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MIDDLE AMERICA I

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... benefit from cheaper labor costs. EFFECTS. Regional development ... Mexican exporters increase their sales to the US and Canada. Is that the entire story? ... – PowerPoint PPT presentation

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Title: MIDDLE AMERICA I


1
GEOG 310 Middle America Sriram Khé Associate
Professor of Geography
2
MIDDLE AMERICA
3
INTRODUCTION TO MIDDLE AMERICA
  • THE REALM
  • MEXICO, CENTRAL AMERICA, CARIBBEAN ISLANDS
  • MAJOR GEOGRAPHIC QUALITIES
  • FRAGMENTED - PHYSICALLY AND POLITICALLY
  • DIVERSE CULTURALLY
  • POVERTY IS ENDEMIC

4
REGIONS OF MIDDLE AMERICA
Greater Antilles
Mexico
Lesser Antilles
Central America
5
MIDDLE AMERICA
6
Poverty
  • Home to the poorest countries of the Americas
  • Haiti
  • Honduras
  • Nicaragua

7
PHYSICAL GEOGRAPHY
  • LAND BRIDGE
  • ARCHIPELAGO
  • GREATER AND LESSER ANTILLES
  • NATURAL HAZARDS
  • EARTHQUAKES
  • VOLCANOES
  • HURRICANES

I wonder why?
8
WORLD TECTONIC PLATES
9
DISTRIBUTION OF EARTHQUAKES VOLCANOES
10
WORLD HURRICANE TRACKS
Hurricane Mitch devastated Central America in
October 1998
11
CULTURE HEARTH
  • SOURCE AREAS from which radiated ideas,
    innovations, and ideologies that changed the
    world beyond.

Mesoamerica Hearths Aztecs Mayans
12
MESOAMERICA
  • CULTURE HEARTHS
  • MAYA CIVILIZATION
  • CLASSIC PERIOD 200-900 AD
  • HONDURAS, GUATEMALA, BELIZE, YUCATAN PENINSULA
  • THEOCRATIC STRUCTURE
  • AZTEC CIVILIZATION
  • 1300 AD
  • VALLEY OF MEXICO

13
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14
COLONIAL HERITAGE
SPAIN
FRANCE
BRITAIN
15
THE LEGACY OF COLONIALISM
  • Land was appropriated - colonial commercial
    interests
  • Lands devoted to food crops for local consumption
    were converted to cash cropping for export
  • Land Alienation induces
  • Famine
  • Poverty
  • Migration
  • Little agricultural diversity

16
COLONIAL SPHERES
17
MAINLAND RIMLAND DISTINCTION
18
MAINLAND/RIMLAND FRAMEWORK
  • MAINLAND
  • EURO-INDIAN INFLUENCE
  • GREATER ISOLATION
  • HACIENDA PREVAILED
  • RIMLAND
  • EURO-AFRICAN INFLUENCE
  • HIGH ACCESSIBILITY
  • PLANTATION ECONOMY

19
MAINLAND vs RIMLAND
MAINLAND
RIMLAND
  • Location greater isolation greater accessibility
  • Climate altitudinal tropical
  • zonation
  • Physiography mountains islands
  • Culture Euro/Indian African-European

20
HACIENDA vs PLANTATION
  • HACIENDA
  • SPANISH INSTITUTION
  • NOT EFFICIENT BUT SOCIAL PRESTIGE
  • WORKERS LIVED ON THE LAND
  • PLANTATION
  • NORTHERN EUROPEAN ORIGINS
  • EXPORT ORIENTED MONOCROPS
  • IMPORTED CAPITAL AND SKILLS
  • SEASONAL LABOR
  • EFFICIENCY IS KEY

21
AGRICULTURAL INSTITUTIONS
Plantation
  • Production for export
  • Single cash crop
  • Seasonal Employment
  • Profit motive
  • factory in the field efficiency

22
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23
Natural Resources
A major oil Producer About 3.5 million barrels
per day Saudia Arabia produces about 9 mil bpd
24
MAQUILADORAS
  • Assembly plants that pioneered the migration of
    industries in the 1970s
  • Today
  • gt4,000 maquiladoras
  • gt1 million employees

25
MAQUILADORAS
  • Modern industrial plants
  • Assemble imported, duty-free components/raw
    materials
  • Export the finished products
  • Mostly foreign-owned (U.S., Japan)
  • 80 of goods reexported to U.S.
  • Tariffs limited to value added during assembly

26
MAQUILADORAS
  • Maquiladora products
  • Electronic equipment
  • Electric appliances
  • Auto parts
  • Clothing
  • Furniture

27
MAQUILADORAS
  • ADVANTAGES
  • Mexico gains jobs.
  • Foreign owners benefit from cheaper labor costs.
  • EFFECTS
  • Regional development
  • Development of an international growth corridor
    between Monterrey and Dallas - Fort Worth

28
MAQUILADORAS
Tijuana
Ciudad Juarez
Nogales
Chihuahua
Reynosa
Matamoros
Monterrey
29
GDP PER CAPITA ALONG THE US-MEXICAN BORDER
30
NAFTA
  • Effective 1 January 1994
  • Established a trade agreement between Mexico,
    Canada and the US, which
  • Reduced and regulated trade tariffs, barriers,
    and quotas between members
  • Standardized finance service exchanges

31
NAFTA
How has Mexico benefited from NAFTA?
32
MEXICO AND NAFTA
  • Foremost, it promises a higher standard of
    living.
  • NAFTA creates more jobs for Mexicans as US
    companies begin to invest more heavily in the
    Mexican market.
  • Mexican exporters increase their sales to the US
    and Canada.
  • Is that the entire story?

33
U.S. TRADE WITH CANADA MEXICO
  • Canada remains as the United States largest
    export market.
  • Since 1977, Mexico has moved into second place
    (displacing Japan).
  • 85 of all Mexican exports now go to the United
    States.
  • 75 of Mexicos imports originate in the United
    States.

34
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35
ECONOMIC TRENDS (Central America the Caribbean)
  • Agriculture
  • Industry
  • Services
  • Tourism
  • Environmental Issues
  • Deforestation

36
PRIMARY SECTOR DEPENDENCE
  • El Salvador
  • Agriculture accounts for 24 of GDP and 40 of
    the labor force and contributes to 60 of
    exports.
  • Economic losses because of guerrilla sabotage
    total 2 billion since 1979.
  • Honduras
  • Agriculture accounts for more than 25 of GDP,
    employs 62 of the labor force, and produces
    two-thirds of exports.
  • Economic loss because of natural disaster

37
HIPC
  • Honduras and Nicaragua are on the HIPC list
  • Heavily indebted poor countries
  • The Initiative is designed to reduce debts to
    sustainable levels for poor countries that pursue
    economic and social policy reforms,
  • Used specifically in cases where traditional debt
    relief mechanisms will not be enough to help
    countries exit from the rescheduling process.

38
The weight of debt
  • Nicaragua's external debt currently stands at 6.7
    billion dollars.- 25 of the Nicaraguan budget
    is spent on debt payments
  • Contrast to 14 on health care
  • 11 on education
  • Almost half the population falling below the
    poverty line.
  • High levels of infant mortality and maternal
    mortality, and a high level of infectious and
    parasitic diseases.
  • Malnutrition is widespread with around 20 per
    cent of children under five being chronically
    malnourished or stunted

39
PRIMARY SECTOR DEPENDENCE
  • Dominican Republic (49 Agriculture)
  • Sugarcane, coffee, cotton, cocoa, and tobacco
  • Jamaica (22.5 Agriculture)
  • Sugar, bananas, and rum (Hurricane Gilbert -1988)
  • Cuba (20 Agriculture)
  • Sugar, tobacco, citrus, and coffee

40
ALTITUDINAL ZONATION
Middle South Americas Vertical Climate Zones
41
ALTITUDINAL ZONATION
Middle South Americas Vertical Climate Zones
TIERRA CALIENTE (Hot Land) Bananas, Cocoa, Sugar,
Rice
2500
750 m
Sea Level
Sea Level
42
ALTITUDINAL ZONATION
TIERRA TEMPLADA (Temperate Land) Coffee, Rice,
Corn, Sugar
6,000
1800 m
2000
600 m
Sea Level
Sea Level
43
ALTITUDINAL ZONATION
TIERRA FRIA (Cold Land) Corn, Wheat, Potato
12,000
3,600 m
6,000
2,000 m
2000
600 m
Sea Level
Sea Level
44
THE TOURISM OPTION
  • Antigua and Barbuda
  • Direct contribution of 13 to GDP and affects
    growth in other sectors
  • The Bahamas
  • Tourism alone provides 50 of GDP and directly or
    indirectly employs 40 of the population.
  • Cuba
  • Growing industry

45
ENVIRONMENTAL CONCERNS
  • Tropical Deforestation
  • 3.5 million acres of woodland in Central America
    disappear each year!

46
CAUSES OF TROPICAL DEFORESTATION
  • Clearing of rural lands to accommodate meat
    production and export
  • Rapid logging of tropical woodlands to meet
    global demands for new housing, paper, and
    furniture
  • Population growth forests are cut to provide
    crop-raising space and firewood

47
Internal Wars
  • Nicaragua
  • Sandinistas v. Contras
  • Panama
  • Remember Manuel Noriega?
  • Honduras
  • Drawn into conflicts in Nicaragua and El Salvador
  • El Salvador
  • 12-year civil war ends in 1992
  • Guatemala
  • A peace agreement in 1996 ends a 36-year civil
    war
  • Costa Rica?
  • The only stable country
  • Best standards of living in the region
  • Intel comes to town
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