> Economic Growth.

? Economic development
> Economic
underdevelopment

INTRODUCTION:

• Currently, one of the

most important topics addressed by
contemporary economic geography is
 related to the elements and factors that
influence and determine economic growth
and development at different territorial
scales, which can range from a local
perspective to regional standards. , or at a
national or global level.
• Economic growth and development are topics that
have been addressed by very diverse specialists
throughout history; Therefore, they have within
themselves theoretical frameworks methodological
own
rigorously structured. In this sense, economic
geography conceives the concepts of both economic
growth and development from a holistic perspective,
from which it is possible to involve different elements,
factors and actors towards a common good, which is
the well-being of society as a whole.
 ECONOMIC GROWTH
Economic growth is a variable that increases or decreases
the gross domestic product (GDP). If
GDP grows at a faster rate than
population growth, it is said that the
population's standard of living increases.
If, on the other hand, the population
growth rate is greater than the GDP
growth rate, we can affirm that the
population's standard of living is
decreasing.
• The economic growth of a
country is the increase in its
production of goods and
services between a certain
period that can be monthly,
 quarterly or commonly annually. It is a measure
of the well-being of the population of a country
or economic region which will depend on the
success of the economic policies applied by the
political authorities of a country.

FACTORS THAT CONDITION THE

ECONOMIC GROWTH

In general we can consider that the conditioning factors of economic

growth are:
> The increase in physical capital: by increasing equipment,
machinery, productive infrastructure, etc. , the average productivity of
labor increases (the total production of the economy grows).
> Improving human capital:
The qualification and training of the worker also causes an increase in
his productivity, with which the total production of goods will also
increase.
the economy (influences in a way
determining productivity ent of the actors.

> Technological advances and improvements in

management techniques:
They cause an improvement in the use of production
factors (greater efficiency), which is why they also
contribute to increasing the economic growth of

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 a country.

BENEFITS OF ECONOMIC
GROWTH
> Economic growth is necessary to achieve a higher
standard of living.
> When national income increases, the state obtains
greater income through taxes, etc., which allows
more egalitarian income distribution policies to be
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 designed.
> Increase in employment, because in general, when
production increases, employment also does so.
CONSEQUENCES OF A
ECONOMIC GROWTH

• These lie in the environment, because when there

is economic growth, man is in contact with nature
in an accelerated way, these can be:
• Pollution
• Acid rains
• Loss of biological diversity
• Depletion of the ozone layer.
• Greenhouse effect.

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 ECONOMIC DEVELOPMENT
Development can be defined as a continuous process of
economic growth, during which new technologies are
applied to productive processes and other fields to which
social and political institutional changes occur. Therefore
development implies economic growth and changes.

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• Some analysts consider that the
economic development has two
dimensions: h growth
economic and e quality of life needs
(satisfaction

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 FACTORS THAT CONDITION THE
ECONOMIC DEVELOPMENT

The key to development lies in four

fundamental factors:
> Human Resources: Developing countries
must not only face the excessive growth of
their population, but they must also be
interested in the quality of their human
resources.

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That is why emphasis is placed on the following
specific programs:
>Control diseases and improve health and
nutrition (more happiness, more productivity).
>Improve education, reduce illiteracy and train
workers.
>Do not underestimate the importance of human
resources.
> Natural resources:
Land is key to inducing farmers to invest in capital and technologies
that increase land yields. When farmers own their land, they have
more incentives to make improvements, such as irrigation systems
and proper conservation practices.

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> Capital formation:
Investment and savings rates are low in poor countries because
incomes are too small to be able to save for the future. International
financing of investment in poor countries has witnessed many crises
in the last two centuries.
> Technological change and innovations:
Technological change is usually associated with
investment and new machinery. It allows us to
harbor new hopes, because it can adapt the most
productive technologies of advanced countries,
which requires entrepreneurial initiative. One of the
tasks of development is to accelerate the internal
growth of the scarce entrepreneurial initiative.

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BENEFITS OF ECONOMIC
DEVELOPMENT
> The worker has a job and is well paid.
> The consumer has capital available to have all
the basic needs and something extra to save.
> Businesses prosper and sell more.
> The government collects taxes and can budget
public works and services.
CONSEQUENCES OF A
ECONOMIC DEVELOPMENT

• Economic development shares its

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 disadvantages with growth, since when a
country industrializes, it begins to
eliminate the nature that exists in it and
this has consequences for the
environment.
DIFFERENCE BETWEEN GROWTH AND
ECONOMIC DEVELOPMENT
> Economic development is the ability of countries or
regions to create wealth in order to promote or
maintain the economic and social prosperity or well-
being of their inhabitants.

> Economic growth is the increase in income or the

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value of goods and services
final products produced by an economy (usually a
country) in a certain period of time.

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> Economic growth is whether the
macroeconomic indices of the country are in
good condition and are taken according to the
GDP.

> Economic development is knowing if the

population is well, that is, if at least its primary
and secondary needs are satisfied.
ECONOMIC
UNDERDEVELOPMENT
The term underdevelopment is defined as one of the
stages that countries and societies go through in
their progress in search of well-being and economic
capacity. Underdevelopment is a socioeconomic
structure in which agriculture, mining, fishing and the
export of raw materials predominate, where the
poverty of its inhabitants is generalized.

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CAUSES OF
UNDERDEVELOPMENT

> Shortage of physical capital

Developing countries are at a disadvantage
due to the lack of modern factories and
machines and the weakness of their
equipment and infrastructure of all kinds.
> Insufficiency of human capital : Underdeveloped
countries, in addition to having a low initial endowment
of physical and human capital, have very high
population growth rates, which generate an increase in
 the unproductive population.
> Relation of dependency : For the
Defenders of the dependency theory, the origin of
underdevelopment is largely found in the type of trade
relations established between developed and
underdeveloped countries. The former are exporters of
industrial goods and the latter are exporters of raw
materials and agricultural products.

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EXTERNAL CAUSES OF UNDERDEVELOPMENT
ECONOMIC
 1º THE UNEQUAL EXCHANGE
The international division of labor continues and the price
differential between raw materials Inand
1980: industrial products
1 locomotive = 12,910 bags of coffee
widens.
Poor countries are working harder and harder to pay rich
countries for the industrial products they need. Poor
countries became dependent on producing large quantities
of one or two types of raw materials that, added to those of
other countries, caused an excess of global supply and a
In 1990:
constant fall in prices. 1 locomotive = 45,800 bags of coffee
ARRRRRRRRR
2nd FREE INTERNATIONAL TRADE SSDSSSSSSS (• (• (@ (• (@ (• ( • ( • ( • (• (•

M 52 M2 M2 M2 52 5 SR S m
The World Trade Organization (WTO)
1
e•) (d•)regulates
(from (@)world
(from
trade, recommending the progressive
(@•) (•reduction
( @e (• (@eof tariff
barriers. (4 (4 (• ( ((4 ((4
D - S s SD S S S SD

That is, countries must submit to free international

competition and not charge taxes (tariffs) on foreign
products.
 Poor countries are thus invaded by industrial products
from rich countries and can never develop their own
industry.

However, when some poor countries could sell their

agricultural products with advantage in the markets of rich
countries, they prevent it by citing health reasons or by
subsidizing their own production to make it competitive.
 3º THE EXTERNAL DEBT

What is it? The money that impoverished countries owe to rich countries

Should they? 2.4 trillion dollars (2002)

How much do they pay? -) They pay 350,000 million US$/year

(2002)
How much do They receive 50,000 million US$/year in aid (A0D
they receive?
Only with 130,000 million Baño would the
basic needs of the population be covered
IF THE DEBT HAS ALREADY BEEN PAID!
l - 7 = 4?
In the last twenty years, impoverished countries
They have paid the 1980 Debt 7 times ...

and they still owe 4 times that amount, because they have to
resort to new loans to pay the previous debts
 THE EXTERNAL DEBT

The External Debt increases without ceasing

 4º MULTINATIONAL COMPANIES
Multinationals are productive or financial companies that
control other companies of foreign nationality. They were
formed to act freely within other nations.
BY LIMAS LARCAS ) and A BA5ADAS ENAMPLIOS > 5óLi D05
FRUCTÍFERA5 FOUNDATIONS

( RELATIONSHIPS..., )

AND MANiPLLAZLE5
 5º THE ECONOMIC ORGANISMS
INTERNATIONAL.
The international economic order that allows
Northern companies use the South as best
they please is guaranteed by the governments of the
North via:

• Economic and diplomatic blackmail

• military actions.
• Domain of the United Nations.
• Control of the International Monetary Fund.
• World Bank Control.
• WTO Control.
 CONSEQUENCES OF A
ECONOMIC UNDERDEVELOPMENT

• Overpopulation.
• Emigrations.
• Civil wars and guerrilla movements.
• Political and social instability.
• Over exploitation of resources.
• Pandemics.

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