Key Issue 4 • Explain your topic thoroughly with bulleted points. • Incorporate a illustration into your bullet points! • You will present these to the class for us to discuss each topic. Shifting Cultivation Farmers clear land for planting by slashing and burning the vegetati on Plant for a few years then leave it fallow for soil to regain nutrien ts Typical in tropica l regions , labor intensi ve, extensi ve land use
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Key Issue 4 Explain your topic thoroughly with bulleted points. Incorporate a illustration into your bullet points! You will present these to the class.
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Key Issue 4• Explain your topic thoroughly with bulleted points.• Incorporate a illustration into your bullet points!• You will present these to the class for us to discuss
each topic.
Shifting Cultivation
Farmers
clear land
for planting
by slashing
and burning
the
vegetation
Plant for a few years then leave it fallow for soil to regain nutrients
Typical in tropical regions, labor intensive,
extensive land use
1. Elements of Self-Sufficiency: 3152. Problems with Self-Sufficiency: 3163. International Trade explanation and examples: 316 (don’t
do Rostow!)
4. Rostow’s Development Model: 3165. Problems and recent triumph with International Trade:
3176. World Trade Org and Transnational Corporations: 3187. Financing Development (loans, structural adjustment
programs): 3198. Fair trade: 3219. Wallerstein: world systems analysis, dependency
theory, core-periphery: 322 and Test Prep Book 185 & 285
KEY IS
SUE 4
WH
Y DO
LESS D
EVELOPED
COU
NTR IE
S FACE O
BSTACLES
TO D
EVELOPM
ENT?
SELF-SUFFICIENCY Spread investment equally through all sectors of its
economy to only rely on domestic goods and resources
Income in country keep pace with city
Not impacted by other countries
Restrict importing goods by high taxes, quotas to limit what can come in, makes domestic goods more attractive
Example: India until the 90’s
.
PROBLEMS WITH SELF-SUFFICIENCY Inefficiency: little incentive to stay competitive with new
technology and quality of products
Don’t feel pressure to lower costs, reduce prices, or increase production
Out of date with other countries
Maruti-Udyong Ltd.: car manufacturer in India (poor quality monopoly) eventually bought by Japanese company Suzuki
INTERNATIONAL TRADE APPROACH Specialize in what is unique about your country
Concentrate scarce resources on its distinctive local industries, import anything else that is needed
Rostow’s 5 Stages of Development...
Examples: FOUR ASIAN DRAGONS AND ARABIAN PENINSULA
Four Asian Dragons: South Korea, Singapore, Taiwan, Hong Kong…specialized in producing manufactured goods such as clothing and electronics…low labor costs, sell inexpensively
Oil Rich Arabian Peninsula: transformed overnight in extreme wealth by specializing in petroleum exports
ROSTOW’S DEVELOPMENT MODEL
PROBLEMS WITH INTERNATIONAL TRADE
Uneven resource distribution: Zambia exports mostly copper, price for copper went down (new technology) Zambia makes less money
Market stagnation: selling to MDC does not allow for growth…MDC populations have limited growth…economic profits stay steady but do not increase…must buy competitors in other countries to increase profits
Increased dependence on MDC’s: have to import a lot of food, clothing, and other necessities
WORLD TRADE ORG. & TRANSNATIONAL CORPORATIONS
Uneven
Promotes trade. WTO regulates trade, but is criticized for often favoring MDC’s/transnational corps rather than the poor.
Transnational corporations facilitate the New Int’l Division of Labor.
FINANCING DEVELOPMENT Loans (Microloans, WTO, and the World Bank)
FDI (Foreign Direct Investment) One country gives directly to another country.
Structural adjustment programs: loans for LDC’s BUT… they have to abide by a set of rules. Loans with strings attached.Proponets say it makes LDC’s reform for the better. Critics say it punishes poor people for bad decisions their gov’t has made.
FAIR TRADE Products are made and traded with standards that protect
the WORKER.
Often times a worker in an LDC will get the majority of the profits because there is NO MIDDLEMAN.
Fair trade also teaches leadership and organizational skills to workers.
WALLERSTEIN: WORLD SYSTEMS ANALYSISDEPENDENCY THEORY CORE-PERIPHERY
It is a circular relationship. The core needs the periphery and the periphery needs the core.