Economic Geography “Development”

1. Economic Geography“Development” Cultural Geography C.J. Cox

2. Chapter Overview • Economic Geography • World Economic Regions • Continuum of Development • Measurement of Economic Development • Structure of Economies

3. Geographer’s Perspective of World Economies • Geographers are interested in the distribution of wealth in the world today. • What are the patterns of wealth worldwide? • Why is wealth distributed in the manner that it is? • What can be done to improve the wealth of the poorer countries?

4. Economic Geographers • explain how people in various places make a living, • by analyzing the characteristics of, differences among, and movements between areas of production, exchange, and consumption.

5. Economics in Context • Of special interest economic geographers is the localization of economic activity • how has such activity has evolved historically within specific cultural and technological contexts • What are the particular physical and human resources and economic and political conditions that influence development

6. Globalization • accelerating economic, cultural and political interdependencies across national borders. • Much of the world's economic activity is now transnational in scope. • Globalization underscores virtually all contemporary geographies.

7. Rich & Poor

8. Determining Development • Old Classifications • First World • Ex: North America and Western Europe • Second World • Ex: U.S.S.R. and Eastern Bloc countries. • Third World • Ex: The underdeveloped, such as much of Latin America and South-East Asia.

9. Determining Development • New Classifications • Developed and Developing economies • Or, • Industrialized and Newly IndustrializingCountries (NIC)

10. A Continuum of Development Poor Countries Rich Countries USA Sweden Zimbabwe

11. Developing countries in the process of developing their economies less diversified economies mostly agricultural based economies Developed countries with developed economies more diversified economies mostly service, retail and technology based economies Developing vs. Developed

13. How Is The Economic Development of a country Measured? • GNP • Demographic Signs of Development • Social Signs of Development • Structure of the Economy

14. Key Terms • Per Capita Income: Per person income • Gross National Product: Total production of goods and services by a country within a period of a year • Gross Domestic Product: Total production of goods and services within a country during a period of a year

15. Range of World GNP • World Average • $4920 • Developed Countries • $19,310 • Developing Countries • $1,120 • Lowest GNP • $80. Mozambique • Highest GNP • $41,210 Luxembourg

16. GNP Continuum Poor Countries Rich Countries Developed Average $19,310 Developing Average $1,120 Mozambique $80 Luxembourg $41,210 USA $26,980 World Average $4920

19. GDP 1995

22. Single Commodity Dependent Economies Farming - orange Oil - Green Metals - pinks

23. How Is The Economic Development of a country Measured? • GNP • Demographic Signs of Development • Social Signs of Development • Structure of the Economy

24. Developing Countries high birth rates (5%) high natural increase (4.6%) high infant mortality (150+) high fertility (7.4) high pop under 15 (50%) low pop over 65 (1%) low doubling time (15 yrs.) short life expectancy (43 yrs.) Developed Countries low birth rates (1%) low natural increase (0) low infant mortality (.4%) low fertility (1.1) low pop under 15 (15%) high pop over 65 (18%) high doubling time (4077 yrs) long life expectancy (80 yrs) Demographic Signs of Development

28. How Is The Economic Development of a country Measured? • GNP • Demographic Signs of Development • Social Signs of Development • Structure of the Economy

29. Social Signs of Development • Use of consumer goods - phones, TV’s, computers • Distribution of wealth & services • health care availability • number of physicians per capita • education availability • literacy • Signs of over consumption • caloric intake

34. How Is The Economic Development of a country Measured? • GNP • Demographic Signs of Development • Social Signs of Development • Structure of the Economy

35. Structure of the Economy • Economic activities are divided into stages or categories of increasing complexity • Primary Sector • Secondary Sector • Tertiary Sector • Quaternary Sector Secondary Primary Tertiary Quaternary

36. Economic SectorsStructure of the Economy • Primary Industry - extraction of resources from the earth • farming, mining, lumber harvest, fishing

37. Primary Sector • The direct extraction of material from the earth. Generally, through agriculture, but also through mining, fishing and forestry. • Many developing nations still rely on the primary sector as a source of employment and export earnings.

38. Interesting Facts • It is estimated that as much as 75 percent of the people in India are working in agriculture. • Less than 5 percent (maybe 3) of the work force is involved in agriculture in the United States.

39. Rice Farming in Vietnam - primary industry

40. Vietnam

41. Costa Rica

43. Economic SectorsStructure of the Economy • Secondary Industry - processing and manufacturing of resources • manufacturing

44. Secondary Sector • The manufacturing or processing of primary products. • Associated with the Industrial Revolution.

45. Interesting Fact • Currently, only about 15 percent of manufacturing comes from developing countries, but this figure is rising due to policies set forth by the IMF and various multilateral agreements.

46. Sugar Refining Plant

47. Timber Processing -Humboldt

48. Mazarotti Plant - Italy

49. Economic SectorsStructure of the Economy • Tertiary Industry - distribution of goods and services • trucking, banking, retail store outlets, groceries

50. Tertiary Sector • Providing services, such as: financial, retail, government, transportation, marketing, legal, etc… • Employs most of the labor force in the developed world. • “Post-Industrial”