Chapter 9

“Part 2 - Development”

There is a correlation between Development and Gender Inequality

•Remember GDI and GEM from Part 1 of the Development slide show.

•GDI is similar to HDI, but for women.

•Eg. Iran and Mexico have a similar HDI (Mexico is a little higher) and have the same amount of youth in school but Mexico has a much higher GDI because both boys and girls have equal access to education.

•Norway has the highest GDI at .941 – Canada is just below this at .938

•High GDI – Both men and women have achieved a high level of development•Low GDI – women have a low level of development compared to men

•Average income of women is lower than males everywhere in the world – Economic Indicator

•60 women to every 100 men attend secondary school in LDCs – Social Indicator

•99 women to every 100 men in MDCs – Social Indicator

•Demographic Indicators are different – Females live longer than males in MDCs. It is about the same in LDCs

•In both MDCs and LDCs fewer women than men hold positions of economic and political power – GEM

•Northern Europe is high in women with high incomes and professional jobs

•North America is high in women in managerial and elected jobs

•Population Growth is directly related to the status of women

Let’s analyze some slides

Gender-Related Development Index (GDI)

The GDI combines four measures of development, reduced by the degree of disparity between males and females.

Gender Differences in School Enrollment

As many or more girls than boys are enrolled in school in more developed countries, but fewer girls than boys are enrolled in many LDCs.

Female Literacy Rates

Female literacy is lower than male literacy (Fig. 9-13b) in many LDCs, with significant gender gaps in parts of the Middle East, Africa, and South Asia.

Male Literacy Rates

There is a gap in literacy rates between MDCs and LDCs as well as between men and women in many LDCs.

Life Expectancy and Gender

Women’s life expectancy is several years longer than men’s in MDCs, but only slightly longer in many LDCs.

Female–Male Income Differences

Women’s income is lower than men’s in all countries, but the gender gap is especially high in parts of the Middle East, South Asia, and Latin America.

Stages of Development

Countries go through economic and social stages of development. For example if a country’s economy is enhanced, the population’s standard of living is also enhanced, education and income will also rise and according to the Demographic Transition (Chapter 2 on Population) their birth rates should decrease and so on.

The Industrial Revolution created a huge transformation, but only in countries in Europe and North America. Their economies moved towards ‘Industrialization’. Not only did Europe and North America go through social and economic change, so did other parts of the world, the parts that had the resources to fuel this industrialization. The countries that could not fuel industrialization were left behind.

From this point on Rich and Poor countries began to emerge.

When we think of Developed (MDC) we think of:

• …

• …

• …

• …

• …

• …

• …

•Today there is a large gap between LDCs and MDCs

•Close this gap by improving the economic, social and demographic indicators that we discussed

•1/5 of the world lives in MDCs but consume 4/5 of the resources – Ecological Footprint

•Eg. Europeans spend $11 billion on ice cream each year. It costs $9 billion to supply 2 billion people with toilets that they need – make sense?

The poorer countries are designated; Developing or less developed or LDCs (Less Developed Countries). These terms suggest that in order to reach the Developed stage they have to pass through other stages in order to be like Europe or North America.

There are a number of theories that try to illustrate the road to development:

The Modernization Theory (the stages to economic growth) by W.W. Rostow

Stage 1, the traditional society:…

Stage 2, preconditions for takeoff:…

Stage 3, the takeoff:…

Stage 4, the drive to maturity:…

Stage 5, the age of high mass consumption:…

Countries can skip a stage or even go back a stage or two – depending on economic conditions.

The above is a theory created by someone from a rich country, it is a capitalist point of view. The developing countries found it hard to reach the latter stages. Brazil and Mexico borrowed lots of money to create capital but of course they fell into debt. Their debt led to economic hardship. They became rich in human resources but the creation of wealth and entrepreneurs did not happen.

Often the capital for the developing world’s business remains in the hands of the developed world. Multinational companies invest in the businesses of the developing countries, but the profits go back to the developed countries.

Europe, the US and Japan did it this way so could other countries.

Globalization could help bring in money and get things started.

LDCs do have raw materials and now that most are independent (no longer colonies) they can generate money with these raw materials

Oil rich countries used money to fund development but their treatment of women and religious fundamentalism have held overall development back.

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1. Traditional Society

2. Preconditions for takeoff 3. Takeoff

4. Drive to maturity

5. Age of high mass consumption

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Core and Periphery Theory by Immanuel Wallerstein

Wallerstein stated that the existing world economy is based on capital that existed since the time period of 1450 to 1670. He states that countries centered in Western Europe formed an economic “Core” around which the development of the rest of the world – the “Periphery” – took place. …

The “periphery” included Asia, Africa, Eastern Europe, and Latin America.

Side note: Canada calls its’ core the Heartland and the Periphery is called the Hinterland. The Windsor to Quebec corridor is Canada’s heartland and the rest of Canada can be considered the hinterland. Countries and even regions in countries can have their own core and peripheries. The meaning of Heartland is even different in the US.

Wallerstein suggests that there are four categories into which each region of the world may be placed:

Core, Semi-periphery, Periphery, External

1. Core:- …- …- …- ….- …

2. Semi-Periphery:- …- …- …- …- …

3. Periphery:- …- …- …- …- …

4. External:- …- …- …- …

-Today the core countries can consist of North America (Canada and the US.). Interesting but in the early 1900’s Canada was considered a Semi-Periphery country.

- The Semi-Periphery countries today are Eastern Europe including Russia and China and India and Malaysia.

- The Periphery countries include most of Africa, except South Africa (Semi-Periphery), Central Asia (Middle East, Turkey, Pakistan, Afghanistan, Kazakhstan and South-East Asia (Burma, Thailand, Cambodia)

Wallerstein has noticed a change. Countries that are rapidly developing and industrializing are creating their own cores.

A good example is East Asia. The strong economies of South Korea, Singapore, Taiwan and Hong Kong (now part of China) have joined Japan to form a core of trade and centre of banking and investment. Emerging cores can challenge the traditional cores (Europe and North America) but usually these cores remain regional.

The theory suggest that the traditional cores will continue to dominate the periphery regions of the world. Latin America will be dominated by North America and Africa will be dominated by Europe.

These four are called: the Four Asian Dragons - Tigers

Cores may shift in size and even multiply but their function will remain the same.

Wallerstein sees that the present capitalist world economy will be detrimental to a large proportion of the world’s population. He sees the disparities of the world increasing. The gap between rich and poor serves the economic needs of the rich. The rich need to exploit the low wages of the poor. This is the only way Multi-nationals can make money.

The rich still control the world economy. The peripheral countries lack the infrastructure to compete.

According to the UNDP (United Nations Development Program) the gap between rich and poor has widened from 30:1 in 1960 to 60:1 in 1990.

Core and Periphery in World Economyanother look

This north polar projection of the world shows that most of the MDCs are in a core area north of 30° N latitude. The LDCs are mostly on the periphery of this map.

Develop through Self Sufficiency

• …• …• …• …• …• …• …

Problems:

• Inefficiency – …

•Large Bureaucracy – …

Development Through International Trade

• …

• …

• …

• …

Problems:

• Uneven resource distribution – …

• Market Stagnation – …

• Increased dependence on MDCs – …

• …

• …

• …

• WTO – World Trade Organization – …

• The WTO is all about Globalization – …

• Globalization Good – …

• Globalization Good – …

• Globalization Bad – …

• Globalization Bad – …

• A word about – Trans-nationals – “A company that locates and does business in counties other than the one it has its headquarters in”

Transnational corporation are aggressive in finding low-cost labour, especially in LDCs. • New international division of labour

• LDCs need money to get started.

• Two ways: …

• Problem: …

• Brazil and Mexico have defaulted in payments

• Sometimes the World Bank or the IMF tells these countries to adopt a “Structural Adjustment Program” – The countries are told to raise taxes, sell companies or change economy or start making products that MDCs want.

Vocabulary List

Unit VI. Industrialization and Development—Basic Vocabulary and Concepts  Development Agricultural labor force Calorie consumption Core-periphery model Cultural convergence Dependency theory Development Energy consumption Foreign direct investment Gender Gross domestic product (GDP) Gross national product (GNP) Human Development Index Levels of development Measures of development Neocolonialism Physical Quality of Life Index

Purchasing power parity Rostow, W. W. “Stages of Growth” model Technology gap Technology transfer Third World World Systems Theory

The End!