Transcript Chapter 9 Development

Chapter 9 Development
 H.D.I.
 Distribution of Countries
Development Models
How does a country “Develop”?

The three objectives of
development
• increases in availability and
improvements in the distribution of
food, shelter, health, protection, etc.
• improvements in ‘levels of living,’
including higher incomes, more jobs,
better education, etc.
• expansions in the range of economic
and social choices available to
individuals and nations
Location of More and Less
Developed Countries
Development generally reflects a North-South split in
the world.
United Nations’ Measurement for
H.D.I.

Economic Indicators
• Gross Domestic Product (GDP) country output
of product
• Types of Work (Economic Sectors)

Social Indicators
• Education and Literacy
• Health and Welfare

Demographic Indicators
• Life Expectancy (37 - 80 years)
• Infant Mortality (<10 - >100 per thousand)
• Natural Increase (0 - 4.7 %)
Primary Activities
Direct removal of natural resources
such as mining, forestry, and
agriculture -most important in the
LDCs.
Subsistence Agriculture
 Fishing and Forestry
 Mining and Quarrying

Primary Products
The percentage of people working in agriculture
exceeds 75% in many LDCs of Africa and Asia. In
Anglo-America and Western Europe the figure is <5%
Trade in Primary Products


Importance to
Developing
Economies
Danger of
Commodity Trade
Dependence
Puerto Rico Coffee Plantation
http://www.pbs.org/wgbh/pa
ges/frontline/gsearch.html?q
=coffee+trade
Secondary Activities: Manufacturing
Secondary - Processing and transforming
natural resources: steel, textiles, auto
assembly. These used to be most important
in MDCs, but increasingly important in the
semi-periphery (Korea, Mexico, Brazil,
Singapore)
Tertiary and Beyond: Services
Provision of services in exchange for payment.
Includes retailing, banking, law, education,
and government.
Education, R & D, and information technology
becoming most important in the
postindustrial core regions.
Less-developed countries often focus on
tourism.
Services historically were clustered into
settlements. Increasingly the most important
service centers are massive world cities.
Tertiary and Beyond: Services
Less-developed countries often focus
on tourism.
Vendors, Bali
Club Med, The Bahamas
Tertiary and Beyond: Services
Resources and Technology


Resources affect patterns of development: cultivable
land, energy sources, minerals. But changes in technology
affect the value of these resources. Also, trade or lack
of it can offset lack of resources (Japan) or make them
less relevant (Brazil).
Technology Systems: roughly every 50 years since 1790
a new complex of technologies has revolutionized the
world economic system and its structure. The most
recent of these is the system which includes
biotechnology, advanced materials (superconductors,
solar power) and information technology.
Which parts of the world benefited from the shift from
coal to oil? Which suffered? Which parts of the world
will benefit from the inevitable end of our reliance on
petroleum and the necessary shift to wind, hydro, tide,
or solar power ?
New International Division of
Labor

Transnational Companies have been
very aggressive in using low-cost
labor in LDCs.
• Seek elimination of trade barriers
(Tariffs)
• No minimum standards in place
• A “rush” to the bottom?
• Loss of U.S. jobs - “a great sucking
sound” after NAFTA?
New International Division of
Labor
Trading Blocks

International agreements that eliminate
barriers to trade within regions:
• North American Free Trade Agreement
(NAFTA)
• European Union (EU)
• Oil Producing and Exporting Countries (OPEC)
Trading Organizations

International agreements that
eliminate barriers to trade among
members:
• World Trade Organization (WTO)
Other Economic Indicator




Economic structure
Worker
productivity
Access to raw
materials
Availability to
consumer goods
Measuring Development

Social Indicators
• Education and Literacy
Measuring Development

Social Indicators
• Health and Welfare
HDI Index
Life
Expectancy
Adult Literacy
GDP (US$)
Arab States
0.679
67
64.1
2,611
East Asia and the Pacific
0.768
70.5
90.4
1,512
Latin America / Caribbean
0.797
71.9
89.6
3,275
South Asia
0.628
63.4
58.9
617
Sub-Saharan Africa
0.515
46.1
60.5
633
OECD
0.892
77.7
na
25,750
World
0.741
67.1
na
5,801
Rank
High Human Development
1
Norway
0.963
79.4
99
48,412
10
United States
0.944
77.4
99
37,648
11
Japan
0.943
82
99
33,713
42
Slovakia
0.849
74
99.6
6,033
47
Costa Rica
0.838
78.2
95.8
4,352
53
Mexico
0.814
75.1
90.3
6,121
Medium Human Development
75
Venezuela
0.772
72.9
93
3,326
83
Armenia
0.759
71.5
99.4
918
84
Philippines
0.758
70.4
92.6
989
94
Turkey
0.75
68.7
88.3
3,399
108
Viet Nam
0.704
70.5
90.3
482
144
Uganda
0.508
47.3
68.9
249
Low Human Development
159
Rwanda
0.45
43.9
64
195
166
Zambia
0.394
37.5
67.9
417
Infrastructure