Development Models Measures of Development Economic Indicators

1. Self-Sufficiency2. International Trade

investment should be spread equally across all sectors of the economy & in all regions; imported goods are limited thru high taxes, quotas, & limited import licenses (ex: pre-1990 India)

Problems: inefficiency - protects inefficient industries large bureaucracy - needed to administer the controls

concentrate scarce resources on its distinctive local industries (ex:Persian Gulf Countries) Problems: uneven resource distribution (i.e. prices of their commodities do not increase)market stagnation (i.e. market expansion slows down) increased dependence on MDCs (i.e. because of cutbacks in other industries, countries must by them from MDCs)

Problems: uneven resource distribution (i.e. prices of their commodities do not increase)market stagnation (i.e. market expansion slows down)increased dependence on MDCs (i.e. because of cutbacks in other industries, countries must by them from MDCs)

Stage 1 - Traditional Society - agricultural, (ex: pre-1776 U.S.) Stage 2 - Preconditions for Takeoff - investment in new technology & infrastructure (ex: water supplies & transportation), (ex: first 1/2 of 19th C. U.S.) Stage 3 - Takeoff - rapid growth in a few takeoff industries (ex: textiles, foods), (ex: middle19th C. U.S.) Stage 4 - Drive to Maturity - modern technology diffuses to various industries; workers become skilled & specialized, (ex: late 19th C. U.S.) Stage 5 - Age of Mass Consumption - economy changes from heavy industry to consumer goods, (ex: early 20th C. U.S.)

Stage 1 - Traditional Society - agricultural, (ex: pre-1776 U.S.)

Stage 2 - Preconditions for Takeoff - investment in new technology & infrastructure (ex: water supplies & transportation), (ex: first 1/2 of 19th C. U.S.)

Stage 3 Takeoff - rapid growth in a few takeoff industries (ex: textiles, foods), (ex: middle19th C. U.S.)

Stage 4 - Drive to Maturity - modern technology diffuses to various industries; workers become skilled & specialized, (ex: late 19th C. U.S.)

Stage 5 - Age of Mass Consumption - economy changes from heavy industry to consumer goods, (ex: early 20th C. U.S.)

1) gross national product per capita (person) (GNP) = (Σ income)/population GDP = total value of all materials, foodstuffs, goods & services that are produced by a country in a particular year GNP = GDP + income from abroad (ex: profits & losses from overseas investments) 2) occupational structure of the workforce 3) productivity per worker = (Σ production)/labor force 4) consumption of energy per person (this must be viewed however w.r.t. climate) 5) transportation & communication facilities per person (ex: railway, road, airline connections, telephone, radio, television, etc.) 6) consumption of manufactured metals per person 7) life expectancy 8) infant mortality 9) rates - literacy, caloric intake, savings, percent of income spent on food, etc.

(UNDP) Human Economic Development Index (HDI), - developed in 1990, ranges from 0 to 1 (i.e. 0 to 100%), uses one economic factor (GDP per capita)two social factors (literacy rate & education) one demographic factor (life expectancy)

1. GDP - problem: it's a mean 2. Economic Structure - types of jobs 3) Productivity - value of a particular productcompared to the amount of labor needed to makeit- can be measured by the value added (higherthe value added = higher the 4) Raw Materials + Energy - serve as a measure of development potential rather than actual development 5) Consumer Goods

a) primary - extractive industries (agriculture, mining, quarrying, fishing, forestry) b) secondary - manufacturing c) tertiary - services (retailing, banking, law, education, government) d) quaternary - information (data processing, information retrieval, R&D)