SH

Unit 2: Development, Sectors, and Migration (Lecture Notes)

Lesson 2.1 - The Industrial Revolution

  • Describe the Industrial Revolution: A transition from handcrafts and artisanal production to mechanized, factory-based manufacturing, driven by new technologies (e.g., steam power), organizational changes, and shifts in energy use. It fundamentally altered economies, societies, and environments, creating modern industrial economies.

  • SPEED impacts (Social, Political, Economic, Environmental, Demographic) on multiple facets of life:

    • Social: urbanization, changes in family structure and labor organization; rise of new social classes (industrial middle class and urban working class); shifts in gender roles and potential for female entry into wage labor.

    • Political: new policies and regulations to manage urban growth, labor rights, and capital accumulation; shifts in power relations between capital owners and labor; reform movements and debates about suffrage and citizenship.

    • Economic: acceleration of production, growth of global trade networks, rise of factories, accumulation of capital, and creation of new financial instruments and markets.

    • Environmental: increased resource extraction, pollution, deforestation, and changes to ecosystems due to industrial activity and urbanization.

    • Demographic: population growth in cities, changes in mortality and fertility patterns, internal and international migration toward industrial centers.

  • Effects on demand for raw materials from the primary sector:

    • Increased demand for coal, iron/steel, cotton, wool, timber, and other inputs to fuel machinery, rails and ships, and industrial processes.

    • Global supply chains expand as production shifts to regions with access to inputs and markets.

  • Transportation:

    • Development of railways, canals, steamships, and improved road networks expands markets, lowers transportation costs, and integrates regional economies.

    • Faster movement of goods and people accelerates urbanization and specialization of regions.

  • Female empowerment:

    • More women participate in wage labor in factories and service sectors; shifts in family dynamics and gender norms.

    • Over time, debates about women’s rights, education, and political participation intensify as economic roles expand.

  • The environment:

    • Pollution and resource depletion intensify; urban sanitation challenges arise; environmental degradation linked to rapid industrial growth.

  • Population size and migration patterns:

    • Rural-to-urban migration increases as people seek factory jobs; urban population growth outpaces rural growth.

    • International migration emerges as people move in search of better opportunities in industrialized regions.

  • Key concepts and terms:

    • Industrial revolution

    • Labor-saving technology

    • SPEED factors (Social, Political, Economic, Environmental, Demographic)

  • Connections to broader topics:

    • Foundations for modern economic development and capitalism

    • Precedent for Rostow’s stages of development and for global spatial inequalities

    • Environmental and social costs that feed later reform movements and regulatory regimes

  • Examples, metaphors, or scenarios:

    • A factory town where steam-powered machines require a steady coal supply, attracting workers and spurring the construction of rails to connect to distant markets.

  • Relevance to real-world issues:

    • Provides historical context for contemporary debates on automation, supply chains, labor rights, and environmental policy.

  • Ethical, philosophical, or practical implications:

    • Balances economic growth with living and working conditions; questions about equity, labor exploitation, and sustainable development.

  • Vocabulary:

    • Industrial revolution

    • Labor-saving technology

Lesson 2.2 - Economic Indicators of Development

  • Identify terms used to categorize development levels (global framework):

    • Low income country, middle income country, high income country

    • Less Developed Country (LDC), Newly Industrialized Country (NIC), More Developed Country (MDC)

  • Describe economic indicators and their meanings:

    • Gross Domestic Product (GDP)

    • Gross National Product (GNP)

    • Gross National Income (GNI)

    • Per capita

    • Formal Economy

    • Informal Economy

    • Gini Coefficient (measure of income inequality)

  • Describe correlations between indicators and development:

    • Generally, higher GDP/GNI per capita correlates with higher development levels, better health, education, and access to services; however, correlations can vary by region and country due to structural factors.

    • Inequality (Gini) can be high even in economies with rising aggregate GDP.

  • Global and regional patterns of development:

    • High, middle, and low development regions show distinct spatial patterns driven by history, institutions, resources, and integration into global markets.

  • Underlying reasons for patterns:

    • Access to capital, technology, institutions, trade opportunities, and natural resources; historical legacies and political stability influence development trajectories.

  • Limitations of indicators:

    • GDP/GNP/GNI per capita do not capture distribution of wealth, quality of life, informal economy size, external debt, or non-economic well-being.

  • Vocabulary:

    • Low income country, middle income country, high income country

    • Less Developed Country (LDC), Newly Industrialized Country (NIC), More Developed Country (MDC)

    • Positive correlation, Negative correlation

    • Gross Domestic Product (GDP)

    • Gross National Product (GNP)

    • Gross National Income (GNI)

    • Per capita

    • Formal Economy

    • Informal Economy

    • Gini Coefficient

Lesson 2.3 - Economic Sectors

  • Describe the sectors of the economy:

    • Primary sector: extraction of natural resources (agriculture, mining, fishing, forestry)

    • Secondary sector: manufacturing and processing (construction, industry)

    • Tertiary sector: services (retail, education, health, finance)

    • Quaternary sector: knowledge-based activities (research, information technology, consulting)

    • Quinary sector: high-level decision making (top government, executives, non-profit leaders)

  • Correlation between economic structure and development:

    • As development progresses, economies tend to shift from primary to secondary, tertiary, and increasingly quaternary/quinary activities.

    • More developed economies show a larger share of tertiary/quaternary/quinary sectors.

  • Changes to economic structure over time as a country develops:

    • Diversification of outputs, urbanization, rising productivity, and rising demand for higher-skilled labor.

  • Underlying SPEED factors driving the correlation between economic structure and development:

    • Social, Political, Economic, Environmental, and Demographic forces influence industrialization, urbanization, education, and technology adoption.

Lesson 2.4 - Social Measures of Development

  • Social indicators related to health:

    • Total Fertility Rate (TFR)

    • Infant Mortality Rate (IMR)

    • Maternal Mortality Rate

    • Adolescent Fertility Rate

    • Life expectancy

  • Social indicators related to education:

    • Literacy rate

    • Mean years of schooling

  • Composite social indicators:

    • Gender Inequality Index (GII)

    • Human Development Index (HDI)

  • Correlations between social indicators and development:

    • Higher education access and health outcomes generally accompany higher development levels; progress is uneven across regions and genders.

  • Global and regional patterns of social development:

    • Variations in health, education, and gender equality reflect policy choices, resources, and cultural norms.

  • Underlying reasons for patterns:

    • Investment in health care, education systems, women's rights, and social protection influence outcomes.

  • Vocabulary:

    • Total Fertility Rate (TFR)

    • Infant Mortality Rate (IMR)

    • Maternal Mortality Rate

    • Adolescent Fertility Rate

    • Life expectancy

    • Literacy rate

    • Mean Years of Schooling

    • Gender Inequality Index (GII)

    • Political participation

    • Labor force participation

    • Human Development Index (HDI)

    • Contraceptives/Family planning

Lesson 2.6 - Rostow’s Model of Development

  • Describe the Rostow Modernization model:

    • A historical model outlining the path of economic development through distinct stages toward modernization.

  • The five stages of Rostow’s Modernization model:

    • Traditional society

    • Preconditions for takeoff

    • Takeoff

    • Drive to maturity

    • High mass consumption

  • Identify examples of countries in stages 2-5 (per course materials):

    • Stage 2: Early takeoff characteristics; Stage 3: Takeoff; Stage 4: Drive to maturity; Stage 5: High mass consumption (varies by country and timeframe).

  • Describe changes in a country over time as it progresses through the stages:

    • Shifts from agrarian, traditional practices toward investment in infrastructure, technology, and diversified industries; increasing capital formation and productivity.

  • Correlations between major development indicators and stages:

    • Initial growth in capital and technology aligns with takeoff; later stages show rising consumption, services, and higher standards of living.

  • Underlying assumptions of Rostow’s model:

    • Linear, cumulative progress driven by capital accumulation, technological change, and leadership.

  • Major weaknesses/limitations:

    • Oversimplifies diverse development paths, ignores failed states or political obstacles, and assumes Western-style development is universally applicable.

  • Vocabulary:

    • Modernization theory

    • Traditional society

    • Preconditions for takeoff

    • Takeoff

    • Drive to maturity

    • High mass consumption

Lesson 2.7 - Wallerstein’s World Systems Theory

  • Describe Wallerstein’s World Systems Theory:

    • A macro-scale view of the world economy as a system of interdependent parts organized around a core-periphery-periphery framework.

  • The 3 types of countries:

    • Core: advanced, capitalist economies with strong institutions and high value-added activities.

    • Semi-periphery: intermediate; some diversification and exploitation of peripheries; moderates core-periphery dynamics.

    • Periphery: less developed economies focused on extraction and export of raw materials with weak institutions.

  • Identify examples of core, semi-periphery, and periphery countries (as discussed in course materials).

  • Compare characteristics across categories:

    • Core benefits from global markets, controls high-value production; periphery supplies raw materials and cheap labor; semi-periphery sits in between.

  • How countries in different categories depend on one another:

    • Core countries rely on periphery resources; periphery depends on core markets and investment for growth; semi-periphery mediates power dynamics.

  • Limitations of Wallerstein’s theory:

    • Oversimplifies national trajectories, can underplay internal variations, and may not capture regional shifts or country-specific policy impacts.

  • Vocabulary:

    • World Systems Theory

    • Dependency

    • Core

    • Semi periphery

    • Periphery