unit 7

Economic Development Concepts

Agglomeration

• Definition: Grouping of firms from the same industry in one area for shared infrastructure and labor resources.

• Purpose: Enhances cooperation and efficiency among businesses.

• Example: Silicon Valley in California is a renowned agglomeration of tech companies.

Core-Periphery Model

• Explanation: Describes the spatial development structure where underdeveloped regions rely on a developed core.

• Impact: Core regions concentrate wealth, innovation, and advanced technology.

• Example: The European Union illustrates core-periphery dynamics with developed countries like Germany at the core.

Industrialization and Deindustrialization

• Industrialization: Evolution from basic goods production to mass manufacturing in modern factories.

• Deindustrialization: Decline in industrial activities within a region.

• Significance: Reflects economic shifts and impacts employment patterns.

• Example: The Industrial Revolution marked a significant phase of industrialization.

Global Economic Factors

Gross Domestic Product (GDP) vs. Gross National Income (GNI)

• GDP: Measures a country's economic output within its borders over a specific period.

• GNI: Total earnings of a nation's residents and businesses, including foreign income.

• Importance: Indicators of economic health and national income.

• Example: The USA has a high GDP due to its diverse economic activities.

Globalization and Free Trade Zones

• Globalization: Increasing global interconnectedness affecting political and economic structures.

• Free Trade Zones: Areas with relaxed import tariffs to attract foreign investment.

• Impact: Promotes international trade and economic growth.

• Example: China's Shenzhen FTZ is a successful example of attracting foreign businesses.

Human Development and Gender Equality

• Human Development Index (HDI): Measures welfare based on life expectancy, education, and income.

• Gender Development Index (GDI): Evaluates gender disparities in health, education, and wealth.

• Gender Equity: Measures opportunities for women compared to men within a society.

• Example: Nordic countries often score high on gender equality indices.

Global Economic Concepts

International Division of Labor

• Transfer of low-skilled jobs from developed to developing countries

• Utilizes cheaper labor and less stringent environmental standards

• Affects global distribution of industrial output

• Promotes economic growth in developing nations

Neoliberalism and Economic Policies

• Promotes free market principles like deregulation and privatization

• Encourages liberalization of trade and investment

• Impacts economic structures and policies globally

• Can lead to increased efficiency but also income inequality

Industrial Geography and Development

Manufacturing Regions

• Clusters of manufacturing activities in specific geographic areas

• Examples include the Great Lakes region in the US and southeastern Brazil

• Influence economic growth and employment patterns

• Can lead to specialization and economies of scale

Special Economic Zones (SEZ)

• Designated areas with unique economic regulations to attract investment

• Stimulate exports and economic growth

• Common strategy in developing countries

• Promote industrialization and infrastructure development

Economic Development and Sustainability

Rostow’s Stages of Development

• Model describing a country's progression through 5 stages of development

• From traditional society to high mass consumption

• Critiqued for assuming linear development path for all countries

• Considers economic, social, and cultural factors

Sustainable Development and Resource Management

• Balancing current needs without compromising future generations

• Focuses on environmental, social, and economic sustainability

• Promotes responsible resource use and conservation

• Addresses global challenges like climate change and biodiversity loss