Transcript Development_-_Chapter_9 - STEM Early College High School

Development
APHG
Spring 2014
http://www.youtube.com/watch?v=IESYMFtLIis&feature=player_e
mbedded#!
http://hdr.undp.org/en/mediacentre/videos/humandev/
http://www.ted.com/talks/hans_rosling_reveals_new_insights_on_poverty.html
Earth at Night (NASA)
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Why does development vary among
countries?
Where are more and less developed
countries distributed?
Where does level of development vary by
gender?
Why do less developed countries face
obstacles to development?
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The process of improving the material
conditions of people through the diffusion of
knowledge and technology.
More developed countries (MDCs)
 AKA developed countries
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Lesser developed countries (LDCs)
 AKA emerging, newly industrialized, or
developing countries
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Economic indicators of development
 The Human Development Index (HDI)
▪ Four factors used to assess a country’s level of
development
▪ Economic = (1) gross domestic product (GDP) per
capita
▪ Social = (2) literacy and (3) = amount of education
▪ Demographic = (4) life expectancy
Developed by the United Nations, the HDI combines several measures of
development: life expectancy at birth, adjusted GDP per capita, and knowledge
(schooling and literacy).
http://hdr.undp.org/en/data/map
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Economic indicators of development
 Gross domestic product per capita
 Types of jobs (economic structure)
 Worker productivity
 Access to Raw materials
 Availability of Consumer goods
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Social indicators of development
 Education and literacy (levels)
 Health and welfare
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Demographic indicators of development
 Life expectancy
 Natural increase rate
– Infant mortality rate
– Crude birth rate*
Gumballs
http://www.youtube.com/watch?v=LPjzfGChGlE&feature=share
Gross National
Product (GNP)
Measurement of the
total value of the
officially recorded goods
and services produced
by the citizens and
corporations of a
country in a given year.
Includes things
produced inside and
outside a country’s
territory.
Gross Domestic
Product (GDP)
Gross National
Income (GNI)
Measure of the total
value of the officially
recorded goods and
services produced by
the citizens and
corporations of a
country in a given
year.
Measure of the
monetary worth of
what is produced
within a country plus
income received
from investments
outside the country.
** Most common
measurement used
today.
•All measurements count the:
Formal Economy – the legal economy
that governments tax and monitor.
•All measurements do not count the:
Informal Economy – the illegal or
uncounted economy that governments
do not tax or keep track of.
•Occupational Structure of the
Labor Force
•Productivity per Worker
•Transportation and Communications
Facilities per Person
•Dependency Ratio*
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Economic indicators of development
 Types of jobs
▪ Primary sector
▪ Secondary sector
▪ Tertiary sector
 Productivity
▪ Measured by the value added per capita
▪ MDCs are more productive than LDCs
 Consumer goods
Good indicator of development
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Social indicators of development
 Education and literacy
▪ The literacy rate
 Health and welfare
▪ Diet (adequate calories)
▪ Access to health care
http://girlrising.com/#trailers-scenes-clips?id10x10=B8696AAAA34E1715
Students per teacher, primary school level. Primary school teachers have
much larger class sizes in LDCs than in MDCs, partly because of the large
numbers of young people in the population
There is a physician for every 500 or fewer people in most MDCs, while
thousands of people share a doctor on average in LDCs.
Daily available calories per capita as percent of requirements. In MDCs, the
average person consumes one-third or more over the required average minimum,
while in LDCs, the average person gets only the minimum requirement or less.
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Demographic indicators of development
 Life expectancy
▪ Babies born today in MDCs have a life expectancy in the
70s; babies born in LDCs, in the 60s and in some
countries the 40s.
 Other demographic indicators:
▪ Infant mortality
▪ Natural increase
▪ Crude birth rate (this is not an indicator of development)
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More developed regions
 North America and Europe
 Other MDCs with high HDI = Russia, Japan,
Australia, and New Zealand.
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Less developed regions
 Latin America =highest HDI among LDCs
 SW Asia, SE Asia, Central Asia = similar HDI
 South Asia and sub-Saharan = low levels of
development
The less developed regions include Latin America, Sub-Saharan Africa,
Middle East, South Asia, East Asia, and Southeast Asia.
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Well endowed with minerals and natural resources –
important for manufacturing.
Americans remain leading consumers and world’s largest
market for many products produced elsewhere.
Region has adapted relatively successfully to global eco. –
because leading provider of many computing info and
other high tech services as well as entertainment, mass
media, sports, recreation, and other services that promote
leisure time.
Most important good exporter – only region that could
significantly expand the amount of land devoted to
agriculture.
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On global scale displays cultural unity, but some of the
diversity of individual languages and religions can be a
source of conflict.
Competition caused many wars (WWI & II)
Level of development is world’s highest in a core area (W.
Germany, NE France, N Italy, Switzerland, S. Scandinavia,
SE UK, Belgium, Netherlands, and Luxembourg.
Regions peripheral areas lag somewhat.
Must import food, energy, minerals.
Provides high-value goods and services.
EU eliminated eco barriers – one of the world’s richest
market and the largest.
Central Europe’s rapidly declining HDI is a legacy of
the region’s history of communist rule.
 The communist promoted development during the
1950’s and 1960’s through economies directed by
government officials rather than private
entrepreneurs.
 Central Europe’s countries in the 1990’s dismantled the
economic structure inherited from the communist.
 Aside from the desire for freedom, Central Europeans
rejected communism was that central planning proved
to be disastrous at running national economies.
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 Japan’s development is especially remarkable because
it has an extremely unfavorable ratio of population
resources.
 Japan is one of the world’s leading steel producers, it
must import all the coal and iron ore needed for steel
production.
 Having gained ground in the global economy by selling
low-cost product, Japan then began to specialize in
high quality products.
 Japan’s dominance was achieved by concentrating
resources in rigorous educational systems and training
programs to create a skilled labor force.
Latin America
East Asia
Southeast Asia
Middle East (Southwest Asia)
South Asia
Sub-Saharan Africa
Culturally diverse
Latin Americans are more likely to live in urban
areas than people in other developing countries.
 Population is highly concentrated around the
Atlantic Ocean
 Mexico’s development has been aided by what???
 Development is lower in Central America, the
Caribbean islands, and the interior of South
America.
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China, the largest country in East Asia, ranks among
the poorest.
 Within a few years China is projected to exceed the
United States as the world’s largest economy. What
does this mean??
 In 1949, the Communist government took control of
most agriculture land and farmers had to pay high
rents.
 Because of governmental controls, China has a
lower natural increase rate than other LDCs.
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Region has suffered from a half of century of war.
Region’s tropical climate limits intensive cultivation
of most grains.
 Economic development is also limited in Southeast
Asia by several mountain ranges, active volcanoes,
and frequent typhoons.
 Population growth as increased due to western
medicine.
 Corrupt governments have delayed Southeast Asia’s
development.
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Much of the land is desert
Most products imported but one major economic asset –
What?
ME only region in which development is not hindered by
lack of capital for new construction.
Larges gap in per capita income between petro rich and
those lacking resources causes great tension.
Challenge – promote development without abandoning
the traditional culture values of Islam.
Low level of literacy among women is main reason UN
considers these petro-rich states to be lower than wealth
would indicate.
World’s second highest population
Second-lowest per capita income
India’s overall population to resources is
unfavorable.
 Area is the main beneficiary of “Green
Revolution”
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Population density is lower than any other less
developed region. The region contains many
mineral resources important for economic
development.
 Some of the region’s economic problems are a
legacy of the colonial era. Why????
 Political problems have also plagued this
geographical realm.
 European colonies were converted to states without
regard for the distribution of ethnicities.
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Although several African countries have important minerals, the world
prices of many of these have lagged the prices of industrial products,
services, and energy.
Special Notes on Sub Saharan Africa
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UN uses an alternative Human Development
Index (HDI) - Why? Three reasons:
 Lack of political freedom
 Low education and literacy rates
 Lack of opportunities for women
*Region also suffers from internal conflicts.
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Gender-Related Development Index (GDI)
 Compares the level of women’s development with
that of both sexes
 Four measures (similar to HDI):
▪ Per capita female incomes as a percentage of male per
capita incomes
▪ Number of females enrolled in school compared to the
number of males
▪ Percent of literate females to literate males
▪ Life expectancy of females to males
Highest - Norway; Lowest – Sub-Saharan Africa
The GDI combines four measures of development, reduced by the degree
of disparity between males and females.
Women’s income is lower than men’s in all countries, but the gender gap is
especially high in parts of the Middle East, South Asia, and Latin America.
As many or more girls than boys are enrolled in school in more developed
countries, but fewer girls than boys are enrolled in many LDCs.
Female literacy is lower than male literacy in many LDCs, with significant
gender gaps in parts of the Middle East, Africa, and South Asia.
There is a gap in literacy rates between MDCs and LDCs as well as between
men and women in many LDCs.
Women’s life expectancy is several years longer than men’s in MDCs, but only
slightly longer in many LDCs.
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Gender Empowerment Measure (GEM)
 Compares the decision-making capabilities of
men and women in politics and economics
 Uses economic and political indicators:
▪ Per capita female incomes as a percentage of male per
capita incomes
▪ Percentage of technical and professional jobs held by
women
▪ Percentage of administrative jobs held by women
▪ Percentage of women holding national office
The GEM combines two measures of economic power and two of
political power by women. (Little data is available for LDCs.)
Half or more of professional and technical workers are women in most MDCs
and some LDCs, such as Brazil, but only a small proportion are women in
most LDCs.
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Development through self-sufficiency
 Characteristics:
▪ Pace of development = modest
▪ Distribution of development = even
▪ Barriers are established to protect local business
▪ Three most common barriers = (1) tariffs, (2) quotas,
and (3) restricting the number of importers
▪ Two major problems with this approach:
▪ Inefficient businesses are protected
▪ A large bureaucracy is developed
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Development through international trade
 Rostow’s model of development
 Examples of international trade approach
▪ The “four Asian dragons”
▪ Petroleum-rich Arabian Peninsula states
 Three major problems:
▪ Uneven resource distribution
▪ Increased dependence on MDCs
▪ Market decline
 Calls for a country to identify its distinctive or
unique economic assets. According to the
international trade approach, a country can
develop economically by concentrating scarce
resources on expansion of its distinctive local
industries.
 Rostow’s Development Model –
-The traditional society
-The preconditions for take off
-The takeoff
-The drive to maturity
-The age of mass consumption
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International trade approach triumphs
 The path most commonly selected by the end
of the twentieth century
 Countries convert because evidence indicates
that international trade is the more effective
path toward development
▪ Example: India
 World Trade Organization
 Foreign direct investment
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Financing development
 LDCs require money to fund development
 Two sources of funds:
▪ Loans
▪ The World Bank and the IMF
▪ Structural adjustment programs
▪ Foreign direct investment from transnational
corporations
Many developing countries have accumulated large debts relative to their GDPs.
Much of their budgets now must be used to finance their debt.
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Fair trade approach
 Products are made and traded in a way that
protects workers and small businesses in LDCs
 Two sets of standards
▪ Fair trade producer standards
▪ Fair trade worker standards
 Producers and workers usually earn more
 Consumers usually pay higher prices
Core
Processes that incorporate higher
levels of education, higher
salaries, and more technology
* Generate more wealth in the
world economy
Periphery
Processes that incorporate lower
levels of education, lower
salaries, and less technology
* Generate less wealth in the
world economy
Semi-periphery
Places where core and periphery processes are both
occurring. Places that are exploited by the core
but then exploit the periphery.
* Serves as a buffer between core and periphery
This north polar projection of the world shows that most of the MDCs are in
a core area north of 30° N latitude. The LDCs are mostly on the periphery
of this map.
Compare and contrast Rostow’s
ladder of development with
Wallerstein’s three-tier structure of
the world economy.
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Is the idea of economic development
inherently Western? If the West (North
America and Europe) were not encouraging
the “developing world” to “develop,” how
would people in the regions of the
“developing world” think about their own
economies?
•Development implies “progress”
-Progress in what?
-Do all cultures view development the
same way?
-Do all cultures “value” the same kinds
of development?
Dependency Theory
 The political and economic relationships between
countries and regions of the world control and limit
the economic development possibilities of poorer
areas.
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-- Economic structures make poorer countries dependent
on wealthier countries.
-- Little hope for economic prosperity in poorer countries.
http://www.cnn.com/video/#/video/bestoftv/2013/04/27/exp-gps-0428-witw.cnn
Dollarization –
Abandoning the local currency of a country and adopting the
dollar as the local currency.
El Salvador went through dollarization in 2001
•Governments
-get involved in world markets
-price commodities
-affect whether core processes produce wealth
-shape laws to affect production
-enter international organizations that affect trade
-focus foreign investment in certain places
-support large-scale projects
Governments and Corporations can
create Islands of Development
Places within a
region or country
where foreign
investment, jobs,
and infrastructure
are concentrated.
Malaysian government built a new, ultramodern capital at
Putrjaya to symbolize the country’s rapid economic growth.
The global oil industry has created the entire city of Port Gentile,
Gabon to extract Gabon’s oil resources.
Nongovernmental Organizations
(NGOs)
Microcredit program:
loans given to poor people, particularly women, to
encourage development of small businesses.
Read Chapter 11