Concepts of Development• Developed vs underdeveloped (negative)• Developed vs developing? Implies progress has been made and country intends to continue• LDC vs MDC
Human Development Index• Created by the United Nations• Measures three types of factors: economic, social, and demographic – Economic factor: GDP per capita – Social factors: literacy and amount of education – Demographic factor: life expectancy• Factors combined for a maximum of 1.0 or 100%• 2001: Norway #1 with .944
• The educational component of the HDI is comprised of adult literacy rates and the combined gross enrolment ratio for primary, secondary and tertiary schooling, weighted to give adult literacy more significance in the statistic. Since the minimum adult literacy rate is 0% and the maximum is 100%, the literacy component of knowledge for a country where the literacy rate is 75% would be 0.75, the statistic for combined gross enrolment is calculated in a analogous manner. The life expectancy component of the HDI is calculated using a minimum value for life expectancy of 25 years and maximum value of 85 years, so the longevity component for a country where life expectancy is 55 years would be 0.5. For the wealth component, the goalpost for minimum income is $100 (PPP) and the maximum is $40,000 (PPP). The HDI uses the logarithm of income, to reflect the diminishing importance of income with increasing GDP. The scores for the three HDI components are then averaged in an overall index.
██ high (0.800–1) ██ medium (0.500–0.799) ██ low (0.300–0.499) ██ n/a World map indicating Human Development Index (2004).
Core Periphery Model• Scholars criticizing developed and developing argued for this new approach• Grew from Wallerstein’s World Systems Theory• Sensitive to geographical differences and the relationships among development processes occurring in different places• Focuses on economic relationships – Core – Periphery – Semi periphery
Core Periphery Model• Core Regions – High levels of socioeconomic prosperity – Dominant players in global economic game – positive characteristics of globalization • transnational links • modern development (i.e. higher wages, access to healthcare, adequate food/water/shelter) • scientific innovation • increasing economic prosperity • highly industrialized • rapidly-growing tertiary sector
Core Periphery Model• Periphery Regions – Poor regions – Dependent on the core – Do not have much control over their own affairs – extreme poverty – low standard of living – health care is non-existent in many places – less access to potable water – poor infrastructure engenders slum conditions
The North South Divide http://en.wikipedia.org/wiki/Image:Northsouth.pngBased on the 1980’s Brandt Report. Suggested a simplified worldcontrast of development and undevelopment based on degree ofindustrialization and per capita wealth.
Rostow’s Model• Walt Rostow, 1950’s, Stages of Growth Model• Liberal model…assumed all nations could develop• Development through international trade• Suggests that all countries follow a similar path through economic development – Traditional – Preconditions to takeoff – Takeoff – Drive to maturity – High mass consumption
Traditional• Not yet started development• High % of people engaged in subsistence agriculture• High % of wealth allocated to ‘nonproductive activities’ such as religion and military• Rigid and unchanging social structure• Resistance to technological change
Preconditions of Takeoff• An elite group initiates innovative economic activity• Country begins investing in new technology and infrastructure• Investments by country stimulates an increase in productivity• Progressive leadership
Takeoff• Rapid growth facilitated by a limited number of economic activities• Some sectors of the economic structure remain dominated by traditional practices• Industrialization, urbanization, mass production
Drive to Maturity• Modern technology diffuses to wide variety of industries• Industries experience rapid growth similar to the early takeoff industries• Workers become more skilled and specialized• Modernization in the core• Population growth declines
High Mass Consumption• Economy shifts from production of heavy industry such as steel and energy to consumer goods like refrigerators and motor vehicles• High incomes• Widespread production of a variety of goods and services• Majority of workers in service sector of economy