Self-Sufficiency Model of Development

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  A country should spread investment as equally as possible across all sectors of its economy and in all regions.
  
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  The pace of development is modest
  
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  The system is fair because resident and enterprises through the country share the benefits of developments.
  
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  Incomes in the countryside keep pace with those in the city.
  
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  Reducing poverty takes precedence over encouraging a few people to become wealthy.
  
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  Helps fledgling businesses in an LDC by isolating them from competition with large international corporations.
  
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  Countries promote self-sufficiency by setting barriers that limit the import of goods from other places.
  
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  Barriers includes: setting high taxes (tariffs) on imported goods, fixing quotas to limit the quantity of imported goods, and requiring licenses in order to restrict the number of legal importers.
  
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  The approach also restricts local businesses from exporting to other countries.
  

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  Helps to explain how the most profitable location for a shop can be identified.
  
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  Central place: is a market center for the exchange of goods and services by people attracted from the surrounding area. It is so called because it is central located to maximize accessibility.
  

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  Market area or hinterland: the area surrounding a service from which customers are attracted. The market area is an example of a nodal region – a region with a core where the characteristic is most intense.
  

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  Market area of every service varies. To determine the extent of a market areas, you need TWO pieces of information about a service: RANGE and THRESHHOLD
  

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  Range: is the maximum distance people are willing to travel to use a service. The range is the radius of a hexagon drawn to delineate a service’s market area. People are willing to only go a short distance for everyday consumer services like groceries. Buy they will travel a long distance for such services as a concert or a ball game. A median range for a Kroger supermarket in Dayton would be 1.2 miles.
  

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  Threshold: is the minimum number of people needed to support a service. A median threshold needed to support Kroger supermarket in Dayton is about 30,000 people.
  

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  Market-Area Analysis: The range and threshold together determine whether a good or service can be profitable in a particular location. This is how it is done:
  

1. 
   Compute the range
   
2. 
   Computer the threshold
   
3. 
   Draw the market area
   

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  Gravity Model for Central Place Theory: Predicts that the optimal location of service is directly related to the # of people in an area and inversely (negative aspect) related to the distance people must travel to access it. According to the gravity model, consumer behavior reflects two patterns:
  

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   The greater the # of people living in a particular place, the greater is the # of potential customers for a service.
   
2. 
   The father people are from a particular service, the less likely they are to use it.
   

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  Urban dwellers follow a different way of life than does a rural dweller.
  
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  City is a permanent settlement that has 3 characteristics:
  

1. 
   Large size – If you live in a rural settlement, you know most of the other inhabitants. In urban settlement, you can know only a small percentage of the other residents. Most of your relationships are contractual: your supervisor, your lawyer, your supermarket cashier, etc. Consequently, the large size of an urban settlement produces different social relationships than those formed in rural settlements.
   

2. 
   High Density: High density produces social consequences for urban residents. The only way that a large # of people can be supported in a small area is through specialization. Each person in an urban settlement plays a special role or performs a specific task to allow the complex urban system to function smoothly. At the same time, high density also encourages people to compete for survival in limited space. Social groups compete to occupy the same territory, and the stronger group dominates. This behavior distinguishes an urban settlement from a rural one.
   

3. 
   Social Heterogeneity: The larger the settlement, the greater the variety of people. A person has greater freedom in an urban settlement than in a rural settlement to pursue an unusual profession, sexual orientation, or cultural interests. Residents of a crowded urban settlement often feel that they are surrounded by people who are indifferent and reserved; sense of loneliness. Urban areas in MDCs offer jobs, services, culture, and recreation.
   

Geographers observe that ranking settlements from largest to smaller population produces a regular pattern of hierarchy. This is the Rank-Size Rule. The country’s nth-largest settlement is 1/n the population of the largest settlement. In other words, the second-largest city is one-half the size of the largest, the fourth-largest city is one-fourth the size of the largest, and so on. The United States’ cities follow Rank-Size Rule. New York is largest, ½ of New York is Los Angeles, a 1/3 of New York is Chicago, a ¼ of New York is Philadelphia, etc. This is advantageous because goods and services are available throughout the USA rather than Americans looking only to New York City for the best of services and goods.

If the settlement hierarchy does not graphs as a straight line, then country does not have a rank-size distribution of settlements. Instead, it may follow the primate city rule. This is where the largest settlement has more than twice as many people as the second-ranking settlement. In this distribution, the country’s largest city is called the primate city.

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  Denmark: Copenhagen is the primate city with 1 million inhabitants. The second largest is Arhus with only 200,000.
  
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  United Kingdom/England: London has 8 million, whereas as Birmingham, the second-largest – has only 2 million.
  

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  A country’s level of development can be distinguished according to three factors: 1. Economic 2. Social 3. Demographic
  
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  Human Development Index (HDI), created but the United Nations, recognizes that a country’s level of development is a function of three of these factors.
  
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  Economic
  

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  GDP (Gross Domestic Product). GDP is the value of the total output of goods and services produced in a country, normally during a year. Dividing the GDP by total population measures the contribution made by the average individual toward generating a country’s wealth in a year.
  
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  Types of Jobs:
  

1. 
   Primary (including agriculture)
   
2. 
   Secondary (including manufacturing)
   
3. 
   Tertiary (includes services)
   

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  Quartenary sector: types of jobs that includes wholesaling, finance, banking, insurance, real estate, advertising, and marketing (business services)
  
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  Quinary sector: includes retailing, tourism, entertainment, and communications, government, or semi-public services such as health, education, and utilities (consumer services)
  

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  Productivity is the value of a particular product compared to the amount of labor needed to make it. Productivity can be measured by the value added per capita. The value added in manufacturing is the gross value of the product minus the costs of raw materials and energy.
  

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  Consumer Goods – Part of the wealth generated in MDCs is used to purchase goods and services. Especially important are goods and services related to transportation (motor vehicles) and communications (telephones, computers).
  

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  In LDCs transportation and communications do not play a central role in daily life. In many LDCs, those who live in urban areas have access to transportation and communications.
  

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  Social
  

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  Education and Literacy – literacy rate
  
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  Health and Welfare – People are healthier in MDCs and in LDCs
  
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  In most MDCs, health care is a public service that is available at little or no cost – 70% paid by government.
  
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  An exception is the USA where private individuals are required to pay an average of 55% of health care, more resembling the pattern in LDCs.
  
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  Total expenditures on health care exceed 8% of GDP compared to less than 6% in LDCs.
  

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  Demographic
  

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  Life expectancy (LDCs = sixties) (MDCs = seventies)
  
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  Infant Mortality Rate – 94% of infants survive in LDCs and 6% die in LDCs. MDCs = 99.5 infants survive, and ½ of 1 percent die.
  
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  Natural Increase Rate (NIR) – 1.5 % annual in LDCs compared to only 0.2% in MDCs. Greater natural increase strains a county’s ability to provide hospitals, schools, jobs, and other services that can make its people healthier and more productive.
  
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  Crude Birth Rate (CBR). LDCs have higher natural increase rates because they have higher crude birth rates. Annual CBD rate is 23 per 1,000 in LDCs, compared to 12 per 1,000 in MDCs.
  

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  A company faces two geographical costs: SITUATION and SITE
  

1. bulk-reducing industry: industry in which the inputs weigh more than the final products. To minimize transport costs, a bulk=reducing industry needs to locate near its source of inputs. Example: steel

2. bulk-gaining industry: makes something that gains volume or weight during production. To minimize transport costs, a bulk-gaining industry needs to locate near where the product is sold. Example: fabricated metals, beverage production, single-market manufacturers that produces parts for motor-vehicles, car production companies, newspapers, food

* just-in-time deliveries: shipment of parts and materials to arrive at a factory moments before they are needed. Arrive daily if not hourly.

b. Site: factor result from the unique characteristics of a location. Land, labor, and capital area the 3 traditional production factors.

1. Labor-intensive industry is one in which wages and other compensation paid to employees constitutes a high percentage of expenses. Labor intensive is not high wage; it is measured as a percentage. High wage is measures in dollars or other currencies. Examples: Textiles (making of clothing)

2. Land suitable for constructing a factory can be found in many places. If considered to encompass natural and human resources, land is a critical site factor. One-story factories are common now and require a large piece of land. Electricity is used for aluminum industry so that is generated by using coal, oil, natural gas, running water, nuclear fuel, energy, and wind.

3. Capital. Manufacturers typically borrow funds to establish new factories or expand existing ones. Financial institutions like banks are key. The ability to borrow money in MDCs is much easier than in LDCs. LDCs with unstable political systems, a high debt level, or ill-advised economic policies find it hard to find a bank to loan them money to establish manufacturing companies.

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  Terms to Know that Go Far Beyond Weber's Original Theory in 2013 and on
  

* convergence regions

* competitive and employment regions

* new international division of labor

* vertical integration

* outsourcing

* Fordist production

* Post-Fordist production

1. 
   Arithmetic: Total number of objects in an area – used to compare the distribution of population in different countries. Belgium’s arithmetic density: 900 persons per square mile.
   
2. 
   Physiological: the number of persons per unit of area suitable for agriculture – may mean that a country has difficulty growing enough food to sustain its population.
   
3. 
   Agricultural: the number of farmers per unit area of farm land – may mean that a country has inefficient agriculture.
   

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  Tropical
  
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  Dry climates
  
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  Warm mid-latitude climates
  
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  Cold-mild mid-latitude climates
  
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  Polar climates
  

1. 
   Relocation – the spread of an idea through physical movement of people from one place to another.
   
2. 
   Expansion – the spread of a feature from one place to another in a snowballing process.
   

1. 
   Hierarchical – is the spread of an idea from person or nodes of author or power to other person or places. This may result from the spread of ideas from political leaders, socially elite people, or other important persons to others in the community. Innovations may also originate in a particular node or place of power, such as a large urban center, and diffuse later to isolated rural areas. Hip-hop or rap music is an example of an innovation that diffused from a group of people.
   

2. 
   Contagious – is the rapid, widespread diffusion of a characteristic throughout the population: spread of influenza, AIDS. An idea placed on the World Wide Web spreads through contagious diffusion because Web surfers throughout the world have access to the same material simultaneously and quickly
   

3. 
   Stimulus – is the spread of an underlying principle, even though a characteristic itself apparently fails to diffuse. Early desktop computer sales in the USA were evenly between Apple and IBM. By 1990s, Apple sales had fallen far behind IBM. Then Apple came up with the mouse at an icon. – new technologies.
   

a. Formal: The selected characteristic is present in an entire region. Laws of Montana. North American wheat belt is a formal region.

b. Functional: also called a nodal region is an area organized around a node or a focal point. Examples: television station’s viewing area. Circulation area of a newspaper. A Department Store like Nordstrom’s threshold area.

c. Vernacular: is a perceptual region or a place that people believe exists as a part of their cultural identity. “Dixie” = Southern States of the USA. “Retirement State” – Florida or AZ “Coffee Drinkers’ Region” – Pacific Northwest. “Rust Belt” – Midwest States of the Auto Industry due to heavy snows and salt placed on roads that cause cars to rust.

Stage 4

Stage 4 Zero Population Growth

Stage 3

Stage 2

Stage 4

Population + 1,000

Population = 1,000

10

Is a negative NIR/RNI possible? It is possible. Mathematically, the death rate can larger than the birth rate, resulting in a negative number that is divided by 10 to get the negative NIR/RNI. When the NIR/RNI is negative, it means the population has shrunk during the year the data was collected. One current possibility would be in a LDC location where disease, warfare, or famine has decimated the population -- Swaziland: affected by the AIDS epidemic has currently an NIR/RNI of -0.1 %.

Rate of Natural Increase

Using Peru as an example, an RNI of 2.1 percent would result in a doubling time of 33.3 years. This is fast but demographers expect the 8 million people to grow to 16 million by 2050.

This won't happen according to demographers because people are leaving Peru for work. There is a negative net migration. Out-migration to other countries reduces the long-term prediction to around 12-13 million by 2015.

Women Ages 15 to 45