Development & Agriculture

Defining and Measuring Development

• Wealth is affected by both what is produced, and by how and where it's produced.
• Development describes progress in a nation's technology, production, and socioeconomic welfare.
• Gross National Product (GNP) is the total value of officially recorded goods and services produced by a country's citizens and corporations in a year, including those produced inside and outside the nation.
• Gross Domestic Product (GDP) is the total value of officially recorded goods and services produced by a country's citizens and corporations in a year but only within the nation.
• Gross National Income (GNI) calculates the monetary worth of production within a country, plus income received from investments outside the country and standardized via per capita calculations.
• GNI may not be evenly distributed, with examples such as Kuwait and the UAE, where wealth is concentrated at the top.
• GNI measures output, but does not account for environmental damage from resource depletion or pollution.
• GNI can be negatively affected by things that are beneficial, such as energy saving devices reducing electric company profits.
• Norway had the world's highest GNI as of 2015, at $103,630 per person, with 25% of its income from oil and a population of 5.2 million.
• Qatar has a GNI of $92,000 with 2.8 million citizens, mainly from oil, but most wealth is held by the top 1%.
• Formal economies are legal economies that governments tax and monitor.
• Informal economies are illegal or uncounted economies that governments do not tax or track, such as black markets, drug trades, and barter systems.
• The informal economy can be important in countries like Mexico, Afghanistan, or the Golden Triangle region.

Rostow's Modernization Model

• The classical development model is Walt Rostow's modernization model, an explanation of how modern countries developed, aiming to guide developing countries.
• The model assumes all countries can develop to the same level along the same path.
• Stage 1 (Traditional): Dominant activity is subsistence farming, with rigid social structures and low technology levels.
• Stage 2 (Preconditions for Takeoff): New leadership creates conditions for takeoff through greater flexibility, openness, and economic diversification.
• Stage 3 (Takeoff): An industrial revolution occurs, with sustained economic growth, urbanization, mass production, and improved technology.
• Stage 4 (Drive to Maturity): Technologies diffuse, industrial specialization occurs, and international trade expands, modernization is evident and population growth slows.
• Stage 5 (High Mass Consumption): High incomes and widespread production of goods and services occur, with the service sector becoming dominant.
• Rostow's Model is also known as the "ladder of development" and remains influential despite criticisms.
• In terms of U.S. history, Stage 1 is analogous to Jamestown and Plymouth.
• Stage 2 corresponds to the development of diverse agriculture and trade in the American colonies.
• Stage 3 aligns with the American Industrial Revolution and regional growth after 1820.
• Stage 4 corresponds to America in the late 1800s - early 1900s.
• Stage 5 corresponds to America from the roaring 20's till now.

Problems with Rostow's Modernization Model

• Uneven distribution of resources can leave some countries with little to sell to More Developed Countries (MDCs).
• Examples include Nigeria/copper/declining prices & U.S. elimination of copper in the penny
• Stagnation of the world market puts limitations on purchasing power.
• Rostow's model is considered a more applicable approach to development, compared to the self-sufficiency model.
• Countries like India have seen significantly greater results after recently switching to international trade.
• The World Trade Organization (WTO) was founded to further promote International trade by removing barriers.

Development Definitions and Indicators

• Development is the process of improving the material conditions of people through the diffusion of knowledge and technology.
• A More Developed Country (MDC) has progressed relatively far on the development continuum, also known as a relatively developed country or developed country.
• A Less Developed Country (LDC) is at an earlier stage of development and is sometimes called a "developing country" or "third world country".
• The need for development is driven by increases in the availability/improvements in the distribution of food, shelter, health, protection, etc.
• Other drivers are improvements in 'levels of living,' like higher incomes, more jobs, better education, as well as expansions in the range of economic and social choices.
• Development is measured by the United Nations Development Program Overview 2005
• Development factors measured are Gross Domestic Product (GDP) and Types of Work (Economic Sectors).
• Social Indicators, like Education and Literacy, and Health and Welfare are also Development factors.
• Demographic Indicators like Life Expectancy (37-80 years) are development factors.
• Gross National Product and the Literacy rate are also development factors.
• Literacy rate is the percentage of a country’s people who can read and write.
• The Human Development Index (HDI) is the U.N.'s official "scorebook" used to classify countries' development, distinguished by economic, social, and demographic factors.
• The economic factor is a country's GDP per capita.
• The social factors are literacy rate and the amount of education.
• The demographic factor is life expectancy.
• Top 5 Countries include: Norway, Australia, Switzerland, Netherlands and United States Bottom 5 Countries include Sierra Leone, Chad, Central African Republic, DR Congo and Niger

How Geography Can Affect Development

• Context affects development through forces operating at local, state, regional, and global scales.
• Former European colonies became dependent on the mother nations while providing them with riches.
• Neocolonialism describes an ongoing economic control of formerly free colonies by the world's major powers.

Barriers to Economic Development

• Social conditions can be a barrier to development.
• Social factors, economic factors and demographic factors can be development issues that effect a nation.
• High infant/child mortality rate, short life expectancy, lack of education, and views on gender can also be barriers.
• Too many people die young for a variety of reasons such as war, lack of medical care, and famine which leads to a poor, uneducated society.
• Lack of education in girls limits their political, economic, and social opportunities which limits their development.
• Gender can also be a factor, with some girls seeking work and becoming victims of trafficking.
• Trafficking (a form of slavery) is a problem for women who are taken to foreign countries and forced to labor.
• High infant/child mortality rate (due to malnutrition) can also be Barriers to Economic Development.
• Short life expectancy, and lack of education are also barriers to Economic development.
• Structural adjustment loans bring attached strings, like privatizing government entities, opening to foreign trade, reducing tariffs, and encouraging foreign Investment.
• In July 2023, the annual interest rate on the U.S. national debt was ~2.43%.
• In September 2023, the U.S. national debt was $32.9 trillion.

Neoliberalism

• International Monetary Fund is composed primarily of European banks is sought after by European traders.
• Structural adjustment loans incorporate of a neoliberialism trend that government interference in the market is inefficient/undesirable.
• Neoliberialistic policies is that you are at the mercy of the marketplace.
• Neoliberialism, high government spending and rampant corruption may have led to an crises.
• It took Argentina four years of internal economic growth, combined with a loan from Venezuela, to restructure its debt and become solvent.
• Another barrier to development is disease, esp malaria.
• Malaria is a vectored disease that spreads via mosquitoes with 2 million deaths a year, most under the age of 5.
• While it is common in Africa and South America, it can also be found in India, Southeast Asia, and China.
• Today malaria is fought with mosquito netting and future tactic include the use of a genetically engineered mosquitoes to help prevent the spread of disease.
• It can be difficult to establish political control over a low income or war-torn nation like Afghanistan.
• Former colonial societies can leave the indigenous elites in charge and lead to fighting or instability can result in corruption, quasi-democracies, and military dictatorships (Kenya and Afghanistan).
• Poverty or disenfranchisement of the poor - can lead to civil war to exchange for promises of a brighter tomorrow.
• Dictators such as Robert Mugabe in Zimbabwe exhibit corruption, stealing foriegn aid, forcing their nation to join so they can work, and even murder.
• Like many dictators remains in power because the people fear him only sanctions and outside political pressure.
• A simular example of Fidel Castro is one when Cuba is in economic disaster and will not bring about political reform.

Costs of Economic Development:

• Agriculture in periphery/semi-periphery countries is normally owned by a major agricultural conglomerate
• It focuses on personal consumption.
• Small farmers has not provided large amounts of income and the practices are not conducive to successful mass production.
• Due to lack of education on the subject of soil conservation and overuse of land it lead to desertification in areas like Africa/Middle East.
• over the last 50 years, 270,000 square miles of African farming and grazing land has succumbed to desertification.
• Increased Industrial production can lead to air and surface water pollution.
• Increased Agricultural production can lead to herbicides and pesticides in the water.
• Increased Tourism can lead to a taxing of the existing infrastructure and changing to the national or local culture.
• Special zones called export processing zones give favorable tax, regulatory, and trade arrangements to foreign nations, are created,
• Maquiladoras are often assembly plants manned by low wage workers in questionable working environments, yet account for 1 million jobs and 45% of Mexico’s exports.
• China is the largest producer of cement, steel and other materials.
• NAFTA or the North American Free Trade Agreement was it's creation goal was to eliminate some barriers for trade and to the facilitate cross border movement of goods and services inside the North American area.

Tourism

• Tourism brings wealth/employment to a nation, it's a limited
• tourism industry is not owned by the home country, but rather
• tourists are isolated from the local culture which can lead to resentment.
• a nation is over reliant on tourism is vulnerable to changes shifting tourism.
• Can Cun is associated with the periphery places that depend on tourism a portion of the city's are overlooked by shanty and houses and an impoverished population.
• Periphery countries often have can has a severe difference between areas prime examples include Latin America or Sub-Saharan African cities/ states.
• In comparison to the countryside, many cities, even with states will most likely have wealth disparity
• The government decides tariffs, land ownership, taxes, trade deals, and environmental regulations.
• Military bases chosen by congress helps the economic centers within the community.
• Islands are a part of the development a government/ corporation builds u/ concentrates economic development
• Countries do this by establishing new capitals as a show of independence.
• NGO's (Non-governmental organizations) help improve people and not for profit.
• Due to women microcredit programs are able to finance women to encourage development.

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