1. Unit VI Development & Industry
Key Process #1
Why does development vary among countries?

2. What is Development?
The process of improving the material conditions of people through the diffusion of knowledge and technology
More developed countries (MDCs)
Lesser developed countries (LDCs)

3. Human Development Index (HDI)
Measurement of the level of development designed by the United Nations
Highest HDI possible is 1.0
Considers develop. to be a function of 3 factors:
Decent standard of living
Long & healthy life
Access to knowledge
Categories/Classes of HDI: very high (developed), high, medium, & low (developing)

4. HDI

5. Nine Regions in order of their HDI
1. North America: U.S. & Canada (very high)
2. Europe: All but a handful of E. European countries (very high)
Japan and the S. Pacific (New Zealand & Australia) are grouped w/ the developed regions
3. Latin America: most are high developing
4. E. Asia: most are medium developing
5. Central Asia: medium overall; Iran (high) & Afghanistan (low)
6. SE Asia: most are medium
7. SW Asia & N. Africa: overall medium; Saudi Arabia (high) & Yemen (low)
8. S. Asia: medium
9. Sub-Saharan Africa: low
Russia: UN now classifies it as a developing country b/c of its limited progress

6. Economic indicators of development
1. Economic Structure (types of jobs)
Primary sector
Secondary sector
Tertiary sector: Quaternary, Quinary
From what you have learned thus far what kind of countries are associated w/ each economic sector?

7. 2. Standard of Living
UN measures standard of living called annual gross national income per capital at purchasing power parity
Gross National Income (GNI): value of the output of goods & services produced in a country in a yr., including $ that leaves & enters the country
By dividing GNI by the total pop., it is possible to measure the contribution made by the avg. individual toward generating a country’s wealth in a yr.
EX. U.S. GNI 2011= $15 trillion, Pop.=312 million, so GNI per capita was about $47000
Per capita GNI in developed countries was approx. $34,000 compared to $7,000 in developing
Per capita GNI measures avg. (mean) wealth, not the distribution of wealth
Purchasing power parity (PPP): adjustment made to the GNI to account for the differences among countries in the cost of goods
Gross Domestic Product (GDP): value of the output of goods & services produced in a country in a yr., but does not account for the $ that leaves or enters the country

8. 3. Productivity
Value of a particular product compared to the amount of labor needed to make it
Can be measured by the value added per capita
Value added in manufacturing is the gross value of a product minus the costs of raw materials & energy
Workers in MDC’s produce more w/ less effort b/c they have access to more machines, tools, & equipment to perform much of the work

9. 4. Consumer Goods MDC & consumer goods LDC & consumer goods
Part of the wealth in developed countries is used to purchase goods & services
Ex. telephones, computers, vehicles
Why are these goods & services important for development?
Also use some wealth to establish infrastructure
LDC & consumer goods
b/c possession of consumer goods is not universal in developing countries, a gap can emerge btw. the “haves” and “have-nots”
Minority who have goods/services may include gov’t officials, business owners, other elites
Those who have these products are concentrated in urban areas

10. Social indicators of development
1. Access to Knowledge
Quantity of Schooling: UN uses 2 measures
Years of schooling: # of yrs. that the avg. person aged 25 & up has spent in school (avg. years for MDC=11, LDC=6)
Expected years of schooling: # of years that a 5 yr. old is expected to spend in school (avg. years for MDC=16, LDC= 11)
Quality of Schooling: UN uses 2 measures
Pupil/teacher ratio: Lower in MDC
Literacy rate: % of a country’s people who can read and write (higher in MDC)
Most books, newspapers, & mag. Are published in developed countries
Many technical information in books that are used in LDC are printed in English, German, Russian, or French

11. Social indicators of development
2. Health and welfare
Diet (adequate calories)
Access to health care

12. Demographic indicators of development
1. Life expectancy
Babies born today in MDCs have a life expectancy in the 80s; babies born in LDCs, in the 60s
2. Other demographic indicators:
Infant mortality
Natural increase
Crude birth rate
Dependency ratio

14. Variation within countries & regions
Variation within regions
Variation high in SW Asia & N. Africa and in Central Asia
Differences on who possesses oil
Ex. Saudi Arabia, UAE, etc.
Causes tension in region
Variations within countries
Brazil, China, & Mexico are among the world’s most populous countries and largest
Brazil: richest along coast, lowest in interior
China: richest along E. coast, lowest in interior
Mexico: richest along border w/ U.S. & tourist areas

15. Inequality-Adjusted HDI (IHDI)
Indicator of development that modifies that HDI to account for inequality within a country
If the IHDI is lower that the HDI the country has some inequality; the greater the distance btw. them the greater the inequality
A country where only a few people have high incomes, college degrees, and good healthcare would have a lower IHDI than a country where differences in income, level of education, and access to healthcare are minimal
Lowest scores are in sub-Saharan Africa (highest inequality)
**the lower the score the greater the inequality
Ex. The IHDI is 0.77 in the U.S. and 0.83 in Canada. Which country has a greater inequality?

16. Hans Rosling 200 years 200 countries