Exam #1 GEOG

Economic Divison
based on average living standards
GNI (Gross National Income)
  • an indicator of the overall size of the nation’s economy
  • the total value of all goods and services produced in a country during a given year

GNP (Gross National Product)
  • a measure of the value of the output produced by the nationals of a country, produced on the country’s soil
  • deals with nationality- produced by a certain country

Global South
drawn by Willy Brandt in 1980 to single out southern economies or the poorest and least developing countries
Emerging Markets
  • promote business investment in low-income countries
  • the economies of China and India are considered to be the largest

GDP (Gross Domestic Products)
BRIC Countries
  • Brazil, Russia, India and China
  • emerging national economies distinguished by their large, fast-growing economies and significant influence on regional and global affairs

G7 (Group 7)

Top dominant economies in the world

US, Japan, United Kingdom, France, Germany, Italy and Canada

Three Essential Capabilities For Human Development
  1. leading long healthy lives
  2. be knowledgeable
  3. have accesses to the resources needed for a decent standard of living

Human Development Index
  1. life expectancy at birth
  2. adult literacy rate
  3. school enrollment
  4. GNI per capita

Gender Empowerment Measures
  1. proportion of seats held by women in national parliaments
  2. percentage of women in economic decision making positions (administrative, managerial, professional and technical)
  3. female share of earned income

Why is China’s GDP greater than its GNP?
Because they export more than they import and they typically do not create new plants on foreign soil
Brandt Line
  • a visual depiction of the north-south divide between their economies proposed by Willy Brandt.
  • passes between North and Central America

Core-Periphery Model
based on the idea that as long as one region or stand expands in economic prosperity, it must engulf regions nearby to ensure ongoing economic and political success.
the area or high growth
the neighboring areas
Purchasing Power Parity
an adjustment that takes into account the strength or weakness of local currencies
when a country adopts in part of in whole the US dollar as its official currency
Gender Empowerment
measures whether women and men are able to actively participate in economic and political life and take part in decision making

Classical Approaches (Theories of Development)
  • modernization theory
  • neoliberalism
  • more practical, offering suggestions and policy advice for development efforts

Marxist Approaches (Theories of Development)
  • dependency theory
  • world system theory
  • more academic, pointing out causes of the widening gap between the developed and the developing

Modernization Theory
  • a theory used to explain the process of modernization with societies. looks at the internal factors of a country while assuming traditional countries can be brought to development in the same manner more developed countries have
  • observing other successful countries and adapting to their ways

  • a political philosophy whose advocated support economic liberalization, free trade, open markets, privatization, deregulation, decreasing the size of public sector and increasing the role of private sector in modern society
  • promoting small businesses

Dependency Theory
  • cause of poverty is unfairly-structured international trade
  • developing countries import overpriced manufactured goods, while exporting underpriced agricultural goods and natural resources
  • the path to development is to withdrawal from trade and have a self-sufficient economy
  • criticism of this theory is the danger of economic isolation
  • import substitution industrialization: replace foreign goods with domestic goods; everything has to be domestic

World System Theory


  • cause of poverty is historical, structural constraints for development with continuous exploitation of the periphery (neighboring) countries through trade and multinational firms
  • the path to development is to reconstruct the capitalist system through a revolution
  • criticism is that east asia’s economic success is an expection

Problems in Sub-Saharan Africa
  • narrow economic bases with high dependency on limited export items and lowe value-added-products
  • colonial legacy
  • political instability- civil wars and conflict
  • debt burden
  • AIDs
  • natural disasters

W. Rostow’s Five Stages of Economic Growth
  1. traditional society
  2. preconditions for take-off
  3. take-off
  4. drive to maturity
  5. age of high mass consumption

The Ogoni Struggle
environmental disasters caused by oil spills and pipelines in Nigeria
The New Capital Project as a Result of the Ogoni Struggle
The Movement for the Survival of the Ogoni People (MOSOP) was founded in 1990, as a mass-based democratic social movement to represent the Ogoni community with the launching of the Ogoni Bill of Rights (OBR). Same year, the Ogoni Bill of Rights was presented to the people and Government of Nigeria. It outlines the demands of the Ogoni people for environmental, social and economic justice. It lists their concerns: oil-related suffering of their people, governmental neglect, lack of social services, and political marginalization.
The Rwanda Crisis
Occured in 1994 in which over a 100 day period, over 500,000 people were killed (up to 20% of the country’s population).
the controlled power for centuries, upper class, 15% of the population (elites)
exiled after the Rwanda crisis, demanded their right of return, lower class, 85% of the population (farmers)
“the Big Stick” in the Metaphor
Against this is the stick, most often symbolized by the infamous ban on chewing gum and the caning of people for spray-painting cars.
“the Carrot” in the Metaphor
giddy financial growth fueling never ending construction and consumerism
The effects of growing global demand for Coltan on political troubles in the Democratic Republic of the Congo
  • there are only 300 miles of paved roads
  • people are forced out of coltan rich areas
  • they lost $20 million a month during coltan boom

Nigeria’s Problems With the Oil Industry
  • dominance of the oil sector in the economy
  • mismanagment of oil revenues
  • the ogoni struggle

Dominance of the Oil Sector in the Economy (Nigeria)
  • accounts for 95% of the government’s revenue
  • 97% of export earnings

Mismanagment of Oil Revenues
400 Billion of Nigeria’s revenue was stolen or misspent since 1960
Four Asian NIC’s
  1. Singapore
  2. Hong Kong
  3. Taiwan
  4. South Korea

Major sources of the four Asian NIC’s fast Economic Growth
  1. good governance
  2. export-oriented
  3. investment in human capital
  4. US and foreign aid during the Cold War
  5. Japanese development model “flying geese”

Flying Geese Model in East Asia
a model for internation division of labor in East Asia based on dynamic comparative advantage.  Asian nations will catch up with the West.
The Lead Goose
The Second Tier of Nations (Flying Geese)
South Korea, Taiwan, Singapore and Hong Kong
The main ASEAN countries (Third Group of Geese)
Philippines, Indonesia, Thailand and Malaysia
The Least Developed Major Nations (Bottom Tier of Flying Geese)
China and Vietnam
Four Major Debates on East Asia’s Economic Success
  1. East Asia NIC’s
  2. East Asian lessons for other low-income countries
  3. multi-ethnic, cultural southeast Asia countries might set a better example for other developing economies if/when they become developed
  4. Asian NIC’s success vs. China’s success

East Asia NIC’s Contribution to East Asia’s Economic Success
achieved real progress but not any following suggestions from developmental theories
Singapore’s Growth Triangle
a partnership arrangement between Singapore, Johor and the Riau Islands that combines the competitive strengths of three areas to make the subregion more attractive to regional and international investors.  It likes the infranstructure, capital and expertise of Singapore with the natural and labour resources and the abundance of land of Johor and Riau.
Two Goals of the African Growth and Opportunity Act (AGOA)
  1. to help Africa to open their economics and create free markets
  2. provide trade preference for quotas

Third World
an undeveloped country
Latin America’s primary export dependency in the 1950s
coffee. now Brazil’s primary exportation of coffee is only 5% of their revenue
Tyranny of the Map in Africa

South Africa is the most prosperous country but also has a significant AIDs epidemic.


Three Major Economic Centers of China
  1. Guangdong Province (linked to Hong Kong) and Fujian Province (linked to Taiwan)
  2. the Yangtze Delta
  3. the Beijing- Tianjin Region



China’s Economic Reforms Since the Late 1970s
Open Door Policy and Global Factory
Open Door Policy (China’s Economic Reforms)
Deng Xiaoping’s gradual transition to capitalism
open to foreign trade and investment

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