2. Concepts of Development
• Developed vs underdeveloped (negative)
• Developed vs developing? Implies progress
has been made and country intends to
continue
• LDC vs MDC
3. Human Development Index
• Created by the United Nations
• Measures three types of factors: economic, social,
and demographic
– Economic factor: GDP per capita
– Social factors: literacy and amount of education
– Demographic factor: life expectancy
• Factors combined for a maximum of 1.0 or 100%
• 2001: Norway #1 with .944
4. • The educational component of the HDI is comprised of
adult literacy rates and the combined gross enrolment ratio
for primary, secondary and tertiary schooling, weighted to
give adult literacy more significance in the statistic. Since
the minimum adult literacy rate is 0% and the maximum is
100%, the literacy component of knowledge for a country
where the literacy rate is 75% would be 0.75, the statistic
for combined gross enrolment is calculated in a analogous
manner. The life expectancy component of the HDI is
calculated using a minimum value for life expectancy of 25
years and maximum value of 85 years, so the longevity
component for a country where life expectancy is 55 years
would be 0.5. For the wealth component, the goalpost for
minimum income is $100 (PPP) and the maximum is
$40,000 (PPP). The HDI uses the logarithm of income, to
reflect the diminishing importance of income with
increasing GDP. The scores for the three HDI components
are then averaged in an overall index.
5. ██ high (0.800–1) ██ medium (0.500–0.799) ██ low (0.300–0.499) ██ n/a
World map indicating Human Development Index (2004).
6. Core Periphery Model
• Scholars criticizing developed and developing
argued for this new approach
• Grew from Wallerstein’s World Systems Theory
• Sensitive to geographical differences and the
relationships among development processes
occurring in different places
• Focuses on economic relationships
– Core
– Periphery
– Semi periphery
7. Core Periphery Model
• Core Regions
– High levels of socioeconomic prosperity
– Dominant players in global economic game
– positive characteristics of globalization
• transnational links
• modern development (i.e. higher wages, access to healthcare,
adequate food/water/shelter)
• scientific innovation
• increasing economic prosperity
• highly industrialized
• rapidly-growing tertiary sector
12. Core Periphery Model
• Periphery Regions
– Poor regions
– Dependent on the core
– Do not have much control over their own affairs
– extreme poverty
– low standard of living
– health care is non-existent in many places
– less access to potable water
– poor infrastructure engenders slum conditions
13. The North South Divide
http://en.wikipedia.org/wiki/Image:Northsouth.png
Based on the 1980’s Brandt Report. Suggested a simplified world
contrast of development and undevelopment based on degree of
industrialization and per capita wealth.
14. Rostow’s Model
• Walt Rostow, 1950’s, Stages of Growth Model
• Liberal model…assumed all nations could develop
• Development through international trade
• Suggests that all countries follow a similar path
through economic development
– Traditional
– Preconditions to takeoff
– Takeoff
– Drive to maturity
– High mass consumption
15. Traditional
• Not yet started development
• High % of people engaged in subsistence
agriculture
• High % of wealth allocated to
‘nonproductive activities’ such as religion
and military
• Rigid and unchanging social structure
• Resistance to technological change
16. Preconditions of Takeoff
• An elite group initiates innovative
economic activity
• Country begins investing in new technology
and infrastructure
• Investments by country stimulates an
increase in productivity
• Progressive leadership
17. Takeoff
• Rapid growth facilitated by a limited
number of economic activities
• Some sectors of the economic structure
remain dominated by traditional practices
• Industrialization, urbanization, mass
production
18. Drive to Maturity
• Modern technology diffuses to wide variety
of industries
• Industries experience rapid growth similar
to the early takeoff industries
• Workers become more skilled and
specialized
• Modernization in the core
• Population growth declines
19. High Mass Consumption
• Economy shifts from production of heavy
industry such as steel and energy to
consumer goods like refrigerators and
motor vehicles
• High incomes
• Widespread production of a variety of
goods and services
• Majority of workers in service sector of
economy