Regional Planning

& Development
• Enormous gaps between Global Economics
the rich and poor
countries of the world
• Some states are still
subsistence based while
others have moved
beyond manufacturing to
tertiary economies.
• Even within the wealthy
or First World nations
there are often areas of
economic disparity within
regions
What is the distribution of MDCs and LDCs in the
world?
(The Brandt Line)
North-South Gap-most countries in the Core are above 30 degrees latitude
Viewed from a Polar Projection-more countries are clustered in an inner core, while less
developed countries are relegated to a periphery or outer ring.
20% of the World’s population controls 85% of the wealth
Poorest 20% lives in the Southern Hemisphere
World Bank-a Wash. DC based agency that promotes global economic development divided the world into 4 categories:
High Income-US, Canada, Western Europe, Japan, Australia, South Korea, New Zealand, Israel and some oil rich nations
like Kuwait & UAE.
Upper Middle Income-Mexico, Brazil, Chile, Argentina, Poland, Czech Rep., Slovakia, Hungary & Saudi Arabia
Lower Middle Income-rest of S. America, Russia, most of Soviet Republics, Algeria, Morocco and South Africa.
Low Income-India, China, Pakistan, Afghanistan and most of Africa
 Resource Endowment and
Environmental Determinism
Resource endowment suggest that development is
dependent on the resources (both natural and human) the
country has to exploit.
There are links with the theory of environmental
determinism which suggests that human activity is
determined by the environment. European development
due to its coal and iron reserves, fertile soils, temperate
climate and low frequency and intensity of natural
hazards.
Taiwan, Japan, Brazil, Nigeria?
 World Systems Analysis
There is a Global Economy which all countries
are a part of. Therefore countries are
interdependent and development in one country
depends on the country’s position in the Global
Economy (World system)
The Global Economy is divided into the Core,
Semi Periphery and Periphery.
World Systems Analysis theorists such as
Immanuel Wallerstein argue that the
development of the Core is a result of its
exploitation of the Periphery.
 Core--Periphery Model
Core

• Immanuel Wallerstein proposed the World

Systems Theory with promoted the Core-
Periphery concept.
• Unlike the term-developed and developing,
the Core-Periphery Model does not imply
that change will occur.
• Core-Periphery regionalism got its start
during the period of colonialism was re-
enforced by the Industrial Rev. and
continues in the age of globalization.
 Cumulative Causation
Can be used on a global scale or within countries to explain
regional disparities.
Cumulative Causation – Spiral of advantages that occur
in a specific geographical location (core).

Core – Initially based on comparative advantages (resource

endowment and location), develops from acquired
advantages (multiplier effect, agglomeration, increased tax
revenue, increased public spending, education and health
care, skilled labour, improvements in infrastructure).
Periphery – Inaccessible, underpopulated, resource poor.
Backwash Effects
Negative effects of the core’s growth on the periphery. Out-
migration of economically active people, outflows of capital,
decreasing tax base, firms of the periphery not able to compete
with the firms of the core and therefore periphery being
flooded with core’s products.

Spread Effects
Positive effects of the core’s growth on the periphery. Core
unable to supply all the products the Core is demanding so
supply from the Periphery to the Core. Core becomes affected
by NEGATIVE EXTERNALITIES (high rents, overcrowding,
congestion) so firms locate in periphery.
 Core--Periphery Model
Core
• New approach to developed
or underdeveloped idea
• Core-Periphery also used in a
political context
• Core-the nations with a high
level of prosperity with
dominant economies globally
• Periphery-poor nations that
are dependent on the core as
markets for raw materials and
sources of technology
• Semi-Periphery-better off
than periphery, but still
dominated by the core to
some degree
 Three Tier Structure
Core Periphery
Processes that incorporate Processes that incorporate lower
higher levels of education, levels of education, lower
higher salaries, and more salaries, and less technology
technology * Generate less wealth in the
* Generate more wealth in the world economy
world economy
Semi-periphery
Places where core and periphery processes
are both occurring. Places that are
exploited by the core but then exploit
the periphery.
* Serves as a buffer between core and
periphery
John Friedmann’s Model of Regional
Development

Upward transitional area

could be seen as the semi
periphery.
Resource frontier is
peripheral but endowed with
resources.
Downward transitional area
could be seen as the periphery
suffering from backwash
effects of development in the
Core.
 Models of Development
• There are two broad models of
economic development;
– Liberal Models based on
the assumption that all
countries pass through
the same stages of
economic development
and disparity is the result
of short term
inefficiencies
– The Liberal Model
assumes that all nations
are capable of the same
level of economic
development
 Development Models

Modernization Model
Walt Rostow’s model assumes all countries follow a
similar path to development or modernization,
advancing through five stages of development,
climbing a ladder of development.

- traditional
- preconditions of takeoff
- takeoff
- drive to maturity
- high mass consumption
 Models of Development
Walt Rostow created this liberal model of development in
the 1960s
1. First Stage-Traditional
1. Subsistence farms-limited technology
2. Rigid social structure
3. Resistance to change-transition triggered by external influence
2. Second Stage-Preconditions for Take-Off
1. Progressive Leadership-commercial exploitation of agriculture
& extractive industries
2. Greater flexibility-installation of infrastructure-roads, railways,
etc.
3. Greater openness to new technology
4. Greater Diversity of products produced
 Models of Development
3. Third Stage-Take Off
1. Experiences industrial growth
2. Urbanization
3. Industrialization, technology & mass production
4. Drive to Maturity
1. Diffusion of technology
2. Industrial specialization
3. International trade
4. Modernization at the core
5. Population growth is reduced
5. Fifth Stage-Final Stage
1. Mass consumption-widespread production of goods &
services
2. High incomes
3. Majority of workforce in service sector
Rostow’s Ladder of Development
 Clarke’s Sector Model (Colin Clarke 1905 – 1989)

Another linear model. This

time suggesting that all
economies start off as
agricultural and then go
through a period of
industrialisation and then
develop into post industrial
economies. Success in one
sector sets the conditions to
move to the next stage.
Why do some countries fail
to industrialise?
 The New International Division of
Labour

The spatial decentralisation of many economic

activities.
Until recently the NIDL was seen as the spatial
decentralisation of manufacturing away from the Core to
Semi Peripheral areas.
Now we can observe a NIDL in services and an
increasing decentralisation of coordination and control
operations.
 Models of Development
• Structuralist Model this is
the alternate to the Liberal
Model that states
disparities are inevitable
due to structural features
of the global economy.
• These disparities can not
be easily changed-it is
misleading to assume that
all areas will go through
the same economic
process of development
 Models of Development
• Dependency Theory is
another Structuralist
Model
• Political & economic
relationships between
nations & regions limit the
development of the less
well off areas
• Colonial dependencies are
still in place from long ago.
• Dependency theory sees
little hope for economic
prosperity in some
traditional parts of the
world
 Dependency Theory
The political and economic relationships between
countries and regions of the world control and limit
the economic development possibilities of poorer
areas.

-- Economic structures make poorer countries

dependent on wealthier countries.
-- Little hope for economic prosperity in
poorer countries.
 Why are there disparities in the level of development of
different countries?
Countries have different levels of resources and there is a positive
correlation between resources and development. (Resource Endowment)
All countries are making the same linear progression but are at different
stages of development. (Rostow’s and Clarke’s models)
Countries are either in the Core, Semi Periphery or Periphery of a larger
system which is the Global Economy. This system is dynamic but would
be expected to follow a pattern of growth in the core followed by a
spread of growth from the core to the semi periphery and periphery
(Cumulative causation within a World System)
There are disparities because the rich exploit the poor and the poor are
dependent on and dominated by the rich (Dependency Theory)
So if there is disagreement on the
cause of disparities of development,
there will inevitably be
disagreement on which approach to
take to development.