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Some of you have started ignoring this…. If define: Define Give example Explain why it is an example without repeating If verb is identify only: Identify Explain/add depth (NOT repeat). If identify and explain/discuss/describe: Identify Explain/add depth (NOT repeat)
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Some of you have started ignoring this… • If define: • Define • Give example • Explain why it is an example without repeating • If verb is identify only: • Identify • Explain/add depth (NOT repeat) • If identify and explain/discuss/describe: • Identify • Explain/add depth (NOT repeat) • Give and explain example OR provide further detailed explanation • If verb is explain/describe/discuss only: • Treat as identify and explain • If give example: • Provide example • Explain why it is an example
Human Geo • I know I look good today. • Take out your graphic dictionary (first 8 words) and your chocolate article. • Let’s talk about the chocolate.
Rostow’s Stages of Development vs. Wallerstein’s World Systems Theory
Warm Up! • What is the primary sector of production? Secondary? Tertiary? • What is Wallerstein’s World Systems Theory? • How are transportation costs determined in Weber’s Least Cost theory?
First Stage—Traditional Economy • Economy based mainly on primary activities • Per capita income very low • Rarely hear about new technology • Small scale production • Largely subsistence based economy • Very little connection to NIDL • Ex.—Afghanistan, Mongola
Second Stage—Preconditions for Takeoff • Commercialization of agriculture—turning agriculture into a business • Exploiting raw materials for larger profits • Become connected to NIDL (exporting raw materials) • Investment in infrastructure begins (roads, electrification) • Ex.--Colombia
Third Stage—Take Off • Lots of foreign direct investment comes (FDI) in (money from foreign countries) • Country gets outsourced jobs • High or low income? • Country begins industrialization • Country still largely agricultural, but becomes more urbanized • Ex.—Mexico • Others?
Fourth Stage—Drive to Maturity • Technology diffuses throughout the country • Way fewer people in traditional economy, increase in manufacturing • Increase in education • Increased in skilled labor, better jobs • Ex—Chile, Malaysia
Fifth Stage—Mass Consumption • Finally, high per capita income • Leads to mass consumption-people buying lots of goods • Service based economies • Education and skill levels very high • Ex.--USA
Review—Which level, AND why? • Mexico (think of maquiladoras) • United States • Yemen—Very poor country, almost no development • Costa Rica—Large coffee and banana plantations • Chile—One of the richest countries in South America, almost no traditional economies • Qatar—Highest GDP per capita in the world • India—Think of call centers • Afghanistan—Most of population involved in nomadic herding and subsistence agriculture • Kenya—Exports wheat, coffee, and oil • Malaysia—Mechanized agriculture and increasing service economy
Rostow vs. Wallerstein • Rostow—National perspective--Specific countries progress through these stages as they develop (capitalism good) • Foreign Direct Investment—good to allow countries to industrialize • Outsourcing, low wage manufacturing • Wallerstein— Global perspective--Core countries continually exploit periphery countries, periphery countries are not improving (communism good)
Review! • How does your level of development in Rostow’s stages of modernity affect your role in the New International Division of Labor? • Which theory do you support: Rastow’s Modernity strategy or Wallerstein’s World Systems theory? Why?
Addressing the Development Gap • Economists are concerned with the gap between core and periphery countries • North-South Gap—Most core countries in Northern hemisphere, periphery countries in Southern Hemisphere • The gap is widening in many places • What LDC’s want to do • Industrialize to create per capita GDP growth • Use that GDP growth to improve social and economic conditions • What role should the government play in LDC’s to reach these goals?
3 Strategies • International trade/free trade strategy • Countries reduce trade barriers, like tariffs, to increase trade with other countries • Encourage footloose industries, export processing zones • Free-trade zones—Areas with special tax breaks for businesses, less labor and environmental laws • Favor the Rostow approach to development • Examples: China (kinda), India, NAFTA, EU, TPP, etc.
3 strategies • Marxist/self sufficiency strategy • Transnational/multinational corporations from core countries will only exploit us • Use protectionist policies, like tariffs, to promote domestic industries, and keep foreign industries out • Want to develop on their own • Ex.—USSR, China until 1970’s, Cuba, North Korea
3 strategies • Developmental state strategy • Mixed economy! • Government involvement in the economy as well as private industry • Government focuses and provides capital (money) to invest in specific industries to develop based on comparative advantage • Been successful for many countries, like…
Asian Tigers! • Taiwan, Singapore, South Korea, and Hong Kong • Governments invested in finance and tech manufacturing industries, and saw rapid GDP growth • Now advanced countries!