Economic+Development

Industrialization and Economic Development media type="custom" key="11992355" [] This picture shows the GDP proportion of the countries of the world. =Barriers to Economic Development=

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In periphery countries there is typically a high birth rate and a low life expectancy. This causes there to be a low number of taxable workers in comparison to dependants. The healthcare is also generally very poor so people suffer from disease frequently. The education typically costs money even for primary school so illitaracy is very high and few girls go to school at all.
 * -Low Levels of Social Wellfare**

International organizations like the International Monetary Fund and the World Bank often lend money to countries in the periphery. The United states has the worlds reserve currency, So we are able to export our excess inflation to other countries to deal with it and strengthen our own dollar. Often, the projects that this money is used for don't bring in money,or help the people. So the country must use most of its money to pay back the debt. This can cause the countries economy to suffer because a lack of government funding.
 * -Foreign Debt**

Establishing governments in periphery countries can often be difficult. They are often overthrown in militery coups. Taylor states that countries cannot maintain a democratic government without wealth, so poor countries cannot keep up a democracy. Corrupt governments can come into power and often harm the economy by misusing power for there own benefit.
 * -Political Instability**

Widespread disease affects many periphery countries. It harms the economy because it kills many of the taxable workers in an economy. Many countries are plagued by Vectored Diseases (diseases that are spread from one person to another by an intermediate host or vector) such as malaria. Malaria kills about 150,000 children in the global periphery each month.
 * -Widespread Disease**

Read more on deBlij pages 309-315

=Costs of Economic Development=

[] This picture shows a highly industrialized area and the pollution it causes.

Many peripheral countries have special manufacturing export zones. Many corporations based in core countries locate in these zones because hey have favorable tax laws and policies. Many of these corporations take advantage of the lack of labor laws and hire woman and children to work in bad conditions for long hours. In peripheral countries most of the arable land is somtimes bought up by corporations for large scale farms that produce cash crops for export. In these areas people often cannot feed themselves or their families because there is not enough arable land left for the people to farm. These people often end up in huge amounts of debt. Tourism can often strain a countries economy more than it helps it. To support the growth of tourism, governments must spend money to build hotels and ports which could be used to helps the people of that country. Also, the money earned from tourism is usually needed to reinvest into the tourism industry so little of it actually helps the economy of the country. Read more on deBlij pages 315-319 =How Government Policies and Corporations Affect Development= [] This picture shows the huge diference in development between the two areas even though they are right next to eachother.
 * -Industrialization**
 * -Agriculture**
 * -Tourism**

Government Policies can have huge impact on economic development. Governments like the US sometimes use quotas (a limit on the amount of a certain product that can be imported from a certain country) or tarriffs (taxes on imported items) to protect manufacturing in their own country. Governments also sometimes create special manufacturing and export zones. These attract major factories and production centers that provide jobs for people. Read more on deBlij pages 320-322

=Example of an AP Exam Essay on Economic Development= FRQ:

3. Economic restructuring is transforming the world economy. A. Define and discuss the key features of the new international division of labor (also known as the global division of labor). B. Explain the impact of the new international division of labor on the socioeconomic structure of the United States. C. Explain the impact of the new international division of labor on the socioeconomic structure of developing countries such as Mexico, China, and India More at: []