LECTURE FOURTEEN

ECONOMIC GEOGRAPHY: DEVELOPMENT

 

The key to doing exceptionally well when examining issues of development requires that you re-read chapter one. What you will see from doing this is the economic perspective taken by DeSouza and Stutz. ALso, this will reconfirm many ideas which are central to a debate concerning the cause of the global maldistribution of wealth such as;

* the global division of labor

* the new international division of labor (NIDL)

* disparities in economic development (the Gaps)

* the role of multinational organizations in the global economy

 

 

A. DEVELOPMENT is discussed in equally vague terms such as "standard of living" and "quality of life". Much of my own research has been focused upon third world development. While studying at the London School of Economics, I had the opportunity of being one of two "capitalists" in a seminar for development. The majority of students were from African countries, such as Somalia, Rwanda, Zaire, and South Africa, yet many other students were from Colombia, Jamaica, Mexico, Argentina, Turkey, India, Indonesia...each region was well represented. What I gained from being representative of the "advanced" countries was that often our perspective of a high standard of living in the USA (usually connected to quantity of consumption) really does not acknowledge the quality of life which exists in less developed countries. My master's degree in third world development taught me to look at the causal forces which may create problems in a less developed country as COUNTRY SPECIFIC. One must look at the culture, physical environment, economy, politics, and history of the country to see how these factors work in combination.

When I discuss economic development in class, I usually start by asking students what it means to live in a developed society. What are the benefits of being born into a first world country (even if it's RURAL America!)? Most students list the following:

1. income
2. job opportunities
3. education
4. health care/life expectancy
5. high mass consumption

And I usually add in the ultimate geography context: ACCESS. I think that access to transport, communication, technologies, medical care...is the most important element of development for most Americans. How many teenagers would feel that their standard of living had fallen if they could no longer ACCESS the television?

Although access may be apparent to many geography students, having studied more than you want to know regarding transportation systems, market areas, and telecommunications, most Americans take access for granted. Yet, as a whole the benefits of development listed above are the result of living in an industrial or post-industrial society. Goods and services can be mass produced. This reduces the cost of such goods, and makes items such as foodstuffs and automobiles affordable to the majority of the population.

Economists examine development using indicators which enable them to rank countries. The predominant indicator used to rank a country's economic development is its economic specialization. Following the 1960's and more intensively after the end of the Cold War (1989), countries are put into the following categories:

first world: industrial or post-industrial

second world: industrializing, often called "NICs" for Newly Industrialized Countries, such as Hong Kong, Singapore, South Korea, Taiwan, Malaysia, Indonesia...

third world: non-industrial

fourth world: no chance of industrializing

As noted above, each category is defined by the type of economic activity in which the majority of the population are engaged. This is also called the GLOBAL DIVISION OF LABOR. First world countries have the majority of their population engaged in service industries (tertiary, quanternary, and quinary) and are called "post-industrial societies". This easily connects with our discussion of de-industrialization as industrial jobs (secondary) move to less developed countries. Second world countries are then classified as "industrializing", meaning that they are in the process of transitioning their labor force from primary activity to industrial jobs.

Third world countries are called "non-industrial societies" as the majority of their populations (often over 70%) are engaged in primary activity. A new category has developed, fourth world countries, which are considered societies with "no chance of industrializing". These societies lack the resources, skilled labor, transportation linkages or political stability necessary to stimulate economic development.

Remember that first world countries are the ones who developed this classification. As a result of direct investment (by corporations) and third world loans (mostly by the UN), first world lender nations created a system of assessing the potential of less developed societies.

B. GAPS

Other indicators, related to the level of development can be used to indicate a society's economic status. It is easy to see the correlation between economic activities and:

* income
* education levels
* population growth
* health care
* Infant Mortality Rates
* Calories per capita
* persons per vehicle
* energy per capita (oil, electricity, coal...)

All of these indicators are related to each other. If you are agricultural, often there is no perceived need to obtain an education, this will be reflected in one's income and rate of population growth. If a person has limited caloric intake, the likelihood of high Infant Mortality or lower resistance to disease will reduce life expectancy, and perhaps limit physical stature (stunting) and brain development (severely limiting educational improvements).

De Souza and Stutz have done an exceptional job showing the gaps in levels of living throughout the text. Chapter 12 is truly amazing as it addresses all issues regarding development. Be sure you comprehend the following:

1. goals of development

2. vicious cycles of poverty

3. theories/perspectives of development (key*)

4. Colonialism and Core-periphery relations (key *)

5. Help for less developed countries

These topics will focus your attention to address your take on how to improve the quality of life for people in such societies.

Will it require political change?

Does such change impose our views upon such societies or does such change require advanced countries to share a greater percentage of global resources?

What role does the corporation have in stimulating development?

Has colonialism or neo-colonialism (exploitation by MNCs) lead to this disparity?

Do our strategies (loans and development projects) improve the quality of life for these societies?

Will development strategies work to improve the quality of life in peripheral areas WITHIN advanced societies?

 

The questions regarding development are endless. Some students seem to get overwhelmed by the mere discussion of these concerns. In the end, many economists, planners, and geographers have suggested that what needs to be done is to realistically RE-DEFINE what is meant by development. I sincerely agree with this perspective. I do not think that our level of consumption can be fully extended to all societies. And, many environmental problems would arise if we tried to get all Chinese or Indians owning their own car!? Yet, we have the technology and the capital available to improve the health standards (innoculations, basic medical care) and education levels (Peace Corps, Non-governmental organizations) of people in peripheral regions. To me, having all of my children live past the age of five would be an improvement in my standard of living. Being able to read would open my eyes to new cultures, new opportunities and improved levels of health. Improving social indicators requires very little capital investment, so few of the country's export earnings would be going to pay for debt financing. Social spending may not stimulate manufacturing or attract companies looking for inexpensive final assembly. Yet, social investments in education will affect population growth, life expectancies, women's status, and many other elements which could stabilize economic growth within such societies.

 Since September 11, many Americans have begun to question the role of American involvement abroad.  What is good policy to stimulate development?  Does a society have to conform to American political standards in order to receive aid?  How can aid from the West improve the standard of living in Afghanistan without changing the culture of the Afghan population?  You must all have opinions on these questions. 

Hopefully, you can see where your views fit into the structure of developmental studies.  Policies that have been made reflect these structural approaches.  It is important that you are able to distinguish between possible tactics taken by each approach.  Only this way will you be able to vote in support of what you believe.