Human Geography (GEOG 1101)
Chapter 8: Geographies of Economic
Development
Mainstream Ideas of Economic Growth and Development
Definition: economic growth is an increase in the monetary value of the total goods and
services produced by a country (the output). This is measured by the gross domestic product
(GDP) through a period of time.
● Big jump in GDP when new technologies are invented that can increase economic
productivity. The industrial revolution with factories, the Internet with information, and
technologies were invented.
US: economic growth is associated with new technology. For example: the industrial
revolution and the development of the Internet
Eutopia: the production of berries to Germany. Not in Utopia, but Germany had a growth in
GDP as it experienced economic growth when the investor came in and built many factories
to sell berries products.
Definition: economic development is the improving the quality of life (level of education,
ability to provide healthcare) because of economic growth. When you increase the monetary
value, the overall wealth and income go up
Economic development: "Processes of change involving the nature and composition of the
economy of a particular region, as well as increases to the overall prosperity of a region."
● These big jump/change in the economic development can happen 3 ways:
1. Change in the structure of an economy. Ex: moving from being primarily an
agricultural producer of economy to the manufacturing economy
2. Change in the form of economic organizations. Ex: moving from feudalism to
capitalism to change the actual structure of economy
3. The availability and use of technology. Ex: the Internet, moving from coal to solar
Ideas of economic growth?
● Economic recession (unemployment is high, GDP is going down): we want to see
GDP going up
● Change the poor city into a high level of technology (corporate offices, skyscrapers,
highways) => put out infrastructure and setting to have a city getting an engine of
economic development
● Old warehouse was renovated into luxury condos for renting
=> all generate money and wealth to somebody to increase the monetary value of good
services
Economic Development
● Process of increasing in standard of living/technology/GDP
, ● Spatial patterns of economic development are highly uneven. Ex: the way
international market work
● Idea (desire) about how societies should develop and change
● Human geographers considers the spatial and social patterns associated with a
distinctly capitalist mode of economic development
Capitalism
Definition: an economic system based on private ownership (of land, capital => have
some secured rights to the things we owned) , where production and consumption are
facilitated through competitive markets.
● Privately owned property (individuals laid claim to) is the essential element of
capitalism. But land and other resources are not always private property
● In some advanced capitalist societies, the vast majority of property has become
privately owned. Private property has not necessarily existed but created and
protected through time and facilitated
● The state and government create, insure, and protect private property rights (set of
rule, law, regulations that allow you to own and protect property). Private property is
guaranteed through many regulations of the state
Enclosure: the process of making something private, make it not a commonly held resource
but enclosed into a privately held resource
Fundamental Condition: Private Ownership
● Few people (capitalist) own the means of production (capital, equipment,
buildings, machines, natural resources, etc. required for making good or providing
services) - all the stuff that you need to produce/make something
● Most people (proletariat) work for the owners of the means of production.
Ingredient #1: WAGE LABOR
● Workers are paid a wage (money, not products) for their labor (i.e. labor is sold on
the market)
● Workers must work more hours than are required to pay their wage (surplus value -
the amount of goods or product that is created over the wage). Wage is far less than
the value of the products that the workers had made; workers have to keep
generating products.
● Workers use their wage earnings to buy the products they produce, capitalist
accumulate profits and reinvest to expand business/product to make more money.
=> economic development often entails the transformations of labor power and processes to
wage labor (the change in labor relationships and wage labor are key components)
=> capitalists are often changing the way wage labor works in their particular industry or
business to increase their profitability. The more surplus value, the more value you can
extract out of it by making workers produce more, be more efficient, lowering their wage
Chapter 8: Geographies of Economic
Development
Mainstream Ideas of Economic Growth and Development
Definition: economic growth is an increase in the monetary value of the total goods and
services produced by a country (the output). This is measured by the gross domestic product
(GDP) through a period of time.
● Big jump in GDP when new technologies are invented that can increase economic
productivity. The industrial revolution with factories, the Internet with information, and
technologies were invented.
US: economic growth is associated with new technology. For example: the industrial
revolution and the development of the Internet
Eutopia: the production of berries to Germany. Not in Utopia, but Germany had a growth in
GDP as it experienced economic growth when the investor came in and built many factories
to sell berries products.
Definition: economic development is the improving the quality of life (level of education,
ability to provide healthcare) because of economic growth. When you increase the monetary
value, the overall wealth and income go up
Economic development: "Processes of change involving the nature and composition of the
economy of a particular region, as well as increases to the overall prosperity of a region."
● These big jump/change in the economic development can happen 3 ways:
1. Change in the structure of an economy. Ex: moving from being primarily an
agricultural producer of economy to the manufacturing economy
2. Change in the form of economic organizations. Ex: moving from feudalism to
capitalism to change the actual structure of economy
3. The availability and use of technology. Ex: the Internet, moving from coal to solar
Ideas of economic growth?
● Economic recession (unemployment is high, GDP is going down): we want to see
GDP going up
● Change the poor city into a high level of technology (corporate offices, skyscrapers,
highways) => put out infrastructure and setting to have a city getting an engine of
economic development
● Old warehouse was renovated into luxury condos for renting
=> all generate money and wealth to somebody to increase the monetary value of good
services
Economic Development
● Process of increasing in standard of living/technology/GDP
, ● Spatial patterns of economic development are highly uneven. Ex: the way
international market work
● Idea (desire) about how societies should develop and change
● Human geographers considers the spatial and social patterns associated with a
distinctly capitalist mode of economic development
Capitalism
Definition: an economic system based on private ownership (of land, capital => have
some secured rights to the things we owned) , where production and consumption are
facilitated through competitive markets.
● Privately owned property (individuals laid claim to) is the essential element of
capitalism. But land and other resources are not always private property
● In some advanced capitalist societies, the vast majority of property has become
privately owned. Private property has not necessarily existed but created and
protected through time and facilitated
● The state and government create, insure, and protect private property rights (set of
rule, law, regulations that allow you to own and protect property). Private property is
guaranteed through many regulations of the state
Enclosure: the process of making something private, make it not a commonly held resource
but enclosed into a privately held resource
Fundamental Condition: Private Ownership
● Few people (capitalist) own the means of production (capital, equipment,
buildings, machines, natural resources, etc. required for making good or providing
services) - all the stuff that you need to produce/make something
● Most people (proletariat) work for the owners of the means of production.
Ingredient #1: WAGE LABOR
● Workers are paid a wage (money, not products) for their labor (i.e. labor is sold on
the market)
● Workers must work more hours than are required to pay their wage (surplus value -
the amount of goods or product that is created over the wage). Wage is far less than
the value of the products that the workers had made; workers have to keep
generating products.
● Workers use their wage earnings to buy the products they produce, capitalist
accumulate profits and reinvest to expand business/product to make more money.
=> economic development often entails the transformations of labor power and processes to
wage labor (the change in labor relationships and wage labor are key components)
=> capitalists are often changing the way wage labor works in their particular industry or
business to increase their profitability. The more surplus value, the more value you can
extract out of it by making workers produce more, be more efficient, lowering their wage
