Transcript Development

Development
Chapter 9
Children in Lundazi District of Zambia
Key Issue 1: Why does development
vary among countries?
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HDI – Human Development Index
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Economic - GDP Per capita
Social – literacy rate and amount of education
Demographic – life expectancy
Human Development Index
Gross Domestic Product Per Capita
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GDP – the value of the total output of goods
and services produced in a country during
the year
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Per capita = per person
GDP per capita shows an individuals
contribution to generating a country’s wealth
GDP Per Capita
GDP in MDCs vs. LDCs
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GDP per capita exceeds $20,000 in MDCs
LDC are in the $1,000 range
Problem – GDP per capita is an average,
doesn’t reflect all citizens, and doesn’t
necessarily reflect quality of life
Why? – Types of Jobs
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Per capita income is higher in MDCs
because of the way people earn their living
Sectors of the economy:
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Primary – LDC 75%, MDC less than 5%
Secondary
Tertiary
Primary Sector
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Directly extract materials from the Earth
Examples: Agriculture, mining, fishing,
forestry
Secondary Sector
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Manufacturing of raw materials into useful
products
Pencil factory
Tertiary sector
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Providing goods and services to people in
exchange for payment
Productivity
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Workers in MDCs are more productive with
less effort
Why? – Technology, mechanization
Planting crops
in Kenya
Raw Materials
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Development requires access to raw
materials AND energy resources
Consumer Goods
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After buying essential goods (food, clothing,
shelter), people in MDCs buy consumer
goods
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Cars, telephones, entertainment
Three goods in particular…
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Motor vehicles, telephones, televisions
Ratio is approaching 1:1
Why are these products so important?
Social Indicators of Development
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Education and Literacy
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Quality – Literacy rate, student/teacher ratio
Quantity – avg. number of school years attended
Average student attends school for 10 years in MDCs,
LDCs = 2 or 3
Student/teacher ratio twice as high in LDCs
Literacy rate over 95% in MDCs, as low as 30% in
LDCs
Demographic Indicators of
Development
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Life expectancy – better health and welfare
in MDCs, 70s vs 40s
Infant Mortality Rate
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LDCs = 100/ 1000 live births
MDCs = 10/ 1000 live births
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Natural Increase rate
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LDCs = more than 2 percent
MDCs = less than 1 percent
Why is a high NIR difficult for a country?
Crude Birth Rate – 3 or 4 times as high in
LDCs – why?
Crude Death Rate – not a factor, why?
World Birth Rate
Key Issue 2: Where are more and less
developed countries distributed?
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More Developed Regions
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Anglo-America, Western Europe, Eastern Europe,
Japan, South Pacific
Less Developed Regions
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Latin America, East Asia, Southeast Asia, Middle
East, South Asia, Sub-Saharan Africa
Location of MDCs and LDCs
Top countries by HDI - 2011
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5.
Norway
Australia
The Netherlands
United States
New Zealand
Anglo-America (HDI 0.94)
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US, Canada
90% use English as first language
90% Christian (of those professing a religion)
Abundance of minerals and natural
resources
Major manufacturer, exporter of agricultural
products
Western Europe (0.92)
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Primarily IndoEuropean languages
and Christian religion
Post WWII – more
unified politically,
militarily, and
economically
Colonization and after
Eastern Europe (0.78)
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HDI has declined here in the last
20 years
Post WWII, rapid development
controlled and led by the USSR
Difficult transition to the market
economy
Previous Soviet emphasis on
primary sector
Japan (0.93)
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Highly developed despite lacking resources
Must import food and resources like coal and
iron
How? Low-wage workers to compete
internationally then transitioned to high
quality/value products
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Electronics, motor vehicles, cameras
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Japan focused on skilled
labor force
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Education systems and
training
Emphasis and spend
resources on research
and development
South Pacific (0.93)
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Australia, New Zealand
90% of residents are descendants of 19th
Century British settlers
#17 on the Forbes 40 in Australia, Foster’s is worth almost 10 billion USD
Latin America (0.78)
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Spanish/Portuguese, Roman Catholicism
Large urban populations
Development is hindered by inequitable
income distribution and land ownership
East Asia (0.72)
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China has massive
economy but is also
considered poor
GDP per capita is $7600
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Ranked 125th in the
World (CIA Factbook)
Europe and Japan have
exploited China’s
resources in the past,
hindering development
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Communists take
over in 1949
Govt. controlled
agricultural land
and production
Almost 40% of
people work in
primary sector
Mao Zedong –
Chairman/Leader of
PRC (1949-1976)
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China’s One Child
Policy
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Limits NIR
Economic growth can
be used to improve
standards of living for
existing population
Total Fertility Rate is
at 1.7
Southeast Asia (0.71)
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Indonesia is most populous country
Region has suffered from warfare in the 20th
century
Tropical climate limits agriculture
Geography limits economic development
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Mountains, islands, volcanoes, typhoons
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Rice is most
important export
Cheap labor aids
manufacturing
efforts
Rice farmers in Vietnam
Middle East (0.66)
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Impact of Desert
Must import many
products
But….they have OIL!!!
This drives
development
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Traditional cultural values of Islam can
challenge development
Women’s participation in business is
restricted
Low literacy rates among women (50% avg.
but as low as 15% in Afghanistan)
Strong, internal cultural disputes hurt growth
UAE
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Highest ranking
in Middle East
with an HDI of
(0.84)
Has invested in
tourism and a
future without oil
Palm Island in Dubai
South Asia (0.58)
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2nd highest
population, 2nd
lowest per capita
income
NIR is very high
India has many
resources but a
HUGE population
Jute – makes burlap and
twine
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Green Revolution
in India – positive
impact on
agriculture
Production still
depends on
climate and the
summer
monsoon season
Sub-Saharan Africa (0.47)
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Though SSA has
many resources,
prospective
development is low
Worlds highest
percentage of
poverty, poor health,
and education levels
Why?
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Legacy of colonial
era
Many landlocked
states
Very high NIR
Possibly at carrying
capacity in certain
areas
Sahel – South of the Sahara
Key Issue 3: Where does level of
development vary by gender?
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Gender-Related Development Index (GDI)
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Compares the level of development to that of both
sexes
Uses same criteria as HDI
Highest is 1.0
Lower means greater
disparity between sexes
Top Countries by GDI
1. Iceland
2. Australia
3. Norway
4. Canada
5. Sweden
Economic Indicators
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Average income in every country of world is
lower for women
Per capita annual income in US (2001) was
$43,000 for men and $26,000 for women
MDCs have $15K or more income gap
LDCs have smaller number but greater
percentage gap
Social Indicators
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Education and literacy
Women to men in high
school
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MDCs = 99 to 100
LDCs = 60 to 100
Primary School Enrollment and Total Fertility Rates for Selected
Countries, Latest Year
Primary School
Enrollment
Percent
Total Fertility
Rate
Number of
children
per woman
Japan
Spain
Iran
Georgia
United Kingdom
100.0
99.8
99.7
99.6
99.6
1.3
1.5
1.8
1.6
1.9
Equitorial Guinea
Guinea-Bissau
Djibouti
Sudan
Eritrea
53.5
52.1
40.1
39.2
35.7
5.3
5.7
3.9
4.2
4.6
Rank
Country
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3
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5
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181
182
183
184
185
Note: Rankings are based on a list of 185 countries for which primary
enrollment
data are available. See full table.
Demographic Indicators
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Life expectancy
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MDCs = Women outlive men by 6 years
LDCs only a year or two
Hazards of childbearing
Gender Empowerment Measure (GEM)
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Compares ability of the men and women to
participate in economic and political decision
making
GDI shows standard of living and well-being,
GEM measures ability to participate in the
process of achieving those improvements
Every country has a higher GDI than GEM
Economic Indicators
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% of women in professional and technical
jobs
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Highest percent is in Northern Europe, around
50% of professional jobs are held by women
LDCs are around 25%
Political Indicators
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Managerial jobs have the ability to influence
the decision making process
33% - North America, Northern Europe,
South Pacific
10% - other MDCs
Less than 5% - LDCs
Public Offices
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No government in the world has a majority of
women
Northern Europe – 33%
US – 13%
Other MDCs – 10%
LDCs – less than 5%
Madeleine Albright – Former US Secretary of State
Why do less developed countries face
obstacles to development?
Debt Matters
• The developing world now spends $13 on debt
repayment for every $1 it receives in grants.
• For the poorest countries (approximately 60), $550
billion has been paid in both principal and interest
over the last three decades, on $540bn of loans, and
yet there is still a $523 billion dollar debt burden.
Source: Debt relief hope brings out the critics, Jorn Madslien, BBC, June 29, 2005
Self-Sufficiency
International Trade
Financing Development