14.3 Regional Development Flashcards
What is the gini coefficient?
- shows the extent of income inequality in a country
- presented as a value from 0 to 1 —> higher the value, the more unequal the distribution of income is
Limitation of the gini coefficient?
- only shows income distribution instead of level of incomes
- e.g. Mali + US have the same gini coefficient
Explain cumulative causation?
- establishment of large manufacturing plant
- expansion of local job opportunities + population
- inflow of business + capital to satisfy increased local demand = secondary + tertiary development
- substantial rise in per person incomes
- greater tax revenue = increased local govt spending power
- improvement of infrastructure
What is the theory of regional disparities?
- backwash effects = the detrimental economic changes in peripheral regions due to rapid economic changes in the core region
- spread effects (trickle down) = the spread of economic growth from the economic growth regions
What was Myrdal’s theory?
- strong backwash effects + weak spread effect = govt intervention necessary to overcome backwash
- therefore as a result development proceeds more rapidly in the economic core, creating a disequilibrium
What was Hirschman’s theory?
- hirschman labelled the growth of the economic core region as ‘polarisation’ which benefited from the upward spirals of development, where as the periphery was impeded by downward spirals of
- the term ‘trickle down’ was used to describe the spread of growth from the core to periphery
- hirschman believed this would be a natural process
What is the difference between Myrdal’s and Hirschman’s theory?
- hirschman stressed the effect of counterbalancing forces overcoming polarisation (backwash) + trickle down would eventually lead to an economic equilibrium being established
- Myrdal believed that the backwash effects would be strong + that some form of government intervention would be needed to overcome regional disparities
Which theory explains Brazil’s regional disparities the best?
- the absence of initial advantages + lack of govt investment in the north + north east are the main causes of regional disparities
- these areas are a greater distance away from the core + thus too far away to benefit from the ‘trickle down’ effect
- Myrdal’s theory of cumulative causation + regional economic divergence explains the regional inequality as it is unlikely that without government intervention, the spread effects from the economic core can overcome the backwash effects = regional disparities remain
How did SE Brazil grow due to cumulative causation?
- the south east is the centre of foreign + domestic investment in the manufacturing industry
- 1950s + 60s - govt wanted Brazil to become an NIC + the south east had the best potential out of the five regions
- the region became the focus of the country’s road + rail networks + has the main airports + seaports
- highest population density in Brazil = large labour supply
- region also has the highest education + skill levels in the country
What were the natural advantages that made SE Brazil grow?
- warm temperature, adequate rainfall + rich terra Rosa soil provided farming opportunities - region it’s important for coffee, beef, rice, cocoa, sugar cane etc.
- large deposits of iron ore, manganese + bauxite, gold
- energy rich = large deposits of oil + gas offshore, hydroelectric power generated from large rivers flowing over steep slopes
- temperate rainforests provides raw material for forestry
- coastal settlements for fishing
Role of FDI + domestic investment in SE Brazil
- 1950s + 60s = govt wanted Brazil to become an NIC
- focused rail + road network, as well as the main airports + seaports put in place by govt to attract FDI
- highest education + skill levels in country, high density population
- car industry is a major activity in the region = e.g. Ford, Toyota
- manufacturing industries e.g. food processing, textiles, furniture, clothing etc.
Economic divergence + convergence in Brazil
- originally limited development in the periphery due to focus on the core (SE)
- then the spread effect led to the trickle down of economic growth from the core to the periphery (SW + centre west)
- however the NE + North still significantly lag behind the SE
The developments in São Paulo
- largest financial sector in South America = HQ of most Brazilian + foreign banks located here
- São Paulo dominated South America economically + it is the largest city
- R + D developing 70km from São Paulo = Aerospace technical centre in San Jose dos campos conducting teaching + research + development in aviation + outer space studies —> aircraft’s + aircraft parts make up Brazil’s largest export category
To what extent has an economic equilibrium been reached in Brazil?
- the south has been the most important recipient of spread effects, which are spatially selective + have resulted from market forces or regional economic policy
- economic policy has led to the spread effect to an extent between the south + south east = aligns with Myrdal’s since govt intervention was used
- the lack of natural advantages + govt funding in the north + north east has meant it significantly lags behind
What is John Freidmann’s theory?
- gives a more detailed explanation of periphery + highlights that spatial inequalities change over time
- stage 1 = no urban hierarchy
- stage 2 = development of economic core
- stage 3 = regional sub centres (spread effect)
- stage 4 = economic equilibrium, fully integrated urban system
What is stage 1 of Friedmann’s stages of growth?
- when towns/regions are developing independently with very minimal contact between them
- no economic core
What is stage 2 of Friedmann’s stages of growth?
- one town or region becomes dominant, probably because it has more physical or Human Resources
- the core starts to attract people + investment from other regions
- e.g. development of SE Brazil
What is stage 3 of Friedmann’s stages of growth?
- new smaller cores (semi-periphery) start to develop
- increase in flows between core + semi-periphery (e.g. FDI)
- e.g. south + centre west Brazil
What is stage 4 of Friedmann’s stages of growth?
- all areas are now developed + fully dependent upon each other with flows of capital + people in both directions
- economic equilibrium = spread effects have overcome backwash effects
What does Friedmann’s model of regional development show? (Apply to Brazil)
- core region = SE Brazil
- upward transitional area (semi periphery) = south + centre west Brazil
- resource frontier (peripheral endowed with resources) = no evidence of this in Brazil
- downward transitional area (periphery suffering from backwash effects of development) = NE Brazil
What factors affect internal disparities?
- residence
- intra-urban poverty
- ethnicity + employment
- education
- land ownership + tenure
What are intra-urban variations?
- a large number of people live in slum housing = almost 1 billion people are housed in slums (32% of urban population), majority in LICs
- the UN recognises that the focus of global poverty is shifting from rural to urban; process known as urbanisation of poverty
What is causing the growth of slums?
- income inequality
- lack of economic growth
- in migration
- these factors lead to poverty + lack of affordable housing = slum formation
How does ethnicity + employment relate to regional disparities
- development gap often has a religious or ethnic dimension = some ethnic groups will have income levels below the rest of the population
- this is often the case with indigenous populations + is often a result of discrimination = limits the economic, social + political opportunities variable to disadvantaged groups
Examples of ethnicity + employment in regional disparities
- e.g. South Africa = apartheid era led to a wide gap in income + although it ended in 1991 social + economic change has been slow
- e.g. Latin America = Indian + black people make up a third of the population, but have very limited parliamentary representation (e.g. Brazil = 44% of population are indigenous but only hold 3% in parliament)
How does education relate to regional disparities?
- higher skilled, more capable of tertiary/quaternary sector jobs
- an area with higher educated population is more attractive for FDI by TNCs
- e.g. south east + south Brazil have the highest percentage of population receiving secondary school education or high
How does land tenure relate to regional disparities?
- Brazil have inequalities of land ownership
- lots of farmers rent their land instead of owning + therefore have no security over the plot of land
- this means it’s difficult to obtain a secure supply of food due to need for constant investment, which does not occur due to risk of being evicted
- stuck in cycle of poverty
Why has Canada got regional disparities?
- second largest country in the world in land area = compromises of 10 provinces + 3 territories
- small population of 35.5 million (underpopulated), huge variation in population density + distribution
- variations in climate, secondary/tertiary employment opportunities etc. across the provinces
- variations in natural resources
Where is Canada’s urban-industrial core?
- Ontario + Quebec (southern regions)
- 2 main urban areas are Toronto and Montreal
Why is Ontario and Quebec the economic core?
- located relatively close to the Great Lakes + St Lawrence sea way = system of locks, canals + channels that allow ships to travel from Lake Superior to the Atlantic Ocean
- route way for the trans-Canada highway + the trans continental railway
- higher density population
- geographically close to the USA + manufacturing in these areas have benefited from the American market
Advantages of Vancouver?
- major urban sub core
- main port of the pacific Ocean
- ranked as one of the highest quality of life urban areas in the world - hosted 2010 Winter Olympics
What are the four Atlantic provinces?
- Nova Scotia
- New Brunswick
- Prince Edward island
- Newfoundland and Labrador
Why are the four Atlantic provinces considered the problem regions?
- lowest per person incomes in the region
- weaker GDP growth
- could be classified as downward transition regions in Friedmann’s theory
- HOWEVER = Newfoundland + Labrador have had recent development of oil reserves = boosted per person income —> classified as Friedmann’s resource frontier region
Alberta
- lots of energy resources = large increase in investment, employment + income growth
- 1981-2013 Alberta’s population increased by 76%, compared to Canadian average of 42%
- upward transition area (Friedmann’s theory)
To what extent does Freidmann’s theory apply to Canada?
- Atlantic provinces = low growth = downward transition regions
- Newfoundland + Labrador = resource frontier region
- Alberta = upward transition region
- HOWEVER = due to great distances between regions it is unlikely that Canada will transition through the stages of growth predicted by Freidmann + reach an economic equilibrium as seen in stage 4