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DEVELOPMENT. Chapter 10. How Do You Define and Measure Development?. Gross National Product (GNP) Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year, both inside and outside a country’s territory.

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Development

DEVELOPMENT

Chapter 10


How do you define and measure development

How Do You Define and Measure Development?

Gross National Product (GNP)

Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year, both inside and outside a country’s territory

Gross Domestic Product (GDP)

Measure of the total value of the officially recorded goods and services produced with a country by the citizens and corporations in a given year

Gross National Income (GNI)

Most common measurement used today

Measure of the monetary worth of what is produced within a country plus income received from investments outside the country


Issues with measuring economic development

Issues with Measuring Economic Development

  • Formal economy

    • The legal economy that governments tax and monitor

    • Counted in all measures of economy

  • Informal economy

    • The illegal or uncounted economy that governments do not tax or monitor

    • Not included in measures of economy


Other ways of measuring development

Other Ways of Measuring Development

  • Occupational structure of the labor force (employment in sectors of the economy)

  • Productivity per worker (production divided by total labor force)

  • Transportation and communications facilities per person (per capita index of transportation and communications per person)

  • Dependency ratio (dependents, young and old, that each 100 workers must support)


Differences in communications connectivity around the world

Differences in Communications Connectivity Around the World


Dependency ratio 2007

Dependency Ratio, 2007

A measure of the number of people under the age of 15 and over the age of 65 who depend on each working-age adult


Development models

Development Models

  • Implication of

    • “Progress”

    • Similar path or process in all countries

  • Walt Rostow’s Modernization model

    • Traditional

    • Preconditions of takeoff

    • Takeoff

    • Drive to maturity

    • High mass consumption


Development 2474172

Rostow’s Ladder of Development


How does geographical situation affect development

How Does Geographical Situation Affect Development?

  • Importance of context: What happens at state, local, global scale

  • Colonialism

    • Diffusion of idea of the state

    • Dependence of colonies on rulers

    • Wealth to ruling countries

  • Neo-colonialism: Continuation of economic dependency despite political independence

  • Structuralist theory: Difficult-to-change, large-scale economic arrangements


Dependency theory

Dependency Theory

  • Development possibilities limited by

    • Political and economic relations between regions and countries

    • Dependency of colonies on ruling countries

    • Reinforcement of dependency despite political independence

  • Dollarization: Replacing local currency with currency of a wealthy country

  • Little hope for development in countries dominated by wealthy powers


World systems theory three tier structure

World-Systems Theory: Three-Tier Structure

Core

Processes that incorporate higher levels of education, higher salaries, and more technology

Generate more wealth in the world economy

Periphery

Processes that incorporate lower levels of education, lower salaries, and less technology

Generate less wealth in the world economy

Semi-periphery

Places where core and periphery processes are both occurring

Places that are exploited by the core but then exploit the periphery

Serves as a buffer between core and periphery


Three tier system

Three-Tier System


What are the barriers to and the costs of development

What Are the Barriers to and the Costs of Development?

Millennium Development Goals

  • Eliminate extreme poverty and hunger

  • Achieve universal primary education

  • Promote gender equality and empower women

  • Reduce child mortality

  • Improve maternal health

  • Combat HIV/AIDS, malaria, and other diseases

  • Ensure environmental sustainability

  • Develop a global partnership for development


Human development index 2005

Human Development Index, 2005


Barriers to development

Barriers to Development

  • Social conditions

  • Foreign debt and structural adjustment loans

  • Political instability

  • Widespread disease (e.g., malaria)


Foreign debt obligations

Foreign Debt Obligations


Malaria transmission risk

Malaria Transmission Risk


Costs of economic development

Costs of Economic Development

  • Industrialization

    • Air and surface water pollution

    • Export Processing Zones (EPZs)

    • Maquiladoras

    • Special economic zones (SEZs)

    • Locations geared to export markets


Export processing zones

Export Processing Zones


Costs of development

Costs of Development

  • Agriculture

    • Pesticides

    • Desertification

    • Production for export rather than local markets

  • Tourism

    • Pollution

    • Narrow benefits

    • Damage to local cultures


Areas threatened by desertification

Areas Threatened by Desertification


How do political and economic institutions influence uneven development within states

How Do Political and Economic Institutions Influence Uneven Development Within States?

  • Get involved in world markets

  • Price commodities

  • Affect whether core processes produce wealth

  • Shape laws to affect production

  • Enter international organizations that affect trade

  • Focus foreign investment in certain places

  • Support large-scale projects


Islands of development

Islands of Development

  • Government islands: Capital cities

  • Corporate islands

  • Non-governmental organizations (NGOs)

    • Private, usually non-profit organizations

    • Microcredit programs


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