Development and Deindustry CONCEPTS OF DEVELOPMENT • Per capita GNP – Mix of economies and social geography • Some MDCs still changing slowly Concepts and Approaches • Classifying development – Countries with high levels of urbanization, industrialization, and high standards of living – opposite end of the development scale – The GNP index is commonly used to measure development Concepts and Approaches • Classifying development – Other measures of economic development • Productivity per worker • Dependency ratio • Social indicator rates – Some the same no matter what • Acute classification of 1960s & 1970s • “Developing countries” – “Underdeveloped” vs. developed-developing Concepts and Approaches • The core-periphery model • Core regions are those that have achieved high levels of socioeconomic prosperity • Periphery regions are poor and dependent in significant ways on the core, and do not have much control over their own affairs • Semi-periphery regions exert more power than peripheral regions, but are dominated to some degree by core regions – Place-specific economic relationships – Socioeconomic changes different everywhere – Uses various spatial scales • What about the map? Models of Development • Types of models – Liberal models • Assume that a) all countries are capable of developing economically the same way, and b) that economic disparities between countries & regions are the result of short-term inefficiencies in local or regional market forces – Structuralist models • Treat economic disparities among countries or regions as the result of historically derived powers relations within the global economic system • The Modernization model – Rostow’s five stages of country development 1. Traditional 2. Preconditions of takeoff 3. Takeoff 4. Drive to maturity 5. High mass consumption • Dependency theory Global Economic Disparities: Following History Global Economic Disparities • Conditions in the periphery – Unstable governmental infrastructures – Health issues & overcrowding – Poor, fragmented markets; farms – Extreme regional disparities • Economic options – Many look toward industrialization – Various symbols of national “progress” – Tourism and development? A Changing World • Change occurs almost everywhere – Statistics not reflective of inequalities – E.g., Collapse of the Soviet Union – Marked improvement in some countries – Due to major political and economic changes – No longer use “Third World” – Many routes to development DEINDUSTRIALIZATION & THE RISE OF THE SERVICE SECTOR Categories of Service Industries • The manufacturing boom – Fordist & Fordism – Oil in the 1970s – Service sector has three categories: • Tertiary industries: provision of services (e.g., banking, retailing, education, etc.) • Quaternary industries: collection, processing, and manipulation of information & capital • Quinary industries: high-level of specialized knowledge or technical skill – Lend greater meaning to “postindustrial” Geographic Dimensions of Economic Activity • Wealth = success? – Deindustrialization not much help – Dominant cores – Example of Britain • • • • Old plants still operating Decline in Midlands and northern England Industrial relocation to city No tax base The New Intl. Labor Division • US & UK • Countries and regions outside the core that have increased their manufacturing output most rapidly The New Intl. Labor Division • Trade is a tertiary economic activity • Debts have exceeded revenues Geographic Dimensions of Economic Activity • New influences on location – Service industries • Many are NOT tied to raw materials or energy • Market accessibility is more relevant Specialized Spatial Economic Patterns Among world cities Specialized Spatial Economic Patterns • Specialized economic zones: – Manufacturing export zones – High-tech corridors • “Silicon Valley”; “technopoles” – Drawbacks of high-tech industry? Geographic Dimensions of Economic Activity • Tourism – ~11 % of worldwide jobs – Linked to increases in income & leisure – Tourism has transformed many landscapes around the world • Theme parks; Disneyfication; “Mouseification” of Broadway? – > $4,000,000,000,000 (trillion) industry! Time-space Compression Impact Set of developments that have changed the way we think about time and space in the global economic arena – Opposite of time-space convergence – Faster transportation and communication – Transition from Fordist to flexible practices – Internet & World Wide Web – Geographical distribution mirrors map of “haves” and “have-nots” Reading • Torsten Häggerstrand, Time Geography – A short review of Häggerstrand’s pioneering work. Discussion Topics • Why do tertiary, quaternary, and quinary industries locate where they do? • Is our world “shrinking”?