Unit 7
7.1- The Industrial Revolution
Industrialization
-Industrial production: using machines and large-scale processes to convert raw materials into finished goods
- The industrial revolution a series of technological advances in the 18th century that resulted in more complex machinery which could make products faster and more efficiently
- As new forms of transportation and electricity were developed, industries became less dependent on the location of local labor supplies and could build in more diverse locations
- Improvements in farm machinery and techniques led to the second agricultural revolution
- displaced farm workers moved to the cities to find industrial work
Growth of Cities and Social Class Change
Rapid urban growth brought Changes:
Overcrowding and housing shortages
Increased poverty and starvation
Increased pollution and related diseases
Increased effects of pandemics, fires, and natural disasters
Rapid Urban Growth brought Challenges:
industrialization increased the size of the working class
Class differences were significant:
Those who remained farmers benefited from the increased crop yield
Industrial workers had dangerous jobs, crowded housing, pollution, often couldn't afford the products they made
Expanding urban middle class was uncomfortable
Some of those in urban areas became wealthy
Land owners remained wealthy but lost their unchallenged power
Competition between farms **
Physical Changes
Cities grew horizontally:
Extending beyond the city’s previously built-up area and expanding to urban sprawl
Cities grew vertically:
Raising the skyline of existing city
Cities are more dense- closed gaps between structures
Colonial Imperialism
Raw materials
Labor
Food
Soldiers
markets
- Imperialism made wealthy countries even wealthier
Major Industrialized Regions
Industrial belt stretched across the Northern hemisphere’s midlatitudes
Late 1900s- these areas began to decline in population
Production transferred to semi periphery countries
Globalization
Jobs lost to low-wage regions (primarily Asia and Central America)
7.2
Economic Sectors
Primary Economic activities:
Extraction of raw materials and natural resources from earth’s surface
EX: mining. Fishing, agriculture, forestry
Secondary Economic Activities
Processing and manufacturing raw materials into a finished product
EX: Factories and manufacturing
Tertiary economic activities
Service sector that focuses on moving, selling, and trading products in primary and secondary sectors
EX: Retail, marketing, design, restaurants, shipping
Quaternary Economic Activities -branches off of #3
Knowledge-based sector, focusing on research and information creation and transfer
EX: investment banking, real estate, college professors, education software developers
Quinary economic activites -branches off of #3
Highest level of decision making, includes top officials in government and buisness
EX: congress, CEOS
Decisions impact millions
As a country becomes more developed, the primary sector declines due to an increase in industrialization. So, the tertiary sector is also going to increase.
MCD- “More” Developed country
LDC- “Less” Developed country
More developed countries- primary jobs rise
Weber’s Least Cost Theory (1909)
Weber predicts where owners would locate manufacturing industries based on three factors (minimize cost maximize profit)
Transportation costs
Labor costs
(the benefit of) agglomeration
Locational Triangle:
Market
Raw material 1
Raw material 2
Weber’s Assumptions
Uniformity of Area: Human and physical geographic features and uniform throughout an area
Labor: sufficient labor is available in fixed location it is immobile
Raw Materials: found only in certain fixed locations
Number of products and markers: there it one product produced and produced goods are only sold in a fixed location in a single market
Transportation Costs: costs directly related to distance of travel and the weight of the items
Influences on location: economic factors dominate the decision about where to locate a factory
7.3.1- Measures of Economic Development
What is development?
“A specified state of growth or advancement”
Variations in development on different scales - Global, regional, local
How can we measure a country’s development?
Economic
Gross National Product (GNP)
Gross Domestic Product (GDP)
Gross National Income (GNI)
Sectors of the economy
Informal and formal
Income distribution
Gini Coefficient
Use of fossil fuels and renewable energy
Social
Fertility rates
Infant mortality rate (IMR)
Access to healthcare
Life expectancy
Literacy rates
Gender inequality Index (GII)
Human development index (HDI)
Economic Indicators
In order to make the data more comparable it’s stated as “per capita” meaning “per person.” Divide the data by the country’s population
Gross=total
GDP: total value of officially recorded goods and services by the citizens and corporations within a country’s borders in a given year
goods + services = GDP
GNP: total value of goods and services by the citizens and corporations of a country as well as foreign investments in a given year.
Domestic + Internations
Goods + services = GNP
GNI: Most accurate measure of wealth; accounts for impact of trade
GDP+(exports-imports)=GNI
Sectoral Structure of the Economy
Average per capita income is higher in developed countries because people typically work in the tertiary sector, which pays more than the other two sectors
Sector of the Economy:
Formal
More Legally recognized
Regulated and/or taxed by the government
Included in GDP and GNI
Typical professions
Informal
Mostly illegal products that are sold and/or NOT regulated by the government
Drugs, black market, babysitting, “under the table” work like landscaping or house cleaning
Often paid in cash, not really taxed
Income Distribution
Gini coefficient: Measures the distribution of income within a population
Values between 0-1; the higher the #, the higher the income inequality
Generally, MDC have lower ginis and LDCs have higher ginis
Use of Fossil Fuels and Renewable Energy
Energy Consumption
MDCs - highest per capita consumption of energy
Demand for us of fossil fuels is increasing in DCs
Renewable Energy
Nuclear energy is increasing in MDCs
Hydroelectric is higher in DCs
7.3.2- Measures of Social Development
Total Fertility Rate (TFR)
Calculation of the average number of children per woman
Higher in LDCs
Niger- 7.29
Lower in MDCS
Spain- 1.24
Infant Mortality Rate (IMR)
The number of deaths of infants under 1 year old in a given year per 1,000 live births
High in LDCs
Afghanistan- 111
Low in MDC’s
Japan- 2
Access to Healthcare
LOW in LDC’s
HIGH in MDCs
Life Expectancy
Average number of years a person is expected to live based on mortality rates when they were born
High in MDCs
Australia - 83.4 years
Low in LDCs
Central African Republic- 50.9 years
Literacy Rates
LOW in LDC’s
Niger- 19%
Almost widespread for most other countries
Human Development Index (HDI)
Score between 0 and 1
Lower the score, LESS developed. Higher the score, HIGHER development
Combines social + economics
Combination of the four different indicators make HDI a MORE accurate measure of development than other measures - like IMR
LOW in LDC’s
South Sudan .39
HIGH in MDC’s
Norway .95
Gender Inequality Index (GII)
Score between 0-1
High value = high inequality
Low value = low inequality
Yeman - .77
Germany - .07
Another combo - so it provides us with a more accurate picture
Combines social + Economic + political indicators
Maternal mortality rates (MMR): Rate of women who die during pregancy or within one year of pregnancy due to pregnancy related complications for every 100,000 births
High in LDCs
Sierra Leone - 1,360
Low in MDCs
Italy - 4
Adolescent Fertility
The number of births per 1,000 aged 10-19 years old
HIGH LDCs
Mali- 76
Low in MDCs
South Korea - 0.75
Parliamentary Representation
Proportion of women that hold seasonal congressional positions - parliament
The numbers are all over the place! Not a steady trend of MDCs vs. LDCs
Highest - Rwanda: 61%
Lowest - Qatar and Yemen - 0%
Educational Attainment
Do women have access to secondary school?
LOW access in LDCs
Niger- 82% of women ARE NOT educated
High access in DCs and MDCs
Less than 20% throughout most of the world
Labor Force Participation
Do women work outside of the home?
Is there a clear pattern between MDCs and LDCs?
What SCALE is this data?
7.4- Women in Economic Development
Barriers to Gender Equality
Women are much more likely to work in tertiary and quaternary sector jobs
Women rarely obtain upper-level jobs (quinary sector), especially in developing countries
Microfinance programs provide loans to women to start/expand a business
Especially active in South Asia and South America
Repayment rate is 98-99%
Increased financial status of women provides them more influence
Working women have more say in childbearing decision, money to pay for contraceptives
Women's wealth increased children's nourishment and decreases child mortality
7.5- Theories of Development
How can we explain spatial variations in development?
Rostow’s stages of economic growth (modernization model)
Wallerstein’s World Systems Theory (AKA Core-Periphery Model)
Brandt Line (aka North-South divide)
Rostow’s Stages of Economic Growth- Modernization Model
How do countries become economically developed?
Is there a “formula” for economic growth that could be applied to LDCs?
Modeled off of the development of the US & Western Europe - Particularly Great Britain
He believes development happens within a country's borders
Political power
Local or regional, based on ownership of land
trade
Local
setting
rural
culture
family-based
Labor market
Primary sector-informal
technology
Low development
wealth
Limited
ex
Medieval Europe, no country is currently here
Pre-Conditions to Take Off
Political power
Leadership begin to invest in country
trade
Small-scale International Trade begins to develope
setting
Beginning of urbanization
Labor market
Shift to secondary, beginning of industrialization
technology
Transportation systems develop, mechanized farming
wealth
Increased investment in business and infrastructure
example
Nigeria & afghanistan (remember… danger of a single story)
Take Off
trade
Major export industry, increasted international trade
setting
Urbanization
Labor market
Full industrialization and high output capabilities
Technology
Advancements in technology
wealth
Businesses are making money -> shift to patterns of consumption
example
NICS (Newly industrialized countries) Philippines, India, Vietnam
Drive to Maturity
population
Growth declines
Labor market
Specialization of industry, workers become skilled and widespread education
technology
High levels of power consumption, improved transportation & communication systems
wealth
Investment in social infrastructure such as schools, hospitals, etc
examples
Brazil, Russia, China
High Mass Consumption (materialistic/developed economy) - US!
Population
Continues to decline or goes into the negative
Labor market
Mostly tertiary sector; highly skilled and highly educated work force
Technology
High levels of power consumption, improved transportation & communication systems
Wealth
People spend money on nonessential goods
Examples
Japan, South Korea, Eastern Europe, the U.S., and Canada
Criticisms of Rostow’s Model
Based on industrialized, capitalist, democratic countries
This falsely assumes that all countries value those ideals. Other cultures value kinship and community as more important than wealth
SCALE and Uneven Development
Stages of growth are not uniform across one country. For example, as a whole, India fits into stage 3 or 4
Linear Progress
Not all countries will progress through the model in the defined order. Wars, corruption, and natural disasters are examples that could impact the stage of a country.
Globalization
Focuses on the development of a single country and doesn't take into account that not all countries are connected globally.
Equal Potential to develop
Does not take into account that there are major differences between countries such as climate, landforms, access to natural resources, relative location… that could help or hinder the development
Sustainability
The highest level of “modernization” is massive consumption. This did not take into account the natural environment, depletion of resources, and production of waste.
Legacy of Colonialism
Rostow did not factor in the massive impact of centuries of colonialism on less developed countries. Most countries that reached the high level of mass consumption did it because they exploited the resources of LDCs. Countries that are trying to develop today do not have the option to colonize
7.5.2
Wallerstine’s World System Theory
Explains the spatial relationships between countries and explain uneven economic development
There is a world economic system - one large interconnected economy
What characterizes Wallerstein?
Legacy of colonialism= advantages in production for the core countries
How can a country develop when its resources (natural and human) are controlled by a handful of prosperous industrialized countries?
Competition between core countries for colonies & trade
Military strength
Core-Periphery Model:
Core:
Economically and politically dominant
Strong military and allies
Highly interconnected transportation and communication infrastructure
Control of the global market business headquarters here
Former colonial powers
High skill, capital-intensive production
US, UK, Japan, Australia, Germany
Semi-Periphery:
Middle income countries
Aspects of the core and the periphery
In the process of industrialization
Active in manufacturing and exporting goods and raw material
Better transportation and communication than the periphery
Nics are BRICS
Brazil, russia, india, china, south africa, and mexico
Periphery:
Often have unstable governments
Less wealth, lower levels of education than the core
Export natural resources to core and semi periphery
Not reliable transportation or communication infrastructure
Former colonies
Low skill, labor intensive jobs, low wages
Weak laws to protect workers
Afghanistan, Peru, Kenya
Dependency Theory:
Sell consumer goods and provides $$ flow to the SP and P
----------------------------------------------->
Core:
Buy raw materials
Pay for cheap labor
Sells consumer goods for high prices
Semi-Periphery:
Periphery
Pay high prices for consumer goods, which depletes money supply and opportunities for investment
<---------------------------------------------------------
Sends cheap labor and natural resources to SP and Core
Applied to a Country Level Scale:
Core:
Semi-Periphery:
Periphery:
Economically and politically dominant
Highly interconnected transportation and communication infrastructure
Control of the market- business headquarters here
High skill, capital-intensive production
Major cities: US- NY & chicago
“Middle income”
Aspects of the core and the periphery
Active in manufacturing and exporting goods and raw materials
Better transportation and communication than the periphery
Second-tier cities
US - Cincinnati & Atlanta
Less wealth, lower education than the core
Export natural resources to core and semi periphery
Not reliable transportation or communication infrastructure
Low skill labor, intensive jobs, low wages
US- Rural Areas
Brandt Line (aka the North-South Divide)
Spatial awareness of development
Generally MDCs are in the northern hemisphere and LDCs are in the southern hemisphere
Fallen out of favor due to development of many NICs that are located in the southern hemisphere
Looked at is as the Rich North and Poor South