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Recent Patterns and Trends: A Global Perspective

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GEOG 216
Geraldine Akman

Recent Patterns and Trends: A Global Perspective Terms (Reading 4) - Creative destruction / uneven development - Creative destruction = change w/in system, rise + fall of geographic relationships - War/natural disasters: create clean slate for s/thing else to devel - Often creative destruction on purpose (urban renewal) - WWII: industry destroyed, new tech - Destroyed infrastruc + indus capacity in places that were indus - Places that were indus heavy weight damaged during war  Allowed for new tech to emerge - Path dependency (geographic) - Past is best predictor of future - Place w/certain econ, indus, tendency to reproduce itself into future  Certain infrastructure already in place (instits, training programs, tax structures, labour force w/certain training), agglomeration effect - S/times creative destruct, structures become so intense that they become too restrictive - Division of labour - 1 of key forces of dynamism under capitalism  Can increase productivity, efficiency  Take advantage of synergies that happen when divide labour - Geographic division of labour, diff places have diff roles in world econ - Capitalism constantly reinventing division of labour - Developing countries - Idea: Rostow stages of devel, nats are like children growing up (to become like ex: Cda)  Implies e/1 on this path  H: doesn’t recog there are power relationships b/w places  S/places actually become poorer over time - Core/periphery - Core: nats that produces + exports manufactured goods (former colonizers, indus powers) - Periphery: produces + exports primary products (former colonies) rd - After WWII, US said 3 world need to produce primary products  Comparative advantage: e/place should specialise in what they do best  3 World (esp LatAm): manufac goods gain value over time, primary lose value  Uneven exchange, declining terms of trade  Statistically, this is not a path to development, need to industrialize  Unfair relationship, one party had more power, one party was dependent on the other - International division of labour - Changed over time  Import Substitution Industrialization (ISI)  Effort partic LatAm, want to industrialize (state-led)  Substit imports w/locally produced manufactured goods  LatAm indus dramatically during this period (state-led)  Involved many tariffs, quotas, impossible for US/other nats to export goods  H: didn’t have capacity to make its own cars  GM/other biz, set up factories to make cars w/in these nats (inside tariff walls) - Transitional economies - 2 world nats becoming capitalist - NIEs (NICs, BRICs) - Newly Industrializing Economies (Countries)  First wave: Singapore, Korea, Hong Kong, Taiwan (Asian Tigers) rd - 3 world nats growing fast  Brazil, Russia, India, China - Cities - A lot of world econ concentrated in cities - Concentrate infrastructure necess, skilled labour forces - Key nodes in geography of world econ What is important? Concepts, ideas, arguments vs facts, statistics Uneven Development - How do we explain that s/places rich/poor? 1 /3 world? Core/periphery? - How do we explain econ disparity w/in partic regions - Econ activity happens in certain places, there is path dependency - Natural bays, rivers, make it advantageous for certain places to set up indus, trade HQ, cities  Natural substrata to location of activities in world econ - There is human created set of econ advantages in places - Ppl create infrastructure  Investment in canals, railroads, ports, fiber optic networks, airports - Agglomeration effect - Certain places devel synergy, collection of indus + infrastructure, regulations, gov programs, uni - Make it advantageous for film indus locate in Hollywood  Tendency for this to reproduce itself over long period of time  Lot of investment to build the infrastructure  investors want to see returns over time  Want to promote continued econ vitality of these places - Creates disadvantages as well  Silicon Valley: highly successful H: very expensive live + produce there  Have negative externalities, disagglomeration factors  Things tend to be done in same way  want to go s/where else to do things diff way  Places rise + fall, structures prevent further growth (rigidities) - Dependency theory ties hands of poor natsrd  Stuck no change  not healthy for 3 world nat, also ev theory doesn’t always work (N
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