Transcript Economic Development

Engage Activity
Why are some countries more
developed than others?
Economic
Development
What is Economic Development?
• A measure of the welfare of people in a
society that tells how advanced an
economy is.
Development is not purely an
economic phenomenon but rather
a multidimensional one.
We used to label countries as 1st, 2nd,
and 3rd world. This originated after WWII.
• The 1st world was the U.S. and its allies.
• The 2nd world was the USSR and its
allies.
• The 3rd world was the remaining
countries, which were unaligned and had
less political and military power.
3rd
1st
2nd
This terminology is now considered
politically incorrect, so we say “more
developed country” (MDC), “less
developed country” (LDC), and “least
developed country (or land-locked
developing country)” (LLDC).
More
Developed
Less
Developed
What is Economic
Development?
• Countries are classified into 3 categories
– More Developed (MDC)
– Less Developed (LDC)
– Least Developed Country (LLDC)
- or Land-locked developing country (LLDC)
• Based on the country’s Human
Development Index (HDI)
More Developed Countries
• Countries with a modern industrial society,
well advanced economy, and a higher
standard of living
More Developed Countries
• MDCs usually share some other common
features, including:
– a highly industrialized society with
modern technology
– efficient transportation and communication
systems
– commercial agriculture
– urban population
– high per capita GNP (gross national product),
Less Developed Countries
• Countries with less advanced technologies
and lower standards of living
Less Developed Countries
• LDCs usually share some other common
features, including:
– Low GDP per capita
– Exhibits lowest indicators of economic
development
– Lowest HDI ratings of all the countries in the
world
– Large % of population in agriculture
– Poor infrastructure
Least Developed Countries
• Identified in 1984 as the 36 “poorest”
countries in the world with very low per
capita income (less than $250 US/year),
very low literacy rates and almost no
manufacturing industries.
Least Developed Countries
LLDCs share most common features with
LDCs, except (you know)…they’re lower.
Analyze the images Below
Country A
Country B
Newly Industrialized Countries
• Countries that are moving from less to
more developed economies
Newly Industrialized Countries
• NICs usually share some other common
features, including:
– Increased social freedoms and civil rights
– Strong political leaders
– Shift from agricultural to industrial economies
– Increasingly open-market economy
– Multinational corporations
– Strong capital investment from foreign
countries
– Lowered poverty rates
Human Development Index
• Numerical index developed by the United
Nations
• Ranks countries based on development
issues, progress, and policies
• Looks at a number of factors
– Demographic indicators
– Economic indicators
– Social indicators
– Political indicators
HDI, 2001
Less than 0.4
0.4 to 0.6
0.6 to 0.7
0.7 to 0.8
0.8 to 0.9
More than 0.9
Demographic indicators
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•
•
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Life expectancy
Birth rate
Death rate
Infant mortality rate
Life Expectancy
• Life expectancy (M, F): The average
number of years a newborn infant can
expect to live under current mortality
levels.
(Canada = 79, 83)
Infant Mortality
• Infant Mortality: the annual number of
deaths of infants under age 1 year per
1,000 live births. A country, which has less
than 50 per 1,000, is said to have
conquered hunger. (Canada= 4.8 per
1,000)
Population Doubling Time
•
•
•
Population and Population Double Time: the number of years it
would take for the population to double if the rate of natural
increase remained constant. (Canada= 35 million people, doubles
in 78 years.)
The growth rate can be used to determine a country or region or
even the planet's "doubling time," which tells us how long it will
take for a country's current population to double. This length of
time is determined by dividing the growth rate into 70. The
number 70 comes from the natural log of 2, which is .70.
Given Canada's overall growth of 0.9%, we divide 70 by .9 (from
the 0.9%) and yield a value of 78 years. Thus, in 2093, if the
current rate of growth remains constant, Canada's population will
double from its current 35 million to 70 million.
True or False: A more developed
nation has a high birth rate,
high infant mortality rate, and a
short life expectancy.
Economic Indicators
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•
•
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•
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GDP
GDP per capita
GNP
GNP per capita
employment rate
# of automobiles per
capita
• # of computers per
capita
• # of telephones per
capita
• # of televisions per
capita
GNP per Capita
• GNP per capita: total goods and
services produced by a country
divided by its population. This is
the most typical indicator of
economic development.
(Canada = $42 610)
True or False: An LDC has a low
GNP per capita income.
Small Group Discussion
How do GNP and HDI differ?
What are the pros and cons of
using these indicators to
determine the level of
development of a country?
Social Indicators
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•
•
•
Literacy rates
% attending college
# of professionals
Housing
• Water supply
• Sanitation
• Access to basic
services
Literacy Rate
Literacy rate: % of people over
the age of 16 who can read and
write. (Canada = 99%)
Population/physician: the total
population divided by the
number of doctors. (Canada =
454/1)
• % of people employed in agriculture:
the # of people involved in agriculture
indicates subsistence (more farmers) vs.
commercial (less farmers) and industrial
vs. non-industrial. (Canada = 2%)
• Subsistence Farming: people grow
only enough for their own family’s or
village’s needs. They grow food to
eat, not sell.
• Commercial Farming: farmers raise
crops and livestock to sell in the
market. Modern equipment makes
these farmers more productive, so
there are fewer farmers as a
percentage
of the work force.
Characteristic of
developed nations.
True or False: A less developed
nation has a high literacy rate and a
small number of doctors and
hospitals to serve the population.
Political Indicators
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•
•
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•
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Freedoms enjoyed
Type of governance
Voting rights
Level of human
rights
impact of colonialism
Degree of
government
oppression
• Level of tolerance for
different points of
view
Physical Indicators
• climate
• access to water
(landlocked)
• natural disasters
• availability of natural
resources
The North-South Gap
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coined by the UN in 1980.
refers to the division of the economic world
based on physical geography: many wealthy countries are found in the
northern hemisphere; whereas a multitude of poorer countries are found in
the southern hemisphere.
great disparities exist in the range of social and economic development
between the North & South.
Many poorer nations are chastised, by the wealthier countries, for trying to
improve themselves as the result has often led to international instability.
Causes include:
– colonialism and neo-colonialism
Colonialism
•
An economic system in which a dominant “mother country” maintains control over the direction,
organization, capital, investment, technology, and manufactured products of the dependant colony
which in turn supplies raw materials, agricultural products, and cheap labour.
Neo-colonialism
•
Economic imperialism; the control of Northern economic forces over newly independent countries
in the South.
West Wing Clip
• https://www.youtube.com/watch?v=vVXPrBRtTY
HDI Classification Activity
•
Select four countries:
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•
Canada
A country with high human development
A country with medium human development
A country with low human development
In a table, identify and list the components of
the HDI (life expectancy, literacy rate, GDP per
capita, birth rate, infant mortality rate, type of
government, and population per doctor)
Rank the countries according to their
respective HDIs
Small Group Discussion
• Explain the relationship between each
indicator and economic development.
• Discuss the consistency of relationship
between their HDIs and the HDI
components.
• If you were to judge the country by its
GDP or GNP only, would it still have the
same level of development? Why?