1. Development Key Issue 2 Where are MDCs and LDCs Located?

2. 1. Circle the region of each of the following pairs with the higher HDI (Human Development Index). Then write in the note for each pair. North America or Europe

3. (.95) (.93) Note: Europe’s HDI would be higher than N. America’s if not for the low HDIs of the Eastern European countries still recovering from the communist era. (US=

4. Oceania or SE Asia

5. (.93) (.73) Note: Oceania’s HDI is largely based on the prosperity of Australia and New Zealand. The other small islands are less developed but are so small they drag down the region’s HDI only slightly.

6. East Asia or S. Asia

7. (.77) (.61) Note: East Asia’s economy and development are driven by the exploding secondary sector (manufacturing) in China, the world’s economy. India, South Asia’s largest economy, is also growing rapidly, including its tertiary sector (Call centers, programmers).

8. Central Asia or Latin American

9. (.70) (.77) Level of development within L. America varies widely (higher on the coasts than inland and higher in urban than rural areas). Central Asia has oil but also the resource curse (corruption, poor investment in education, technology). (And Central Asia has Afghanistan  !)

10. SW Asia/N. Africa or Sub-Saharan Africa

11. (.74) (.51) Note: SW Asia/N. Africa has oil but their HDI is brought down by illiteracy and low workforce participation among women. N. Africa also benefits from trade with Europe. Sub-Saharan Africa: resource curse, colonial legacy, war, poor health and health care, but MOSTLY: high CBRs overwhelm carrying capacity of land.

12. 2. Why is the U.S. only 13th in HDI? (What HDI component factors are weighing us down?)

13. US high school dropout rate (mostly in South) hurts education indicator and high number of uninsured and high infant mortality (again, mostly in the SE US) hurts life expectancy.

14. Kentucky, Tennessee, Oklahoma, Alabama, Arkansas, Louisiana, West Virginia, and – have HDIs below Cuba, Mexico, Libya, Bulgaria, Panama, Malaysia, Serbia, and Albania. Mississippi’s HDI is below that of Turkey, Azerbaijan, and Algeria. “The US’s Southern Periphery” (aka: Applying Wallerstein’s Core-Periphery Model at a substate level)

15. 3. Guess: Was Russia’s HDI higher …right before the collapse of communism in the 1980’s or ….in the year 2000 (about ten years after the switch to a “free market” economy?

16. Why the drop under capitalism? (Write these please.) a.Shock of transition to capitalism and market economy. b.Corruption (profits from huge natural resource exports went to few oligarchs). c.New companies couldn’t compete with more efficient foreign competitors d.Low skilled work force e.High rates of alcoholism. 3. Russia’s HDI in 1985:.9 Russia’s HDI in 2000:.8!

17. 4. Japan’s HDI is.96. Why do economists consider this a remarkable achievement and how did the Japanese do it?

18. Why remarkable: Japan has low resource to population ratio. How accomplished: Japan’s population was willing to work hard for low wages to produce low cost goods at low prices BUT THEN transitioned to higher value goods (still at low cost) to undercut competitors. Key factor: investment in education and training to transition to higher value goods. (Japan 2x US in research and development).

19. 5. What are New Zealand and Australia’s main exports? To what region were their economies traditionally tied and to what region are they increasingly tied today?

20. Main exports: minerals (iron ore, lead, manganese, nickel, titanium, zinc) and food and animal products. Economic ties are increasingly shifting from Europe (esp. Britain) to SE Asia.

21. 6. Of the 7 less developed regions listed below, which ONE has a notably higher HDI than the others, and which TWO lag significantly behind? (The other five are all about the same) Latin America South Asia East Asia Central Asia SW Asia/N. Africa SE Asia Sub-Saharan Africa

22. 6. Of the 7 less developed regions listed below, which ONE has a notably higher HDI than the others, and which TWO lag significantly behind? (The other five are all about the same) Latin America (.82) South Asia (.61)  East Asia (.77) Central Asia (.70) SW Asia/N. Africa (.74) SE Asia (.73) Sub-Saharan Africa (.51) 

23. 7. Latin America’s relatively high overall HDI disguises an important underlying problem in this region. What is it?

24. Levels of development vary sharply within Latin America (development is higher on coasts and cities). (Latin America is highly urbanized.) So… future development in Latin America is held back by unequitable distribution of wealth, especially land wealth.

25. 8.China (HDI=0.72) became the world’s largest economy in 2014. Name three problems looming on the horizon for China’s economy.

26. a.Pollution b.Resource strain (esp. energy and minerals), c.Poor management, d.Quality control issues, e.And, the BIG KAHUNA…Civil Unrest: Can capitalism coexist in the long term without democracy? 8.China (HDI=0.72) became the world’s largest economy in 2014. What problems loom on the horizon for China’s economy?

27. 9.From your textbook: “The challenge of development in most SW Asian and North African countries (HDI=0.74) is promoting growth without abandoning the traditional values of Islam.” a. Give two examples of this phenomenon. b. Do you agree that Islamic culture and values might retard development in this region? Why or why not?

28. 9a. Possible Answers: i.GDI (Gender Development Index*) and GEM (Gender Empowerment Measure**) are low for this region because of gender roles under Islamic Law. ii.Intrafaith conflict/violence inhibits development. iii.Closing stores for daily prayers limits economic productivity. * =HDI for women in a country as a percentage of that of men. **=Women’s income as % of men + % of professional, technical, administrative, and parliament jobs held by women.

29. 10.What environmental factor has held back development in SE Asia (HDI=0.73) and why is the island of Java an exception to this rule?

30. Poor soils. Java is the exceptions because it has volcanic ash soils which are more fertile. (Java grows rice, palm and coconut oils, fiber crops.)

31. 11.Central Asia has an overall HDI of 0.70. What two countries in the region have much higher HDI values? Why? Which country in the region has a much lower HDI value? Why?

32. Much higher HDIs: Kazakhstan and Iran (.75). (Oil wealth.) Much lower: Afghanistan (.45) (War.)

33. 12.What two factors help account for South Asia’s low HDI?

34. 12.What factors account for South Asia’s low HDI? High population to resource ratio (the “carrying capacity” problem as in Sub-Saharan Africa). Reliance on unreliable monsoon rains.

35. 13.Despite abundant mineral and other resources, development in Sub-Saharan Africa has been poor and, by some measures, is deteriorating. Name one political, one economic, and one environmental factor that is holding back development in Sub-Saharan Africa. Which, in your opinion, is most fundamental or intransigent (hardest to change?) Why?

36. 13.Despite abundant mineral and other resources, development in Sub-Saharan Africa has been poor and, by some measures, is deteriorating. Political: war, internal conflict (much of it with colonial roots), corruption (poor governance). Economic: unhealthy, poorly educated work force but no money to change this. Environmental: “Carrying capacity” problem (imbalance between population size and carrying capacity of land in tropical and dry climates.)