DEVELOPMENT

Process of improving the material conditions of people through diffusion

of knowledge and technology.

BIPOLAR WORLD

MDC & LDC• More developed country -------- Least developed country

• Clustered into spaces• Developing/ Emerging

countries: made some progress and expected to continue.

Why Does Development Vary Among Countries?

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Objective

• Economic indicators of development• Social indicators of development• Demographic indicators of development

Why Does Development Vary Among Countries?

• (HDI) Human Development Index: recognizes countries economic, social, and demographic development.

• (GDP) Gross Domestic Product: is the value of the total output of goods and services produced in a country in a year.

• GDP Per Capita: divided by total country population.

• Qatar 88,000, US 45,000, Congo 312

Economic Indicators of Development:

Types of Jobs

• SECTORS 1) Primary/ agriculture 2) Secondary/ manufacturing 3) Tertiary/ services

• Other economic indicators 1) types of jobs 2) worker productivity 3) availability of consumer goods

• MDC/ LDC reflect different sector %.

Productivity

• Is the value of a particular product compared to the amount of labor needed

• MDC more productive than LDC

• Value added: gross value of the product minus the costs of raw materials and energy. WHY?

Consumer Goods

• Transportation/ communication: vital to economic growth.

• LDC: mostly found in overcrowded urban sprawl

• MDC/ 1000: 1) phones 800 2) cars 400 3) Internet 400

• LDC/ 1000: 1) phones 200 2) cars 20 3) Internet 100

Social Indicators of Development

• MDC: wealth is invested in schools, hospitals, welfare. (more quantity & better quality)

• Education: 1) teacher/student ratio MDC <20 LDC >30

• 2) literacy: MDC 98% LDC <60%

• LDC: requires reading/ writing in another language.

Health & Welfare

• MDC: receive more calories, proteins, more % of GDP on healthcare.

• MDC: Public Assistance: sick, elderly, poor, disabled, orphaned, veterans, widows, unemployed, single parents.

• LDC: Public Assistance: gov. limited, non-profit, prayer.

Demographic Indicators of Development

• Life expectancy: difference is 10+ yr

• mortality: MDC <1% LDC <6%.

• Natural Increase Rate: MDC .2% LDC 1.5%

• Crude Birth Rate: LDC 23/1000 MDC 12/1000

Where Are MDCs and LDCs Distributed?

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OBJECTIVES

• MORE DEVELOPED REGIONS• LESS DEVELOPED REGIONS

9 MAJOR REGIONS

N. America HDI .95

• High GDP/ Literacy, Low Edu/ life expectancy

• Past: major manufacturer but loss jobs to Japan, Europe, and China.

• Leader in tertiary-sector • Leading consumer,

entertainment, mass media, sports, recreation, defense, food exporter

Europe HDI .93

• Largest & richest market.

• 15 of the highest 19 HDI• High-value goods and

services (banking/ luxury motor vehicles)

• World Recession has created revealed major problems in the EU

Russia: HDI .73

• 1991: Transformed from a centrally planned communist economy to a market economy

• Economy drastically declined. Gangsters became wealthy

• Resurgence with oil production but global recession reverts growth.

JAPAN: HDI .96

• Extremely unfavorable ratio of population to resources.

• Advantage: 1) work ethic 2) lower cost products 3) high quality products 4) research & development

Oceania: HDI .90

• Australia & New Zealand

• Marginal: 1) small population 2) peripheral location

• Mining, food exports