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Chapter 9 Economic Development

Chapter 9 Economic Development. What does development mean?. Brainstorm. Developed or not?. Developed or not?. Synonyms. More Developed Country: MDC Developed Country Relatively Developed Country Less Developed Country: LDC Developing Country. How do we know?. Brainstorm.

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Chapter 9 Economic Development

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  1. Chapter 9 Economic Development

  2. What does development mean? • Brainstorm

  3. Developed or not?

  4. Developed or not?

  5. Synonyms • More Developed Country: • MDC • Developed Country • Relatively Developed Country • Less Developed Country: • LDC • Developing Country

  6. How do we know? • Brainstorm

  7. How do we know? • Human Development Index (HDI) • Created by the United Nations • Measures the level of development of a country based on 3 indicators: • Economic (Gross Domestic Product) • Social (Literacy Rate/Amount of Education) • Demographic (Life Expectancy) • Ranges from 0 (Least developed) to 1 (Most developed).

  8. Economic • The economic factor used by the HDI is Gross Domestic Product (GDP) per capita: • GDP is the value of total goods and services by a country per year. • US GDP=$12 trillion/300 million people=$40,000/person • Avg. GDP/capita MDC=$27,000 • Avg. GDP/capita LDC=$4,000

  9. Per Capita GDP • Does not measure distribution. • There may be very few starving people in an LDC and many in an MDC like the US. A small minority receive the majority of the GDP of a country. • Gap between LDCs and MDCs continues to increase despite gains made by LDCs.

  10. Social Factors of HDI • Quantitative measure: • Average number of school years attended. • More years=more developed. • 10 in MDCs, only a couple years in LDCs • Qualitative measure: • Literacy Rate--% of a country’s people who can read/write. • 98% in MDCs; Less than 60% in LDCs

  11. Demographic Factors • Life Expectancy—How long a person can expect to live. • MDCs—70s • LDCs—60s • Think about population pyramids: • LDCs have a much higher number of children than adults.

  12. Agenda • HW Quiz • Grade HW Quiz • HDI Map Fill in • Shirts, cars, shoes, phone—make your own theory (excluding China) • Neo-colonialism notes • Exit Ticket

  13. Neo-colonialism notes • Core-periphery model: dependence • Raw materials—exploitation • LDCs with certain materials—petroleum—are able to advance their position

  14. Where do they come from? • Your shoes • Phone • Shirt

  15. Colonialism and Neocolonialism • Colonialism is… • Industrial revolution increased the demands to remote parts of the world. For what???

  16. Colonialism and Neocolonialism • Colonialism then… • Dominated their resources, labor and markets • Neocolonialism—being a producer of primary products for processing in the west—this includes about 90.4% of the African continent. • Countries are being exploited and suffering even though they might be able to care for themselves. • Cocoa or Cocaine???

  17. Development Models • Rostow’s Modernization Model: • Major decolonization occurred around the 1960s. • Assumes that all countries follow a similar path to development through 5 stages.

  18. Rostow’s Modernization ModelAKA Ladder of Development • Stage 1: Traditional • Dominated by subsistence farming • Stage 2: Preconditions to takeoff • Comes from new leadership, openness and diversity. • Stage 3: Takeoff • Similar to Industrial Revolution, urbanization, mass production • Stage4: Drive to maturity • New technologies, more international trade, pop. growth slows • Stage 5: High mass consumption • High incomes, movement to the tertiary sector

  19. Criticisms of Rostow • Rostow’s model is based on the European/American experience. What is wrong with this viewpoint? In other words, why might Rostow’s model not apply to LDCs in Africa and Asia?

  20. Drill • 1. What is neocolonialism? • 2. How does neocolonialism make Rostow’s model an ineffective one?

  21. Wallerstein’s World-Systems Theory • More useful than Rostow because it accounts for scale, place and culture. • 3 parts: • Core—areas that generate wealth through higher levels of education, technology, and higher wages. Headquarters. • Periphery—Require little education, generate little wealth for the people in that place. Dependent on the core. • Semi-periphery—The middle ground between the core and periphery. Some power, some wealth.

  22. 1. Which country has the highest HDI? • 2. Lowest HDI? • 3. Which factor do you think has the most influence on the HDI? Why? • 4. What patterns do you notice about the areas on the HDI map? How does it relate to core-periphery? • 5. Using the ideas of neocolonialism, how can MDCs sustain their economic strength while keeping other regions impoverished even after decolonization?

  23. Extension • Baltimore/Anne Arundel County • Song analysis • US healthcare—Like an LDC, we pay 50%

  24. TED talks video quiz • According to Richard Wilkinson, what happens to the standard of living in countries as the inequality gap increases? • To answer this question, identify 3 factors that are affected as the gap of wealth inequality changes among different countries.

  25. According to income, what occupations are valued as the highest in our society? List 3. • According to income, list an occupation that is undervalued in our society. Why do you think this? • Is the economic inequity a problem in your eyes? Why or why not?

  26. Gender-Related Development Index • GDI is similar to HDI • Measures life expectancy, education, and income differences of men and women in a country. • Countries lose points for large inequalities in men and women. • Complete equality =1.0

  27. Gender Empowerment Measure • GEM: • Calculated by combining economic power and political power of women. • Economic=% of women in professional and technical jobs. • Political=% of women in administrative and managerial jobs

  28. Question • What is the relationship between HDI and GDI? Do they affect each other? Why or why not?

  29. LDCs Need to Develop Faster • 2 biggest problems: • Adopting policies that promote development • Finding money to implement the policies. • 2 ways LDCs are attempting greater development: • International trade • Self-sufficiency

  30. Self-Sufficiency Model • Reducing international trade to protect the country’s businesses. • High taxes on imports • Limiting the quantity of imports • Restricting the number of importers • Example: India=heavy government regulation. • Indian government owned communications, transportations, power companies, automakers, etc.

  31. Problems with Self-Sufficiency Model • ???

  32. International Trade Model • What materials can be sold to other countries to better the economy? • Think Rostow • Successes: • The Four Asian Dragons: S. Korea, Taiwan, Singapore, Hong Kong. Why? • Arabian Peninsula States: Saudi Arabia, Kuwait, Bahrain, Oman, United Arab Emirates (UAE). Why?

  33. Problems with International Trade Model • ???

  34. Copy the Chart and Fill it in

  35. Socratic Seminar Wrap-up • What was the most interesting point made today? Why? • Did you change your mind? Why or why not? • What did you want to say that you didn’t get a chance to?

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