Transcript Development

Chapter 10
DEVELOPMENT
Key Question:
HOW DO YOU DEFINE AND
MEASURE DEVELOPMENT?
What does Development Mean?
 The process of improving the material
conditions of people through the diffusion of
knowledge and technology
 More developed countries (MDCs)
 Formerly “1st world” countries
 Lesser developed countries (LDCs)
 Formerly “3rd world” countries
Where are MDCs and LDCs
Distributed?
 More developed regions
 North America and Europe
 Other MDCs with high HDI = Russia, Japan,
Australia, and New Zealand
 Less developed regions
 Latin America = highest HDI among LDCs
 Southwest Asia, Southeast Asia, Central Asia
= similar HDI
 South Asia and sub-Saharan Africa = low
levels of development
What does Development Mean?
 Development implies “progress”
 Progress in what?
 Do all cultures view development the same way?
 Do all cultures “value” the same kinds of
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
Rostow’s Ladder of Development
Measuring Development
Gross National
Product (GNP)
Measure of the total
value of the officially
recorded goods and
services produced by the
citizens and
corporations of a
country in a given year.
Includes things
produced inside and
outside a country’s
territory.
Gross Domestic
Product (GDP)
Measure of the total
value of the officially
recorded goods and
services produced by the
citizens and
corporations of a
country in a given year.
Gross National
Income (GNI)
Measure of the
monetary worth of what
is produced within a
country plus income
received from
investments outside the
country.
** Most common
measurement used
today.
Issues with Measuring
Economic Development
 All measurements count the:
 Formal Economy – the legal economy that
governments tax and monitor.
 All measurements do not count the:
 Informal Economy – the illegal or uncounted
economy that governments do not tax or keep
track of.
Other Ways of
Measuring Development
 Occupational Structure of the Labor Force
 Productivity per Worker
 Transportation and Communications
Facilities per Person
 Dependency Ratio
Dependency Ratio by Country, 2005
A measure of the number of people under the age of 15 and
over the age of 65 that depends on each working-age adult.
Why Does Development Vary Btwn
Countries?
 Economic indicators of development
 The Human Development Index (HDI)
 Four factors used to assess a country’s level of
development:
 Economic = (1) gross domestic product (GDP) per
capita
 Social = (2) literacy and (3) amount of education
 Demographic = (4) life expectancy
Human Development Index
Why Does Development Vary Btwn
Countries?
 Economic indicators of development
 Types of jobs
 Primary sector – directly extract materials from
earth
 Secondary sector – manufacturing of products
 Tertiary sector – provision of goods and services
 Productivity
 Measured by the value added per capita
 MDCs are more productive than LDCs
 Consumer goods
Motor Vehicles per 1000 ppl
Why Does Development Vary Btwn
Countries?
 Social indicators of development
 Education and literacy
 The literacy rate
 Health and welfare
 Diet (adequate calories)
 Access to health care
Students Per Teacher, Primary
School
Figure 9-6
Differences in
Communications
Connectivity
Around the
World
Why Does Development Vary
Among Countries?
 Demographic indicators of development
 Life expectancy
 Babies born today in MDCs have a life expectancy in
the 70s; babies born in LDCs, in the 60s
 Other demographic indicators:
 Infant mortality
 Natural increase
 Crude birth rate
Where Does Level of Development
Vary by Gender?
 Gender-Related Development Index (GDI)
 Compares the level of women’s development with
that of both sexes
 Four measures (similar to HDI):
 Per capita female incomes as a percentage of male per capita
incomes
 Number of females enrolled in school compared to the number
of males
 Percent of literate females to literate males
 Life expectancy of females to males
Gender-Related Development Index
(GDI)
Figure 9-17
Demographic Indicator of Gender
Difference: Life Expectancy
Figure 9-21
Where Does Level of Development
Vary by Gender?
 Gender Empowerment Measure (GEM)
 Compares the decision-making capabilities of men
and women in politics and economics
 Uses economic and political indicators:
 Per capita female incomes as a percentage of male per capita
incomes
 Percentage of technical and professional jobs held by women
 Percentage of administrative jobs held by women
 Percentage of women holding national office
Gender Empowerment Measure (GEM)
Figure 9-22
Economic Indicator of Empowerment:
Professionals
Figure 9-23
Progress Toward Development
Figure 9-26
Why Do LDCs Face Obstacles
to Development?
 Development through self-sufficiency
 Characteristics:
 Pace of development = modest
 Distribution of development = even
 Barriers are established to protect local business
 Three most common barriers = (1) tariffs, (2) quotas,
and (3) restricting the number of importers
 Two major problems with this approach:
 Inefficient businesses are protected
 A large bureaucracy is developed
Why Do LDCs Face Obstacles
to Development?
 Development through international trade
 Rostow’s model of development
 Examples of international trade approach
 The “four Asian dragons”
 Petroleum-rich Arabian Peninsula states
 Three major problems:
 Uneven resource distribution
 Increased dependence on MDCs
 Market decline