Development & Industry

1. Development & Industry Resources: Textbook, Chapters 10 & 12 Wood book, Unit 6 (Industrialization & Economic Development) Important Dates: 5/4 – Chapter 10 & 12 Quiz 5/6 – Development & Industry Test

2. DEVELOPMENT Chapter 10 The single most important geographic fact of development is its’ striking unevenness.

3. Cartogram: World Population http://www.rasmusen.org/x/2006/10/28/mark-newmans-cartograms/

4. Cartogram: GDP http://www.rasmusen.org/x/2006/10/28/mark-newmans-cartograms/

5. Population Economy The difference is development.

6. Wealth does not depend only on what is produced, but largely on how and where it is produced. • Development implies progress • Often controversial b/c not tied to happiness, social stability or sustainability • 3 major areas to measure: economic welfare, technology and production, social welfare How do you define & measure development?

7. Economic indicators of development Gross domestic product per capita Types of jobs Raw materials Consumer goods Social indicators of development Education and literacy Health and welfare Demographic indicators of development Life expectancy – Infant mortality rate Natural increase rate – Crude birth rate Indicators of Development

8. Gross Domestic Product (GDP) Measure of the total value of the officially recorded goods and services produced with a country by the citizens and corporations in a given year Gross National Product (GNP) Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year, both inside and outside a country’s territory Gross National Income (GNI) Most common measurement used today – per capita Measure of the monetary worth of what is produced within a country plus income received from investments outside the country Measuring Economic Welfare Limitations of GNI: Formal economy vs. informal economy Distribution of wealth Measures only output, not costs of production

9. Annual GDP per capita, 2005 Fig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in most developed countries but under $5000 in most less developed countries.

10. Informal economy

11. Formal economy

12. Technology & Productivity: Occupational structure of the labor force (employment in sectors of the economy) Productivity per worker (production divided by total labor force) Transportation and communications facilities per person (per capita index of transportation and communications per person) Social Welfare: Dependency ratio (dependents, young and old, that each 100 workers must support) Other Ways of Measuring Development

13. Dependency Ratio, 2007 A measure of the number of people under the age of 15 and over the age of 65 who depend on each working-age adult

14. Criticisms: “Progress” – industry  better or worse? Similar path or process in all countries Walt Rostow’s Modernization model 5 Stages of Development: Traditional Preconditions of takeoff Takeoff Drive to maturity High mass consumption Development Models

16. AKA Rostow’sLadder of Development

17. Problems with Rostow’s Model and the International Trade Approach • Developmentalism • The idea that every country and region will eventually make economic progress toward “high mass consumption” provided that they compete to the best of their ability. • This is not likely and is hard on the planet. • Increased dependence on MDC’s and their markets • Undue influence of many global policies, including those of the U.N. and World Bank. • Market Stagnation • The MDCs have very limited population growth. Markets for low-cost manufactured goods grow slowly today. • Undervalues the obstacles and competitive disadvantages faced by late starters vs. those in the Core.