How do we describe the world?
An old Cold War way…
Democracy and
Capitalism
Communism
Everyone Else
First World
Second World
Third World
Does this describe
DEVELOPMENT?
A Better Way?
Industrialized and
Service-based
Communism
Newly
Industrializing
Countries (NIC)
Least Developed
Countries (LDC)
First World
Second World
Third World
Fourth World
Fifth World?
Lack
Economy and
Government
Economic Sectors: What is being
produced?
How does this relate to development?
More Detailed Economic
Sectors
What do LDC, NIC, and MDC’s look like?
United States agriculture: 1.2%
industry: 21.9%
services: 76.9%
Lets try some examples: click here
Let’s look at some factors that
describe development.
Here are some cool maps.
What is the Solution to
Development?
PLAN 1: Self-Sufficiency
PLAN 2: Development Through
International Trade
1. What are the main ideas of each plan?
2. What are some examples of countries who
have used the plans?
3. Problems with each plan?
What is the Solution?
PLAN 1: Self-Sufficiency
• Spread investment in all sector and all regions in country.
• Limit Imports and Exports (tariffs, quantity, license).
• Government subsides to help some areas.
• Examples?
The Problems with Plan 1:
1. Inefficient Capitalism: Even the weak survive?
2. Bureaucracy: Waste of time & money. Black market?
What is the Solution?
PLAN 2: Development
Through
International Trade
• Sell what you have on the world markets! (Animal, veggies, mineral,
manufacturing/distribution, concentrate scarce resources on
expansion of local industries.
• Take that $$$ and finance in other areas of development.
Examples?
The Problems with Plan 2:
Four Asian Tigers/
1. Uneven Resource Distribution
Dragons
2. Market Stagnation
(SK, S, T, HK)
- What did they sell?
3. Increase Dependence on MDC’s
Arabian Peninsula
- What did they sell?
Development
Theories
Why are some more developed than others?
Rostow
Dependency
Structuralist
World Systems:Wallerstein
International Trade
Calls for a country to identify its distinctive or
unique economic assets. According to the
international trade approach, a country can
develop economically by concentrating scarce
resources on expansion of its distinctive local
industries.
Rostow’s Development Model –
-The traditional society
-The preconditions for take off
-The takeoff
-The drive to maturity
-The age of mass consumption
Rostow’s Model of
Development
Rostow’s Ladder of Development
What about the
other development
theories?
• Dependency
• Pol & Econ relations control and limit
development. (Dollarization)
• …part of the structuralist theory
• Structuralist
• Structure in the world have made
change difficult. (Neo-Colonialism)
• It’s all HISTORY!
• World Systems:
Wallerstein
• 3-Tier Structure (C,SP,P)
Not everyone can be equal.
We can look at this in different scales.
Why Do LDCs Face Obstacles to
Development?

International trade approach triumphs
 The path most commonly selected by the end
of the twentieth century
 Countries convert because evidence indicates
that international trade is the more effective
path toward development
▪ Example: India
 World Trade Organization
 Foreign direct investment
How do you pay for development?
LOANS…IMF and World Bank
Millennium Development Goals by 2015
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria, and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development
Do the loan projects work?
How do you pay them back?
Why Do Countries Face Obstacles to
Development?
• Making Progress in Development
• Closing the Gap
• Progress in reducing the gap in level of development between
developed and developing countries varies depending on the variable:
• Infant Mortality Rate
• Gap has narrowed from 17 to 6 (per 1,000) in developed
countries and from 107 to 44 developing countries.
• Life Expectancy
• Gap has not narrowed.
• GNI Per Capita
• Gap in wealth between developed and developing countries has
widened.
Other Options???
• Fair Trade: protect workers and small businesses in LDC…it
costs more…but it is “Fair”. (It eliminates some of the
exploitation of workers)
• NGOs and Microloans: Work to help the little man
and woman!
KIVA.org
What does Development Mean?
•Development implies “progress”
-Progress in what?
-Do all cultures view development the
same way?
-Do all cultures “value” the same kinds
of development?
How does Geography affect
Development?
• Dependency Theory
• The political and economic relationships between
countries and regions of the world control and limit
the economic development possibilities of poorer
areas.
-- Economic structures make poorer countries dependent
on wealthier countries.
-- Little hope for economic prosperity in poorer countries.
http://www.cnn.com/video/#/video/bestoftv/2013/04/27/exp-gps-0428-witw.cnn
How Government Policies
Affect Development
•Governments
-get involved in world markets
-price commodities
-affect whether core processes produce wealth
-shape laws to affect production
-enter international organizations that affect
trade
-focus foreign investment in certain places
-support large-scale projects
Nongovernmental Organizations
(NGOs)
entities that operate
independent of state
and local
governments,
typically, NGOs are
non-profit
organizations. Each
NGO has its own
focus/set of goals.
Microcredit program:
loans given to poor people, particularly women, to
encourage development of small businesses.
Summary
• To develop more rapidly, developing countries must adopt
policies that successfully promote development and find funds
to pay for it.