Development

Human Development Index

• HDI – Economic factor is gross domestic product per

capita – Social factors are literacy rate and amount of

education– Demographic factor is life expectancy

GDP

• Total output of goods and services

• GDP of the US was 14 trillion in 2009• GDP per capita $45,600

• Most LDCs per capita is less than $3,000

GDP

Types of Jobs

• Primary (agriculture) • Secondary (manufacturing)• Tertiary (services)

Primary

• Extract materials directly from earth

Secondary Sector

• Process, transform, and assemble raw materials into products

• Tertiary sector- banking, law, education, and government

Consumer Goods

• Transportation, communication, computers in MDCs

• Motor vehicles provide individuals with access to jobs and services and permit business distribute their product.

• Communication with raw materials providers and consumers

• Computers share info from buyers to suppliers

Stats per 1000

• MCD• Telephone 800• Motor vehicle 400• Internet 400• LCD• Tele 200• Vehicle 20• Internet 100

Education

• Literacy rate- percentage of people who can read and write.

• 98% MCDs vs less than 60% in LCDs • MCDs often have less students per teacher

than LCDs • Less than 20 per elementary • More than 30

Secondary

Life Expectancy

• Males live 10yrs longer in MCDs• Females 13yrs longer

• MCDs have a higher percentage of older people who have retired and receive public support.

• In LDCs, number of young people is six times higher

Infant Mortality Rate

• 94% of infants survive in LDCs• 99.5% in MDCs

• Malnutrition, lack of medicine for illness• Babies may die from dehydration due to

diarrhea • Bad medical practice due to lack of education

Crude Birth Rate

• LCDs have higher natural increase than MCDs. • 23 per 1,000 in LCDs• 12 per 1,000 in MDCs

• Why fewer babies in MCDs? • Economic reasons, social reasons, birth-

control

Crude Death Rate

• Does not affect a countries development • CDR is lower in LDCs 8 per 1,000 • MCD 10 per 1,000• Why is the CDR lower in LDCs? • Diffusion of medical technology reducing

several disease. Second, more elderly in MCDs

Regions (9)

• North America, HDI .95• Europe, HDI .93• Latin America, .82• East Asia, .77• Southwest Asia (including North Africa), .74• Southeastern Asia, .73• Central Asia, .70• South Asia .61• Sub-Saharan Africa .51

North America .95

• Worlds leading food exporter with very few farmers, but a large percentage of the region workforce is involved in some aspect of producing or serving food.

• Once leading manufacturer

• N.A. financial institutions played a leading role in the deep recession. (Subprime loans)

http://www.google.com/url?sa=i&rct=j&q=third+world+agriculture&source=images&cd=&cad=rja&docid=kJM7zHJ7JPD81M&tbnid=94MIG1yrZb7HjM:&ved=0CAUQjRw&url=http://indiahorizonz.com/appetite-for-growth-agriculture-and-food-processing-sectors/&ei=8xToUpeTDcb1rAGxwYC4Aw&bvm=bv.60157871,d.aWM&psig=AFQjCNGzC1duI1iHuyU3fpUaCrfM-XpMHg&ust=1391027804710511

Strengths and weakness

• GDP per capita and literacy rate

• Lower in education and life expectancy – Lower education due to high school drop outs– Lower education due to inadequate health care

coverage

Europe .93

• 15 of the 19 highest HDI rankings • Eastern countries lag in development

compared to the west.

• International trade has been hit the hardest in Europe. Dependent on international trade.

• Pay for imports with high value goods and services ex: BMW & Mercedes Benz

http://www.google.com/url?sa=i&rct=j&q=map%20of%20europe%20countries&source=images&cd=&cad=rja&docid=e-Yc9tBaBbOz-M&tbnid=1liOEL54Y9-E7M:&ved=0CAUQjRw&url=http://www.ezilon.com/european_maps.htm&ei=VAHoUobMDsnCyAG114CAAQ&bvm=bv.60157871,d.aWM&psig=AFQjCNEXRfMB_Wot3uFx5HtFCfLd6jwplQ&ust=1391022792574696

Less Developed Latin America .82

• Large cities are comparable with most MDCs. • Coastal area has a relatively high GDP per

capita

• Development in L. Am. is hindered by inequitable income distribution. Wealthy families control much of the land and rent parcels to tenant farmers

• Grow coffee, tea, and fruits for export to relatively developed countries rather than domestic consumption.

• L Am governments encourage redistribution of land to peasants

• Economy closely linked to the US

East Asia .77

• China is the worlds largest market and manufacturer (shoes, microwaves, DVD players, steel, coal, cement, and more)

• • Severe recession has slowed China’s economic

growth = declining demand for manufacturing goods

Communism in China

• Government took control of most agricultural land.

• Officials assigned specific tasks to farms and distributed food per family.

• Weakness: – Middle management, quality control, banking,

legal protection is inadequate

Southwest Asia and North Africa .74

• Dry desert • 70% of the worlds oil U.A.E., Saudi Arabia, and others• Large gap of GDP per capita from countries without

oil reserves (Jordan, Egypt, Syria)• Islam 95% traditional values lead to lower

development • inequalities among women. (literacy rate) • Conflicts with Iran & Iraq • Israeli Palestinian conflict

Southwest Asia .73

• Indonesia, Vietnam, and Thailand• Tropical climate limits intensive cultivation,

poor soil • Frequent typhoons, tsunamis, active

volcanoes keep population growth low • Continuous warfare colonies: Japan, French

preventing Communism

• Major manufacture of textiles, cloths, • Exporter of natural rubber, palm oil and

coconut oil)

Central Asia .70

• Higher development in in Kazakhstan and Iran due to oil.

• Iran has used oil profit to maintain low consumer costs rather than to promote development.

• Shiite leaders have also used oil revenues to promote revolutions to sweep away elements of U.S. and European development and social customs.

South Asia

• India, Pakistan, Sri Lanka, Nepal, and Bhutan• Principal beneficiary of the Green revolution

“miracle rice” and wheat seeds • India is the fourth largest economy behind the

U.S. China, and Japan• Leading producer of peanuts, sugarcane, tea • Resources: aluminum ore• Major manufacturer

Sub-Saharan Africa .51

• Minerals chromium, diamonds, diamonds, platinum

• Poor health, low education levels, deteriorated economic conditions, European colonialism

• Landlocked states have difficulties shipping out raw materials

Political problems

• States created without regard to for the distribution of ethnicities.

• Leaders pursued personal economic gain and local wars rather than policies to promote economic gain.

• Africa has either a dry or tropical climate– Highest population growth rate= land overworked

and agriculture output had declined.

Gender-Related Development Index

How GDI is determined?

• Economic- per capita female income to male • Social- number of females enrolled in school vs.

males • Demographic- life expectancy of females

compared to males

• A low GDI means women have a low level of development and is substantially lower than men.

Gender Empowerment

• The GEM measures the ability to imporve their status – Economic and political power

Economic

• Per capita of females vs. males • Percentage of professionals and technical jobs

held by women

Political

• Percentage of administrative jobs held by women and percentage of members of the national parliament who are women.

• Countries with the highest GEMs are MCDs (North America, North Europe, and Oceania)

• Lowest in Africa and Asia

Development through Self-Sufficiency

• China and India • Spread investment as equally as possible

across all sectors of its economy and regions. • Pace of development is modest, but equal for

all residents (country and city) • Limit imports to protect native business.

(tariffs) restrict exports

In India

• Foreign companies needed a license • Restricted the quantity it could sell in India • Heavy taxes on imported goods• Indian companies discouraged from exporting

goods.