GEOG 1280 Notes for Finals Exam - University of Manitoba

for final exam Chapter 10: Development Introduction to Human Geography Department of Environment and Geography University of Manitoba Lisa Ford 1 Copyright Lecture slides,...

for final exam Chapter 10: Development Introduction to Human Geography Department of Environment and Geography University of Manitoba Lisa Ford 1 Copyright Lecture slides, course notes, and educational resources are copyright-protected and made available to you for your personal educational use and private study only. Unless stated otherwise, further copying and distribution of these materials is strictly prohibited. © Lisa Ford, 2022. Further electronic or hard copy reproduction and or distribution of this content in part or in whole is strictly prohibited. 2 1  Special Notes About Reading Chapter 10 Read all parts of chapter 10 Assigned readings: 10.10 Fair Trade 10.11 Progress in Development As with other chapters, you do not have to memorize dates, percentages, numbers, etc. Focus on the definitions, concepts, trends, etc. 3 Chapter 10 Key Issues 10.1 Human Development 10.2 A Decent Standard of Living 10.3 Access to Health & Knowledge 10.4 Inequality-Adjusted HDI 10.5 Gender Inequality 10.6 Gender Development 10.7 Two Paths to Development 10.8 World Trade 10.9 Financing Development 10.10 Sustainable Development (assigned reading) 10.11 Fair Trade (assigned reading) 4 2  10.1 Human Development Each country can be classified according to its level of development Development: the the process of improving the material conditions of people through diffusion of knowledge and technology. A developed country, also known as a more developed country (MDC), has progressed further along the development continuum Identified as a very high developed country by the UN A developing country, also frequently called a less developed country (LDC), has made some progress toward development, though less than the developed countries 5 10.1 Human Development calculation of HDI T 1 Decentstandard of Human Development Index UN created the Human Development Index (HDI) as living one measure of development 2 Long Healthy life The highest HDI possible is 1.0 The HDI considers development to be a function of three factors: a decent standard of living, a long and healthy 3 Access to knowledge life, and access to knowledge Figure 10.1.2. Human Development Index (Rubenstein, 2022, p. 244) 6 3  Human Development Index Table 3.1 Extremes of human development, 2015 in Mercier & Norton. 2019. Human Geography, 10th edition. Oxford University Press, p. 96. 7 10.1 Human Development Regional Differences in Development Geographers divide the world into two developed and seven developing regions Figure 10.1.3. Development Regions (Rubenstein, 2022, p. 245) 8 4  HDI 10.2 A Decent Standard of Living 1 Income Gross national income (GNI) is the value of the output of in outthecountry goods and services produced in a country/year Purchasing power parity (PPP) is an adjustment made to the GNI to account for differences among countries in the cost of goods Gross domestic product (GDP) also measures the value of the output of goods and services produced in a country/year, but it does not account for money that leaves and enters the onlyWITHIN country The higher the per meanwealth capita GNI, the GNI means higherpotential greater the potential for ensuring all people have a to be wealthy comfortable life Figure 10.2.2 GNI PPP per capita (Rubenstein, 2022, p. 246) 9 10.2 A Decent Standard of Living Economic Structure Jobs fall into three categories Primary sector: Directly extracting materials from Main extraction Earth through agriculture or through mining, fishing, and forestry Secondary sector: Manufacturing raw materials into products Tertiary sector: Providing goods and services to people in exchange for payment Figure 10.2.4 Economic Structure govlawyeretc (Rubenstein, 2022, p. 247) ref 10 5  10.2 A Decent Standard of Living Productivity Productivity is the value of a particular product workers in MDC'sare more compared to the amount of labor needed to make it productivethanthe LDC's Productivity can be measured by the value added per capita The value added in manufacturing is the gross value of a product minus the costs of raw materials and energy In developed countries, workers produce more with less effort because they have access to more machines, tools and equipment 11 Wealth in developed countries is used to purchase goods (cars, electronics, clothes, etc) – accessible to almost everyone Figure 10.2.3. Motor Vehicles and 10.2.5. Cell Phones (Rubenstein, 2019) 12 6  10.3 Access to Health & Knowledge 2 Health From the many health and longest LE intheworld medical indicators, the UN has selected life expectancy at birth as the contributor to the HDI Figure 10.3.1 Life Expectancy at Birth by Region (Rubenstein, 2022, p. 248) 13 10.3 Access to Knowledge and Health 3 Education The UN considers years of schooling to be the most critical measure of the ability of an individual to gain access to knowledge needed for development Years of schooling for today’s adults (average school years for adults >25) Expected Years of schooling for youth (time a 5 year old will Figure 10.3.4. Mean Years of Schooling (Rubenstein, 2022, p. 249) spend in school) 14 7  10.3 Access to Knowledge and Health Other education indicators: Pupil/teacher ratio The fewer pupils a teacher has, the more likely that each student will receive effective instruction Literacy rate The literacy rate is the percentage of a country’s people who can read and write Figure 10.3.5. Pupil/Teacher ratio, primary school and 10.2.6. Literacy rate (Rubenstein, 2019) 15 10.4 Unequal & Uneven Development Inequality-adjusted HDI inequality-adjusted HDI (IHDI) measures The IHDI modifies the HDI to account for inequality within the amount of inequality a country under perfect equality, the HDI and the IHDI are the same. If the IHDI is lower than the HDI, the country has some inequality bigger the greater the difference in the two measures, the greater smallergap smallerinequality the inequality ie Developedcountries mostequality lessgaps Figure 10.4.2 Inequality Adjusted HDI (Rubenstein, 2022, p. 250) 16 8  10.4 Unequal & Uneven Development Widening Inequality within Developed Countries Since the 1980s, inequality has increased in most developed countries, including the United States, United Kingdom, and Canada 0.1 perfect inequality looks income The World Bank Gini coefficient calculates the extent to which the distribution deviates from exactly equal 1 personhas everythingwhile inequality A Gini coefficient of 0 represents exact equality A Gini coefficient of 1 is total inequality others don't indicator equality of in an economy moreincomeequality Yes Yuanty meanincomecan be skewed http://www.conferenceboard.ca/hcp/Details/society/income-inequality.aspx 17 10.4 Unequal & Uneven Development Inequality within a country Great Britain Britain incomes in Central London are twice as high as in some of the country’s Scalematters northern communities chloropleth Figure 10.4.4 IHDI by Region (Rubenstein, Figure 10.4.3 Inequality within Great Britain 2022, p. 250) (Rubenstein, 2022, p. 250) 18 9  10.4 Inequality-Adjusted HDI Poverty According to the UN, 21% of people in developing countries live in poverty lessthan 2 day Poverty rates vary from 5% in East Asia to 43% in sub-Saharan Africa Figure 10.4.5 Percent living in poverty (Rubenstein, 2022, p. 251) 19 10.4 Inequality-Adjusted HDI Multidimensional Poverty Index (MPI) The UN’s Multidimensional Poverty Index (MPI) measures the multiple deprivations in people’s lives using the same three dimensions as the HDI how poverty affect people's lives E.g. standard of living is income PLUS the percentage of people with access to fuel, sanitation, drinking water, etc Figure 10.4.6 Multidimensional poverty index (Rubenstein, 2022, p. 251) 20 10  10.4 Inequality-Adjusted HDI Regional Variations in MPI what MPIvariesfromplacetoplace Low standard of living is ~50% of the index in sub- poorlivingstan Saharan Africa Poor health is ~50% in Central Asia health most countries have made progress in reducing MPI, but 9 the Covid-19 has stopped progress in many places Figure 10.4.7 Dimensions of MPI (Rubenstein, 2022, p. 251) 21 10.5 Gender Inequality Gender Inequality Index (GII) inequality between men women measures the gender gap using: reproductive health, empowerment, and the labor market contributing factor Reproductive health is the largest contributor to gender inequality in some developing regions of a country's development A score of 0 means that men and women fare equally esp in developed countries GII is higher in developing countries than in developed ones when compared to I other developed countries 1 main US has a GII rank of 46 Relatively high adolescent fertility rate Relatively high maternal mortality rate MINF Figure 10.5.2. Gender Inequality Index (Rubenstein, 2022, p. 252) 22 11  10.5 Gender Inequality Empowerment In the context of gender inequality, empowerment refers to the ability of women to achieve improvements in their own status—that is, to achieve economic and political power i e accessto education The empowerment dimension of GII is measured by two indicators: 1) Seats in the National Legislature: in every country of the world, more men than women hold position of political power 2) Secondary School: worldwide, 61% of women have completed some secondary (high) school, compared to 68% of men but thereis a widerY'pillsvarietyin specificplaces 23 10.5 Gender Inequality Employment Female labor force participation rate the percentage of women holding full-time jobs outside the home Women are more likely to work in outside the home in developed countries Figure 10.5.5 Percent of Women in the Labor Force (Rubenstein, 2022, p. 253) 24 12  10.5 Gender Inequality Reproductive Health The maternal mortality rate is the number of women who die MMR giving birth per 100,000 births (covered in chapter 2) AFR The adolescent fertility rate is the number of births per 1,000 women ages 15 – 19 isover20 it'snot considered Developed (overall): 17 births/1,000 women 15-19 as AFR Developing (overall): 47 births/1,000 women 15-19 The teenage pregnancy rate is below 10 per 1,000 in most European countries (and Canada) Sub-Saharan Africa the rate is 105 lessdevelopedcountries MMR AFR Figure 10.5.6 Adolescent Fertility Rate (Rubenstein, 2022, p. 253) 25 10.6 Gender Development disparities gaps Gender-related Development Index The U.N. combines Human Development Index data on income, education, and life expectancy in a measure of are dueto spatial variation the gender gap called the Gender-related Development Index (GDI) used method If females and males had the same levels of income, thesame astheHDI education, and life expectancy, the GDI would be 1.000. ie Japan LE Russia biggestgapin LE between m Figure 10.6.1 Gender-related Development Index (Rubenstein, 2022, p. 254) ofabout 11yrs M dueto difffactors 26 mostly 13  10.6 Gender Development Disparities Between Females & Males Income: worldwide, the average income of women is 60 percent that of men in developed countries and 49 percent in developing men earns morethan women in countries. Education: worldwide, women have completed fewer years of mostparts schooling than men. forevery Life expectancy: life expectancy is 75 for females and 71 for males. 1 men 0.78 women Figure 10.6.2 Female income as a percentage of male Figure 10.6.3 Gender differences in mean years of income (Rubenstein, 2022, p. 254) schooling (Rubenstein, 2022, p. 254) 27 10.6 Gender Development Gender Attitudes to measurebiastowardswomen Attitudes favoring men over women are prevalent in many parts of the world. The Gender Social Norms Index (GSNI) measures the strength of attitudes biased against women based on surveys of people’s attitudes toward women wrongmap Figure 10.6.4 Gender Social Norms Index (Rubenstein, 2022, p. 255) 28 14  makingprogress inthe 19thcent 10.7 Two Paths to Development ie Sub Saharan Africa I Self-sufficiency internal Countries encourage domestic production of more development than goods, discourage foreign ownership of businesses and resources, and protect their businesses from international competition their previous yrs International trade Countries open themselves to foreign investment and international markets bringon globalization 1980s 2008 global recession broughtthefactthat reliance ofinternationaltradeis an issue 29 10.7 Two Paths to Development domestic Self-sufficiency example: India Key elements of the self-sufficiency path to development include the following: Balanced growth Import barriers taxes tarists quotasquantity Import licenses Quotas on imports (even with license) Taxes (heavy taxes on imports) Export limits encourage Currency restrictions business inthecountry Permits (to sell a new product, modernize a factory, set prices, hire/fire workers, etc) Subsidies & government ownership to discourage changeupgrade whenstruggling 30 15  10.7 Two Paths to Development upto International Trade Path opening internationaltrade The international trade model of development calls for a country to identify its distinctive or unique economic assets. strengths What animal, vegetable, or mineral resources does the country have in abundance that other countries are toimportexport willing to buy? The international trade path derives from a five step model proposed by W.W. Rostow in 1960 Each country is thought to be in one of these five stages 31 10.7 Two Paths to Development International Trade Path 1. The traditional society - high percentage of people engaged in agriculture and a high percentage of national wealth allocated to “nonproductive” activities (e.g the military and religion) 2. The preconditions for takeoff - an elite group of well-educated leaders initiates investment in technology and infrastructure country to putsmore money tech infrastructures supporteconomicprogre 3. The takeoff - Rapid growth is generated in a limited number of economic activities doingbetter we 4. The drive to maturity - Modern technology 5. The age of mass consumption - The economy shifts 1mm Ythe In i economy e morespecialized skilledwo from production of heavy industry to consumer goods a lotofppl working inthe servicesector 32 16  10.7 Two Paths to Development During the late twentieth and early twenty-first centuries trade increased more rapidly than wealth (as measured by GDP), an indication of the growing importance of the there is increasein trade in GDP international trade approach Shortcomings of the self-sufficiency approach quality ain'tgood if thereis no Inefficient industries Lack of competitiveness competition no pressureto better Corruption Black market product pay easiertosellinthe abuse blackmarket Figure 10.8.1 International trade as a Percentage of GDP (Rubenstein, 2022, p. 258) 33 10.7 Two Paths to Development legal goto fortrade World Trade Organization Countries representing 97 percent of world trade to playfair validityofthetrade established the World Trade Organization (WTO) in 1995 supranationalorg The WTO enforces agreements designed to reduce barriers to international trade through: tomakeit easierto 1. Reduce restrictions on trade 2. Enforcing agreements: the WTO makes rulings on trade disagreements between countries import export Critics have attacked international trade i e corporations Promotes the interests of large Mcdonalds Compromises sovereignty of individual countries countriescanbe some sidelined ignoredesp tolessdevelopedcountries 34 17  10.8 World Trade India Moves Away from Self-Sufficiency Following decades of self-sufficiency, India adopted many international trade policies in the 1990s makemore money The result was a more substantial increase in GDP per capita than had been experienced under self-sufficiency Figure 10.8.2 GDP per capita: India (Rubenstein, 2022, p. 258) 35 10.8 World Trade Core & Periphery Wallerstein’s world-systems theory describes relationships tolook the between developed and developing countries corecountries outsource According to this theory, developed countries form an inner core area, whereas developing countries occupy peripheral locations edge dependent for migration middle Semi-periphery countries (intermediate development close to both core and periphery regions) goes bothways abt the 3 Figure 10.8.3 Core & Periphery: North Polar Projection (Rubenstein, 2022, p. 259) 36 18  developedcountries 10.9 Financing Development rely on Foreign Direct Investment Investment made by a company based in one putmoney in a country to country in the economy of another country is known as foreign direct not a country where the helpthem in bigprojects investment (FDI) Foreign direct investment Figure 10.9.1. Growth in FDI (Rubenstein, 2022, p. 260) company is based but it grew from $172 billion in their owncompany 2002 to $1.7 trillion in goesto another country to 2019 i e coca cola invests in India FDI does not flow equally around the world help theircorporations for eduction toget moreworkers Major source of FDI: Figure 10.9.2. Sources and Destinations of transnational corporations FDI, 2019 (Rubenstein, 2022, p. 260) 37 10.9 Financing Development Loans The two major lenders are: the World Bank and the International Monetary Fund (IMF) provideloans Developing countries borrow money to build new tocountriesw cashflowproblems infrastructure, and in theory this will make conditions more favorable for domestic and foreign businesses sothateconomy goesup Figure 10.9.3 World Bank Loans (Rubenstein, 2022, p. 260) 38 19  10.9 Financing Development Loan Debt and Austerity Programs when Some countries have had difficulty repaying their loans, especially those countries with very high debt compared to their GNI To apply for debt relief, a developing country is required to prepare a Policy Framework Paper (PFP) that outlines a structural adjustment program, a detailed plan of economic reforms (or “adjustments”) reforms Figure 10.9.4 Debt as a percentage of GNI (Rubenstein, 2022, p. 261) 39 10.9 Financing Development Microfinance for development An alternative source of loans is microfinance, which is provision of small loans and other financial services to individuals and small businesses in developing countries institution thatgives Figure 10.9.5. Microfinance (Rubenstein, 2022 p. 261) amounts in smallquantities many gettingpickedingroups eligiblewhenfirst 2 5 topaybeforethe 40 3 5 theirloans collectiveresponsibility 20  10.9 Financing Development The Grameen Bank, Bangladesh 1970s Stage 3 DT Microcredit program that focuses on improving the status of landless and poor people (particularly women) Began as a research project (1976) and became a bank in 1983 specialize Seeks to enhance the social and economic status of those in need Average loan is about $300 Loan applicants form groups (collective responsibility) and meet with bank officials Recovery rate is 98% About 10,000 microfinance institutions around the world today 41 Assigned Readings 10.10 Sustainable Development 10.11 Fair Trade 42 21  References Unless otherwise stated, all images are from: Rubenstein, J. 2022. Contemporary Human Geography, 5th edition. Pearson. Rubenstein, J. 2019. Contemporary Human Geography, 4th edition. Pearson. Images used with permission from Pearson 43 22 Chapter 10: Development Introduction to Human Geography Department of Environment and Geography University of Manitoba Lisa Ford Copyright Lecture slides, course notes, and educational resources are copyright-protected and made available to you for your personal educational use and private study only. Unless stated otherwise, further copying and distribution of these materials is strictly prohibited. © Lisa Ford, 2022. Further electronic or hard copy reproduction and or distribution of this content in part or in whole is strictly prohibited. Special Notes About Reading Chapter 10 Read all parts of chapter 10 Assigned readings: 10.10 Fair Trade 10.11 Progress in Development As with other chapters, you do not have to memorize dates, percentages, numbers, etc. Focus on the  definitions, concepts, trends, etc. Chapter 10 Key Issues 10.1 Human Development 10.2 A Decent Standard of Living 10.3 Access to Health & Knowledge 10.4 Inequality-Adjusted HDI 10.5 Gender Inequality 10.6 Gender Development 10.7 Two Paths to Development 10.8 World Trade 10.9 Financing Development 10.10 Sustainable Development (assigned reading) 10.11 Fair Trade (assigned reading) 10.1 Human Development Each country can be classified according to its level of development Development: the the process of improving the material conditions of people through diffusion of knowledge and technology. A developed country, also known as a more developed country (MDC), has progressed further along the development continuum Identified as a very high developed country by the UN A developing country, also frequently called a less developed country (LDC), has made some progress toward development, though less than the developed countries 10.1 Human Development Human Development Index UN created the Human Development Index (HDI) as one measure of development The highest HDI possible is 1.0 The HDI considers development to be a function of three factors: a decent standard of living, a long and healthy life, and access to knowledge Human Development Index 10.1 Human Development Regional Differences in Development Geographers divide the world into two developed and seven developing regions 10.2 A Decent Standard of Living Income Gross national income (G N I) is the value of the output of goods and services produced in a country/year  Purchasing power parity (P P P) is an adjustment made to the GNI to account for differences among countries in the cost of goods Gross domestic product (G D P) also measures the value of the output of goods and services produced in a country/year, but it does not account for money that leaves and enters the country 10.2 A Decent Standard of Living Economic Structure Jobs fall into three categories Primary sector: Directly extracting materials from Earth through agriculture or through mining, fishing, and forestry Secondary sector: Manufacturing raw materials into products Tertiary sector: Providing goods and services to people in exchange for payment 10.2 A Decent Standard of Living Productivity Productivity is the value of a particular product compared to the amount of labor needed to make it  Productivity can be measured by the value added per capita The value added in manufacturing is the gross value of a product minus the costs of raw materials and energy In developed countries, workers produce more with less effort because they have access to more machines, tools and equipment 10.3 Access to Health & Knowledge Health From the many health and medical indicators, the UN has selected life expectancy at birth as the contributor to the HDI 10.3 Access to Knowledge and Health Education The U N considers years of schooling to be the most critical measure of the ability of an individual to gain access to knowledge needed for development Years of schooling for today’s adults (average school years for adults >25) Expected Years of schooling for youth (time a 5 year old will spend in school)  year old will spend in school) 10.3 Access to Knowledge and Health Other education indicators: Pupil/teacher ratio The fewer pupils a teacher has, the more likely that each student will receive effective instruction Literacy rate The literacy rate is the percentage of a country’s people who can read and write 10.4 Unequal & Uneven Development Inequality-adjusted H D I inequality-adjusted H D I (I H D I) The IHDI modifies the HDI to account for inequality within a country under perfect equality, the HDI and the IHDI are the same. If the IHDI is lower than the HDI, the country has some inequality the greater the difference in the two measures, the greater the inequality 10.4 Unequal & Uneven Development Widening Inequality within Developed Countries  Since the 1980s, inequality has increased in most developed countries, including the United States, United Kingdom, and Canada The World Bank Gini coefficient calculates the extent to which the distribution deviates from exactly equal A Gini coefficient of 0 represents exact equality A Gini coefficient of 1 is total inequality 10.4 Unequal & Uneven Development Inequality within a country Great Britain Britain incomes in Central London are twice as high as in some of the country’s northern communities 10.4 Inequality-Adjusted HDI Poverty According to the U N, 21% of people in developing countries live in poverty Poverty rates vary from 5% in East Asia to 43% in sub-Saharan Africa 10.4 Inequality-Adjusted HDI Multidimensional Poverty Index (M P I) The U N’s Multidimensional Poverty Index (M P  I) measures the multiple deprivations in people’s lives using the same three dimensions as the H DI E.g. standard of living is income PLUS the percentage of people with access to fuel, sanitation, drinking water, etc 10.4 Inequality-Adjusted HDI Regional Variations in M P I Low standard of living is ~50% of the index in sub- Saharan Africa Poor health is ~50% in Central Asia most countries have made progress in reducing M P I, but the Covid-19 has stopped progress in many places 10.5 Gender Inequality Gender Inequality Index (GII) measures the gender gap using: reproductive health, empowerment, and the labor market Reproductive health is the largest contributor to gender inequality in some developing regions A score of 0 means that men and women fare equally GII is higher in developing countries than in developed ones 10.5 Gender Inequality Empowerment In the context of gender inequality, empowerment refers to the ability of women to achieve improvements in their own status—that is, to achieve economic and political power The empowerment dimension of GII is measured by two indicators: Seats in the National Legislature: in every country of the world, more men than women hold position of political power Secondary School: worldwide, 61% of women have completed some secondary (high) school, compared to 68% of men 10.5 Gender Inequality Employment Female labor force participation rate the percentage of women holding full-time jobs outside the home Women are more likely to work in outside the home in developed countries 10.5 Gender Inequality Reproductive Health The maternal mortality rate is the number of women who die giving birth per 100,000 births (covered in chapter 2) The adolescent fertility rate is the number of births per 1,000 women ages 15 – 19 Developed (overall): 17 births/1,000 women 15-19 Developing (overall): 47 births/1,000 women 15-19 The teenage pregnancy rate is below 10 per 1,000 in most European countries (and Canada) Sub-Saharan Africa the rate is 105 10.6 Gender Development Gender-related Development Index The U.N. combines Human Development Index data on income, education, and life expectancy in a measure of the gender gap called the Gender-related Development Index (G D I) If females and males had the same levels of income, education, and life expectancy, the G D I would be 1.000. 10.6 Gender Development Disparities Between Females & Males Income: worldwide, the average income of women is 60 percent that of men in developed countries and 49 percent in developing countries. Education: worldwide, women have completed fewer years of schooling than men. Life expectancy: life expectancy is 75 for females and 71 for males. 10.6 Gender Development Gender Attitudes Attitudes favoring men over women are prevalent in many parts of the world. The Gender Social Norms Index (GSNI) measures the strength of attitudes biased against women based on surveys of people’s attitudes toward women 10.7 Two Paths to Development Self-sufficiency Countries encourage domestic production of goods, discourage foreign ownership of businesses and resources, and protect their businesses from international competition International trade Countries open themselves to foreign investment and international markets 10.7 Two Paths to Development Self-sufficiency example: India Key elements of the self-sufficiency path to development include the following: Balanced growth Import barriers Import licenses Quotas on imports (even with license) Taxes (heavy taxes on imports) Export limits Currency restrictions Permits (to sell a new product, modernize a factory, set prices, hire/fire workers, etc) Subsidies & government ownership 10.7 Two Paths to Development International Trade Path The international trade model of development calls for a country to identify its distinctive or unique economic assets. What animal, vegetable, or mineral resources does the country have in abundance that  other countries are willing to buy? The international trade path derives from a five step model proposed by W.W. Rostow in 1960 Each country is thought to be in one of these five stages 10.7 Two Paths to Development International Trade Path The traditional society - high percentage of people engaged in agriculture and a high percentage of national wealth allocated to “nonproductive” activities (e.g the military and religion) The preconditions for takeoff - an elite group of well-educated leaders initiates investment in technology and infrastructure The takeoff - Rapid growth is generated in a limited number of economic activities The drive to maturity - Modern technology The age of mass consumption - The economy shifts from production of heavy industry to consumer goods 10.7 Two Paths to Development During the late twentieth and early twenty-first  centuries trade increased more rapidly than wealth (as measured by GDP), an indication of the growing importance of the international trade approach Shortcomings of the self-sufficiency approach Inefficient industries Lack of competitiveness Corruption Black market 10.7 Two Paths to Development World Trade Organization Countries representing 97 percent of world trade established the World Trade Organization (WTO) in 1995 The WTO enforces agreements designed to reduce barriers to international trade through: Reduce restrictions on trade Enforcing agreements: the W T O makes rulings on trade disagreements between countries Critics have attacked international trade Promotes the interests of large corporations Compromises sovereignty of individual countries 10.8 World Trade India Moves Away from Self-Sufficiency Following decades of self-sufficiency, India adopted many international trade policies in the 1990s The result was a more substantial increase in GDP per capita than had been experienced under self-sufficiency 10.8 World Trade Core & Periphery Wallerstein’s world-systems theory describes relationships between developed and developing countries According to this theory, developed countries form an inner core area, whereas developing countries occupy peripheral locations Semi-periphery countries (intermediate development close to both core and periphery regions) 10.9 Financing Development Foreign Direct Investment Investment made by a company based in one country in the economy of another country is  known as foreign direct investment (FDI) Foreign direct investment grew from $172 billion in 2002 to $1.7 trillion in 2019 FDI does not flow equally around the world Major source of FDI: transnational corporations 10.9 Financing Development Loans The two major lenders are: the World Bank and the International Monetary Fund (IMF) Developing countries borrow money to build new infrastructure, and in theory this will make conditions more favorable for domestic and foreign businesses 10.9 Financing Development Loan Debt and Austerity Programs Some countries have had difficulty repaying their loans, especially those countries with very high debt compared to their G N I To apply for debt relief, a developing country is required to prepare a Policy Framework Paper (P F P) that outlines a structural adjustment program, a detailed plan of economic reforms (or “adjustments”) 10.9 Financing Development Microfinance for development An alternative source of loans is microfinance, which is provision of small loans and other financial services to individuals and small businesses in developing countries 10.9 Financing Development The Grameen Bank, Bangladesh Microcredit program that focuses on improving the status of landless and poor people (particularly women) Began as a research project (1976) and became a bank in 1983 Seeks to enhance the social and economic status of those in need Average loan is about $300 Loan applicants form groups (collective responsibility) and meet with bank officials Recovery rate is 98% About 10,000 microfinance institutions around the world today Assigned Readings 10.10 Sustainable Development 10.11 Fair Trade References Unless otherwise stated, all images are from: Rubenstein, J. 2022. Contemporary Human Geography, 5th edition. Pearson. Rubenstein, J. 2019. Contemporary Human Geography, 4th edition. Pearson. Images used with permission from Pearson  Chapter 12: Services Introduction to Human Geography Department of Environment and Geography University of Manitoba Lisa Ford 1 Copyright Lecture slides, course notes, and educational resources are copyright-protected and made available to you for your personal educational use and private study only. Unless stated otherwise, further copying and distribution of these materials is strictly prohibited. © Lisa Ford, 2022. Further electronic or hard copy reproduction and or distribution of this content in part or in whole is strictly prohibited. 2 1  Special Notes About Reading Chapter 12 Do not read 12.9 or 12.11. These two sections will not be tested on quizzes/final exam Read all other parts of Chapter 12 Assigned readings: 12.10 Services in Rural Settlements As with other chapters, you do not have to memorize dates, percentages, numbers, etc. Focus on the definitions, concepts, trends, etc. 3 Chapter 12 Key Issues 12.1 Urban Settlements 12.2 Types of Services 12.3 Central Place Theory 12.4 Hierarchy or Consumer Services 12.5 Market Area Analysis 12.6 Periodic and Sharing Services 12.7 Hierarchy of Business Services 12.8 Business Services in Developing Countries 12.10 Services in Rural Settlements (assigned reading) Note: do not read 12.9 and 12.11 4 2  12.1 Urban Settlements Urban & Rural Settlements A settlement is a permanent collection of buildings where people reside, work, and obtain services A rural settlement is a community where most people are engaged in agriculture An urban settlement is a community where people are employed in secondary and tertiary sector jobs nonagricultural Wheremist people go 5 12.1 Urban Settlement Growth in Urban Settlements Urbanization is an increase in the percentage of people living in urban settlements ~ 56 percent of the world’s population now live in an spatialviriation urban settlement morein LDC'scuzthey're always moving Figure 12.1.1 Growth in percentage of people living in urban settlements (Rubenstein, 2022, p. 292) 6 3  12.1 Urban Settlements Growth in Urban Settlements in MDC's almost 752 In developed countries, 79% live in urban areas, compared to 52% in developing countries live in the urban areas cities Figure 12.1.2 Percentage of people living in urban settlements (Rubenstein, 2022, p. 292) 7 12.1 Urban Settlement Megacities A megacity is an urban settlement with a population greater than 10 million people ie Canadahasnomegacity A metacity has more than 20 million people The UN identifies 33 urban settlements as megacities; of those 33, 6 are metacities ie 1A Tokyo Figure 12.1.3 Megacities and Metacities (Rubenstein, 2022, p. 293) 8 4  12.1 Urban Settlements Rapidly Growing Urban Settlements Urban growth rate (rate of urban growth): annual percentage increase in an urban population All but 4 of the 100 fastest-growing urban settlements are in developing countries Figure 12.1.4 World’s 100 fastest-growing urban settlements (Rubenstein, 2022, p. 293) 9 12.2 Types of Services A service is any activity that fulfills a human want or need and returns money to those who tertiary industry provide it In developed countries, few people work in agriculture i e retail education all healthca and industry and many work in the services sector Three types of services: Consumer, Business, and Public jobs all leisure govjobs FEating extractive industry primary manufacturing secondary Figure 12.2.1 US Employment by Sector (Rubenstein, 2022, p. 294) 10 5  12.2 Types of Services Consumer Services. The main purpose of consumer services is to provide services to individual consumers who desire them and can afford to pay for them. Around 50% of all jobs in the United States are in consumer services Business Services. The principal purpose of business services is to facilitate the activities of other businesses. 25% of all jobs in the United States are in business services Public Services. The purpose of public services is to provide security and protection for citizens and businesses About 8% of all U.S. jobs are in the public sector (federal, state or local government) Education is included in consumer services 11 12.2 Types of Services In Canada (2019), ~19 million people worked in Canada (full time) ~1 million worked in goods production (agriculture, mining, forestry, etc) (5% of the total) Extractiveindustries primary ~3.1 million worked in manufacturing and construction (16% of the total) secondary In Canada (2019), ~15 million people worked in the services sector (79% of the full time workers) ~2.8 million worked in wholesale and retail trade ~2.5 million worked in health care and social services2nd 1 ~1.2 million worked in finance, real estate, trade, or insurance 3rd ~1.5 million worked in professional, scientific and technical services ~1.4 million worked in educational services Information from Statistics Canada. Table 14-10-0023-01 Labour force characteristics by industry, annual (x 1,000) DOI: https://doi.org/10.25318/1410002301-eng 12 6  12.2 Types of Services In Manitoba, in 2019, 653,000 people worked full time 25,000 worked in agriculture (4%) 114,000 worked in manufacturing and construction (17.5%) 501,000 worked in the services sector (78%) Healthcare and social assistance was the largest category and education was second Information from Statistics Canada. Table 14-10-0023-01 Labour force characteristics by industry, annual (x 1,000) DOI: https://doi.org/10.25318/1410002301-eng 13 12.2 Types of Services Figure 9.4.2 Percent of labor force in agriculture (Rubenstein, 2022, p. 224) The percentage of the workforce engaged in agriculture is much higher in developing countries with subsistence agriculture than in developed countries with commercial agriculture 14 7  12.2 Types of Services Services generate more than 66% of GDP in most developed countries, compared to less than 50% in most developing countries Services cluster in developed countries people more people in those countries are able to pay for the services Services are located in settlements wherepeople live getmoreservices wherethere'sa lot most people goto the The best location for a service is near its customers nearest location ofwealth least distance w the minimum effort Figure 12.1.2 Percentage of GDP from Services (Rubenstein, 2022, p. 295) distance decay 15 12.3 Central Place Theory Christaller's Central place theory helps to explain how the most profitable location can be identified Central place theory was first proposed in the 1930s by German geographer Walter Christaller, based on his studies of southern Germany A central place is a to sellservices buy center where people market cluster to buy and sell goods and services 16 8  12.2 Central Place Theory - Market area (hinterland) The area surrounding a service from which customers are attracted is the market area (or hinterland) drawing a circlefor an area location Because most people prefer to get services from the nearest location, the closer to the center of the circle, the greater the percentage of consumers who will choose to obtain services from that node People near the edge of the market area are equally likely to use the service or go somewhere else A market area is a functional region – who will use the services at a local food store, gas station, restaurant, etc? 17 12.3 Central Place Theory – Market area (hinterland) Media Market Area A media market area is a region where the population receives the same TV and radio station broadcasts and newspapers and consumes similar internet content Figure 12.3.2 U.S. Media Market Areas (Rubenstein, 2022, p. 296) 18 9  12.2 Central Place Theory - Range To determine market area, you need to know the range and the threshold The range is the maximum distance people are willing to travel to use a service people go to the nearest People are willing to go only a short distance for everyday consumer services, such as groceries and pharmacies location But they will travel longer distances for other services, such as a differentservices have concert or sporting event differentranges The range must be modified because most people think of distance in terms of time How long will it take to drive to the place? Will rush hour affect it? Is there construction? What are the road speeds? 19 12.2 Central Place Theory - Threshold To determine market area, you need to know the range and the threshold The threshold, is the minimum number of people needed to support the service knowyou market targets How expected consumers inside the range are counted depends on the product Movie theaters attract younger people, chiropractors attract older folks, amusement parks attract families with children, and nightclubs appeal to singles 20 10  12.2 Central Place Theory - Geometry The Geometry of Market Areas The market area is the area of iswhatthecentral the hexagon, the range is the radius, and the threshold is a theoryuses sufficient number of people inside the area to support the service radius pepple inthe Figure 12.3.4, 12.3.5 & 12.3.6 Central Place Theory: The Figure 12.3.3 Market Area, Range, and Problem with Circles, The Problem with Squares and The Threshold (Rubenstein, 2022, p. 297) Hexagon Compromise (Rubenstein, 2022, p. 297) 21 12.4 Hierarchy of Consumer Services NO PRIMATECITIES Rank-Size Distribution of Settlements cuz 1 cityis waymore2x than In many developed countries, ranking settlements from largest to smallest (population) produces a regular pattern thenextlargecity This is the rank-size rule, in which the country’s nth-largest settlement is 1/n the population of the largest settlement least 2x largerthanthenext According to the rank-size rule, the second-largest city is ½ the size of the largest, the fourth-largest city is ¼ the size of the largest, etc i e US Canada India iities in larges theus Figure 12.4.1 Rank-Size Distribution of Settlements in Mexico and the United States (Rubenstein, 2022, p. 298) 2 1A 22 11  12.4 Hierarchy of Consumer Services Primate city rule - the largest settlement has more than twice as many people as the second ranking settlement E.g. more than twice as many people than the next smallest settlement Mexico City hey tendtofocusonthiscity is a good example, and with this type of distribution, the largest city in the country is called a primate city Mexico City (population ~8.9 million) is more than twice as large as the next largest city (Tijuana, population ~1.9 million) Mexico City is about ten times larger than its fifth- largest settlement, Toluca (population ~900,000) Rather than 5x larger – what we would expect with the rank-size rule 23 12.4 Hierarchy of Consumer Services Primate City In addition to being at least twice as large as the next largest settlement, a primate city is a country’s leading city economically, culturally, historically, and politically theexpense of havingtheseservices Dominates the population, political and economic landscape thatsmallercities uneven of development could disadvantagesomepeoplein Imbalance they often become islands of growth certainareas World’s largest primate cities are in LDCs e.g. Nairobi, Kenya; Jakarta, Indonesia; Cairo, Egypt; ie Paris Bangkok, Thailand; Dhaka, Bangladesh London veryfast growing Athens 24 Stockholm 12  12.3 Hierarchy of Consumer Services Nesting of Services and market area large Settlements According to central place theory, market areas i e IKEA MB across a developed country would be a series of hexagons of various somepplcomefromSK sizes, unless interrupted by physical features tocomepickup In his original study, Walter Christaller showed that the distances orgoto Calgary between settlements in southern Germany followed a regular pattern Figure 12.4.4 Central Place Theory (Rubenstein, 2022, p. 299) 25 12.5 Market Area Analysis Gravity Model 49 The gravity model predicts that the optimal location of a service is directly related to the number of people in the area and inversely I KP XP Saskatoon related to the distance people must travel to access it d 8a 1. The greater the number of people living in a Edmonton particular place, the greater the number of potential customers for a service 2. The farther people are from a particular service, the less likely they are to use it more interactionsfor places that are closertyt 26 bigger fewer if smaller 13 it is heavilyexpensive to be poor 12.5 Market Area Analysis Food Deserts A food desert as an area that has a high number of low-income residents and poor access to a grocery ie downtown store expensive Poor access is defined by the US government as smallernoparkinglots further than 1 mile cities are This is not far for people to travel in a car, but it is many downtown far for low-income people who do not own cars food deserts Think of people who live in a downtown area. Is there likely to be a grocery store that stocks fresh fruits, vegetables, and meat products? huge challenge winter 27 some downtowns don'thave a fooddeserts ie Montreal 12.5 Market Area Analysis Profitability of a Location Geographers use the two components of central place theory — range and threshold — to determine whether a location would be profitable (e.g. for a food store) 1. Define the market area The first step in forecasting sales for a proposed new consumer service is to define the market or trade area where the store would derive most of its sales. 28 14  12.5 Market Area Analysis Profitability of a Location 2. Estimate the range Based on the zip/postal code of credit-card customers, geographers can estimate the range for the service. 3. Estimate the threshold The threshold varies for each service The threshold is around 25,000 for a store like Family Dollar and 100,000 for a store like Target 4. Predict the market share The proposed new consumer service will have to share customers with competitors (top) Figure 12.5.1 Family dollar and Target Stores in Dayton, Ohio (Rubenstein, 2022, p. 300) 29 12.5 Market Area Analysis E-commerce E-commerce accounts for a rapidly increasing share of consumer services ie Amazon is the dominant e-commerce provider of retail services, and their distribution system in the United States relies on central place theory Amazon’s geography has three main elements: procurement & fulfillment distribution last mile 30 15  12.5 Market Area Analysis Procurement & Fulfillment massivewarehouse Amazon operated 187 fulfillment centers as of 2020 bygipgnni.peg Tmb These fulfillment centers have large market areas, offering products with very large ranges and very large thresholds dense population Figure 12.5.4 Amazon fulfillment Centers (Rubenstein, 2022, p. 301) 31 12.5 Market Area Analysis Distribution Amazon operates its own airline to move goods into fulfillment centers and out to consumers usedtouse USPS and Canada Post Amazon Air had landing rights at 28 airports as of 2020 Most fulfillment centers are located near an airport but now havetheirown served by Amazon Air Figure 12.5.5 Airports served by Amazon Air (Rubenstein, 2022, p. 301) 32 16  12.5 Market Area Analysis Last Mile The “last mile” stage brings parcels to their final destination Packages are sent to local post offices or other delivery services for delivery to the customer Figure 12.5.6 Amazon last mile delivery (Rubenstein, 2022, p. 301) 33 12.6 Periodic and Sharing Services Periodic Markets A periodic market is a collection of individual vendors who come together to offer goods and services in a location on specified days. A periodic market is a way to provide consumer services to residents of developing countries Developed countries: farmers markets sell fresh produce to people in the city The frequency of periodic markets varies by culture 34 17  12.6 Periodic & Sharing Services House Sharing Services that involve sharing have expanded rapidly, especially in transportation and lodging Airbnb has grown to 6 million listings in 100,000 cities House sharing services have had some negative impacts benefits negatives for on some communities sharing Figure 12.6.4 Airbnb revenues by region Figure 12.6.5 Airbnb top 30 U.S. cities listings (Rubenstein, 2022, p. 303) per capita (Rubenstein, 2022, p. 303) 35 12.7 Hierarchy of Business Services Global Cities (also known as World Cities) commandcenter A center of global economic power, influencing the world’s businesses acitythatsignificantlyisan economic powerhouse Economic, political, cultural, and infrastructure factors define a global city Economic factors basicallyconsidersallfactors Number of headquarters for multinational corporations, financial institutions, and law firms that influence the global economy Political factors Hosting headquarters for international organizations and capitals of countries that play a leading role in international events 36 18  12.7 Hierarchy of Business Services Cultural factors Presence of renowned cultural institutions, influential media outlets, sports facilities, and educational institutions Infrastructural factors A major international airport, health-care facilities, and advanced communications 37 12.7 Hierarchy of Business Services Levels of Global Cities Modern transportation and communications enable industry to decentralize but they reinforce rather than diminish the primacy of global cities in the world economy Figure 12.7.2 Global Cities in North America Figure 12.7.1 Global Cities (Rubenstein, (Rubenstein, 2022, p. 304) 2022, p. 304) 38 19  12.7 Hierarchy of Business Services Business Services in Global Cities Business services that concentrate in disproportionately large number in global cities include financial institutions, corporate headquarters, and professional services Consumer and Public Services in Global Cities Global cities have large market areas and a lot of consumer services luxury items are often found in global cities (as are leisure activities such as concerts, restaurants and sports events) Public Services Global cities may be centers of political power 39 Figure 8.9: Greiner, A. 2011. Visualizing Human Geography, 1st edition. John Wiley & Sons, p. 241 40 20  12.8 Business Services in Developing Countries Offshore Financial Services Small countries sometimes offer offshore financial services. Offshore centers provide two important functions in the global circulation of capital: 1. Taxes (low or non-existent) 2. Privacy (evading disclosure in the companies homeland) Figure 12.8.2 Offshore Financial Services Centers (Rubenstein, 2022, p. 306) 41 12.8 Business Services in Developing Countries Business-Process Outsourcing Another business service found in peripheral regions is business-process outsourcing (BPO), also known as back-office functions E.g. insurance claims processing, transcription work, technical support Rising cost of rent in downtown areas have induced many business services to move routine work to lower-rent buildings elsewhere 42 21  12.8 Business Services in Developing Countries Some developing countries have attracted back offices because of low wages and the ability to speak English Low wages: many back office workers earn low salaries by North American standards, but the pay is high for the developing country Language: only a few less developed countries have a large labour force fluent in English (e.g. India, Malaysia, and the Philippines) 43 12.9 You do not need to read section 12.9 (Economic Specialization of Settlements). You will not be tested on this material. 44 22  Assigned Readings 12.10 Services in Rural Settlements 45 12.11 You do not need to read Chapter 12.11 (Services in Early Urban Settlements). You will not be tested on this material. 46 23  References Unless otherwise stated, all images are from: Rubenstein, J. 2022. Contemporary Human Geography, 5th edition. Pearson. Rubenstein, J. 2019. Contemporary Human Geography, 4th edition. Pearson. Images used with permission from Pearson 47 24  Chapter 13: Urban Patterns Introduction to Human Geography Department of Environment and Geography University of Manitoba Lisa Ford 1 Copyright Lecture slides, course notes, and educational resources are copyright-protected and made available to you for your personal educational use and private study only. Unless stated otherwise, further copying and distribution of these materials is strictly prohibited. © Lisa Ford, 2022. Further electronic or hard copy reproduction and or distribution of this content in part or in whole is strictly prohibited. 2 1  Special Notes About Reading Chapter 13 Do not read the following sections. They will not be tested on the final exam or required for any assignments: 13.1 Defining Urban Settlements 13.5 Structure of European Cities 13.7 Changing Structure of Mexico City 3 Special Notes About Reading Chapter 13 Assigned readings: 13.2 The Central Business District 13.9 Urban Transportation 4 2  Special Notes About Reading Chapter 13 Section 13.1 “Defining Urban Settlements in Canada” is not in the textbook. The material in this section is discussed only in the notes. As with other chapters, you do not have to memorize dates, percentages, numbers, etc. Focus on the definitions, concepts, trends, etc. 5 Chapter 13 Key Issues 13.1 Defining Urban Settlements in Canada (not in textbook) 13.2 The Central Business District (assigned reading) 13.3 Models of Urban Structure 13.4 Applying the Models in North America 13.6 Urban Structure Models in Developing Countries 13.8 Sprawl 13.9 Urban Transportation (assigned reading) 13.10 Challenges & Hopes for Cities Note: do not read 13.5 and 13.7 6 3  13.1 Defining Urban Settlements in Canada Census Metropolitan areas (CMA) Grouping of census subdivisions comprising the ‘urban core’, ‘urban fringes’ and ‘rural fringes’ (a core area and neighbouring municipalities) Must have 100,000 people, and 50,000 must live in the core Census Agglomerations (CA) Closely connected CMAs: commuting Urban core of 10,000 – 100,000 In the textbook, you don’t have to read the first page of 13.1 (page 318), as it’s USA specific. The following slides will replace that section 7 http://skyscraperpage.com/forum/showthread.php?t=158670 8 4  13.1 Defining Urban Settlements Central City The term central city, or simply city, defines an urban settlement that has been legally incorporated into an independent, self- governing unit A city has locally elected officials, the ability to raise taxes, and responsibility for providing essential services 9 13.1 Defining Urban Settlements General city characteristics: 1. Dense population concentrations 2. Functional complexity (the town can support lots of different workers – nonfarmers) 3. Centers of power (business, government, etc) 4. Specialized land use 5. Cities are linked (trade, transportation) 6. Contraditions (wealth/poverty) 10 5  13.1 Defining Urban Settlements An urban area is usually a central city and its surrounding built up suburbs variable in diff countries every placehastheirowndefinition it is distinctively nonrural and nonagricultural there is no global definition of what size constitutes “urban” metricsused vary United States: > 2,500 people and 1,000 people/sq mile (urban cluster) Japan: > 50,000 people Statistics Canada: > 1,000 and no fewer than 400 persons/km2 = “urban” United Nations: settlements > 20,000 = "urban“ 11 13.1 Defining Urban Settlements Hannah Ritchie and Max Roser (2018) - "Urbanization". Published online at OurWorldInData.org. Retrieved from: 'https://ourworldindata.org/urbanization' [Online Resource] Available under CC BY 4.0. 12 6  13.1 Defining Urban Settlements Hannah Ritchie and Max Roser (2018) - "Urbanization". Published online at OurWorldInData.org. Retrieved from: 'https://ourworldindata.org/urbanization' [Online Resource] Available under CC BY 4.0. 13 13.1 Defining Urban Settlements Urbanization the process through which the proportion of population living in cities increases 1880: 5% of total global population lived in urban areas 1997: 43% 2015: 55% 2022: 56% 2025: projected 61% Hannah Ritchie and Max Roser (2018) - "Urbanization". Published online at OurWorldInData.org. Retrieved from: 'https://ourworldindata.org/urbanization' [Online Resource] Available under CC BY 4.0. 14 7  13.1 Defining Urban Settlements Hannah Ritchie and Max Roser (2018) - "Urbanization". Published online at OurWorldInData.org. Retrieved from: 'https://ourworldindata.org/urbanization' [Online Resource] Available under CC BY 4.0. 15 13.1 Defining Urban Settlements most of the growth rate Belgium are inthe LDC's mosturbanizedcountryinthewort