AP Human Geography Chapter 10: Development

Commodity ChainSeries of links connecting the many places of production and distribution and resulting in a commodity that is then exchanged on the world market.
DevelopingWith respect to a country, making progress in technology, production, and socioeconomic welfare.
Gross National Product (GNP)The total value of all goods and services produced by a country’s economy in a given year. It includes all goods and services produced by corporations and individuals of a country, whether or not they are located within the country.
Gross Domestic Product (GDP)The total value of all goods and services produced within a country during a given year.
Gross National Income (GNI)The sum of value added by all producers who are residents in a nation, plus any product taxes (minus subsidies) not included in output, plus income received from abroad such as employee compensation and property income.
GNI per capitaThe dollar value of a country’s final income in a year, divided by its population. It reflects the average income of a country’s citizens.
Formal economyThe legal economy that is taxed and monitored by a government and is included in a government’s Gross National Product (GNP); as opposed to an informal economy.
Informal economyEconomic activity that is neither taxed nor monitored by a government; and is not included in that government’s Gross National Product (GNP); as opposed to a formal economy.
Modernization modelA model of economic development most closely associated with the work of economist Walter Rostow. The modernization model (sometimes referred to as modernization theory) maintains that all countries go through five interrelated stages of development, which culminate in an economic state of self‐sustained economic growth and high levels of mass consumption.
ContextA structuralist theory that offers a critique of the modernization model of development. Based on the idea that certain types of political and economic relations (especially colonialism) between countries and regions of the world have created arrangements that both control and limit the extent to which regions can develop.
Neo-colonialismThe use of economic, political, cultural, or other pressures to control or influence other countries, especially former dependencies.
Structuralist theoryA general term for a model of economic development that treats economic disparities among countries or regions as the result of historically derived power relations within the global economic system.
Dependency theoryA structuralist theory that offers a critique of the modernization model of development. Based on the idea that certain types of political and economic relations (especially colonialism) between countries and regions of the world have created arrangements that both control and limit the extent to which regions can develop.
DollarizationWhen a poorer country ties the value of its currency to that of a wealthier country, or when it abandons its currency and adopts the wealthier country’s currency as its own.
World-systems theoryTheory originated by Immanuel Wallerstein and illuminated by his three‐tier structure, proposing that social change in the developing world is inextricably linked to the economic activities of the developed world.
Three-tier structureWith reference to Immanuel Wallerstein’s world‐systems theory, the division of the world into the core, the periphery, and the semi‐periphery as a means to help explain the interconnections between places in the global economy.
Millennium Development Goals1. 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.
TraffickingWhen a family sends a child or an adult to a labor recruiter in hopes that the labor recruiter will send money, and the family member will earn money to send home.
Structural adjustment loansLoans granted by international financial institutions such as the World Bank and the International Monetary Fund to countries in the periphery and the semi‐periphery in exchange for certain economic and governmental reforms in that country (e.g. privatization of certain government entities and opening the country to foreign trade and investment).
NeoliberalismThe revival and application of the theory of liberalism, especially since the late 20th century.
Vectored diseasesA disease carried from one host to another by an intermediate host.
MalariaSpread by mosquitoes that carry the malaria parasite in their saliva and which kills approximately 150,000 children in the global periphery each month.
Export processing zonesZones established by many countries in the periphery and semi‐periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment.
MaquiladorasThe term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low‐wage workers in the primarily foreign‐owned factories assemble imported components and/or raw materials and then export finished goods.
North American Free Trade Agreement (NAFTA)Agreement entered into by Canada, Mexico, and the United States in December, 1992 and which took effect on January 1, 1994, to eliminate the barriers to trade in, and facilitate the cross‐border movement of goods and services between the countries.
DesertificationThe encroachment of desert conditions on moister zones along the desert margins, where plant cover and soils are threatened by desiccation—through overuse, in part by humans and their domestic animals, and, possibly, in part because of inexorable shifts in the Earth’s environmental zones.
Islands of developmentPlace built up by a government or corporation to attract foreign investment and which has relatively high concentrations of paying jobs and infrastructure.
Nongovernmental organizations (NGOs)International organizations that operate outside of the formal political arena but that are nevertheless influential in spearheading international initiatives on social, economic, and environmental issues.
Micro-credit programsProgram that provides small loans to poor people, especially women, to encourage development of small businesses.
Special economic zonesSpecific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment.
Limitations of GNI per capita.– Not very accurate
– Takes the average of many incomes (low and high)
– Only measures output (production)
– Only includes the formal economy
Alternative ways of measuring economic development (besides GNI per capita).– Technology integration
– Mechanization in production
– Transportation/communication mediums (railway, television, etc.)
– Dependency ratio
How is productivity per worker examined?Summing production over the course of a year and dividing it by the total number of persons in the labor force.
Dependency ratioA measure of the number of dependents, young and old, that each 100 employed people must support.
Rostow’s Stages of Modernization (1960)Assumes all countries follow similar path to development/modernization.
Stage 1 of Rostow’s Modernization Model-Traditional society. Dominant activity is subsistence farming. Landowners are the political leaders. Focused on tradition.
-ex. Afghanistan
-U.S. comparison: pre-independence

Barriers: lack of technology, Lack of development,
Demographics (population size, quality of life, etc.)
Impetus to change: external influence, external interest,
external markets

Stage 2 of Rostow’s Modernization Model-Preconditions of takeoff. New leadership moves country toward greater flexibility, openness, and diversification. Emergence of commercial classes. More trade.
-ex. India
– U.S. comparison: early-mid 1800s

Impetus for Change: Infrastructure, Emerging polit./social classes
Barriers to change: Lack of investment

Stage 3 of Rostow’s Modernization Model-Takeoff. The country experiences something akin to an
Industrial Revolution, and sustained growth takes hold. Commercial farming. Industrializing. Investment of capital for profit.
-ex. Thailand
-U.S. comparison: mid 1800s

Impetus for Change- Manufacturing > 10% national income, Emergence of modern social, economic & political institutions
Barriers to change- Lack of industrial diversity

Stage 4 of Rostow’s Modernization Model-Drive to maturity. Technologies diffuse, industrial
specialization occurs, and international trade expands. Urbanization. Industrial leaders = influential. Emphasis on new technologies.
-ex. South Korea
-U.S. comparison: late 1800s

Impetus for change: Exploiting advantage in international trade
Barriers to change: High unemployment

Stage 5 of Rostow’s Modernization Model– High mass consumption: high incomes and widespread production of many goods and services. Tertiary sector dominant. Emergence of middle class and suburbs. Stage 4 of Demographic Transition Model (DTM). Social welfare. Military security.
-ex. Japan
-U.S. comparison: early 1900s
Compare/contrast Rostow’s model (of modernization) and Wallerstein’s model (world-systems theory).Similarities:
– Categorizes countries by production value
+ Wallerstein: core, semi-periphery, periphery
+ Rostow: modernization stages 1, 2, 3, 4, 5
– Stage 1 and periphery: low technology use and child education
– Stages 2-3 and semi-periphery: transitioning towards stage 5 and core… still using sage 1 and periphery trends
– Stage 5 and core: the use of technology, scientific developments, high GDP/c, high lit. rate, gender equality
– World-systems theory not as specific as modernization model
– World-systems theory is too broad– doesn’t account all details
-Modernization model has 5 steps/stages
-World-systems theory has 3 steps/stages
Core examplesCountries: US, UK, Belgium, Germany, France, Canada
Regions: North America, Western Europe
Semi-periphery examples(BRIC) Brazil, Russia, India, China, Mexico, South Africa, Indonesia
Periphery examplesCountries: Peru, Democratic Republic of Congo, Yemen, North Korea, Afghanistan
Regions: Sub-Saharan Africa
United Nations Human Development Index (HDI)A composite statistic of life expectancy, education, and income per capita indicators, which are used to rank countries into four tiers of human development.
Major problems faced by the World Bank and the International Monetary Fund (IMF) lending money to periphery countries.-Helps for a little bit
-Sustainable development effects
-The major, global effect lasts for a very short time
-Good chance the money won’t be returned
Other than malaria, what are some other widespread diseases seen in periphery countries?HIV/AIDS (mainly seen in sub-Saharan Africa)
Why won’t Zimbabwe (periphery country) ever recover from its economical/political instability?-Poor weather conditions for farming/housing
-Violent public
-Not enough resources for everyone to obtain
Neo-colonialism exampleNorth America on South American commercial agriculture
Purchasing Power Parity (PPP)Monetary measurement of development that takes into account what money buys in different countries, Can be misleading (e.g. ox cart)
-U.S. GDP (PPP)= $15.66 trillion
-China GDP (PPP)= $12.38 trillion
Rostow’s Modernization Method flaws-It does not take geographical differences very seriously.
-The conceptualization of development has a Western bias.
-It does not consider the ability of some countries to influence
what happens in other countries.
Brandt Line (North/South divide)Divides more developed North (“core,” “MDCs,” “Developed Countries,” “Relatively Developed Countries”) with less developed South (“periphery,” “LDCs,” “Developing Countries”)
Gender Inequality Index (GII)-Health- Maternal Mortality ratio, Adolescent fertility rate
-Empowerment- Female & male population with at least secondary education, Female & male share of parliamentary seats
-Labor Market- Female & male labor force participation rate
Gender Empowerment Ratio (GEM)Measure to gauge how involved women are in improving their status (economical and political)
Barriers to economic development-Social conditions (low life expectancy, mortality, lack of healthcare, etc.)
-Foreign Debt- structural adjustment loans, neo-liberalism (idea that government intervention into markets is inefficient and undesirable, and should be resisted wherever possible)
-Disease (ex. malaria in sub-Saharan Africa)
-Political corruption and instability (civil wars, inflation, etc.)
Newly industrialized country (NIC) characteristics and examples-Rapid population growth and rural to urban migration
-ex. Mexico, Brazil, China, etc.)
Characteristics of maquiladoras– Close to border (near major cities/points of entry, ease/cost of transportation); Originally within 35 miles of US/Mexico border
– Low-wage workers, Foreign-owned factories
– Import raw materials
-Mutually beneficial
— Workers earn higher wages, Factories pay lower
-Cheap for U.S.
What are the Four Asian Tigers?-Hong Kong, Singapore, South Korea, Taiwan
– Increasing education & export levels are leading to rapid economic development
-Emerging tigers: China and India
What causes countries to change their capital cities?-Overcrowded (Brazil: first it was Rio de Jeneiro, now its Brazillia)
-Underdeveloped areas being turned into developed
-A possible political, social, or economic benefit