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Lecture 10

Lecture 10 notes

Course Code
Joseph Leydon

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GGR323 - Development and Population
cost of development
- demographic transition model
- how does it impact people and environment
- not solving relationship between resources and population
- massive development in urbanization and transportation, etc, in countries such as China
- suggesting to countries to engage in economic development - is it right? should they follow
our rate of consumption?
- consumption = energy use increase
- based upon improvement of personal consumption
- do we have right to tell other countries not to consume so much energy?
- we imply our lifestyle is good and everyone else needs to replicate
- need people to consume goods to have capitalism
- pollution is something that cannot be isolated geographically - wind patterns, etc
benefits from globalization
- significant spreading of investment
- spreading benefits through process of globalization - jobs created in other parts of the
- increase standard of living (improve) - process of consumption around the world
- types of jobs - based upon low income, low skills
- if based on low income, always have rush to the bottom because people will look for
lower jobs (easier)
- not all jobs have low skill requirement
- India produces largest amount of engineers
- if engineer is working in the states, have to pay them in USD, but if they are kept in
India, pay in Indian currency
- great amount of savings
- these jobs will create a new middle class in these countries
- leads to increase in consumption - not necessarily sustainable
- doesn't translate into universal development - becomes spatially restricted
- most of the development in China occurs along costal areas, etc
- benefits not translated into lives of everyone, only in specific areas
- increase levels of regional inequalities and differences

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- sustainable? maybe not because it generates huge amounts of pollution, leads to
contamination of water supplies, etc
- ultimately, motivation for globalization, is to make money (profit)
table - Mexico
- GDP - measure of size of one's economy
- must consider if it's adjusted for inflation - must be making more than inflation rate
to profit
- ultimate value of the money
- doesn't tell who is benefiting and experiencing level of growth
- tells nothing about distribution - not shared equally
- not everyone benefits from economic development - gap expands
- exports - indicates growth of economy
- more engaged in process of trade
- most of Mexico's exports go to USA - dependent on USA's economy
- think about level of dependence
- per capita - low compared to exports and GDP
- top 10% of economy will have more rapid growth
- remittances - money sent back home .. ?
- much more substantial growth
- mostly low paying jobs
- problem is that it creates phantom economy - creates dependency on money coming
in from outside
- opportunity for population to not work
- what is the money spent on? - consumer goods such as basics (food) and causes prices
of food to rise
- if not getting remittances from outside, cannot afford food
- also spend on unnecessary goods such as expensive clothing, etc
- not producing good productive expenditure
- illegal Mexican immigrants - daily, monthly, movement unknown
- if large portion are illegal, will have low income jobs
- accumulating sufficient money to send back to Mexico
- sees more opportunity in low paying jobs in USA than staying in Mexico
- % Mexican students finishing high school
- < 10% increase despite growing economy, etc
- suggests:
- low skill workers
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