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| Tourists | Bring $ to a country and (in the process) help pay for whatever improvements can be made in the country= Tourists are shielded from the nasty parts |
| How is the world divided? What do geographers study about this? | World is divided between rich and poor countries= Geographers try to understand reasons for division and learn what can be done about it |
| Comparing different regions/people of the world | Birth/death/natural increase rates vary among regions of world and people in different regions also have different social customs/languages/religions/ethnic identities |
| When do political problems arise | When distribution of cultural characteristics does not match the boundaries between states |
| In the contemporary world, what has been replaced by what | Global military confrontation and alliances have been replaced by global economic competition and cooperation |
| What is the most fundamental global economic pattern | The division of the world into relatively wealthy REGIONS and relatively poor ones |
| What are the 3 basic ways humans earn their living | Growing food, manufacturing products, providing services |
| Development | The process of improving the material conditions of people through diffusion of knowledge and technology (Earth's 200 countries can be classified according to their level of development) |
| The Development Process | Is continuous, involving never-ending actions to constantly improving the health and prosperity of the people |
| Where does every PLACE lie? | At some point along a continuum of development |
| What do countries tend to do on the "continuum of development"? Result | Many countries cluster at the high or low end of the continuum, they can be divided into 2 groups: "More Developed Country" (MDC) and "Less Developed Country" (LDC) |
| More Developed Country | (MDC/ Relatively Developed Country/ Developed Country) Country that has progressed further along the development continuum |
| Less Developed Country | (LDC/ Developing Country [most analysts prefer this name]) A country in an earlier stage of development= "Developing" implies that the country has already made some progress and expects to continue |
| What do geographers look at? | First, identify WHERE more developed and less developed countries are located (fact: MDCs cluster in some SPACES and LDCs cluster in others)= Next, concerned with WHY regions are more developed than others (fact: many economic/social/demographic indicators distinguish more and less developed regions) |
| Challenge for MDCs | Is the ECONOMIC CHALLENGE of trying to maintain a high level of development at the new SCALE of the economy characterized by GLOBALIZATION |
| Challenge for LDCs | Is trying to find CONNECTIONS to the global economy by taking advantage of LOCAL DIVERSITY in skills and resources |
| How can a country's level of development be distinguished? | According to 3 factors: Economic, Social, Demographic |
| Human Development Index (HDI) | (Created by UN) Recognizes that a country's level of development is a function of 3 factors (economic, social, demographic)= UN has computed HDIs for countries ever since 1990 (although has been changed a few times with the method of computation)= Highest HDI possible is 1.0 (100%) |
| How to create the HDI | UN selects (factors are chosen according to an international team of analysts who feel that they will best reveal a country's level of development): 1 economic factor (Gross Domestic Product [GDP] per capita), 2 social factors (Literacy Rate and Amount of Education), 1 demographic factor (Life expectancy)= These 4 factors are combined to produce a country's HDI |
| Country with the highest HDI in recent years | Norway (.963 in 2005)= Other highest ranking countries are typically Western European countries, as well as Canada |
| Country with the lowest HDI in recent years | Niger (.281 in 2005)= The 2 dozen lowest-ranking countries were located in sub-Saharan Africa |
| HDI: USA | USA ranked 10th in HDI in 2005= USA is near the top in 2 of the 4 indicators (GDP per capita and literacy rate) but lower than many other countries in education and life expectancy= The education indicator suffers because of a high school drop-out rate= Life expectancy is lower because of inadequate health care for low-income people |
| Economic Indicators | Gross Domestic Product per capita (is the economic indicator used in HDI calculation), economic structure, worker productivity, access to raw materials, availability of consumer goods |
| MDC vs LDC: How much the average individual earns | Earns much higher income in MDC than in LDC= Typical worker gets $15 per hour in MDCs (compared to $2 per hour in LDCs)= MDCs generally mandate a minimum wage of at least several dollars per hour |
| Obtaining Per capita income value | Is a hard figure to get in many countries, so geographers substitute per capita gross domestic product (a more readily available indicator) to get a sense of average incomes in various countries |
| Gross Domestic Product (GDP) | Value of the total output of goods and services produced in a country (normally during a year) |
| What does dividing the GDP by total population measure | Measures the contribution made by the average individual toward generating a country's wealth in a year (EX: GDP in USA is $12 trillion and its population is 300 million, so the GDP per capita is $40,000) |
| MDCs vs LDCs: Annual per capita GDP in 2005 | MDCs averaged $27,000 (in all MDCs) while LDCs averaged $4,000 |
| Growth of per capita GDP in LDCs | Has increased from $800 in 1990 to $4,400 in 2005 (increase of 450%)= Per capita GDP increased only 55% during the same period in MDCs= Not all LDCs have shared equally in the growth of per capita GDP (most African countries have had modest increases while China's has grown rapidly) |
| Per capita GDP (and every other indicator) cannot do what? | Measure perfectly the level of a country's development (EX: few people are starving in LDCs with per capita GDPs of a few thousand dollars while not everyone is wealthy in MDCs [such as USA with its per capita GDP of more than $40,000]) |
| Per Capita GDP: USA | Has value more than $40,000= 1/8 of the US population is officially classified as in poverty (including 1/4 of African Americans and 1/5 of Hispanics) |
| What does per capita GDP measure | Average (mean) wealth, not its distribution |
| If few people receive much of the GDP... | Then the standard of living for the majority may be lower than the average figure (i.e. per capita GDP) implies |
| The higher the per capita GDP... | The greater the potential for ensuring that all citizens enjoy a comfortable life |
| MDCs vs LDCs: Average per capita income | Is higher in MDCs because people typically earn their living by different means than in LDCs |
| What 3 categories do Jobs fall into? | Primary (including agriculture), Secondary (including manufacturing), Tertiary (including services)= In past, also had to identify QUATERNARY and QUINARY sectors as well (no longer do this) |
| How can we compare the types of economic activities found in more and less developed countries | We can compute the percentage of people working in each of the 3 categories of jobs (primary, secondary, tertiary) |
| Primary Sector | Workers in the primary sector directly extract materials from Earth through agriculture, and sometimes by mining, fishing, forestry |
| Secondary Sector | Includes manufacturers that process, transform, and assemble raw materials into useful products= Other second-sector industries take manufactured goods and fabricate them into finished consumer goods |
| Tertiary Sector | Involves the provision of goods/services to people in exchange for payment= Activities include retailing, banking, law, education, government |
| Quaternary-Sector | Jobs were in business services (i.e. trade, insurance, banking, advertising, wholesaling) |
| Quinary-Sector | Jobs were in health, education, research, government, retailing, tourism, recreation |
| Quaternary and Quinary Sector | In past, were part of the job sectors (but no longer)= Now, we consider all of these jobs as groups within the TERTIARY SECTOR |
| MDCs vs. LDCs: Distribution of workers among primary, secondary, and tertiary sectors | Varies sharply between MDCs and LDCs= % of people working in agriculture exceeds 60% in LDCs compared with less than 5% in MDCs |
| First priority for all people | Is to secure food for survival |
| High % of primary sector (agricultural) workers in a country | Indicates that most of its people must sped their days producing food for their own survival |
| Low % of primary sector (agricultural) workers in a country | Indicates that a small # of farmers can produce enough food for the rest of society= Freed from the task of growing their own food, most people in an MDC can contribute to an increase in the national wealth by working in the secondary and tertiary sectors |
| MDCs: # of jobs in different sectors | # of jobs has decreased in the primary and secondary sectors and increased in the tertiary sector |
| The decline in which jobs reflect what? | Decline in manufacturing jobs reflects greater efficiency inside the factories and increased global competition in many industries |
| In what sector does employment continue to expand and why | Employment in the service sector continues to expand as a result of increased consumer demand for many goods and services |
| Productivity | Value of a particular product compared to the amount of labor needed to make it= Workers in MDCs are more productive than those in LDCs)= Can be measured by the VALUE ADDED per worker |
| Value Added | In manufacturing, it is the gross value of the product minus the costs of raw materials and energy (value added per manufacturing worker is $80,000 in US and $70,000 in Japan compared to $1,000 in China and $500 in India) |
| MDCs vs LDCs: Production | Workers in MDCs produce more with less effort because they have access to more machines, tools, and equipment to perform much of the work= However, production in LDCs must rely more on human and animal power |
| What in MDCs pays for the manufacture and purchase of machinery which in turn does what? | The larger per capita GDP in developed countries in part pays for the manufacture and purchase of machinery which in turn makes workers more productive and generates more wealth |
| What does development require? | Access to raw materials (i.e. minerals and trees) that can be fashioned into useful products= Also requires energy to operate the factories (whether in the form of water power, coal, oil, etc.) |
| In 20th century, both US and Russia became... | Powerful industrial states because both possessed a wide variety of raw materials and energy resources essential to development |
| United Kingdom | Was the first country to be transformed into a developed society (late in the 18th century)= Had large supplies of coal and iron ore (which were the most important raw materials at the time because they were used to make steel for tools)= Other European countries took advantage of domestic coal/iron to promote industrial development during 19th century |
| What did European countries do when they ran short of many raw materials essential for development during the 19th century? | Began to import them from other regions of the world= To ensure an adequate supply of these materials, European countries established colonies (especially in Africa and Asia)= The international flow of raw materials sustained development in Europe but retarded it in Africa and Asia |
| Colonies (today) | Although most former colonies have become independent states, they still export raw materials to MDCs and import finished goods and services |
| As certain raw materials become more important... | A country's level of development can advance= The LDCs that possess energy resources (especially petroleum) have been able to use revenues from the sale of these resources to finance development |
| Why and what is the result of prices for other raw materials fallen | Prices for other raw materials (such as cotton and copper) have fallen because of excessive global supply and declining industrial demand= RESULT: LDCs, depending on sale of these resources, have had difficulty achieving development |
| In a "X" economy, availability of raw materials and energy resources measures what | In a global economy, availability of raw materials and energy resources measures a country's development potential rather than its actual development= A country with abundant resources has a better chance of developing (yet some countries that lack resources [EX: Japan, Singapore, South Korea, Switzerland] have developed through WORLD TRADE) |
| Part of the wealth generated in MDCs is used to purchase what? | Goods and services= Especially important are goods and services related to transportation and communications (including motor vehicles, telephones, computers) |
| Motor Vehicles | Provide individuals with access to jobs and services and permit businesses to distribute their products |
| Telephones | Enhance interaction with providers of raw materials and customers for goods and services |
| Computers | Facilitate the sharing of info. with other buyers and suppliers |
| MDCs vs. LDCs: Products that promote better transportation and communications | These products are accessible to all residents in MDCs and are vital to the economy's functioning and growth= However, in LDCs these products are not important in daily life for many= In LDCs, motor vehicles/computers/telephones are not essential to people who live in the same village as their friends and relatives and work all day growing food in nearby fields) |
| MDCs vs. LDCs: # of land-line telephones, motor vehicles, and Internet users per 1,000 inhabitants | In MDCs, # of land-line telephones exceeds 500 per 1,000 inhabitants, motor vehicles 400, Internet users 300= In LDCs, all 3 figures are less than 100 per 1000 inhabitants= Lower #'s indicate that people in LDCs are much less likely to have access to these products |
| LDCs: Motor vehicles, computers, telephones | Most people in LDCs are familiar with these goods (even though they can't afford them)= These objects may be desired as symbols of development |
| Because possession of consumer goods is not universal in developing countries, what might emerge | A gap between the "haves" and the "have nots"= The minority of people who have these goods may include gov. officials, business owners, and other ELITES while the majority who are denied access to these goods may provoke political unrest |
| LDCs: "Haves" and "Have-nots" | Haves are concentrated in urban areas= Have-nots live in the countryside |
| Diffusion of technological innovations | Tend to diffuse from urban to rural areas= Access to these goods is more important in urban areas because of the dispersion of homes, factories, offices, and shops |
| Motor vehicles, telephones, and computers also contribute to what elements of development? How | Contribute to social and cultural elements of development= These consumer goods provide people with access to leisure activities and exposure to new ideas |
| Consumer Goods: As a result of greater exposure to cultural diversity that these goods provide... | People in MDCs display different social characteristics than do people in LDCs |
| Technological change may help to reduce what? | The gap in access to communications between MDCs and LDCs (EX: Distribution of cell phone services varies from the pattern for other communication devices) |
| Cell Phones: Ownership | Is lower than land-line ownership in North America but higher in rest of world= Cell phones don't require costly investment of connecting wires to each person's building, and more people can obtain service from a single tower or satellite |
| MDCs use part of their greater wealth to provide what services? Result | Schools, hospitals, and welfare services= RESULT: MDC's people are better educated, healthier, and better protected from hardships= Infants are more likely to survive= Adults are more likely to live longer= Also, this well-educated, healthy, and secure population can be more economically productive |
| The higher the level of development... | The greater are both the quantity and quality of a country's education |
| Way to measure the quantity of education | Average # of school years attended (assumes that no matter how poor the school, the longer pupils attend, the more likely they are to learn something)= The average pupil attends school for 10 years in MDCs compared to only a few years in LDCs |
| Way to measure the quality of education | Is measured in 2 ways: Student/teacher ratio and literacy rate= The fewer pupils a teacher has, the more likely that each student will receive instruction= The student/teacher ratio is twice as high in LDCs as in MDCs |
| MDCs vs. LDCs: Publishing | MDCs publish more books, newspapers, and magazines per person because more of their citizens read and write= MDCs dominate scientific and nonfiction publishing worldwide (students in LDCs must learn technical info. from books that usually are not in their native language but are printed in English, German, Russian, or French) |
| Literacy Rate | % of a country's people who can read and write= Exceeds 98% in MDCs= Less than 60% in LDCs |
| What is education for many in LDCs | Is the ticket to better jobs and higher social status= Improved education is a major goal of many developing countries, but funds are scarce= Education may receive a higher % of the GDP in LDCs, but their GDP is much lower to begin with, so they spend much less per pupil than do MDCs |
| MDCs vs. LDCs: Health and Welfare | People are healthier in MDCs than in LDCs (MDCs have the resources to care for the sick)= Total expenditures on health care exceed 8% of GDP in MDCs, compared to less than 6% in LDCs (thus, MDCs have much higher GDP per capita than LDCs and spend a higher % of that GDP on health care than LDCs [some of that additional expenditure on health is reflected in more hospitals, doctors, and nurses per capita in MDCs]) |
| The health of a population is influenced by what | Diet |
| MDCs: Diet | People on average get more calories and proteins daily than they need |
| LDCs: Diet | In LDCs of Africa and Asia, most people get less than the daily minimum allowance of calories and proteins recommended by the UN |
| Describe health care in wealthier countries | It is a public service available at little/no cost= Government programs pay more than 70% of health care costs in most European countries and private individuals pay less than 30%= However, private individuals must pay more than 1/2 of the cost of health care in LDCs (exception is USA, where private individuals are required to pay 55% of health care) |
| MDCs use part of their wealth to protect people who... | Are unable to work (for whatever reason)= In these states some public assistance is offered to those who are sick/elderly/poor/disabled/etc. (countries in northwestern European [EX: Denmark, Norway, Sweden] provide the highest level of public-assistance payments) |
| MDCs are hard-pressed to maintain what and why? | Hard-pressed to maintain their current levels of public assistance= In past, rapid economic growth allowed these states to finance generous programs with little hardship= However, recently, economic growth has slowed while the % of people needing public assistance has increased= Governments have faced a choice between reducing benefits or increasing taxes to pay for them |
| MDCs vs. LDCs: Demographic Differences | MDCs display many demographic differences compared to LDCs= UN's HDI uses life expectancy as a measure of development= Other demographic differences that distinguish MDCs and LDCs include: infant mortality, natural increase, crude birth rates |
| Life Expectancy At Birth | Is the average # of years a newborn infant can expect to live at current mortality levels (better health and welfare in developed countries permit people to live longer) |
| MDCs vs. LDCs: Life Expectancy | Babies born today can expect to live into their 60s in LDCs compared to their 70s in MDCs= The gap in life expectancy is greater for females than for males (males can expect to live 10 years longer in MDCs than in LDCs, while women can expect to live 13 years longer in MDCs) |
| MDCs: Result of longer life expectancies | MDCs have a higher % of older people who have retired and received public support, and a lower percentage of children under age 15 (who are too young to work and must also be suported by employed adults and gov. programs)= # of young people is 6 times higher than the # of older people in LDCs (while the 2 are almost the same in MDCs) |
| Infant Mortality Rate | Better health and welfare also permit more babies to survive infancy in MDCs= 94% of infants survive and 6% die in LDCs= In MDCs, more than 99.5% survive and less than 1/2 of 1% perish |
| Where and why is the infant mortality rate greater | In LDCs for many reasons: babies may die from malnutrition/lack of medicine needed to survive illness (such as dehydration from diarrhea)= Also may die from poor medical practices that arise from lack of education (EX: use of a dirty knife to cut the umbilical cord is a major cause of fetal tetanus in India) |
| Natural Increase Rate | Averages 1.5% annually in LDCs compared to only 1/10 of 1% in MDCs |
| Greater natural increase | Strains a country's ability to provide hospitals, schools, jobs, and other services that can make its people healthier and more productive |
| Why must many LDCs allocate increasing % of their GDPs | Just to care for the rapidly expanding population rather than to improve care for the current population |
| Who and why has higher natural increase rates | LDCs because they have higher crude birth rates= Also, women in MDCs choose to have fewer babies for various economic and social reasons and they have access to different birth control devices |
| MDCs vs. LDCs: Annual Crude Birth Rate | Is 24 per 1000 in LDCs= Is 11 per 1000 in MDCs |
| Crude Death Rate | (CDR) Does not indicate a society's level of development= Is lower in LDCs than in MDCs (8 per 1000 compared to 10 per 1000) |
| Reasons for the lower CDR in LDCs | Diffusion of medical technology from MDCs has eliminated/sharply reduced the incidence of several diseases in LDCs= Also, MDCs have higher % of older people who have higher mortality rates, as well as lower % of children (who have low mortality rates once they survive infancy) |
| Categorizing the countries of the world | Can be categorized into 9 major regions according to their level of development= These regions have distinct demographic/cultural characteristics= These regions also differ in how people earn their living, how the societies use their wealth, and other economic characteristics |
| In a global economy, what are geographers concerned about (in regards to different regions) | Concerned with similarities and differences in the economic patterns of different regions |
| Western Hemisphere: Regions | (2 regions) Anglo-America [Canada and US] and Latin America= Can be distinguished on basis of dominant languages, religious, and natural increase rates= Despite much diversity within these regions, at a global scale, the individual countries within these regions display cultural similarities |
| Europe: Regions | (2 regions) Western and Eastern= Although they share many cultural traditions, distinctive political experiences have produced different levels of economic development |
| Asia: Regions | (4 cultural regions) East, South, Southeast, Southwest= Demographic, religious, linguistic, ethnic, and political characteristics distinguish these 4 regions |
| Middle East Region | Because of similarities in language, religion, and population growth, Southwest Asia can be combined with North America to form the Middle East region |
| 9th Major Region | Africa south of the Sahara comprises the 9th major region |
| 9 Major Regions | Are located within Western Hemisphere, Europe, Asia= Middle East and Africa south of Sahara are the other 2 major regions |
| Japan | (Is an important area [but not a major region]) Is populous country with cultural and demographic characteristics that contrast sharply with neighboring states in East Asia |
| South Pacific | (Is an important area [but not a major region]) The South Pacific, primarily Australia and new Zealand, covers a big area of Earth's surface but is much less populous than the 9 major regions |
| Distribution of MDCs and LDCs reflects... | A clear global pattern= If we draw a circle around the world at 30º north latitude, all MDCs are to north, while all LDCs are south of the circle |
| North-South Split | Is the division of the world between more and less developed and developing countries= This split between more and less developed countries shows up clearly in world maps of measures of development (such as the HDI created by UN)= MDCs in north have high HDIs while southern countries have lower HDIs |
| More Developed Regions | Consist of 3 of the 9 major cultural regions (Anglo-America, Western Europe, Eastern Europe) plus Japan and South Pacific= (The less developed regions are the 6 other major cultural regions) |
| Anglo-America | (HDI= 0.94) Language and religious patters are less diverse in this region than in other world regions= More than 90% of the region's people use English as their first language and adhere to Christianity (excluding those with no religion)= Cultural diversity generates some tensions in the region (including discrim. against ethnic minorities, intolerance of other Christian sects and non-Christian faiths, and uncertain status of French-speaking Quebecois)= Still, Anglo-America's relative homogeneity reduces possibility that large minority will be excluded from participating in region's economy on basis of cultural characteristics= Has large supply of minerals/natural resources important for manufacturing and was thus once the world's major producer of steel, automobiles, etc. (but in past 3 decades, Japan and Western Europe as well as LDCs led by China have eroded the region's dominance)= Americans remain leading consumers and world's largest market for many of these products= Is the world's most important food exporter and the only region that could significantly expand the amount of land devoted to agriculture= Few Americans are farmers but a large % of region's workforce is engaged in some part of producing or serving food |
| Anglo-America: Adapting to the global economy | Despite loss of manufacturing jobs, the region has adapted successfully to the global economy because it is the leading provider of many financial/management/high-tech services as well as entertainment, mass media, sports, recreation equip., other services that promote use of LEISURE TIME |
| Western Europe | (HDI= 0.93) On global scale, Western Europe displays cultural unity (because almost nearly all Western Europeans speak an Indo-European language and adhere to Christianity)= However, diversity of indiv. languages and religious practices has been longtime source of conflict in Western Europe (especially when strong national identities were made out of distinctive ethnic traditions and historical experiences)= Natural increase rates are at or below 0 in most W.E. countries |
| Western Europe: Competition | Competition among Western European nationalities caused many wars (EX: WWI and WWII, both fought in 20th century)= Since end of WWII in 1945, W.E. has become much more unified politically/militarily/economically/culturally |
| Western Europe: Immigrants | However, offsetting the increased cultural unity within W.E. is greater diversity through migration of Muslims and Hindus from LDCs in search of jobs= Immigrants are responsible for much of W.E.'s population growth and they have become scapegoats for the region's economic problems according to many Europeans |
| Western Europe: Level of Development | Is the world's highest in a core are that includes western Germany, northeastern France, northern Italy, Switzerland, southern Scandinavia, southeastern United Kingdom, Belgium, Netherlands, Luxembourg= Because W.E.'s peripheral areas (southern Italy, Portugal, Spain, Greece) lag in development, W.E. as a whole has slightly lower development level than Anglo-America |
| Western Europe: Maintaining its level of development | To maintain its high level of development, must import food/energy/minerals= To pay for their imports, W.E. have provided high-value goods and services (i.e. insurance, banking, luxury motor vehicles [BMW, etc.]) |
| Western Europe: Colonies | In past, W.E. explored/mapped rest of the world and established colonies on every continent= These colonies supplied resources needed to foster European economic development= Colonization also diffused Western European languages/religions/social customs globally= Once majority of their colonies became independent, W.E. had to buy raw materials from other countries |
| Western Europe: Economy | The elimination of most economic barriers within the European Union makes Western Europe the world's largest and richest market= Restructuring of the region's economy has lagged behind Anglo-America (because most governments have been willing to sacrifice some economic growth in exchange for protection for existing jobs and social services) |
| Eastern Europe | (HDI= 0.80) Is only region where the HDI has declined significantly since the UN created the index in 1990 (initially had HDI only slightly behind W.E. and A.A. but by 2000, its HDI dropped to level of Latin America [which is classified as a less developed region]) |
| Eastern Europe: Communism | E.U.'s rapidly declining HDI is a legacy of the region's history of Communist rule= Churchill declared in 1946 speech that an "Iron Curtain" had descended across Europe (from Baltic Sea [near Germany] in the north to the Adriatic Sea [east of Italy] in the south= This became the dividing line between Western and Eastern Europe= Soviet Union during late 1940s imposed/inspired Communist governments eastward of 15º east longitude |
| Eastern Europe: Development when Communists took control | When gained control of Russia in 1917 (Bolshevik Revolution) and other E.E. countries after WWII, they achieved rapid development (especially during 1950s and 60s)= Annual per capita GDPs increased from a few grand to several grand and most social and demographic indicators became comparable to those of W.E. countries |
| Eastern Europe: Communist Theories/Theorists | Theorists like Karl Marx and Friedrich Engels believed communism would triumph in MDCs because exploited factory workers would lead a revolution and overthrow their gov.'s= The social/economic programs of these theorists were based on conditions in advanced industrial societies= Because few of these states had modern industries, the Communists had to figure out how to apply their theories to the conditions in poor, agricultural societies |
| Eastern Europe: Communists promoting development during 1950s-60s | Promoted development through economies directed by gov. officials rather than private entrepreneurs |
| Eastern Europe: Gosplan | Was a national planning commission in Soviet Union= Developed 5 year plans to guide economic development= The plans prescribed production goals for entire country by economic sector and region= They specified type and quality of minerals, manufactured goods, and agricultural commodities to be produced, and the factories, railways, roads, canals, and houses to be built in each part of the country |
| Eastern Europe: Gosplan's 5-year plans | Featured 3 main development policies: 1st, Soviet planners emphasized heavy industry (iron and steel, machine tools, petrochemicals, mining equip., locomotives, armaments [to allow industrial growth, the country also promoted development of mining, electric power, and transportation])= 2nd, the plans dispersed production facilities from the European to the Asian portion of the Soviet Union (Soviet decision makers considered concentration of industry in west to be a liability due to history of being invaded [thus wanted to reduce vulnerability of their vital industries]= Planners also wanted to promote equal development throughout the country and believed that dispersal of industries would accomplish this goal)= 3rd, Soviet planners preferred to lacate manufacturing facilities near sources of raw materials rather than near markets (this policy reflected both the needs of industries emphasized in Soviet plans and lack of effective consumer demand= By locating heavy industry near raw materials, Soviet planners gave lower priority to producing consumer goods [EX: telephones, etc.]) |
| Eastern Europe: Countries in the 1990s and their economy | Dismantled the economic structure inherited from the Communists= Besides desire for freedom, main reason for E.E. rejecting communism was that central planning proved to be disastrous at running national economies ("see outline") |
| Eastern Europe: What was the most fundamental problem | By concentrating on basic industry, Communists neglected consumer products (like cars, clothing, etc.)= |
| Eastern Europe: Conversion to market economies in countries along border with W.E. | E.E. countries along border with W.E. have convered more rapidly/successfully to market economies (taking advantage of their proximity to the world's wealthiest market in the core of W.E.)= Because workers in these countries are paid much less than those in W.E. (but possess similar skills) carmakers and manufacturers have taken over Communist-era factories/built new ones to produce goods for W.E.'s wealthy consumers |
| Eastern Europe: Conversion to market economies in Russia and other countries once part of Soviet Union | Restructuring to market economies has been painful (they has a very low HDIs)= Declining HDIs in former Soviet Republics may be result of lower production, higher death rates, and other stresses associated with the end of communism (or, simply, Commies may have generated higher HDIs when they were in power by falsifying statistics) |
| Eastern Europe: Effect of closing inefficient businesses on Russians | Has increased unemployment and prices for many goods skyrocketed with elimination of gov. subsidies (most Russians have suffered declining standards of living since end of communism while only few have become rich) |
| Eastern Europe: Dismantling of the Communist system | Led to breakup of Czechoslovakia, Soviet Union, Yugoslavia |
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