GEOG 105 8/18/16

Instructor: Pesses 1

{14}Development

CulturalGeographyM.Pesses

AntelopeValleyCollege

Development‡ Increasingthestandardofliving

‡ Growtheeconomy

UnevenDevelopment GlobalSouth

UnevenDevelopmentMDC

wMoreDevelopedCountryw 20%ofcountries

LDCw LessDevelopedCountryw 80%

NICw NewlyIndustrializingCountries

DevelopingCountries1. Widespreadpoverty/malnutrition2. Largeshareofagricultureinoutput/employment3. Pronounceddualisminecon.structure4. Rapidgrowthofpopulation5. Explosiveurbanization6. Under-utilizationoflabor7. Politicalinstability,corruption8. Environmentaldegradation9. LowlevelsoftechnologicalcapabilitiesFromSzirmai,2005

GEOG 105 8/18/16

Instructor: Pesses 2

Approaches‡ Thefightagainstpoverty‡ Theanalysisoflong-termeconomicandsocialdevelopment

Thefightagainstpoverty‡ Oftenshort-termprojects

‡ Canbe“fashionable”

Long-termapproach‡ Studyinghistoricdevelopmentinfirstworldcountriesw ShouldnotimplythatallcountriesneedtoadoptWesternmethods…

w Canstressindustrializationoveragriculture

MeasuringDevelopmentGrossDomesticProduct(GDP)

w GDPpercapitaisthetotalmonetaryvalueofallgoodsandservicesinaneconomydividedbythepopulation.

HumanDevelopmentIndexUNmeasurementofeconomic,social,anddemographicdevelopmentw Combinesliteracy,lifeexpectancy,education,andwealth

GEOG 105 8/18/16

Instructor: Pesses 3

WorldBankData‡ http://data.worldbank.org/‡ Usingsocial,economic,&demographicdatatounderstanddevelopment

GlobalPriority $U.S.BillionsCosmeticsintheUS 8IcecreaminEurope 11PerfumesinEurope&theUS 12PetfoodsinEurope&theUS 17BusinessentertainmentinJapan 35CigarettesinEurope 50AlcoholicdrinksinEurope 105Narcoticsdrugsintheworld 400Militaryspendingintheworld 780

GlobalPriority $U.S.BillionsBasiceducationforall 6Waterandsanitationforall 9Reproductivehealthforallwomen 12Basichealthandnutrition 13

http://map.measureofamerica.org/maps.aspx

Howdidwegethere?‡ Endof19thCenturytheUShadasurplusofgoods,butnomarketsw Manifestdestinyw Colonialmarkets

WorldWarI‡ WoodrowWilson‡ FourteenPoints speech‡ LeagueofNations

GEOG 105 8/18/16

Instructor: Pesses 4

LeagueofNations‡ Goalsweretokeepanothergreatwarfrombreakingout

‡ TheUSneverjoinedw SenateworrieditwouldtieUStofutureEuropeanWars

‡ Disbandedin1946

Interpretations‡ Wilsonà enterWWItoreshapetheworldafterw LeagueofNationswouldpreventwar&provideeconomicopportunitiesforUS

w Proposed“self-determination” forthe“smaller” nations

Interpretations‡ Globalpowerwasnottheresultofterritory,butmarketsw TheLeagueofNationsdesignedtohandleterritorialdisputeswhileallowingmarketstocontinuetooperate

w Europecontrolledterritories,theUScouldcontrolthenewglobaldiscourse

WordWarIIWWIIprovidedanotheropportunitytonotonlyrebuildnations,buttoreshapeaglobaleconomy

UnitedNations‡ ReplacedLeagueofNations‡ SecurityCouncil

w US,UK,Russia,France,Chinaveto

GEOG 105 8/18/16

Instructor: Pesses 5

BrettonWoodsConference‡ AlliedleadersmetinNewHampshiretoestablishasystemforinternationaltrade

GoldStandard‡ Createdagoldstandard fornationalcurrenciesw Reducedrestrictionsontrade

w $35perouncew Dollarasgoodasgold

NixonShockFiatmoney

w Legaltenderprintedbyagovernmentw Essentiallyuselessbillsnottiedtoanycommodity

BrettonWoodsConferenceConferenceresultedin:

w TheInternationalMonetaryFund(IMF)

w TheWorldBank

IMF‡ Oversawexchangerates‡ Promotedfreetrade

w EncouragedcountriestotradetoavoidanotherGreatDepression

IMF“TheInternationalMonetaryFundisanorganizationof186countries,workingtofosterglobalmonetarycooperation,securefinancialstability,facilitateinternationaltrade,promotehighemploymentandsustainableeconomicgrowth,andreducepovertyaroundtheworld.”

fromIMFwebsite

GEOG 105 8/18/16

Instructor: Pesses 6

DevelopmentJustafterWWII…

w Importsubstitution‡ Economiesweresupposedtodeveloptheirownindustriessothattheywouldnotneedtorelyexclusivelyonimportedgoods

Importsubstitution

‡ Seenasafailureinthe1970sw Developingcountriescouldn’tcompeteintheglobalmarketplace

Neoliberalism‡ Replacedwithneoliberalism

w Export-orientedeconomiesw Privatization,deregulation,free-trade,andmonetarism

‡ NowtheIMF,WorldBank,&theWorldTradeOrganization(WTO)playedabiggerroleintheglobaleconomy

TheWorldBank‡ Designedtofacilitatedevelopmentprojects‡ EventuallyrestructuredtofocusoninfrastructureofThirdWorld

StructuralAdjustmentPrograms

SAPsw ChangesneededtobemadebyacountrybeforetheycantakenewloansfromtheIMFandWorldBank

w Oftenresultedinderegulation&privatizationofgovernmentutilities&services‡ Removepricecontrols&statesubsidies‡ Balancethebudget

w Typicallybycuttingspendingratherthanraisingtaxes

GEOG 105 8/18/16

Instructor: Pesses 7

Mexico,1982‡ Goingtodefaultondebtsw Loansbasedin$USw RisinginterestratesfromtheUSeffectedadjustablerateloans takenoutbyMexico

Mexico,1982‡ InaUSbackeddeal,MexicorequiredtoimplementSAPsw Cutsinwelfareexpenditures

w Relaxedlaborlawsw Privatization

GlobalizationNationaleconomiesareconnected

wWhathappensinAsiacanaffectSouthAmerica

w Acountrycandothingsright&stillgointoheavydebt‡ Inordertogetoutofthisdebt,ittypicallyneedsnewloansfromtheIMF/WorldBankw WhichmeanstheyneedtoimplementSAPs

‡ Whichmeansmoredebtthanbefore

Kinder,GentlerSAPsWorldBankwasgettingabadreputation

w Debtw Environmentaldegradation

AlongwithIMFlaunchanewplan,thePovertyReductionStrategyInitiative(PRSI)

‡ SomeargueessentiallySAPswithafriendliername

Microfinance‡ SeenasanalternativetoglobaldevelopmentbankswMakesmallloanstopeoplefortheirbusinessventures‡ “Developmentfrombelow”

w Stillarecriticizedthough…‡ GrameenBankofBangladesh‡ Kiva.org

YourWorldBankAssignment‡ TheWorldBankishighlycriticizedaspunishingpoorcountries&givingprofitstorichnationsandtransnationalcorporations

‡ Ithastriedtofixthisnegativeimagew Thoughsomewouldsaythey’rejustrenamingthesamebadpolicies

GEOG 105 8/18/16

Instructor: Pesses 8

YourWorldBankAssignmentIamnotlookingforyoutosimplycriticizetheWorldBank,butreaditsproposalsforhelpinggetdevelopingnationsoutofpoverty.

YourWorldBankAssignmentYoushouldbeabletofinda“CountryAssistanceStrategy” orCASreportforyourcountry– thisshouldbeagoodplacetostart

wWhatproblemsareseenbytheWorldBank?‡ Doyouagreewiththem?

wWhatsolutionsaregivenbytheBank?‡ Doyouagreewiththem?

w Does“debt” evergetmentioned?