development: the process of improving the material conditions of people through diffusion of...
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Development: The process of improving the material conditions of people through diffusion of knowledge and technology.
Stages of Development:
Less Developed Country/Developing Country
More Developed Country/Developed Country
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Why Does Development Vary Among Countries?
• Economic Indicators of Development– Gross Domestic Product
• GDP in Developed Countries–Average $27,000
• GDP in Less Developed Countries–Average $4,000
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Why Does Development Vary Among Countries?
• Types of Jobs
– Primary Sector
– Secondary Sector
– Tertiary Sector• JOB DISTRIBUTION VARYS BASED ON
DEVELOPMENT
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Why Does Development Vary Among Countries?
• Productivity
– Productivity is the value of a particular object compared to the amount of labor needed to make it.
– Value added is the gross value of the product minus the costs of raw materials and energy.• Costs more to make things in the U.S. and
less in China.
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Why Does Development Vary Among Countries?
• Raw Materials
– Minerals and trees that can be transformed into useful products.
– Energy is a raw material.
– More raw materials and energy, the better the chances of development.
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Why Does Development Vary Among Countries?
• Social indicators of Development
– Education and Literacy• MDC’s and Educ. vs. LDCs and Educ.• Literacy Rate
– Health and Welfare• Health in MDCs vs. LDCs• Welfare in MDCs vs. LDCs
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Why Does Development Vary Among Countries?
• Demographic Indicators of Development
– Life Expectancy
– Infant Mortality Rate
– Natural Increase Rate
– Crude Birth Rate
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Where are More and Less Developed Countries Distributed?
• More Developed Regions
– Anglo-America
• Speak English, Worship Christianity
• Have natural resources for manufacturing
• Food exporter
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Where are More and Less Developed Countries Distributed?
• More Developed Regions
– Western Europe
• Speak indo-European language, worship christianity
• Somewhat unified
• Not all equally developed
• Import food, energy, and minerals
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Where are More and Less Developed Countries Distributed?
• More Developed Regions
– Eastern Europe
• Communism after 1917 in Russia and after WWII in the rest
• More about manufacturing than producing consumer goods
• Dumped communism in the 1990s
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Where are More and Less Developed Countries Distributed?
• More Developed Regions
– Japan
• Nearly no natural resources
• United people willing to work hard for low wages.
• Skilled labor force
– South Pacific
• Australia and New Zealand
• Export food and resources
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Where are More and Less Developed Countries Distributed?
• Less Developed Regions
–Latin America• Speak Spanish or Portuguese, Roman
Catholic
• Inequitable distribution of income
• Agricultural Productivity
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Where are More and Less Developed Countries Distributed?
• Less Developed Regions
–East Asia• China – Second largest economy
• Communist
• Low wages for factory workers, drives down wages world wide.
• Rapidly developing
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Where are More and Less Developed Countries Distributed?
• Less Developed Regions
–Middle East• Speak Arabic, Muslim religion
• Oil/petroleum: creates “Haves” and “Have Nots”
• Restrictions on women working
• Recognition of Isreal
• Terrorism
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Where are More and Less Developed Countries Distributed?
• Less Developed Regions
– Southeast Asia
• Tropical climate limits agriculture
• Grow things used in manufacturing
• Manufacturer of textiles
• Corruption of government officials
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Where are More and Less Developed Countries Distributed?
• Less Developed Regions
– South Asia
• India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan
• Resources but huge population
• Agriculture
• India: the world’s fourth largest economy
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Where does Level of Development Vary by Gender?
• Gender-Related Development Index
– GDI measures income, literacy, education, and life expectancy and measures men and women
– A score of 1.0 is a perfect GDI score.
– Norway is highest with a GDI of 0.96
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Where does Level of Development Vary by Gender?
• Economic indicator of Gender Differences
– Men make more money than women
• Social Indicators of Gender Differences
– Education• In LDCs girls usually do not attend school
– Literacy• Female literacy is usually low in LDCs.
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Where does Level of Development Vary by Gender?
• Demographic indicator of Gender Differences
– Life expectancy
• Females live longer. Usually by about six years.
• In LDCs women have more children
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Where does Level of Development Vary by Gender?
• Gender Empowerment
– GEM: measures the ability of women to participate in improving their lives.
– Combines income and professional jobs.
– A score of 1.0 is perfect.
• MDCs have higher GEM scores
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Where does Level of Development Vary by Gender?
• Economic indicators of Empowerment– Northern Europe has most women in
professional jobs.• Political Indicators of Empowerment
– Women in politics– More often in MDCs– Worldwide around 20% of Politicians are
women.– The US is around 15%
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Why do Less Developed Countries Face Obstacles to Development?
• Development through Self-sufficiency
– Elements of self-sufficiency
• Equal spreading of investment
• Rural and urban incomes are close
• Set barriers that limit imports. (tariffs, quotas, licenses)
–Local created merchandise should be cheaper
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Why do Less Developed Countries Face Obstacles to Development?
• Problems with the Self-sufficiency Alternative
– Inefficiency
• Self-sufficiency protects ineffective businesses.
• Lack of competition
– Large Bureaucracy
• Squashes opportunity
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Why do Less Developed Countries Face Obstacles to Development?
• Development through international trade
– Rostow’s Development Model
• Five stage model of Development
–The traditional society
–The preconditions for takeoff
–The takeoff
–The drive to maturity
–The age of mass consumption
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Why do Less Developed Countries Face Obstacles to Development?
• Development through international trade
– Rostow’s Development Model (cont.)
• Every country is at some level of development
• A country that concentrates on international trade benefits from exposure to consumers in other countries.
• Rostow’s model was optimistic.
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Why do Less Developed Countries Face Obstacles to Development?
• Examples of International Trade Approach
– The Four Asian Dragons
• Focused on only a few manufacturing goods.
– Petroleum-Rich Arabian peninsula states.
• Oil has turned the area into a developed region
• Islamic principles conflict with business practices.
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Why do Less Developed Countries Face Obstacles to Development?
• Recent Triumph of the International Trade Approach– ITA is embraced by most countries– World Trade Organization
• Works to even the playing field for all countries
• Seen as anti-democratic and invasive of national sovereignty
– Transnational Corporations• Invest and operate in countries other than the
one they are founded in.
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Why do Less Developed Countries Face Obstacles to Development?
• Financing Development– Loans
• LDCs need more money for infrastucture
• International Monetary Fund• The World Bank• Build infrastructure and it will help
manufacturing• Expensive and money gets stolen• Many LDCs cannot pay back loans
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Why do Less Developed Countries Face Obstacles to Development?
• Structural Adjustment Programs
– An economic document that outlines goals, strategies, and objectives for achieving financial success.
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Why do Less Developed Countries Face Obstacles to Development?
• Fair Trade
– Fair trade producer Standards
• Fair trade: products are made and traded according to standards that protect workers and small businesses in LDCs.
• Allows the little guy to compete against the big guy.
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Why do Less Developed Countries Face Obstacles to Development?
• Fair Trade
– Fair trade Worker Standards
• Workers rights are not a high priority in the International Trade Model.
• Fair trade sees that children are not exploited, safety is present, workers are paid a minimum wage.
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