Chapter 7 Lecture

Human Geography: Places and Regions in Global Context

Sixth Edition

Wendy A. MitteagerState University of New York, Oneonta

Geographies of Economic Development

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Key Concepts

• Economic development• Carrying capacity• Sustainable development• Division of labor• Fair trade• Deindustrialization• Economic globalization• Flexible production systems

Figure: Chapter 7 Opener Migrant workers in China boarding a train home.

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• Unevenness• Gross domestic product

(GDP)• Gross national income

(GNI)• Purchasing power parity

(PPP)

Patterns of Economic Development

• Three types of changes– Structure of region’s economy– Forms of economic organization– Availability & use of technology

Apply your knowledge: What kind of statistics besides GNI provide an indication of international disparities in economic development?

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Figure 7.1 GNI is one of the best single measures of economic development. Use this map to compare the core countries with the peripheral and semiperipheral countries.

Patterns of Economic Development, (cont’d)

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Resources and Development

• Cultivable land

• Carrying capacity

• Industrial resources

Figure 7.3 Deforestation of rainforest in Cameroon.

Figure 7.2 Major sources of energy are unevenly distributed.

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Resources and Development, (cont’d)

Figure 7.4 Some countries are fortunate in having a broad range of cultivable land. Others must rely on exploitation of one major resource for economic development.

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Apply your knowledge: Provide examples of renewable energy projects in the U.S. How can they change the ecological footprint? How might their growth be impeded?

Figure 7.6 Promoting local economies

Resources and Development, (cont’d)

• Sustainable development• Ecological footprint

• Obstacles – Reliance on fossil fuels– Rate of growth in periphery– Institutional framework

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• Newly industrializing countries (NIC’s)

• Foreign direct investment

• Transnational corporations (TNCs)

Economic Structure

• Primary, secondary, tertiary, and quaternary activities

• Division of labor• Manufacturing value

added (MVA)

Apply your knowledge: Consider a product you own and map out the product’s development through the primary, secondary, and tertiary activities.

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Primary Economic Activities, 2002

Figure 7.7 The geography of primary economic activities

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Figure 7.B The city of Shenzhen

Figure 7.C New affluence Figure 7.D Real estate boom

China’s Economic Development

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Economic Structure, (cont’d)

• Trading blocs• Autarky• Neoliberal polices

Figure 7.8 Manufacturing in South Korea

Figure 7.9 World economic forum in Switzerland, 2011

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Economic Structure, (cont’d)

Figure 7.10 One reflection of dependency: the index of commodity concentration of exports, 2002

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Economic Structure, (cont’d)

• International debt• Elasticity of demand• Terms of trade

– Ratio of prices

• Import substitution

Apply your knowledge: Determine the current debt of three countries. What main factors have contributed to each countries’ debt?

Figure 7.12 Cocoa production, Ghana

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Economic Structure, (cont’d)

Figure 7.11 The 2008 debt crisis

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Fair Trade

Figure 7.13 Fair trade coffee in Uganda Figure 7.14 A fair trade shop in Canterbury, England

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Stages of Economic Development

Figure 7.15 A model based on the idea of successive stages of economic development, nowregarded as overly simplistic.

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Regional Economic Development

• Regional inequalities• Geographical path dependence• Initial advantage• External economies• Localization economies

Apply your knowledge: Identify an example of localized economics functioning in your own community. What industries are clustering together and how can this result in cost savings?

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Regional Economic Development, (cont’d)

• Webs of functional interdependence• Agglomeration effects• Backward and forward linkages• Ancillary industries• Cumulative causation• Backwash effects

Apply your knowledge: Identify and research three cities that have experienced a backwash effect and the reasonsfor the backwash effect in each locale.

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Regional Economic Development, (cont’d)

• Modification of regional core-periphery patterns

• Spread effects• Import substitution• Agglomeration

diseconomies• Deindustrialization• Creative destruction Figure 7.18 An abandoned Packard automobile

plant in Detroit, Michigan.

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Regional Economic Development, (cont’d)

• Government intervention• Growth poles

Apply your knowledge: Identify two regions that have experienced deindustrialization. What industries were lost? Did they experience creative destruction? Has government intervention played a role?

Figure 7.19 The London congestion charge was introduced in 2003.

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Globalization and Economic Development

Figure 7.20 The impact of containerization on world trade

Figure 7.21 24-hour trading between major financial markets

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Figure 7.22 Banks in trouble: customers in line in Santa Monica, 2008.

Figure 7.23 U.S. President George W. Bush addresses the nation about the financial crisis on October 10, 2008.

Globalization and Economic Development, (cont’d)

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Economic Globalization

• Global assembly lines and supply chains

• Conglomerate corporations

• TNCs and globalization• Flexible production

systems– Fordism– Neo-Fordism

Figure 7.26 Nestle is the main food company for Disneyland Paris

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Economic Globalization

• Just-in-time production• Vertical disintegration• Strategic alliances

• Export-processing zones• Homogenization of

consumption• Experience economy

Figure 7.27 Principal maquiladora centers on the United States–Mexico border

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Apply your knowledge: Consider the eateries you dine at most often. Are they locally owned or chains owned by large corporations? If they are chains, research what business they replaced in that location.

Wal-Mart’s Economic Landscape

Figure 7.E Wal-Mart locations in the Atlanta metropolitan region

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Geographies of Office Employment

• Decentralization – Back-office functions

• Outsourcing• Clusters of

specialized offices• Offshore financial

centersFigure 7.30 Workers at a call center in India.

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The Pleasure Periphery

• Tourism• Alternative tourism

Figure 7.32 Ecotourism:birdwatchers in Panama

Apply your knowledge: Choose a popular tourist location and list costs and benefits of tourism for this place and its inhabitants.

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Future Geographies

• Availability of resources

• Expansion of world economy

• Globalization of industry

• Transportation technologies– High-speed rail

systems– Smart roads– Smart cars

Figure 7.34 Energy-consuming goods: in an Apple Store in Beijing, China

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End of Chapter 7