Transcript Development

Development

3 basic ways to make a living:
1.
2.
3.
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Growing food
Manufacturing products
providing services
Countries are classified by development:
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MDC (aka more developed
country/developed country)
LDC (aka less developed
country/developing country
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Geographic tasks associated with
development:
Identify where MDCs and LDCs are located
 Concern for why some areas are more
developed than others
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Key Issue #1:
WHY DOES DEVELOPMENT
VARY AMONG COUNTRIES?
Human Development Index
Developed by the UN
 What does it recognize?
 How is the HDI created?
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Economic: gross domestic product per capita
 Social: literacy rate and amt of education
 Demographic: life expectancy
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Economic Indicators of
Development
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How do we distinguish MDCs from LDCs?
Economic structure
 Worker productivity
 Access to raw materials
 Availability of consumer goods
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GDP per capita
Why GDP instead of per capita income?
 Value of total output of goods and
services produced in a country, normally
in a year
 GDP/total population-measures the
contribution of the average individual
makes to the wealth of the country every
year
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GDP cont.
What is the difference b/t GDP and GNP?
 Why can’t GDP measure the level of a
country’s development perfectly?
 Per capita GDP measures average
wealth, not distribution of wealth- explain.
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Types of Jobs
Avg GDP per capita higher in MDCs b/c
of the way the earn a living
 1 of 3 ways:
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Primary
 Secondary
 Tertiary
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Can also use
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quaternary
Types of jobs cont.
Distribution of workers varies b/t MDCs
and LDCs
 1st priority of people: to obtain food
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high percentage of workers in agricultural
jobs indicates people looking for food to
survive
 Low percentage of workers means primary
sector can produce enough food for eveyone
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Types of jobs cont.
If do not have to find food, can move onto
secondary and tertiary jobs
 What does the decline in manufacturing
jobs reflect?
 Employment in service sector continues
to rise
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Productivity
Value of a particular product compared to
the labor required to make it
 Why are workers in MDCs more
productive than those in LDCs?
 Measured by value added per worker
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Gross value of product-minus raw materials
and energy costs
Raw Materials
Measures a country’s potential for
development
 Some countries do not need raw
materials to develop-may develop through
trade
 As certain raw materials become
important, level of development may
advance
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Sale of resources to finance development
Consumer goods
Wealth used to buy nonessentials
increases manufacturing which increases
wealth for a nation
 Quantity and type of goods and services
indicates level of development
 In LDCs, some goods and services may
become desireable
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Development of “haves” and “have-nots”
Social Indicators of Development
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Education and Literacy
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Higher level of development, greater the quantity
and quality of education
Quantity measured by avg # of years spent in
school
Quality measured by literacy rate and
teacher/student ratio
Social Indicators cont.
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Health and Welfare
MDCs have more resources to care for
people when they get sick
 Health influenced by diet
 MDCs also have the means to provide for
those that are unable to work (welfare, food
stamps, etc.)
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• Now facing a choice b/t reducing benefits or
raising taxes to pay for these programs.
Demographic Indicators of
Development
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Life Expectancy
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Infant Mortality Rate
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Greater in LDCs-Why?
Natural Increase Rate
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Better healthcare=longer life
Can strain the system, however
LDC higher than MDC
Strains an already strained system
Crude Birth Rate
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Does not indicate a country’s level of developmentWhy?
Chapter 9 Development
WHERE ARE MORE AND LESS
DEVELOPED COUNTRIES
DISTRIBUTED?
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Countries can be categorized into 9 regions
based on level of development
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Also have distinctive demographic and cultural
characteristics
Western Hemisphere: Anglo-America and Latin
America
Europe: Western and Eastern
Asia: East, South, Southeast and Southwest
Can also include Japan and the South Pacific
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Distribution of MDCs and LDCs shows a
global pattern- what is it?
More Developed Regions:
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Less Developed Regions:
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Anglo-America, Western Europe and Eastern
Europe
Latin America, East Asia, Southeast Asia, Middle
East, South Asia, sub-Saharan Africa
See Chart
Chapter 9: Development
WHERE DOES LEVEL OF
DEVELOPMENT VARY BY
GENDER?
Overall development of a country masks
gender inequalities
 To solve this, UN created GDI and GEM
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Gender-Related Development
Index
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Similar to HDI
A country w/complete equality has a GDI of 1.0
Economic Indicators
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Social Indicators
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How does the UN determine this?
Education and literacy
Demographic Indicators
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How does GDI differ from HDI?
Why do men outlive women in LDCs?
Gender Empowerment
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Measures ability of women to participate in
achieving improvements to std of living
How is GEM determined?
Complete power equality if GEM=1.0
Economic Indicators of Gender Empowerment
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Percentage of women holding professional or
technical jobs
• What may bar a women from getting one of these jobs?
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Power over economic resources (Share of nat’l
income held by women)
Gender Empowerment cont.
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Political Indicators of Empowerment
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Percentage of the country’s administrative and
managerial jobs they hold
Percentage of women elected to public office
Every country’s GEM is lower than its GDI
A higher GEM than GDI means women
possess a greater share of a country’s
resources than power over allocating those
resources
Chapter 9 Development
WHY DO LESS DEVELOPED
COUNTRIES FACE OBSTACLES
TO DEVELOPMENT?
Development through self-sufficiency
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Elements of self-sufficiency approach
Adopted by China, India most African and
Eastern European nations
 Spread investments as equally as possible
across all sectors of its economy and in all
regions
 How do countries promote self-sufficiency?
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Problems with Self-Sufficiency
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2 major problems:
1.
Inefficiency-protects inefficient businesses
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2.
Do not have to keep on top of technological innovations
Large bureaucracy-needed to administer
the controls
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Encourages corruption
Development Through International
Trade
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Countries have to identify its distinctive or
unique economic assets
Can economically develop by concentrating
scarce resources on expanding unique local
industries
International Trade cont.
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Rostow’s Development Model
• 5 stage model of development- What is it?
• Based on 2 factors:
1. Other MDCs have followed this model and it was
successful so why couldn’t others use it
2. Many LDCs contain many of the scarce resources
and raw materials that many MDCs are seeking
 Examples: Persian-Gulf states and the Four Asian
Dragons
International Trade cont.
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Problems:
1.
2.
3.
Uneven Resource Distribution
Market Stagnation
Increased dependence on MDCs
International Trade cont.
Preferred alternative for spurring
economic development
 World wealth is increasing
 Switching from self-sufficiency to
international trade b/c it promotes better
development- explain.
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International Trade cont.
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World Trade Organization
Established in 1995- Why?
 Works to reduce trade barriers by:
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1. Negotiating the reduction or elimination of
international trade restrictions on manufactured
goods and the movement of money
2. Enforcing agreements
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Protects the validity of material on the Internet
3. Can also bring charges that someone has
violated a copyright or patent
International Trade cont.
Why do liberals attack the WTO?
 Why do conservatives attack the WTO?
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Financing Development
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Loans
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Borrow money to build infrastructure
• Why infrastructure?
• Problem: most of them are failures
• Many LDCs cannot repay the loans which
damages the stability of banks in the MDCs which
loaned the money
• What do MDCs now require in order to prevent
some of their losses on loans to LDCs?