AP HUMAN GEO UNIT 7

7.1 INTRO TO INDUSTRIALIZATION

Cottage Industry → A type of industry in which the production of goods and services is based in homes, not factories.

  • Everything done by hand

  • Families worked together

  • No supervision or schedule 

  • Slow & inefficient

Industrial Revolution → A social and economic shift caused by the dramatic increase of manufacturing productivity. 

  • Began in Britain in 1700s 

  • Characterized by introduction of power-driven machines to replace hand tools

What factors contributed to the start of the Industrial Revolution?

  • Abundance of natural resources

  • Availability of human capital

  • Internal political stability 

  • Stable trade relationships

  • High demand for goods

  • New technologies

How did the Industrial Revolution diffuse? 

  • Originated in Britain     in 1700’s and spread outwards through Europe 

  • By early 1900s, reached all of Europe, Japan, parts of China & South America

  • Vast majority of world is industrialized today 

What were some important new technologies of the Industrial Revolution?

  • Steam engine 

    • Railways & steam ships 

  • Electricity

  • Steel

  • Cotton gin

  • Spinning Jenny 

Fordism → A means of mass production based on the assembly line method. 

  • In early 20th century, Henry Ford developed assembly line method in which an item is moved from worker to worker, with each worker performing the same task repeatedly 

    • Produced more standardized products more rapidly and with less-skilled workers 

Impacts of the Industrial Revolution

Impact

Description


Alteration of landscape

  • Factories first built near power sources (rivers, coal deposits, etc.) and transportation routes

  • Later, development of electricity, construction      of new roads & harbors allowed factories to be built in diverse locations


Evolution of agriculture

  • Improvements in farm machinery and Enclosure Movement increased agricultural productivity 

    • Machine power replaced human/animal power

    • Many people no longer needed for farming 

Impact

Description



Population growth 

  • Human population more              than doubled

    • Food surplus due to agricultural improvements

    • Medical advancements

    • Longer life expectancies

  • Led to increased demand for goods and housing



Urbanization

  • Workers moved to cities to work in factories since they were no longer needed in agriculture 

  • Low standard of living (overcrowding, lack of sanitation)

  • Growth of buildings & infrastructure


Environmental harm

  • Air pollution due to burning of coal to heat homes and run factories

  • Water pollution due to lack of sanitation, chemical runoff, etc. 

  • Habitat destruction due to growth of cities & infrastructure



Social structure 

  • Reshaped how people worked and behaved how they related to one another 

    • Job specialization led to new social structure (upper, middle, working classes)

    • Lots of exploitation but also better chance of social mobility



New ideas

  • Advancement of science & medicine

  • More interconnected world (new technologies)

  • Expansion of education

  • Emergence of socialism (discontent among workers who did not benefit as much from capitalism) 



Imperialism

  • Renewed interest in imperialism as industry required raw materials and markets to sell to 

    • Colonies provided raw materials, labor to extract materials, markets for finished products, etc. 


Distribution of wealth 

  • Wealthy countries became wealthier, leading to a great divide between advanced, industrialized states and underdeveloped, non- industrialized states

    • Trend continues today

Post-Fordism →  A production system in which companies have replaced workers with machines to allow for faster and varied production. 

  • With use of computers and increased automation, every product coming off an assembly line can be customized         (ex. cars of different colors) 

  • Although expensive to install, machines often save a company money in the long run (can work 24/7 without breaks or vacations, produce consistent, high quality work)

Deindustrialization →  A reduction in the size of the manufacturing industry and industrial capacity of a place. 

  • Experienced by more developed countries 

    • Production outsourced to less developed countries 

  • Industry replaced by growth in the service sector 

7.2 FACTORS OF INDUSTRIAL LOCATION

jLeast Cost Theory → 

  • Developed 1909 by German economist Alfred Weber 

  • Theory that attempts to predict the location of manufacturing relative to the location of necessary raw materials and the market

  • industries locate to minimize costs, prioritizing transportation, labor, and agglomeration (the clustering of firms, workers, and economic activity in a geographic area, producing mutual benefits from proximity.)

  • Explains the geographic distribution of economic industrial activities 

Assumptions:

  • The area is an isotropic plane (flat, featureless, quality and price of all land is the same)

  • The population is homogeneous (culture, needs, skills, etc.)

  • Labor is immobile and unlimited

  • Markets have unlimited demand and perfect competition 

  • Products are shipped to a single market 

  • Transportation costs are determined by weight of the items and distance they will be shipped

  • Companies produce only one type of product 

Owners need to balance three factors when deciding where to open a factory: 

  • Transportation cost, labor costs and agglomeration

Transporation : 

Raw materials get transported to the factory and finished goods get transported to the market 

  • Cost of transportation is determined by weight of the materials and distance shipped and should be minimized

Bulk-Reducing Industry → 

  • AKA Weight-losing industry, raw material-oriented industry, raw material-dependent industry 

  • Raw materials are heavier than the final product so companies should try to locate manufacturing near the source of the raw materials

Bulk-Reducing Industry: Steel 

  • Iron ore mined from earth 

  • Impurities removed from the iron by melting and oxygenating it, making it lighter and stronger 

Bulk-Gaining Industry

  • AKA weight-gaining industry, market-oriented industry, market-dependent industry

  • The final product is heavier than the inputs so companies should locate factories near the market

Bulk-Gaining Industry: Soft Drink Bottling

  • Soda companies make syrups for their drinks 

  • Syrups are shipped to bottlers

  • Bottlers combine water (heavy) with syrups to make soft drinks 

Draw and explain the locational triangle. 

  • The market is found at one location and the resources to make the product are obtained at two others. The three points make up the locational triangle.

  • Where the factory is located within the triangle depends on the weight of the materials 

  • If neither raw material loses weight during processing, the company has no advantage in locating near either 

  • If one material loses weight when processed, the company can save money by placing factory closer to the other (heavier) resource

  • If both materials lose weight during processing, the factory can be located between the two sources 

Agglomeration → The spatial grouping of businesses in order to share costs. 

  • Can assist each other through shared talent pool of workers, services, and facilities

  • Ex. When several factories share   the cost of building an access road  to connect them with a highway 

Weber argued companies should minimize  transportation  and labor costs and maximize agglomeration

  • Sometimes, cost savings from cheaper labor or agglomeration can be greater than savings from locating at the cheapest spot relative to transportation costs. In these cases, owners should choose to locate where the cheaper labor or benefits from the agglomeration economies exist.

Criticisms: 

Weber’s Assumption

Reality

The area is an isotropic plain

Isotropic plains rarely ever exist; mountains, rivers, urban areas, etc. can impact location decisions

Labor is fixed and unlimited

Labor is relatively mobile; labor is not unlimited (especially skilled labor)

Populations are homogenous (culture, training, needs, etc.)

Populations are heterogeneous, with different needs (demands) and different levels of training and education

Weber’s Assumption

Reality

One product  is produced for a single market

Companies often sell multiple products and to more than one market

Markets have unlimited demand, perfect competition

Perfect competition conditions rarely exist; demand is not unlimited, especially if there is lots of competition

Raw materials are found only in certain locations

Raw materials are often available in many locations.

Weber’s Assumption

Reality

Transportation costs are determined by the distance of travel and weight of items

Cost per mile may decrease as the distance increases; space-time compression can reduce overall cost of transportation

Location of factories is based on economic consider\ations only

Emotional factors (history, tradition), personal preference of owners (convenient commute, etc.) can influence location of factory


Further Considerations of Industrial Location

Factor

Description



Energy Source

Power sources needed to produce goods can dictate where factories are located

  • Early mills located on rivers (immobile water power)

  • First manufacturing plants located near coal fields ( bulky/ expensive to transport, lots needed on constant basis)

  • Development of electricity made power more mobile and thus the location of energy sources less important 

  • Growing reliance on renewable energy sources that are somewhat location-dependent 




Transportation

  • Improved transportation technology means being located near a market is less important

    • Trucks for shorter distances, trains for longer distances, ships for long distances, air   for speedy delivery 



Break of Bulk Point → A location where goods are transferred from one means of transportation to another.

  • Ex. ports, airports, depots, etc. 

  • Break of bulk points are often centers of industry as they allow businesses to save on transportation costs



Interdependence

Locational Interdependence →  The location decision for a factory being dependent upon the location of other factories 

  • Use same services

  • Keep an eye on competition

  • Make use of their products to make your own products

  • Etc.


Flexibility

Footloose Business → A business that can pack up and leave for a new location quickly and easily. 

  • Low demand for raw materials, don’t   need large spaces 

  • Fixed costs no matter where they  establish themselves 

  • Typically tech-centric businesses (call centers, online companies, etc.) 




Cost of Land

Bid-Rent Theory → The price and demand for real estate increases the nearer it is to the Central Business District.

  • Land cheaper in rural/outer suburban areas, more of it available for construction of large factories


Transnational Companies → Large international companies with locations in more than one country. 

  • Globalization of business means that companies often choose to build factories in less developed countries (cheaper building costs, cheaper labor costs)







Prestige & 

Cost Savings

Front Offices → Offices for an executive branch of workers, usually located  in somewhere highly visible and important (expensive). 

Back Offices →  Cheaper office spaces typically for non-executive employees, linked to the front office via technology so they don’t have to be nearby. 

Offshoring → When companies locate their back offices in other countries due to a lower cost of operation.





Labor Force

  • Different industries require different kinds of labor 

    • Skilled & unskilled labor


Labor-Oriented Industries → Industries that locate close to major training institutions


Outsourcing → Contracting work out to non-company employees or other companies.

Government Incentives 

  • At international level - trade agreements

  • At national/regional level - different legal/economic/ business procedures in different countries

  • At local level - communities provide incentives such as tax breaks and low-interest loans to attract investment

7.3 TRADE & WORLD ECONOMY

Globalization → Growing interdependence of the world’s economies, cultures, and population due to trade, investment, and transportation & communications technologies.

  • Integration of national economies into the international economy through trade and foreign direct investment  

Benefits

Drawbacks

  • More of/greater variety of goods and ideas 

  • Cheaper production and consumer costs

  • Businesses have access to    new markets 

  • Increased cooperation  between countries

  • Increased economic development

  • Uneven development            (poor vs rich countries)

  • Exploitation of poor         workers and countries

  • Helps more powerful   countries exert influence

  • Negative impact on environment and resources

  • Threat to local cultures               and traditions

What is interdependence and how does it apply to the global economy? 

Interdependence = The dependence of two or more people or things on each other.

  • Interdependence of global economies demonstrated by financial crises, international lending agencies (i.e. IMF), and strategies of development (microfinance, etc.) 

  • 2008 crisis : Collapse of housing market   in the US led to a global economic crisis 

    • Decline in international trade and increase in global debt

    • By 2009, economic activity declined in more than half of all countries 

Complementarity →Trade that occurs when parties have goods or services that the other wants.

  • Can exist due to differing environmental conditions, diversity of natural resources, internal division of labor, etc.

  • Ex. Country A has an abundance of wood but wants bananas. Country B has a surplus of bananas but needs wood. Both countries have something the other wants, so Country A and Country B have a complementary trade relationship. 

Comparative Advantage → The idea that a country should specialize in producing products for export that they hold an advantage in producing (i.e. can produce at a lower cost)

  • If a country does not have an advantage when producing a product, they should import it 

  • Ex. China has a comparative advantage over the US when it comes to electronics since they can produce them more quickly and cheaply due to their labor force, so it makes sense for China to produce electronics and for the US to import them

Neoliberalism → An economic strategy that calls for free markets, free trade, and minimal government intervention in the economy.

  • Government intervention seen as inefficient

  • Makes trade easier between countries by reducing tariffs and political trade barriers 

  • Such policies have led to creation of trade agreements and supranational organizations

  • neoliberal policies prioritize the needs of wealthier cooperation and states over developing regions which creates economic inequality

  • deregulation of different markets can lead to less accountability and government oversight which may increase in unethical behavior by different institutions

Trading Blocs → Groups of countries that consent to a common set of trade agreements. 

  • Ex. EU, MERCOSUR, WTO, OPEC, etc.

  • Agreements encourage trade by easing regulations within blocs but makes trade with countries outside bloc expensive

  • Can lead to lower prices, stronger economic growth,  greater competition

Transnational Corporations → Companies that operate in more than one country.

  • Develop global production and sales networks 

  • Primary reason for economic globalization 

Newly Industrialized Country → A term used to describe a country whose level of economic development ranks it somewhere between developing and highly developed countries.

  • Emerging economies

  • Moving from labor- to technology-intensive industries 

  • Increased personal freedom, greater social mobility

What countries are Newly Industrialized Countries? 

  • Mexico

  • Brazil

  • South Africa

  • Turkey

  • China

  • India

  • Malaysia

  • Thailand

  • Philippines 

Outsourcing → Contracting work out to non-company employees or other companies. 

Offshoring → When companies locate their production in other countries due to a lower cost of operation.

  • Manufacturing jobs shifted away from highly developed             to less developed countries              to increase profits 

    • Taking advantage of lower wages, weaker labor and environmental laws, government incentives 

Why do MDCs shift their manufacturing to LDCs? 
Manufacturing jobs shifted away from highly developed to less developed countries to increase profits 

  • Taking advantage of lower wages, weaker labor and environmental laws, government incentives

New International Division of Labor → A system of employment in the various economic sectors spread throughout the world. 

  • High income countries have rapidly increasing quaternary sectors that emphasize research and development

  • Middle income countries manufacture goods sold in high  and low income countries 

  • Low income countries have large primary sectors and export minerals and resources used in the production process 

How does the New International Division of Labor impact LDCs? 

  • Impacts on LDCs

    • Job creation (low paid)

    • Increased pollution 

    • Increased urbanization 

    • Widening wealth gap 

    • Uneven development 

    • Increased child labor 

    • Work for women

Describe the placement of the Brandt Line and what it illustrates. 

  • Illustrates growing development gap between MDCs and LDCs 

    • In North, living conditions are high      due to wealth 

    • In South, living conditions are poor     due to lack of wealth 

Special Economic Zones SEZ → Areas in which business/trade laws are different from other parts of the country. 

  • Aim is to attract foreign investment from transnational corporations 

  • Includes free trade zones and export processing zones

Free trade zones FTZ → A region within a country where imported goods can be stored and processed without being subject to tariffs or trade barriers

Export Processing Zonesdesignated areas within a country that offer special incentives to attract foreign investment, primarily in manufacturing for export

Benefits

Drawbacks 

  • Creates jobs (especially          for women)

  • Increases foreign direct investment 

  • Introduces new      technology/ideas to LDCs

  • Cheaper prices for consumers

  • Low paying jobs

  • Potentially unsafe and exploitative working conditions

  • Goods not sold in and do not benefit the local community 

  • Lax environmental regulations

Multiplier Effects →  When a change   in spending or investment causes a larger change in output.

Ex. a crayon factory opens in a community, providing people with   jobs. The workers then take their salaries and spend money at local businesses, then those business owners spend their profits  elsewhere (ripple effect of wealth).

Economy of Scale → The cost advantage experienced by a company when it increases its level of output.

  • With better/more access to resources, markets and technology due to globalization, companies can increase their efficiency (output) 

  • More efficient production leads to more profit for the company and lower prices for the consumer

Agglomeration → The spatial grouping of businesses in order to share costs. 

  • Can provide assistance to each other through shared talent pool, customers, resources, services, infrastructure, and facilities

  • Ex. When several factories share the cost of building an access road to connect them with a highway 

Just-in-Time Delivery → A method of manufacturing where materials are sent to a factory moments before they are needed.

  • Reduces inventory costs and helps to maximize production since companies don’t need to worry about or find space for storage

Deindustrialization → A reduction in the size of the manufacturing industry and industrial capacity of a place. 

  • Typical in more developed countries 

  • Production outsourced to less developed countries 

  • Manufacturing replaced by growth of service sectors and high tech industries 

Brownfields → Sites of abandoned factories that have the potential to become a hazardous waste or pollutant.

  • Many old factories being torn down/ repurposed         into new commercial or residential spaces 

Rust Belt → The US region hit hardest by deindustrialization, located in the Northeast around the Great Lakes. 

  • Factory closures can lead to decline or even abandonment             of entire communities (mass unemployment, abandonment,           no tax revenue) 

Growth Poles → Concentration of technically advanced industries that stimulate economic development in the businesses that are connected to those industries.

  • Often located near prestigious training institutions

Backwash Effects → Possible downsides of growth poles.

  • Loss of highly educated young people from distant communities (brain drain, depopulation, loss of tax revenue), etc. 

  • Corporate Parks/Business Parks → The congregation of office buildings on a landscape.

  • Some very large companies create their own business parks where they are only tenant (Google, Apple, Samsung, Meta, etc.)

7.4 MEASURING DEVELOPMENT

Development →  A process of change in society as it seeks to meet the needs of its people. 

  • Improving the material conditions of people via diffusion of knowledge and technology

  • Implies progress, but cultures view progress differently

Describing Development

System

Low Development

Middle Development

High Development

Economic Level

Low income

Middle income

High income

Industrialization

Non-industrialized

Newly Industrialized 

Post-Industrial 

Human Development Index

Low HDI

Medium HDI

High/Very High HDI

World Systems 

Theory

Periphery 

Country

Semi Periphery Country

Core 

Country 

Stages of Economic Growth 

Stages 1 + 2

Stage 3

Stages 4 + 5

What are some barriers to development?

  • Lack of social welfare 

    • Low life expectancy

    • High dependency rate

    • Lack of healthcare

    • Low levels of education 

    • Poor sanitation

    • Gender inequality

    • Poor infrastructure

    • Social conflict

  • Political instability

    • Violence & war

    • Coups

    • Corruption 

  • Lack of funds 

    • Poor trade relationships

    • Lack of foreign investment

    • High debt 

Economic Indicators

Social/Demographic Indicators

  • Economic output (Gross National Product, Gross Domestic Product, Gross National Income)

  • Sectoral distribution of workforce

  • Income distribution 

  • Energy use and production

  • Birth/death rate

  • Fertility rate

  • Life expectancy 

  • Gender inequality

  • Literacy rate

  • Access to healthcare

Factors of economic development: resource availability, population, colonial status, location, climate, etc. 

  • Huge economic gaps exist between the most and least developed countries and between the rich          and poor within countries 

  • Measures don’t take informal economy into account

Economic Sectors

Sector

Description

Examples

Primary

Extraction of natural resources

Farming, mining, fishing, etc. 

Secondary

Processing resources into products

Manufacturing, construction

Tertiary

Selling and transporting products

Marketing, retail, design, etc. 

Quaternary (sub)

Research and transfer of knowledge

Education, IT, banking, etc.

Quinary (sub)

Highest level of decision making

CEOs, judges, politicians, etc. 

  • In less developed countries, greater percentage of labor force is employed in primary sector 

  • In middle income countries, secondary sector accounts for most economic activity 

  • In more developed countries, a greater percentage of labor force works in tertiary or quaternary/ quinary sectors 

Measures of Development 

Measure

Definition

Description of Distribution


Gross Domestic Product

GDP → The total value of goods and services produced within a country’s borders in a year. 

  • Provides information about the size of the economy and how well it is performing

  • The total value of goods and services produced within that country’s borders in    a year. 


Gross National Product

The total value of goods and services produced by the citizens and corporations of a country in a given year, regardless of their location.

  • The total value of goods and services produced by the citizens/corporations of a country in a given year, regardless of their location.


Gross National Income

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

  • Measure of the worth of what is produced within a country plus income received from investments outside the country in a year.



Gini Coefficient

A measurement of the distribution of income within a population.

  • Values range between 0-1 

    • 0 means everyone’s income is same

    • Higher the number, higher the degree of inequality 

  • In general, developing countries have the highest income inequality and highly developed countries have lower income inequality 


Energy Use 

& Production

  • More developed countries tend to use more energy, including fossil fuels and renewable energy 

    • Fossil fuels = coal, petroleum, oil, natural gas, etc.

    • Although developed countries have been slowly decreasing their CO2 emissions, they still produce much more than developing countries

    • More developed countries have greater      capability to build infrastructure that          harnesses renewable energy 

  • SOCIAL MEASURES OF DEVELOPMENT : 

  • Generally, in highly developed countries, people enjoy a high standard of living and in less developed countries, people have lower standards of living

Factors associated with standard of living: poverty rate, class disparity, quality of housing, working conditions, access to healthcare, quality of education, political stability, safety, environmental preservation



Fertility Rate

  • Generally, the most developed countries struggle with low fertility rates and the least developed countries have very high fertility rates

  • Factors affecting fertility rates: educational opportunities for women, access to family planning methods, government policies, gender equality, etc.



Life Expectancy

  • Life expectancy is higher in countries with high levels of development and lower in less developed countries

  • Good indicator of overall quality of life 

    • Greatly impacted by child mortality 

    • Low life expectancy also suggests poor nutrition and healthcare, etc.



Gender Inequality 

  • A composite index for measuring gender disparity. 

    • Considers reproductive health (maternal mortality rate, fertility rate), empowerment (government seats held by each sex, proportion of females with secondary education), and labor market participation of women

  • Higher levels of gender equality are associated with higher levels of development and lower levels are associated with lower development



Access to Healthcare

  • Generally, people in more developed countries have more access to healthcare and enjoy better quality healthcare than those in less developed countries

  • Barriers to effective healthcare: cost, limited number of doctors, lack of infrastructure, inadequate supplies and equipment, etc. 



Literacy Rate

  • Generally, developed countries have very high literacy rates and less developed countries have lower literacy rates

  • Barriers to education: cost, lack of government funding, lack of teachers, poor quality of teacher training, lack of infrastructure, exclusion based on gender/ ethnicity/ability, political instability, etc.



Human Development Index

  • A measure of development that combines one economic measure (GNI per capita) with several social measures, such as high life expectancy and average education level. 

  • Created by the UN

  • Rankings of countries by HDI and income often similar 

  • Countries that invest in things like education or medicine sometimes rank higher in HDI than income (i.e. Cuba)

  • Some countries have high incomes but don’t perform well in terms of social measures (i.e. Qatar) 

What is the general pattern of development based on the different measures indicated above? 

  • Higher levels of development

    • North America & Europe (most developed regions)

    • Russia, Japan, Australia, New Zealand (highly developed countries in less developed regions)

  • Lower levels of development

Latin America, Southwest & Southeast Asia, Central Asia, South Asia, Sub-Saharan Africa

7.5 THEORIES OF DEVELOPMENT

Rostow’s Stages of Economic Growth → 

Stages of Economic Growth Model → A development model proposed by economist Walt Rostow in 1960 that describes the shift from traditional to modern forms of society. 

  • Assumed all countries wanted to and would modernize, albeit at different speeds

  • Saw economic development as linear progression to modernity through five stages of development

  • Different conditions/levels of investment required for a country to move from one stage to the next 

Drawing: 

Economy

Technology

Trade

Society



Stage 1: Traditional Society

Dependent on primary sector activities for subsistence 

Limited technology (labor-intensive agriculture)

Limited trade (local/regional) based on the barter system

Lack of class or individual mobility; tradition



Stage 2: Pre - Condition for Takeoff 

Shift to commercial agriculture 

Increasing spread of technology & advances in existing technology (irrigation, canals, etc.) 

Increasing specialization generates agricultural surplus for trading; expanded trade due to expanded infrastructure

Start of individual social mobility




Stage 3: Takeoff

Industrialization increases, workers shift from agriculture to manufacturing 

Technological breakthroughs tied to industrialization; openness to innovation 

International trade expands 

Beginning of urbanization; evolution of new political and social institutions to support industrialization; further class stratification



Stage 4: Drive to Maturity

Economy diversifies; existing industries expand and new ones established quickly

Improved energy, transportation, communication systems; innovation provides diverse range of investment opportunities 

Economy producing wide range of goods and services and less reliance needed on imports

Large-scale investment in social infrastructure (schools, universities, hospitals, etc.) enables increased social mobility 



Stage 5: High Mass Consumpt-ion

Service sector becomes increasingly dominant; economy geared towards mass consumption

Advanced communication and transportation technologies 

Reliant on countries in earlier stages for raw materials; dominance of trade hierarchy  

Desire to create egalitarian society; consumers have disposable income to spend on luxury goods


How do countries move from one stage to the next? 

  • Development requires investment of capital & stable conditions (provision of financial services, strong internationally traded currency) 

  • Once a country moves from one stage to the next, they cannot move back

Criticisms

  • Development not always linear

  • Does not account for differences that could hinder development (size, population, resources, location, etc.) 

  • Model based on western countries - doesn’t work for non-capitalist or undemocratic states   

  • Assumes everyone could eventually lead life of high consumption but does not account for sustainability  

  • Fails to acknowledge that most countries in stage 5 got there through exploitation and those not there yet don’t have the same opportunities

Wallerstein’s World Systems Theory → 

An alternative view to Rostow’s model proposed by historian Immanuel Wallerstein in the 1970s that included political and economic elements and proposed that countries do not exist in isolation, but are part of an interdependent system.


  • Argued that international trade led to creation of capitalist world economy in which a system based on wealth and power extends beyond individual states.

  • fails to account for Non Governmental Organizations that offer microfinance for those in developing countries

  • fails to consider other programs such as microloans that seek support to those in semi periphery and periphery allowing them to be interdependent and self reliant

Countries of the world are all part of   an interconnected economic system


  • Countries categorized according to influence: core (most dominant), semi-periphery, periphery (least dominant) 

    • System needs countries of  each category to work

    • Countries can change categories, though it isn’t easy 

Drawing: 

Core

Semi-Periphery

Periphery





Description

The most economically and politically dominant countries that receive goods  and raw materials from the periphery           and semi-periphery.


  • Benefit from and hold power over periphery and semi-periphery 

  • Dominate the tertiary sector

  • Became dominant through colonialism and stay dominant through neocolonialism

Middle-income countries that receive raw materials from the periphery and provide the core with goods and services it used to provide for itself.


  • Mix of characteristics of the core and the periphery

  • Dominates the secondary sector 

  • Exploits the periphery and is exploited by the core

Least-developed countries that provide the core and semi-periphery with inexpensive raw materials, labor, and agricultural production.


  • Most jobs in primary sector 

  • Receives jobs but little profit from manufacturing

  • Are typically former colonies


Examples

  • Ex. US, UK, Japan, Germany, etc.

  • Ex. India, Mexico, Brazil, China, Russia, South Africa, etc. 

  • Ex. Afghanistan, Zimbabwe, Peru, etc. 

Dependency TheoryResources flow from the periphery to the core, enriching the core at the expense of the periphery. 

  • Core depends on periphery for labor and raw materials 

    • Buys raw materials, pays for cheap labor, and sells goods for high profits 

  • Periphery depends on core for goods 

    • Pays high prices for goods  which prevents them from developing further 

Criticisms

  • Somewhat outdated - based on industrial production but many countries are postindustrial 

  • Limited practical use - suggests that countries can change their position but doesn’t say how 

  • Fails to recognize role of NGOs, private charitable groups or foreign investment  in development

  • Doesn’t acknowledge that trade is asymmetrical - periphery is dependent on few trade relationships but core can source materials from many countries

7.6 SUSTAINABLE DEVELOPMENT

 Sustainable Development →Any economic development that meets the current needs of people without making it harder for people in the future to live well

  • Development is not sustainable          when resources are overused

  • Requires purposeful planning and regulation

UN Millenium Development Goals → 

A set of 8 goals developed by the United Nations in 2000 that aimed to eliminate barriers to development and improve the lives  of people in the least developed countries

Accomplishments

  • Most successful anti-poverty program in history, lifting 1 billion out of poverty

  • Reduced hunger, child deaths, maternal mortality

  • Increased number of girls in school, access to safe drinking water

  • Saved millions of people via investment in fighting malaria, AIDS, tuberculosis 

UN Sustainable Development Goals → 

A set of 17 goals devised by the UN in 2015 to build on and go beyond the Millenium Development Goals and build a better, and more sustainable future for everyone.

  • AKA “the Global Goals” 

  • Aimed to be accomplished by 2030

  • Connected to UN Development Program’s strategic plans

Goal

Key Indicators

No poverty

  • Eradicate extreme poverty (living on less than $1.25/day) for all people everywhere 

  • Implement social protection systems

  • Ensure equal access to economic resources and

Zero hunger

  • Ensure all people have sufficient nutritious food

  • Increase agricultural productivity and income of small farmers

  • Increase investment in rural infrastructure, agricultural research

Good health & well-being

  • Reduce maternal & infant mortality, death from pollution & road accidents 

  • End AIDS, tuberculosis and malaria

  • Ensure access to health services, including sexual and reproductive health information and programs for all 

Quality education

  • Ensure all children complete secondary school and that all adults have access to postsecondary education and vocational training 

  • Eliminate gender disparities in education 

  • Upgrade educational facilities and increase number of teachers

Gender equality

  • End all forms of discrimination against women and girls 

  • Eliminate violence against and exploitation of women and girls, including trafficking, child marriage, and genital mutilation 

  • Ensure equal opportunities for women to participate in the economy and all levels of leadership

Clean water and sanitation

  • Ensure universal and equitable access to safe drinking water 

  • Ensure adequate sanitation and end open defecation 

  • Reduce water pollution 

  • Ensure sustainable use of freshwater 

Affordable and clean energy

  • Ensure universal access to affordable, modern energy services

  • Increase share of renewable energy 

  • Enhance investment in clean energy research and technology 

Decent work and economic growth

  • Promote policies that support job creation and entrepreneurship 

  • Ensure equal pay for work of equal value 

  • Reduce youth unemployment 

  • Protect labor rights and eradicate forced labor and modern slavery

Industry, innovation and infastructure

  • Develop reliable, sustainable, and resilient infrastructure 

  • Upgrade infrastructure and industries to make them sustainable 

  • Provide least developed countries with support to develop infrastructure 

Reduced inequalities

  • Ensure income growth at a higher grate for the poorest in society 

  • Eliminate discriminatory laws, policies, and practices

  • Encourage foreign investment where it is needed most

Sustainable cities and communities

  • Ensure access to safe, affordable housing and transportation 

  • Enhance sustainable urbanization 

  • Provide increased access to green spaces

Responsible consumption and production

  • Achieve sustainable and efficient use of natural resources

  • Reduce global waste, especially food waste 

  • Spread awareness about sustainability 

  • Phase out harmful fossil fuel subsidies

Climate action

  • Strengthen resilience to climate-related natural disasters

  • Improve education about climate action 

  • Integrate climate change measures into policies and planning

Life below water

  • Prevent and reduce marine pollution of all kinds

  • Minimize and address impact of ocean acidification 

  • Prevent overfishing and illegal, unregulated fishing 

  • Protect oceans and their resources under international law

Life on land

  • Ensure conservation and sustainable use of land

  • Reduce deforestation and desertification 

  • End poaching and trafficking of plants and animals 

  • Prevent invasive species and protect biodiversity

Peace, justice and strong institutions

  • Significantly reduce all forms of violence, exploitation and abuse

  • Promote equal access to justice for all 

  • Reduce organized crime, corruption, and bribery 

  • Promote and enforce non-discriminatory laws and policies 

Partnerships for the goal

  • Promote foreign investment in the least developed countries 

  • Share technology and knowledge 

  • Promote an open, non-discriminatory trade system

What are some obstacles to achieving the SDGs? 

  • Climate change 

  • Population growth 

  • Poverty and inequality 

  • Unplanned urbanization 

  • Energy security 

  • Mismanagement of resources

  • Natural disasters

COVID-19 severely impacted the progress of the SDGs

  • 119-124 million pushed back into extreme poverty 

  • 70-161 million people experiencing hunger

  • Reversed progress in health and shortened life expectancy 

  • Violence against women intensified 

  • Increased child exploitation, including early marriage 

  • Loss of 255 million full time jobs and 7% of manufacturing 

  • Worsened conditions in slums


    Foreign direct investment declined by 40%  

What is the correlation between the status of women and development? 

The status of women directly correlates to the level of development of a country

  • As women gain employment, the economy of country improves

  • Increased financial participation gives women more influence in their communities and health decisions, leading to decreased birth rates and a better quality of life for children 

How are women impacted by employment in the informal economy? 

Many women are employed in the informal economy (domestic work, subsistence agriculture, etc.), especially in South Asia, Latin America 

  • Lower wages, potentially unsafe conditions, vulnerability to harassment and violence, no benefits or insurance 

Why have women become increasingly involved in the formal workforce? 

Number of women in formal workforce has increased greatly over last 30 years 

  • Due to presence of transnational companies, increased education opportunities, and from necessity (declining populations)

  • HOWEVER, the pay gap and “glass ceiling” still exists.

How pervasive is the gender pay gap? 

  • Women often perform the worst work, earn less than men, and do more unpaid work 

  • Worldwide, women earn 23% less than men for same work 

How can gender equality be encouraged? 

  • Remove discriminatory laws

  • Collect and monitor data about gender equality issues

  • Encourage female leadership at all levels 

  • Educate to prevent gender-based violence and strengthen legal protections for victims 

  • Take legal action to ensure pay parity and inclusive hiring practices.

Microfinance programs → 

Programs that provide small loans  to entrepreneurs who would not normally qualify for credit from traditional sources.

Who benefits the most from microloans? 

  • Particularly active in South America, South Asia

  • Vast majority of people taking advantage are poor women 

  • Repayment rate is 98% 

Traditional tourism can be beneficial in some ways, but it poses many disadvantages to less developed countries: 

  • Most profits benefit international companies (hotel chains, tour companies) instead of locals

  • Foreign companies may bring their own workers for skilled jobs, leaving only lowest paying work for locals 

  • Housing prices increase as foreigners buy property 

  • Activities often entertain rather than educate tourists about local culture and history  

  • Creates increased pollution, disruption to wildlife 

Ecotourism → 

Tourism involves responsible travel to natural areas, conserving the environment, and supporting the local population. 

  • Generates $77 billion every year, mostly in developing countries

  • Aims: protect environment for future use, respect people/culture of the area, provide long term economic benefits to locals

What are the impacts of ecotourism? 

  • Protects local species and ecosystems 

  • Promotes environmental awareness  

  • Creates jobs and promotes local entrepreneurship 

  • Upgrades local infrastructure 

  • Drives development of related industries 

  • Promotes education and awareness   of local culture and history