% of GDP from Primary Industries % of GDP from Secondary Industries % of GDP from Tertiary Industries 196019782000200619601978200020061960197820002006.

Geographic Models of Development and Change

Key Terms• Colonialism• Mercantile System• Concession Companies• Land Tenure• Plantations• Cash Crops• Neo-colonialism• Free-market economy

• Command economy• Mixed economy• Economic liberalism• Keynesian economics• Progressive thought• Neo-liberalism• Economic globalization• Non-tariff barriers

Key Questions• What five stages do countries go through as their

economies develop?• How have colonialism and neo-colonialism affected

poor countries?• What are the differences between progressive

government and neo-liberal government policies?

% of GDP from Primary Industries

% of GDP from Secondary Industries

% of GDP from Tertiary Industries

1960

1978 2000

2006 1960

1978

2000

2006

1960

1978

2000

2006

OLD CORE

Canada 6 4 3 2 34 31 29 28 60 65 69 70

Germany 6 3 1 1 53 48 28 29 41 49 71 70

NEW CORE

Poland 26 16 3 5 57 64 32 31 17 20 66 64

Malaysia 37 25 12 8 18 32 40 48 45 43 48 43

NEAR CORE

Iran 54 33 20 11 9 29 37 42 37 38 43 47

Philippines 35 26 17 14 27 28 30 32 38 46 53 54

FAR PERIPHERY

Bangladesh 61 57 26 20 8 13 25 27 31 30 49 60

Zambia 63 39 24 20 11 17 25 29 26 44 51 51

Stages of Economic Development• Why do some economies “stagnate” while others

grow?

• Many models have been developed to explain, but the best knows is Rostow’s Model of Economic Development.

• His looks at Europe and North America and how they developed. Does not necessarily apply everywhere.

Stage 1: Traditional Society• Economy is based on subsistence

agriculture.• Population growth and social and economic

progress are limited by natural controls, e.g., droughts, outbreaks of disease.• As in the past, some government today are

dictatorships or absolute monarchies.• Society changes slowly.

• Great Britain before 1750, Canada after 1850, some far periphery countries.

Stage 2: Establishing Conditions Take Off• Society achieves a surplus of wealth; “savings.”• Savings are invested in vital economic sectors

(transportation, communication, natural resource exploitation).• “National purpose” evolves.• More effective, responsive, central government develops.

• Many western European nations in the early 1800s. Canada after the 1850s; some Far Periphery countries such as the Suriname in SA, or Togo in Africa.

Stage 3: Economic Takeoff• Economy begins to change in response to technological

innovations (better transportation infrastructure)• Agriculture changes from primarily subsistence to

primarily commercial.• Manufacturing becomes important.• Tertiary sector grows as cities grow.

• Great Britain in the late 1700s, France and US by 1860, Canada by 1900. Near Core countries like Bolivia and Vietnam; New Core countries like Argentina and Bulgaria.

Stage 4: Drive to Maturity• Extended period of sustained economic growth.• Per-capita wealth increases as economic growth outpaces

population growth.• Economy becomes diversified with expansion of

manufacturing and services• Efficient production methods used in primary and secondary

industries.• Increasing percentage of the country’s wealth invested in

the economy.• Country reaches maturity after about 50-60 years of takeoff.

Stage 4: Drive to Maturity• Great Britain in the 1850s; France and the US by 1910;

Canada by 1950; New Core countries such as Malaysia and Poland today. These new core countries reached maturity more quickly than was the norm before WWII.

Stage 5: High Mass Consumption• Many people have incomes that are greater than necessary

for buying essentials such as shelter; food, and clothing.• A growing demand for additional consumer goods and

services.• Society is also wealthy enough to invest in social programs,

e.g., improved healthcare, education.

• United States in the 1920s; Canada from the 1950s to the present; Western Europe and Japan following World War II; today many New Core countries such as Singapore, South Korea, and urban parts of China and India.

Colonialism

Colonialism• Colonialism was the period in history where a

country’s power was decided on who had the biggest colonies.• European nations wanted land, influence, but MOST

importantly, WEALTH.

Colonialism• Started really in the 1400s.

• Europeans wanted better routes to Asia for silk, spices, tea, and other goods.• Spain and Portugal dominated early.

• 1492 saw the “discovery” of the New World.

• 1494 saw the world “split” into two halves, controlled by Spain and Portugal.

Colonialism• The First and Second World Wars really put an end to

colonialism. It could be said that both had colonialism as a major reason for starting.

• There are two phases: Pre- and post- Industrial Revolution.• The first, was to provide home countries with goods

they couldn’t get.• The second was to provide raw materials for factories.

This leads too…

Mercantilism• The mercantile system held the belief that colonies

were there ONLY to exist for the benefit of the home countries.

• Resources were stripped from the countries, and they were only allowed to buy/trade with the mother country

• This meant the colonies could not operate in their own interest.

• Could not compete either.

Concession Companies• A major way that the colonizers expanded their empire

was by using concession companies These were companies given licenses by the government to set up monopolies (geographically, or per product).• They had armed ships, armies, forts, etc.

Impacts of Colonialism• Land Tenure-Ownership of land. Not something that existed in a lot of colonies before colonizers.• Plantations

-Large areas of land used to grow cash crops.-Usually kicked locals off.-Those same locals, and slaves later, were used as cheap labour.• Cash Crops

-Crops grown exclusively for sale, not the farmers’ consumption.

Devastation of Environment• When the raw materials were taken out of the

colonies, there was no concern for the environment.• There are still environmental problems today because

of this.

Political Systems• When the colonizers set up governments, they

imposed their own political systems.• The native ones were ignored, or banned.• The locals did not necessarily respect the colonizer’s

systems.

• Aboriginals in Canada are still fighting against the government systems.

Dealing with the Natives• Often, the locals were trained to take low-level

positions in government administrations.• They were also trained to serve in the local militia.

• When the colonizers left, it was these people who took control of the governments.

• This led to a lot of problems. Inexperience and poor governance at the very least, and extreme violence at the very worst.

New Political Boundaries• Countries were created with no respect for traditional

boundaries.• Ethnic groups did not always live in the same area.

When the countries’ borders were created, the ethnic groups were split.

Language• In a lot of colonies, local languages were banned.

• Sometimes this was bad, as it played a big part in destroying cultures.

• But there were also positives. In a lot of areas, there were many languages spoken. The creation of a common language opened up communication where there was none before.

Culture• The colonizer’s culture often was imposed on local

populations.

• Examples of this lives on today…which is why Cricket is played and loved in South Africa, Australia, and multiple countries in the West Indies.

• It did destroy many local cultures though.

Infrastructure• Roads, canals, and other infrastructure was created to

serve the economic needs of the colonizers.

• The needs of the locals were ignored quite often.

• Sometimes, the largest populations were not properly served.

Neo-Colonialism• NEO means new.

• The way that colonialism happens now, countries pressure other countries to do things using economic policies.

• A lot of things are the same, but the “colonizers” are not the main beneficiaries anymore.

Economic Systems• Free Market Economy

• Command Economy

• Mixed Economy

• Economic Liberalism

• Keynesian Economics

• Progressive Thought

• Neo-Liberalism

• Economic Globalization

• Non-tariff barriers

• Go to page 177.