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Ch26 Ch26 Presentation Transcript

  • Concepts of Development Chapter 26
  • What are some of the terms used to describe levels of development?
    • Developed/developing/underdeveloped
    • LDC/MDC/NIC
    • North/South (vs. East/West)
    • First/Second/Third/Fourth World
    • Transition economies
    • Emerging economies
  • What is the distribution of MDCs and LDCs in the world? (The Brandt Line)
  • How is development measured?
    • Economic indicators of development--GNP/GDP, Per capita income, value added, employment structure etc.
    • Social indicators of development--education, literacy, health, welfare (PQLI)
    • Demographic indicators of development--life expectancy, infant mortality, rate of natural increase, birth rate, doubling time
  • Positive correlation:
    • Example: countries with higher literacy rates also have higher percentage of employment in tertiary economic activities
  • Negative correlation
    • Example: Countries with high GDPs have low infant mortality rates.
  • Characteristics of Developing Countries
    • Lower levels of living and productivity
  • Per capita GDP
  • Purchasing Power Parity
  •  
  • Cycle of Poverty Reversing the Cycle Of Poverty
  • Characteristics of Developing Countries
    • Lower levels of human capital
  • % of population considered literate
  • Student-Teacher ratio (primary level)
  • Literacy rate of women
  • Health Indicators: Caloric Intake as a percent of daily requirements
  • Health Indicators: Persons per Physician
  • Life expectancy at birth – not just correlated with per capita income
  • Human Development Index = ( life expectancy at birth, GDP per capita, indices of schooling & literacy)
  • Characteristics of developing countries
    • Higher levels of inequality and absolute poverty
    Gini coefficient % below the poverty line
  • Characteristics of developing countries
    • Higher population growth rates
    Fertility Rate
  • Characteristics of developing countries
    • Larger rural populations…
  • … but rapid rural-to-urban migration
  • Characteristics of developing countries
    • Lower levels of industrialization and manufactured exports
    China factory World exports per capita
  • % of labor force in agriculture
  •  
  • Characteristics of developing countries
    • Adverse geography
  • Characteristics of developing countries
    • Underdeveloped financial and other markets
    • --banks
    • --stock markets
    • --domestic markets
  • Characteristics of developing countries
    • Lingering colonial impacts
    • --economies based on resource extraction
    • --monoculture
    • --continued economic dependence
    • --weak governmental institutions
    • --continued ethnic strife
  • Theories Regarding Development
    • Liberal Models (Modernization Theory /Stages of Growth)
    • Structuralist Models (Dependency Theory)
    • World-Systems Theory –Wallerstein
      • Cores/peripheries/semi-peripheries
  • Modernization Theory “Liberal” model
    • Holds that LDCs can develop economically if they follow a Western path.
    • Liberal school of economics--
    • Adam Smith in 1776 published Wealth of Nations in which he advocated the abolition of government intervention in economic matters.
    • This was “liberal” in the sense of no controls.
  • Every country can be positioned at one of these stages. Rostow viewed capitalism to be the proper type of production system for this development sequence. This theory has its critics.
  • What assumptions lie behind liberal models of development?
    • … that all countries will go through the same steps in developing.
    • … that economic disparities are the result of short-term inefficiencies.
  • Economic liberalism prevailed in the 1800s and early 1900s.
    • Main points of neoliberalism today:
      • 1. The rule of the market
      • 2. Cutting public expenditures for social services
      • 3. Deregulation
      • 4. Privatization
      • 5. Individual responsibility for well-being within society
  • Dependency Theory (Structuralist model)
    • Argues that the poor / periphery countries remain this way due to colonialism, in which terms of trade were unequal, labor remained unskilled and low-paid, and profit was extracted from colonies (Circular and cumulative causation.)
    • Development of core countries is dependent on the underdevelopment of periphery countries
    • Imports tend to be high-value goods from the core
    • Criticism of dependency theory – sweeping treatment of all peripheral territory
  • World Systems Theory: dynamic capitalist relations, hegemonic power
  • How does the core-periphery model and World Systems Theory apply to development issues?
    • The world has core, semi periphery, and periphery areas.
    • Individual countries need to be viewed in the context of their place within the world economic system.
  •  
  • What is sustainable development?
    • Partnerships
    • Conservation
    • Renewable resources
    • Loans to women and microcredit (such as the Grameen Village Bank in Bangladesh).
  •