Basic Terms
Rostow’s Modernization Model
Dependency Theory
World Systems
Microcredit
Other issues
www.therightplanet.com
Let’s let Hans Rosling get us started
http://www.ted.com/talks/hans_rosling_and_the_magic_washing_machine.html
Basic Terms
• Informal Economy
• MDCs and LDCs
• GNP, GDP and GNI
• PPP and Big Mac Index
• HDI and Better Life Index
• Neocolonialism
• NIDL
• EPZs and SEZs
• Maquiladoras
• NGOs
• MNCs
• Parallel States
• Globalization?
• Define and
give some
examples
Basic Terms
• Informal Economy
• MDCs and LDCs
http://www.oxfamblogs.org/fp2p/?p=285
• GNP, GDP and GNI
• PPP and Big Mac Index
• HDI and Better Life Index
• Neocolonialism
• EPZs and SEZs
• Maquiladoras
• NGOs
• Parallel States
http://www.forbes.com/fdc/welcome_mjx.shtml
Basic Terms
• Informal Economy
• MDCs and LDCs
• Colonialism & Neocolonialism
http://jong-preanger.deviantart.com/art/neocolonialism-183882158
• EPZs and SEZs
• Maquiladoras
• NGOs
• Parallel States
• GNP, GDP and GNI
• PPP and Big Mac Index
• HDI and Better Life Index
The Motherland by Brouguereau – 1883 - http://en.wikipedia.org/wiki/Neocolonialism
What is the NIDL?
•
New International Division of Labor
•
Outcome of globalization where labor
moves across international borders
•
Industrialized countries outputs have
dropped, while LDCs has grown
•
Improved transportation and growth
of transnational corporations has fed
the NIDL
Rostow’s Modernization Model
Sometimes called the Ladder of Development
http://www.studyblue.com/notes/note/n/unit-6-vocabulary/deck/5285919
Rostow’s Modernization Model
• Stage One – TRADITIONAL – Subsistence – Static Society – Resist
Technological Change
• Stage Two – PRECONDITIONS TO TAKEOFF – Progressive
leadership moves country forward – More openness and diversity
• Stage Three – TAKEOFF – Industrial Revolution – Sustained
Growth – Urbanization increases – Technology increases
• Stage Four – DRIVE TO MATURITY – Diffusion of Technology –
Specialization – International trade expands – modernization –
population increases
• Stage Five – HIGH CONSUMPTION – high incomes – widespread
production of many goods/services – Most work in service sector
Rostow’s Modernization Model
• Liberalist Model
• What did the world look like when Rostow wrote this in
1960?
• For hint – see map pages 250-251
• What else does this model remind us of:
• 1. Organic Theory
• 2. 5 Economic Sectors
• 3. Demographic Transition
Criticisms of Rostow
• Eurocentric and Americentric
• Doesn’t account for regional differences within a country
• Doesn’t account for cultural differences within a country
• Doesn’t account for one-commodity economies
• Neo-colonialism
• Major bias that all economies will grow the same way developed
countries grew
• Rostow believed all countries would grow in an orderly fashion like Japan
and Europe and the US did
• Use exercise to further understand Rostow
Dependency Theory – pp. 306-08
• Structuralist Model
• Political and economic relationships between countries and
regions control and limit development possibilities
• Example – colonialism created…
• Dependent relationships between mother country and the
occupied country
• These relationships sustain prosperity of the core country and
poverty of the periphery country
• Gives rise to NEOCOLONIALISM in the 1970s, 80s and on to the
present
Dependency even in the Core?
http://www.ritholtz.com/blog/2012/05/the-illusion-of-choice/
Global Carbon Footprint
http://i.imgur.com/CVNUeml.jpg
World Systems Theory – pp. 308-09
• Structuralist Model
• Immanuel Wallerstein
• See handout
• Does NOT assume all countries will change the same way
• I call this the “Life sucks and then you die theory”
• The good news is that each sector is not necessarily static – can move
from one sector to another
• 3 sectors that we have discussed before – These are relationships
between countries – all three types need each other
• CORE
• SEMIPERIPHERY
• PERIPHERY
• But, who always wins?
EPZs, SEZs and Maquiladoras
• EPZs and SEZs
• Maquiladoras
• NGOs
• Parallel States
• World Cities
MNCs
• Multinational Corporations
• Decisions made here affect stockholders, regions and states
• Also make decisions that make them actors on the global stage
• Examples
Gender Inequality Index
http://www.hiidunia.com/2012/03/what-contribution-does-feminist-economics-make-to-the-understanding-of-gender-equality/
Millennium Development Goals
http://ec.europa.eu/europeaid/what/millenium-development-goals/index_en.htm
Right to Work States
• States in which employees do not have to join unions as part of their jobs
• PRO – employee has the right to be in a union or not be in a union. All
employees do not have to pay union dues if they do not want to
• CON – employers choose these states because they can pay lower wages
and not guarantee work, pay levels or certain benefits to employees
http://en.wikipedia.org/wiki/Right-to-work_law
NGOs
• NGOs
• Global Actor
World or Global Cities and Primate Cities–
pp. 295-97
• World Cities
• These cities function at the global scale – meaning,
reaching beyond state borders and functioning as service
centers for the global economy
• Examples are…
• New York City, London and Tokyo
• See map for more information
• Primate Cities
• Disproportionately large and exceptionally expressive of
the national culture and center of the country’s economy.
• Many former colonies have primate cities
• Examples are Paris, Mexico City, Athens, Cairo, Lima,
Seoul
Countries without a primate city
Can you say, effects of colonialism?
according to wikipedia.
Microcredit
What about development terms like PPP,
HDI and such? What does this say?
Parallel States
• Parallel States
• World Cities