Lecture Notes: Economic Development and Industrialization
Why are Some Countries Rich and Others Poor?
- Central question: Why are rich countries located where they are, and why are poor countries where they are?
- Answer: Industrialization and development of distinct economic sectors.
- Key term: Development
- Refers to a country's relative level of economic well-being.
- A country's level of development is an indicator of its industrialization.
Economic Sectors
- Primary Sector
- Focuses on extraction of raw materials (e.g., mining, fishing, farming, logging).
- Example: Ethiopia, characterized by mineral extraction and mining.
- Secondary Sector
- Focuses on processing raw materials (e.g., manufacturing).
- Example: Timber processed into lumber for construction.
- Tertiary Sector
- Provides services rather than tangible goods (e.g., teaching, legal services, entertainment).
- Example: U.S. economy largely made up of tertiary service jobs.
- Quaternary Sector
- Services requiring high education and expertise (e.g., research and development, high-tech industries).
- Quinary Sector
- Most influential economic activities (e.g., top government officials, CEOs).
- Always found within quaternary sector.
Distribution and Development
- Economies progress through sectors as they industrialize.
- Countries with colonial pasts often have primary and secondary sectors.
- Countries that were colonizers often have tertiary to quinary sectors.
Economic Models
- Least Cost Theory (Alfred Weber)
- Predicts geographical distribution of industrial activity.
- Factories locate to minimize costs (distance and weight considered).
- Bulk-Gaining Products: Locate near market.
- Bulk-Reducing Products: Locate near raw materials.
Factors Determining Location of Economic Activities
- Access to Energy
- Factories need abundant and reliable power sources.
- Access to Materials
- Proximity to raw materials or break-of-bulk points (seaports, airports).
- Transportation
- Proximity to major transportation hubs (impact of containerization).
Global Economic Hierarchy
- Core Countries: High level of development, major in tertiary and higher sectors.
- Periphery Countries: Lower level of development, primary sector dominant.
- Semi-Periphery Countries: Characteristics of both core and periphery, rising tertiary jobs.
Conclusion
- Industrialization and globalization have led to uneven economic development globally.
- Spatial distribution of economic sectors and development closely linked to historical factors and industrialization.
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