335-358 * Commodity chain- series of links connecting many places of production and distribution and resulting in a commodity that is then exchanged on the market * Developing- saying progress is being made in technology, production, and socioeconomic well-being * Through advances in technology- people can produce more food, create new products, and accrue material wealth * Ways of measuring development- development in economic welfare, development in technology an production, and development in social welfare * Gross National Product(GNP)- (most common way of comparing development in economic welfare) measure of the total value of the recorded goods and services produced by the citizens and corporations of a country in a given year(inside and outside of the country) * Gross Domestic Product(GDP)- encompasses good and services produced within a country during a given year * Gross National Income(GNI)- calculates the worth of what is produced within a country plus income received from investments outside the country minus income payments to other countries(accurate way of measuring a country’s wealth) * Per Capita GNI- most common way to standardize GNI data is to divide it by the population of the country EX: Luxembourg has the highest with $64,400 * Formal economy- legal economy that governs tax and monitor * Informal economy- illegal economy that governments do not tax and keep track of. EX: Illegal drug trade * A high percentage of laborers= engaged in the food production= low overall development * A high percentage of workers= involved in high-tech industries= high level of development * One way to measure social welfare- dependency ratio(measure of the # of dependents, young and old, that each 100 employed people must support) literacy rates, infant mortality, life expectancy, calorie intake per person * Modernization model(ladder of development)- a model of economic development by Walter Rostow, is a theory that maintains all the countries go through 5 stages of development * First stage- the society is traditional, dominant activity is subsistence farming, social structure is rigid, technology is slow to change * Second stage- brings the preconditions of takeoff. New leadership moves the country toward greater flexibility, openness and diversification * Third stage- takeoff. Now country experiences something similar to the industrial revolution, and sustained growth takes hold. Urbanization increases, industrialization proceeds, and technological and mass-production breakthroughs occur * Fourth stage- drive to maturity. Technologies diffuse, industrial specialization occurs, and international trade expands. Modernization is evident in the key areas of the country, and population growth is slow * Fifth stage- High mass consumption, which is marked by the high incomes and widespread population of many goods and services. A majority of workers enter the service sector of the economy * Calling wealthy countries- “industrialized” * Calling poor countries- “industrialize” * Context- reflects what is happening in place results of forces operating currently at multiple scales. Ex: state scale, local scale, regional scale, global scale * Neocolonialism- the major world powers continue to control the economies of the poorer countries * Structuralist theory- holds that difficult-to-change, large scale economic arrangements shape what can happen in fundamental ways * Dependency theory- which holds that the political and economic relationships between countries and regions of the world control and limit thee economic development possibilities of poorer areas * Dollarization- El Salvador whereby the country’s currency, the colon, was abandoned in favor of the dollar. * Millennium development goals- a fairly high degree of consensus about the key conditions that need to be changed if economic development is to be achieved