Transcript Economic Structure

Quality of Life
Basic Needs
 Basic needs are what we NEED to survive.
 Basic needs include:
 1) food
 2) clean water
 3) health care
 4) shelter
 NEEDS are very different from WANTS
 Wants include things like:
1) Video games
2) Fast Food
3) iPods
4) Computers
Standard of Living
 Quality of life are the extent to which both our needs
and wants are satisfied.
 Standard of Living is the physical comfort
determined by the number and quality of goods and
services available to us.
 Some countries seem to have high standards of
living, like Canada and the United States.
 But, simply by stating that a country has a high
standard of living ignores 2 important facts.
1) Not all people in a country have the same standard
of living.
2) Standard of living of a country does not determine
the factors influencing the quality of life for its
people. Examples include pollution and
overcrowding.
 Therefore, standard of living is only a partial
measure of quality of life.
 There are other factors that determine quality of life
including:
1) Government
2) Schools
3) Recreational Facilities
How Do We Get our Stuff??
 There are three levels of industry. Not all countries
have all three levels. There is a direct relationship
between the level of industry and the overall quality
of life.
 Remember, standard of living is the access to goods
and products...
Primary Industries
 Primary industries are the first step in making goods
we need and use.
 Many jobs in primary industries are taking materials
out of the earth to be used to manufacture goods.
 Examples would be: mining, fishing or forestry.
Primary Industries
 Primary industries do not produce goods that are
sold to stores.
 They provide the raw materials to make the goods.
Secondary Industries
 The second step in manufacturing is to take the raw
materials and turn them into a product.
 Secondary industries take unfinished pieces from
multiple primary industries and complete the
product.
How a Desk is Made...
Tertiary Industries
 Tertiary Industries do not make goods. They provide
services to help us use the goods we buy.
 Example: A car.
 A car needs gas
 License plates
 Banks lend money to buy the car.
 Insurance to drive the car.
 A license to drive the car.
 A gas station to run the car.
Tertiary Industries
 Tertiary Industries NEED to be located near the
customers.
 People like to stay close to home when they go
shopping. The closer the shop the better.
 The only exception is the internet. People can shop
on the internet wherever they are.
Think A Moment
 What types of services result from these industries?
 Clothing sales
 Banking
 Gas Stations
 TV Repair
 Food Preparation
 Dry Cleaning
 Accounting
 Entertainment
Gross Domestic Product
 A country’s Gross Domestic Product (GDP) is the
total market value of all goods and services in a year.
 Countries with a high quality of life earn only a small
percentage of their GDP primary industries.
 Most of the GDP in countries like Canada come from
Tertiary Industries. Why?
Human Development
 Human Development is more about creating places
in which people are able to lead full and productive
lives of their choosing than about how much we are
able to produce and consume.
 Each year, a report is created to determine the
quality of life in every country.
Human Development Index
 The United Nations Human Development Index
measures things like:
1) Political
2) Economic
3) Environmental
4) Social
Political and Military
1) The number of seats held by women in
government.
2) The number of people in the military.
3) Military cost.
Economic
1) What is produced in a country.
2) The value of goods and services received from and
provided to the rest of the world.
3) Development assistance to other countries.
4) National unemployment rate.
Environmental
1) Electricity consumption
2) Fuel consumption
3) Carbon dioxide emissions
4) Efforts to protect the environment
Social
1) Health factors (nourishment, life expectancy,
disease)
2) Educational factors (Literacy, required schooling,
the amount of money spent on education)
3) Living conditions (water sources, sanitation
facilities, crime, cell phone and internet)
 If countries with high quality of life get most of their
money from Tertiary Industry, where would
countries with low quality of life would get their
money from where?
 This relates to the HDI. Countries that score high on
the HDI earn most of their money from Tertiary
Industry
 Countries that score low on the HDI, earn most from
Primary Industry.
Primary Industry and the HDI
 There are few jobs available in developing countries.
 Many workers depend on farming to feed themselves
and their families.
 They use simple tools and work by hand.
 They often produce only enough food to feed their
families.
Secondary Industry and HDI
 Richer countries have a bigger choice of jobs because
of secondary industries.
 Richer countries have more money to invest in
manufacturing and construction.
 Countries with less money cannot invest in
manufacturing.
 Lower wages can be paid to people in some Asian
countries and in Africa.
 This is called outsourcing and has attracted major
international corporations like Nike in recent years.
 It allows them to produce goods in less developed
countries to keep costs low.
 Lower costs equals higher profits.
Tertiary Industries and the HDI
 People who live in countries with lower quality of life
have low income levels.
 This means that people do not have money to spend
on goods.
 This means people do not demand services.
 Therefore, there are few tertiary industries in less
developed countries.
FOR RICHER OR POORER...
 It is no secret that there are rich countries and poor
countries.
 But what makes a country poor?
 What makes a country rich?
Who decides???
 Economic systems are different everywhere and at
different times. Decisions can be made by:
 The government
 Industries and businesses in the country
 Institutions that are important, such as human rights
or environmental groups
 Individuals in the economic system
 Are all people in rich countries “rich”?
 Are all people in poor countries “poor”?
 Is it fair that some countries have so much and
others have so little?
 All countries have economic resources. They all have
land, labour, capital, and technology. Not ALL
countries have an equal share of the resources and
not all countries organize their resources in the same
way.
 Material Wealth means that a person has a lot of
goods and products. They have fancy cars, big
televisions and iPad’s etc.
 Non-Material Wealth means that there is protection
of human rights, freedom and protection of the
environment.
 Remember GDP? This is an average of all the wealth
in a country. It is all the money in one year divided
by all the people in the country.
 What are the problems with this method?
 There needs to be a method that includes both the
material and non-material wealth of countries.
 This is where the HDI comes in. It measures
material and non-material wealth.
HDI COMPARISONS
 Today you will use the atlas and the charts provided
to find a pattern with quality of life.
 You will need coloured pencils or crayons for class
today.
 Follow the directions on the handouts provided. You
have the whole class to complete the task and must
submit the map and final question for a mark out of
20.
What Can Rich Countries Do?
 Wealthy countries offer AID to poorer countries to
help them establish services that are vital to a good
quality of life.
 This AID assists in helping poorer countries invest in
various projects in their country.
 Ensuring countries have good drinking water is a
major type of AID wealthy countries provide.
 Short term aid helps with food shortages and is
temporary.
 Long term aid helps build health clinics and schools,
help with water supply and developing more effective
farming techniques.
Problems With Aid
 Providing aid to a less developed country is not
always easy.
 If a receiving country is corrupt, the aid may not
reach those who need it most.
 Or, the transport facilities to move aid to those in
need may not be adequate.
Types of AID Agencies
 There are many types of AID agencies in Canada and
around the world.
 Red Crescent, CIDA (Canada International
Development Agency), Unicef, Amnesty
International etc., all raise and donate money to
various projects around the world.
CIDA
 Goal = to actively reduce poverty by promoting the
economic and social well-being of less developed
countries around the world.
How??
 Development begins with meeting the most basic
human needs.
1) Food
2) Clean water
3) Good health
4) Shelter
 The balance of wealth in the world is unequal and
unfair. Two factors affect this inequality:
1) More developed countries are in temperate areas of
the world. These areas are well suited for
agriculture and do not experience extreme climate.
2) The less developed countries were colonized by
European countries. This limited economic
opportunity for them, but, enhanced the European
opportunities.
 There are positives though...
1) Poverty is decreasing worldwide.
2) The literacy rate is higher than ever (82%)
3) Life expectancy is increasing with world rate of 65
years.
 Still, there are areas that need improvement:
1) Too many people have insufficient health care.
2) Lack of formal education in schools.
3) People have insufficient money.
4) Starvation.