Transcript Standard of Living File

Living Standards
Living Standards
Human Development
Index

Each year the UN
releases a report
ranking the
development of all of
the countries in the
world
Living Standards
Human Development
Index

This is based on three
factors
1) adult literacy
2) life expectancy
3) per capita gdp
Current Stats
Living Standards
Human Development
Index

GDP or Gross
Domestic Product is
the total value of all
goods and services
produced in a country
in one year
Living Standards
Human Development
Index

The Index has shown
that there is a major
difference between
the top ten countries
and the lowest ten
countries
Living Standards
Human Development
Index
In 1998 the wealth of
the 200 richest people
in the world (over a
trillion $s) was greater
than the combined
income of 41% of the
human population
Living Standards
A country is generally defined
as being a developed nation
if it is amongst the world’s
wealthiest countries, with a
high per capita income,
Living Standards
Developing nation refers to
those countries that do not
have a modern infrastructure
or many industries.
Countries such as those that
comprise Southeast Asia,
which are continually building
up their industries and
infrastructure, are known as
newly industrialising
countries.
Living Standards
Massive Debt


Many countries at the
bottom of the HDI are
in debt to those at the
top of the list.
They are known as
HIPCs or Highly
Indebted Poor
Countries
Comparing Living Standards
Standards of Living are
measured by looking
at the quality of life in
a certain country
Comparing Living Standards
Quality of Life factors
include

Personal incomes

Health

Nutrition

Life expectancy

Status of women and
children
Comparing Living Standards
Quality of Life factors
also include



Freedom of
expression
Economic freedom
The right to a safe
clean environment
Comparing Living Standards
This is a graph that shows the distribution of the
World's GDP
Measuring Poverty
Poverty also looks very
different in a
developed nation than
in an HIPC
Measuring Poverty
The International Bank
defines the poverty
line in developing
countries to be people
who earn less than $1
per day
Measuring Poverty
In Canada 9.6% of
people live below the
Canadian Poverty line
which is 18,421/year
The definition of
Canadian Poverty line
is when an individual
or family must spend
more than 56% of
their income on the
necessities of life
The Poverty Trap
It is estimated that 800
million people in
developing countries
are starving
The issue is that the
poor cannot purchase
food
Migrant workers and
tenant farmers are the
first to feel the effects
of crop failures,
droughts and
The Burden of Debt
After WWII the
International
Monetary Fund and
World Bank were
created as agencies
of the United Nations
The Burden of Debt
They provided loans to
developing countries
to improve their
standard of living
through economic
growth
The Burden of Debt
This was done through
mega-projects

Dams

Agricultural Irrigation
These projects caused
environmental
damage and did not
improve the countries'
economies
The Burden of Debt
In the 1960s Western
banks lent developing
countries billions to
help develop the
expanding mineral
and agricultural
markets
The Burden of Debt
This was followed by an
economic slowdown
which made it
impossible for the
HIPCs to repay the
loans
The Burden of Debt
The IMFs solution for HIPCs to pay the debt was to
encourage foreign investment, grow cash crops
and allow some government control to go to
private companies
This is known as the “Structural Adjustment
Program”
The Burden of Debt
This practice led to a riot in Zambia when the
government was forced to stop subsidizing food.
The Burden of Debt
The HIPCs usually
have few natural
resources or receive
a low price for them
because there is an
oversupply or the
prices are controlled
by Multinational
companies
The Burden of Debt
Ghana produces 70%
of the world's cocoa
The Price is controlled
by companies like
Nestle who keep the
price low to boost
their profits
This practice makes it
impossible to boost
Ghana's GDP and as
a result will never be
able to get out of debt
The Burden of Debt
Mozambique spends
10X more on debt
repayment than
healthcare
Many African countries
have also had many
natural disasters and
civil wars which have
also affected their
ability to pay off their
debts
The Burden of Debt
Debt Reduction
programs have been
put in place by the
IMF in the last ten
years, but it is
nowhere near enough
The Burden of Debt
Canada has been one
of the countries
pushing for debt
forgiveness
Canada has forgiven all
foreign aid overseas
development debts ,
except for Myanmar
which is a military
dictatorship
The Burden of Debt
Canada has also
allowed Latin
American countries to
repay their debt by
investing in their own
environmental
initiatives