Individual Purchasing Power • Food Security • Consumption • Remember:The same money goes farther in some countries than in others.

11. Social indicators of development • Education and Literacy: • Increases workforce potential • Life Expectancy • Health & welfare, • Societal stability, • Population growth http://www.hewett.norfolk.sch.uk/curric/NEWGEOG/Africa/Eth_py~1.gif http://www.carec.org/mortality/images/p3-12.gif http://www.censusscope.org/us/chart_age_graph_1.gif

12. Education and Literacy • Average number of school years attended: • (quantity of education) • Student-teacher ratio: • (quality of education) • Literacy rate: • percentage of a country’s populationthat canread and write • (quality and outcome) http://www.cdm.ucsb.edu/images/photos/education_image3.jpg http://www.africa.upeace.org/africa_students2.gif

13. Life Expectancy http://www.globalgeografia.com/world/life_expectancy.gif

14. Human Development Index (HDI) Recap: A combination of four factors: • Per capita Gross Domestic Product • Literacy rate • Amount of education • Life expectancy Allfour are used together to form a better picture of development. No one factor alone is sufficient.

15. Alternate Development Approaches: • Self-sufficiency • International trade

16. Self-sufficiency: • Isolation of businesses from international competition • Taxation, denial of access, import restrictions, etc. (barriers to trade) • Problems: inefficiency, bureaucracy, graft, black market

17. International trade: • Expansion of distinctive products (with local competitive advantage) • Rostow’s Development Model(on quiz, test) • Traditional society • Preconditions for takeoff (elite group initiates economic activities), investment • Takeoff: limited economic activities progress • Drive to Maturity: modern technologies diffuse, rapid growth, skilled workforce • Age of mass consumption: production shifts, heavy industry to consumer goods

18. Why do LDCs face obstacles to development? • MDCs already have working production facilities • MDC agencies loan to LDCs for a profit, and some cash flows out of LDCs to pay of loans. • Increases in infrastructure are not often funded, and there is often a low drive to build them. • Many manufacturing processes require a highly skilled workforce, absent in many LDCs. • Local economies require local capital, local excess production, which are often minor or absent. • Previous loans (e.g. by IMF) are a burden to the country, further reducing local capital.

19. Recent ‘triumphs’ • India: protection (4% / year) to trade (6% / year)

20. International Development Alternative Problems: (p. 324) • Uneven resource distribution • Costs of imports can rise faster than export profits. • Market stagnation (and saturation) • Demand for your products may not increase. • Competition may increase, saturating the market. • Increased dependence on MDCs • for previously locally produced goods

21. Recent failures (other sources) • Yugoslavia • Most of Africa • (Democracy and Development in Africa, by Claude Ake, Brookings Institute) • Ex: Nigeria • South America • Argentina

22. International Monetary Fund (IMF) • Loans: • Infrastructure (Gamble) “If you build it they will come.” (Really? It depends…) • If this doesn’t pan out  (permanent?) debtor nations. • Why? Market shift, excess debt, investment failed, fraud / graft, etc. • Structural Adjustment Programs: • Raise taxes, reduce government spending, control inflation, sell utilities, charge more for services • Dissatisfaction up, destabilization possible

23. World Trade Organization (WTO) • reduce barriers to trade: tariffs, quotas, subsidies, etc. • enforcement • problems • Benefits corporations • Reduces sovereignty • (can increase internal unrest, increasing likelihood of war, e.g. Yugoslavia)

24. Gender • No gender equality exists in any country in the world. (p. 315) • The income gap is about $15,000 / year in MDCs. • Gender-Related Development Index (GDI) compares the level of development of women with that of both sexes. • Nice info for MDCs, no data for many LDCs. • Gender Empowerment Measure (GEM) compares the ability of women and men to participate in economic and political decision making. • Nice info for MDCs, no data for many LDCs.

25. Summary of Regional Information Source: text (See also weather, war, health stats.)

26. Self Sufficiency • Internal development • No foreign aid • No foreign debt • Slow growth

27. Foreign Investment • Capital • Graft • Profits • Cash Crops • Dependency • Debt • Agglomeration of lands • Surplus labor •  Manufacturing? •  Services? •  Unemployed? • Core vs. Periphery:

28. Primary (Agriculture / Extraction) Sector • First, food  survival • Remaining food and raw materials for export • High food production population generally indicates a large focus on survival/sustenance. • The majority of jobs in a LDC are in primary production. http://www.seasite.niu.edu/Thai/slideshows/rice/images/rice1.jpg http://www.geographyfieldwork.com/riceterrace_small.jpg http://www.eth.mpg.de/people/graetz/images/graetz-02.jpg

29. Secondary (Manufacturing) Sector • Including basic products (e.g. steel) and fabrication of consumer goods • Surplus time, energy, and products  produce consumer goods. • Export: Local, regional, global http://216.185.134.103/archives/april/wed07042004/images/current/ftf070404.jpg http://www.generalconstructionco.com/images/projects/Seattle%20Steel%20Manufacturing.jpg http://wfc3.gsfc.nasa.gov/MARCONI/images-fabricate/fab.jpg

30. Tertiary (Services) Sector • Tertiary Sector: Goods and services, retail, banking, law, education, government • MDC Increase in services, for local and/or global customers http://www.wincor-nixdorf.com/internet/de/press/PictureLibrary/Retail/0005Hi,templateId=blob.jsp,property=Data.jpg http://www.es.ucsb.edu/images/new/class_Sedg_pit.jpg http://ocw.mit.edu/NR/rdonlyres/Global/C/C29AC488-4269-45D0-964E-55C53A4DA7C8/0/chp_supreme_court_1.jpg

31. Sector Value Added Overview: Value added = gross value – raw material cost – energy inputs • Related to producer income • Primary: Food, raw materials: ¢ • Secondary: higher value added: $ • Tertiary: very high value added: $ to $$$

32. Specialization • Specialization: skilled trades  small scale mfg.  large scale mfg. • Specialization  higher productivity • Manufacturing globalization  MDC sector job loss to transitional countries with skilled labor. • Search for Competitive Advantage

33. Agriculture: deliberate land modification through plant cultivation and raising animalsfor food or profit. • Percentage of labor force MDC: 5% (avg.), LDC: 55% • http://www.faculty.de.gcsu.edu/~dvess/gissues/agrlabor.jpg

34. Subsistence Agriculture: food productionprimaryfor farm family consumption Example: slash and burn http://upload.wikimedia.org/wikipedia/commons/6/6b/Bakweri_cocoyam_farmer_from_Cameroon.jpg http://en.wikipedia.org/wiki/Subsistence_farming

35. Commercial Agriculture: • food productionprimarilyfor sale off the farm • Can Start as subsistence farming, excess sold • Can transition to pure commercial agriculture • http://www.internationalspecialreports.com/theamericas/00/bahamas/17-2.gifhttp://www.georgetowncranberry.com/images/skipper.jpg

36. Subsistence vs. Commercial Ag. • Generally expands to marginal lands as population increases http://geographyfieldwork.com/riceterrace_small.jpg http://geographyfieldwork.com/RiceFarm.htm

37. Agribusiness integration of commercial agricultureinto food processing, usually by corporations Image: http://www.agribusiness-mgmt.wsu.edu/Templates/index_images/Landscape-Green_r2_c24_.jpg Source: http://www.agribusiness-mgmt.wsu.edu/

38. Swidden Agriculture , a.k.a. slash and burn, a.k.a.shifting cultivation) • clear vegetation, burn the slashed vegetation, and plant in the ashes. • Shift sites in 1 to a few years, when yields drop off. • Requires much land recovering from past slash and burn activities. http://www.artsci.wustl.edu/~anthro/images/rainforest/26.JPG Slash: http://www.artsci.wustl.edu/~anthro/images/rainforest/22.JPG Burn: http://images.google.com/imgres?imgurl=http://www.artsci.wustl.edu/~anthro/images/rainforest/26.JPG&imgrefurl=http://www.artsci.wustl.edu/~anthro/images/rainforest/&h=512&w=768&sz=140&tbnid=TO1EkMcffXOxEM:&tbnh=94&tbnw=141&hl=en&start=5&prev=/images%3Fq%3Dshifting%2Bcultivation%26svnum%3D10%26hl%3Den%26lr%3D%26safe%3Doff%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official_s%26sa%3DG Growth: http://www.taa.org.uk/Courses/Week4/Swidden2.jpg Tree: http://www.sln.org.uk/geography/images/SLN@Malaysia2005/Richard%20and%20Bob/Shifting%20cultivation%20266.jpg Story: http://www.artsci.wustl.edu/~anthro/images/rainforest/

39. Shifting cultivation (observations) • Done wisely, it is ecologically sound in otherwise uncultivable soils. • Increasing population density eventually makes this practice unsustainable. • Is being replaced by logging, cattle ranching, more intensive cash crop cultivation. • Can be the first step in forest conversion. http://www.artsci.wustl.edu/~anthro/images/rainforest/26.JPG http://www.artsci.wustl.edu/~anthro/images/rainforest/27.JPG

40. Issues for subsistence farmers: • Population growth • Forest fallow  bush fallow  short fallow  annual cropping  multi-cropping • Conversion from slash and burn to multi-crop farming may not be sustainable. (Site dependent) • New farming methods: • Inputs: fertilizer, manure, new tools, new seeds and new crops • International trade pressure: • conversion of food crops to cash crops • may make the economy dependent on foreign foods • if so, cash crop shortfalls or price drops  avoidable food shortages • drug crops • forced or voluntary growth of drug crops

41. Intensive subsistence agriculture: Examples: wet rice cultivation, dry farming • maximize yield per acre, minimize unused land, some double cropping • low machinery inputs, high animal and human inputs • dry farming  crop rotation

42. Pastoral nomadism works on marginal lands, if you can avoid overgrazing • Story: http://www.geographie.uni-freiburg.de/ipg/forschung/ap1/current_projects/chad/nomads_project%20area.html • Image: http://www.geographie.uni-freiburg.de/ipg/forschung/ap1/current_projects/chad/harmattan%20vaches%20en%20transhumance%20big.jpg

43. MDC farming: • Mixed crop and livestock farming: crops  animals  humans (e.g. beef, milk, eggs) • crop rotation, nitrogen fixing crop intermixed with primary crop(s) • Dairy farming: within range of market (avoid spoiling), refrigeration extends this range • Grain farming: e.g. wheat belt • Livestock ranching: often on marginal lands in the West, also Amazonia, Pampas, Outback • Mediterranean agriculture: Horticulture: growing of fruits and vegetables, and flowers • Commercial gardening and fruit gardening: horticulture, large scale, migrant workers • Plantation farming: specialize in 1-2 crops, once slavery, now import workers

44. How Do you figure out what to grow where? Von Thunen Model: Important Influences: • Land Rent • Transportation Cost • (Perishability  transportation range, cost) • Likely on the quiz, test, and / or final exam.

45. Von Thunen Model • Distance is a function of land rent and transportation costs. • Basically, what produces the most profit at each location? • http://people.hofstra.edu/geotrans/eng/ch6en/conc6en/img/vonthunen.gif • Info: http://people.hofstra.edu/geotrans/eng/ch6en/conc6en/vonthunen.html

46. Issues for commercial farmers: • Access to market: Von Thunen model (ring/modified) • Maximize profit. • Overproduction • growth of crops in demand, avoid yield surpluses • price subsidies • buy surplus yield, donate to foreign governments • Unsustainable agriculture • move to more sustainable practices • sensitive land management, e.g. ridge tillage • limited use of chemicals (possibly organic farming)

47. Issues for subsistence farmers: • Population growth • Forest fallow  bush fallow  short fallow  annual cropping  multi-cropping • Conversion from slash and burn to multi-crop farming may not be sustainable • New farming methods: • more inputs: fertilizer, manure, new tools, more labor intensive • new seeds and new crops • International Trade • Food crops  cash crops

48. Strategies for increasing food supply: Increase agricultural land, marginal lands (& waters) • require careful management for long-term yields • must worry about soil salinization, selenium, etc. • desertification: human action land deterioration, Increaseland productivity • New grains (change crops) • greenrevolution • often requires nutrient inputs (external, cost) • often relies on machines (external, cost, needs gas) • seed stocks often foreign owned, possibly not self propagating • Trade cash crops, and buy food (if affordable)

49. Food supply crises Example: Africa • Population sometimes outstrips local food supply. • Over-planting removes soil nutrients. • Trees harvested for firewood. • Overgrazing removes grasses, &. • Desertification is a major problem. • The desert is slowly marching south towards the sea. • Global warming exacerbates the problem. • (What to do? Change jobs, and / or move.)

50. Manufacturing Beginnings: Cottage Industry • http://www.fao.org/docrep/w9500e/w9500e72.jpg