This document provides an overview of key concepts in economic geography and development, including: - Three types of economic changes: structure, organization, and technology use - Measures of economic development like GDP, GNI, and PPP that show international disparities - How countries' economic development relates to their resources like energy, land, and industrial materials - The shifting economic structures around primary, secondary, tertiary and now quaternary sectors - Factors shaping regional economic development like agglomeration, localization economies, and government intervention - The impacts of globalization including new divisions of labor, supply chains, and the rise of world cities and tax havens.

1. © 2016 Pearson Education, Inc.
Chapter 8:
Geographies
of Economic
Development
Chapter 8 Lecture
Katie Pratt
Macalester College
© 2016 Pearson Education, Inc.

2. © 2016 Pearson Education, Inc.
Key Concepts
Figure: Chapter 8 Opener - Garment workers
in Gajipur, Bangladesh.

3. © 2016 Pearson Education, Inc.
Patterns of Economic Development
• Three types of changes
– Structure of region’s economy
– Forms of economic organization
– Availability and use of technology
• Unevenness
• Measuring economic development
– Gross domestic product (GDP)
– Gross national income (GNI)
– Purchasing power parity (PPP)
Apply your knowledge: What kind of statistics besides GNI provide an
indication of international disparities in economic development?

4. © 2016 Pearson Education, Inc.
Figure 8.1 GNI per capita, 2012: GNI is one of the best single measures of economic
development. Use this map to compare the core countries with the peripheral and
semiperipheral countries.
Patterns of Economic Development (cont’d)

5. © 2016 Pearson Education, Inc.
Resources and Development
• Energy
• Cultivable land
• Carrying capacity
• Industrial resources
Figure 8.3 Deforestation Malaysia in
preparation of an oil palm plantation.
Figure 8.2 A fracking rig at a well site
in Washington, PA.

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Resources and Development (cont’d)
Figure 8.4 Agricultural land cover: Some countries are fortunate in having a broad range
of cultivable land. Others must rely on exploitation of one major resource for economic
development.

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Figure 8.6 Promoting local economies.
Resources and Development (cont’d)
• Sustainable development
• Ecological footprint
• Obstacles
– Reliance on fossil fuels
– Rate of growth in periphery
– Institutional framework
Apply your knowledge: How sustainable do you think your lifestyle is compared
to other places in the world?

8. © 2016 Pearson Education, Inc.
Technical Change and Economic Development
Figure 8.1.2 The international
telegraph network in 1900.
Figure 8.1.4 Undersea internet cables
in 2012.
Apply your knowledge: Where do you think technology and economic development
are headed? Do you think there will be a new site of hegemonic influence?

9. © 2016 Pearson Education, Inc.
Economic Structure
• Primary, secondary, tertiary, and quaternary activities
Table 8.1 Economic structure.

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Economic Structure (cont’d)
• Geographic divisions
of labor
• Newly industrializing
countries (NICs)
• Foreign direct
investment
• Transnational
corporations (TNCs)
Figure 8.8 Manufacturing in South Korea.
Apply your knowledge: Consider a product you own and map out the product’s
development through the primary, secondary, and tertiary activities.

11. © 2016 Pearson Education, Inc.
Economic Structure (cont’d)
Figure 8.7 The geography of primary economic activities (2012).

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China’s Economic Development
Figure 8.A The city of Shenzhen. Figure 8.B New affluence.
Figure 8.C Real estate boom.
Apply your knowledge: What factors in China’s “open-door policy” changed
the economy and how?

13. © 2016 Pearson Education, Inc.
Economic Structure (cont’d)
• International trade
– Trading blocs
– Autarky
– Neoliberal polices
– Infrastructure
– Dependency
Figure 8.9 2014 World Economic Forum on East Asia, in
Manila, the Philippines.

14. © 2016 Pearson Education, Inc.
Figure 8.D Gender outcomes result from interactions between households,
markets, and institutions.
Apply your knowledge: What are ways that gender equality benefits the economy?
Gender and Economic Development

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Economic Structure (cont’d)
• Patterns of international debt
– Elasticity of demand
• Terms of trade
– Ratio of prices
• Import substitution
Figure 8.11 Cocoa production, Ghana.
Apply your knowledge: Determine the current debt of three countries.
What main factors have contributed to each country’s debt?

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Economic Structure (cont’d)
Figure 8.10 The debt crisis in 2012.

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Economic Structure (cont’d)
• Fair trade
– Key principles
• Ethical trading initiative
Figure 8.12 Farmers harvesting cotton in Gujarat, India supply fair trade
cotton to supermarkets in the UK.

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• Rostow model
• Myth of
“developmentalism”
• Dependency theory
• Places now seen as
interdependent
Interpretations of International Patterns of
Development
Figure 8.13 A model based on the idea of successive
stages of economic development, now regarded as
overly simplistic.

19. © 2016 Pearson Education, Inc.
Regional Economic Development
• Regional inequalities
• Geographical path dependence
• Initial advantage
• External economies
• Localization economies
Apply your knowledge: Identify an example of localized economics
functioning in your own community. What industries are clustering
together and how can this result in cost savings?

20. © 2016 Pearson Education, Inc.
Regional Economic Development (cont’d)
• Webs of functional interdependence
• Agglomeration effects
• Backward and forward linkages
• Ancillary industries
• Cumulative causation
• Backwash effects
Apply your knowledge: Identify and research three cities that have
experienced a backwash effect and the reasons for the backwash effect in
each locale.

21. © 2016 Pearson Education, Inc.
Regional Economic Development (cont’d)
Figure 8.14 Processes of regional economic growth. The geographic principles of
agglomeration and localization reinforce the initial advantages of industrial growth.
The overall process is known as cumulative causation.

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Regional Economic Development (cont’d)
• Modification of regional core-periphery patterns
– Spread effects
– Agglomeration diseconomies

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Regional Economic Development (cont’d)
• Deindustrialization
• Windows of locational
opportunity
• Creative destruction
Figure 8.15 Regional economic decline.
Figure 8.16 The abandoned Packard
automobile plant in Detroit, MI is a
testament to deindustrialization.

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Regional Economic Development (cont’d)
• Government intervention
• Growth poles
Figure 8.17 The London congestion
charge was introduced in 2003.
Apply your knowledge: Identify two regions that have experienced
deindustrialization. Think about when industries created a “boom” of economic
activity in those regions. Did these industries experience any government
intervention?

25. © 2016 Pearson Education, Inc.
Globalization and Economic Development
• New international division
of labor
– Producer services
• New technology: robotics,
biotechnology, digital
telecommunications, etc.
• Homogenization of
international consumer
markets
• Internationalization of
finance Figure 8.18 The impact of
containerization on world trade.

26. © 2016 Pearson Education, Inc.
Globalization and Economic Development
(cont’d)
Figure 8.19 24-hour trading between major financial markets.
Apply your knowledge: Choose a semiperipheral or peripheral country
and determine the ways each of the four factors of globalization have
affected its economic development process.

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• Global assembly lines
and supply chains
– Conglomerate
corporations
– Transnational
corporations
– Advantages of global
assembly line
Globalization and Economic Development
(cont’d)
Figure 8.20 Subcontracting: Nike factory on
the outskirts of Ho Chi Minh City, Vietnam.

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• Flexible production
systems
– Fordism
– Neo-Fordism
– Just-in-time production
– Vertical disintegration
– Strategic alliances
Globalization and Economic Development
(cont’d)
Figure 8.21 Headquarters of the Benetton
Group, Villa Minelli, Treviso, Italy.
Apply your knowledge: Describe the transnational commodity chain from
start to finish.

29. © 2016 Pearson Education, Inc.
• Maquiladoras
• Export-processing zones (EPZs)
• Retailing chains and global sourcing
Globalization and Economic Development
(cont’d)
Figure 8.22 The production floor
at the Flextronics maquiladora
in Jalisco, Mexico.

30. © 2016 Pearson Education, Inc.
New Geographies of Office Employment
• Decentralization
– Back-office functions
• Outsourcing
• Clusters of specialized
offices
• World cities
Figure 8.24 Workers at a call center in
New Delhi, India.
Figure 8.23 Outsourcing: Panasonic’s
manufacturing unit at Jhajjar, India.
Figure 8.25 London’s financial quarter.

31. © 2016 Pearson Education, Inc.
The Experience Economy and Place Marketing
• Combining commodities, products, and services
with compelling experiences
• Place marketing
– “Carnival Masks”
– “Businessmen’s utopias”
Apply your knowledge: Think of a place that is part of the experience economy.
List two ways that manipulation of material and visual culture is used to enhance
a sense of place for this location. Analyze where the tourists originate and what
is the “experience” they hope to have.

32. © 2016 Pearson Education, Inc.
How Geopolitics has Changed the World
Figure 8.E Tax havens.
Table 8.2 Some examples of tax havens.

33. © 2016 Pearson Education, Inc.
Future Geographies
• Availability of energy
resources
– Increasing energy demand
in peripheral countries
– Energy production will not
keep up with demand
– Increasing dependence
on OPEC governments
• Transportation
technologies
– High-speed rail systems
– Smart roads
– Smart cars
• Impact of climate change
Figure 8.26 Consumers shop for a television
at an eZone retail showroom in Bangalore,
India.
Apply your knowledge: Which
alternative transportation and
energy sources do you think have
the most potential for dealing with
the economic problems of oil
dependency and declining
reserves?