1. Where Does Level of Development Vary by Gender?
C9K3

2. OBJECTIVES
Gender-Related Development Index
Gender Empowerment

3. Gender Related Development Index
(GDI): compares the level of women’s development with that of both sexes
Economic: income to man
Social: school/ literacy to man
Demographic: life expectancy to man
Complete equality is 1.0

4. Gender Empowerment Measure
(GEM): compares ability of women and men to participate in economic and political decision making.
Economic indicators of empowerment: % of income & professional/technical jobs to (m)
Political indicators of empowerment: % administration/ elected offices to (m)
Complete equality is 1.0

5. Why Do LDCs Face Obstacles to Development?
C9K4

6. OBJECTIVES Development Through Self-Sufficiency
Development Through International Trade
International Trade Approach Triumphs
Financing Development
Fair Trade

7. Path of Obstacles or Assistance
Obstacles: 1) adopting policies that successfully promote development 2) Finding funds to pay for development
2 Models to Overcome: 1) international trade
2) self sufficiency

8. Development Through Self-Sufficiency
“Socialist” approach to business: isolate LDC businesses from competition with MDC. Why?
How it’s done? 1) High tariffs on imports 2) on imports 3) requiring licenses to import.
Story of India: closed from foreign business: gov. controlled communications, transportation, power, insurance, and automakers.

9. Problem with the Self Sufficiency Alternative.
1) Protection of inefficient businesses: little incentive to improve quality, lower production costs, reduce prices, or increase production. Why?
2) Need for large bureaucracy: too many hands in the process = encouraged abuse & corruption.

10. Development Through International Trade
1) Traditional society agri/ nonproductive like religion and military 2) precondition for takeoff 3) takeoff

11. Examples of the International Trade Approach
The Four Asian Dragons: South Korea, Singapore, Taiwan, Hong Kong: focused on a few manufacturing goods and low labor costs.
Petroleum-Rich Arabian States: Saudi, Kuwait, Bahrain, Oman, UAB.

12. Problems with the International Trade Alternative
Uneven resource distribution: decrease price of one commodity
Increased dependence on MDCs: over dependency on export at the cost of domestic food, clothing producation
Market Decline: decline on the dependency on low-cost manufactured goods

13. International Approach Triumphs
Late 20th century: trade increased more rapidly than wealth.
1) foreign companies allowed to set up shop 2) free trade 3) monopolies were eliminated 4) increased competition improved quality
LDC that converted to international trade from self sufficiency grew 4%

14. World Trade Organizations
WTO: works to reduce or eliminate trade restrictions, movement of money by banks, companies, and individuals.
Protects intellectual property, copyright violations
Critics accuse WTO of advocating for MDC at the expense of LDC

15. Foreign Direct Investment
FDI: Investments made by a foreign company in the economy of another country.
FDI grew from 130 billion to 1.5 trillion in ten years. Uneven distribution ¾ from MDC to MDC. LDC = 1/3 to China.
(TNCs) Transnational Corporation: invests and operates in countries other than the one it’s headquarters in.

16. Financing Development
What’s the solution to LDC lack of financing?
The World Bank: loans to reform government, develop/ strengthen financial institutions, and implement transportation/social services.
The IMF: provides loans to needy countries: intended to prevent global depression.
Critics: 1) don’t function bc of poor engineering 2) fraud, waste, abuse of funds 3) inability to attract other investments.

17. Structural Adjustment Programs
MDC fear LDC ability to repay loans. Solution?
Structural adjustment program: 1) loan only what it can afford 2) target poor 3) divert investment to health/ education 4) private sector investment 5) reform gov… more efficiency, transparent and accountable.

18. Fair Trade
Benevolent Intention: Products are made and traded according to standards that protect workers and small businesses in LDCs.
(cooperatives) farmers/ artisans can borrow in order to invest. Targets poor women. Encouraged to reinvest in community KIVA.org
Consumers pay more to support fair trade (bypass exploitive middlemen)
Critics: 1) have found in some cases less than 1% of the sale goes to the worker. 2) Child labor. 3) Poor working conditions.

20. Interesting Perspective