Transcript File - OCHS History and Geography

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KI 1: Why does
development vary
among countries?
Key Economic and Cultural Factors that Distinguish Level of
Development
-A Decent Standard of Living
-A Long and Healthy Life
-Access to Knowledge
What is the Distribution of Regions according to Level of Development?
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Growth versus Development
 Economic
growth may be one aspect of
economic development but is not the same
 Economic
growth:
A
measure of the value of output of goods and
services within a time period
 Economic
A
Development:
measure of the welfare of humans in a society
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
How to Measure the Level of
Development
Human Development Index

A decent standard of living

A long and healthy life

Access to Knowledge
+ HDI By World Region

Every Country gets a HDI Score and is grouped into a one of four
Classes




Very High Developed
High Developing
Medium Developing
Low Developing
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HDI Component #1:
A Decent Standard of Living
Income
Economic Structure
Productivity
Inequality Adjusted HDI
Consumer Goods
+ A Decent Standard of Living: Income

Annual gross national income per purchasing
power parity

U.N. measure of standard of living index


Gross national income (GNI)

Value of goods and services produced in a
country per year. (includes money that
enters /leaves a country)

Measure average wealth, not distribution
Purchasing Power Parity (PPP)

Adjustment made to GNI to account for
differences among countries in the cost of
goods.
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
Gross Domestic Product (GDP)

The value of the output of goods and services produced in a
country in a year (does not include money that leaves/enters
a country)

Sometimes used in studies
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
Economic Growth
Using measures of economic performance in terms of the value of
income, expenditure and output



***GDP – Gross Domestic Product ***
 The value of output produced within a country during a time period
 Real GDP/GNP
 Accounts for differences in price levels in different countries
GNP – Gross National Product
 The value of output produced by a country plus net property income
from abroad
GDP/GNP per head/per capita
 Takes account of the size of the population

Economic growth of countries

Ranks and data GDP per Capita- Top 3 + US Bottom 3
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2012 GDP per capita
Economic Growth
Shopping Mall in Saudi Arabia
Dubai Skyline
Copyright : Christo Pacheco, http://www.sxc.hu
Copyright: zchizzerz, http://www.sxc.hu
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High economic growth fuelled through capital spending can hide a
number of underlying economic problems – how is the income and
wealth distributed? Who is doing the spending and will it ‘trickle
down’ to the poor?
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National Income – Problems with
using GDP/GNP
 Reliability

of data?
How accurate is the data that is collected?
 Distribution

of income?
How is the income distributed – does a small proportion of
the population earn a high percentage of the income or is
income more evenly spread?
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National Income – Problems with
using GDP/GNP
 Quality


Can changes in economic growth measure changes in the
quality of life?
Does additional earnings power bring with it additional
stress, increases in working hours, increased health and
family problems?
 Impact

of life?
of exchange rate?
Difference in exchange rates can distort the comparisons –
need to express in one currency, but which one and at what
value?
National Income – Problems with
using GDP/GNP
Black/informal economy?

It might not be pleasant, but what he finds among the refuse could
be all he has.
Title: Sierra Leone Liberia. Copyright: Photolibrary Group
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Some economic activity not
recorded – subsistence farming
and barter activity, for example

Some economic activity is
carried out illegally – building
work ‘cash in hand’, drug
dealing, etc.

Work of the non-paid may not
be considered but may
contribute to welfare – charity
work, housework, etc.
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A Decent Standard of Living:
Economic Structure

Type of jobs in a country affect development

Job Categories

Primary sector

Secondary Sector

Tertiary Sector

Quaternary Sector
Sectors of Economic
+Activity
Primary Sector - Activity that
directly extracts or harvests
resources from Earth.
Location partly dependent on
where natural resources are.
Secondary Sector - Activity
that transforms raw
materials into usable
products, adding value in
the process.
Sectors of Economic
+Activity
Tertiary Sector - Activity that
links primary & secondary
sectors to consumers and
other businesses by selling
goods or performing
services; includes both retail
and business (producer)
services
Quaternary Sector Highly skilled,
information-based
services; usually
includes
management
Percentage of Work Force
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Structural Change in Economies
Primary
Division of Labor Varies by
Level of Economic Development
Tertiary
Quaternary
Secondary
Pre-Industrial
Industrial
(LDCs)
(NICs)
Post-Industrial
(MDCs)
The Sectors of Economic Activity
Spatial
division
The authors
of the of
labor
= tendency
text from
which this
came
(Fellmann,
for
sectors
to
Getis, and Getis:
concentrate
in
Human Geography)
different
regions
separate the
“quinary” from the
quaternary
sector – =
Global
Economy
most geographers
“
internationalize
don’t bother with
dthis
spatial
division
distinction.
of labor”
MDCs
NICs &
MDCs
NICs
LDCs & NICs
Industrial
Economy
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Mode of production/consumption in late 19th thru mid- 20th centuries
Features:
Large domestic corporations
Manufacturing base: food processing, heavy equipment
manufacturing, and energy products
Postindustrial Economy
Emerging mode of production/consumption of late 20th- 21st centuries
Features:
Huge transnational corporations
Localized agglomerations producing and/or using IT and telecom
Greater employment in tertiary and quaternary services
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A Decent Standard of Living:
Productivity


Productivity
the value of a particular product compared to the amount of labor
needed to make it

Measured by the value added per capita
Value Added in manufacturing


Developed Countries (MDCs)
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
Gross value of a product minus the cost of raw materials and energy
Produce more with less- have machines, tools, equipment
Developing countries (LDCs)
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Production with human and animal labor
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Gini Coefficient: Income
Distribution and equality

A low Gini coefficient
indicates a more equal
distribution

0 corresponding to
complete equality,

higher Gini coefficients
indicate more unequal
distribution,

1 corresponding to
complete inequality

Haves and Have nots

Rich – Poor
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World / US
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US Wealth
http://www2.ucsc.edu/whorulesamerica/power/we
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Development

Development incorporates the notion of a measure/measures
of human welfare

As such it is a normative concept – open to interpretation and
subjectivity

What should it include?
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Development
 Levels
of poverty
 Absolute
poverty
 Relative poverty
 Inequality
 Progress
– what
constitutes
progress?
Our definitions of progress may be highly subjective. What
has progress brought to native tribes people across the
globe?
Title: Navajos refuse casino riches. Copyright: Stock.Xchng
What is Poverty?
Romanian gypsies – is this man living in poverty?
Or is this villager in rural China?
Copyright: ghitulescu radu, http://www.sxc.hu
Copyright: Mark Forman, http://www.sxc.hu
 Poverty
is a relative term
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Development
 Other
considerations of human welfare:
 Political
freedoms?
 Sustenance?
 Sustainable
 Self
esteem?
 Proportion
economy:



development?
Primary
Secondary
Tertiary
of activity in different sectors of the
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Inequality-Adjusted HDI (IHDI)

Modifies the HDI to account for the inequality within a
country
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Consumer Goods Make Life Good
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Transportation and Communications
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Motor Vehicles
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Telephones

Computers
Symbols of development

Essential to life in developing countries

Desirable in developing countries

Gap between the haves and the have-nots

Causes unrest
Low development equals lack of large scale infrastructure
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HDI Component 2: A Long
and Healthy Life
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Live Long and Thrive
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Life Expectancy
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Overall Health and Wellness
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Problems for developed countries
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Resources to care for the sick
Welfare for poor and otherwise
Large elderly population
Low younger population under 15
Problems for developing countries
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High infant mortality rate
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HDI Component #3: Access
to Knowledge
Quantity of Schooling
Quality of Schooling
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Access to Knowledge
Quantity of Schooling
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Years of Schooling
 How many years the average person spends in school
 7 years worldwide-11 years developed-6 years developing
Expected Years of Schooling
 How many years a 5 year old is expected to spend in school
 16 years developed- 11 years developing and worldwide
Quality of Schooling
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Pupil/Teacher Ratio
 24/1 worldwide-14/1 developed-26/1 developing
Literacy Rate
 Percentage of people who can read or write in a country
 Developed countries dominate scientific and nonfiction publishing
worldwide—technical information is in their languages
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Variations within Countries
and Regions
Economic Growth
This might be a common
picture……
But this could be just around the
corner!
Copyright: unseenob, http://www.sxc.hu
Copyright: chinagrove, http://www.sxc.hu
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Using measures of
economic growth can give
distorted pictures of the
level of income in a
country – the income
distribution is not taken
into account.

A small proportion of the
population can own a large
amount of the wealth in a
country. The level of human
welfare for the majority
could therefore be very
limited.
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Variations Within Regions

Level of development between regions

High in Southwest Asia, North Africa, and Central Asia
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No plants or animals, just desert, LOTS OF PETROLEUM!!!!
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Varies from Country to country---can cause tension
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UAE, Saudi Arabia, etc. have lots of oil
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Egypt, Jordan, Syria etc. don’t
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Variations Within Countries
Brazil-China-Mexico
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Large and populous

mid pack GDP & HDI

GDP per capita greater than 150% in some provinces and less than 75%
of the national average in other regions.

Large urban areas- Rio de Janeiro and Sao Paolo, Beijing and Shanghai,
Mexico City
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Wealth

Public services are in cities-National Services, Manufacturing Sectors,
leaders—

Large concentrations of slums and those in poverty
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Brazil- high along coast low in interior Amazon rain forest
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China-high on east coast, low in remote mountain and desert interior
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Mexico- high along U.S. border and in tourist regions of the Yucatan
Peninsula
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1.) Economic activities, which emphasize harvesting or extracting
materials from the ground or sea, would be placed in which sector of the
economy?
A.) primary
B.) secondary
C.) tertiary
D.) quarternary
2.) With respect to the relationship between Gross National Product (GNP)
and energy consumption:
A.) as GNP increases, energy consumption decreases
B.) as GNP increases, energy consumption increases
C.) as energy consumption decreases, GNP increases
D.) there is no relationship between the two
3.) A country can move along the continuum from less developed to more
developed bymeans of:
A.) technology transfer
B.) technology gap
C.) occupational structure
D.) cultural convergence
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Data on Development

Hans Rosling
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Data
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Ted Talk