1. Development Chapter 9 Children in Lundazi District of Zambia

2. Key Issue 1: Why does development vary among countries? HDI – Human Development Index – Economic - GDP Per capita – Social – literacy rate and amount of education – Demographic – life expectancy

3. Human Development Index

4. Gross Domestic Product Per Capita GDP – the value of the total output of goods and services produced in a country during the year – Per capita = per person GDP per capita shows an individuals contribution to generating a country’s wealth

5. GDP Per Capita

6. GDP in MDCs vs. LDCs GDP per capita exceeds $20,000 in MDCs LDC are in the $1,000 range Problem – GDP per capita is an average, doesn’t reflect all citizens, and doesn’t necessarily reflect quality of life

7. Why? – Types of Jobs Per capita income is higher in MDCs because of the way people earn their living Sectors of the economy: – Primary – LDC 75%, MDC less than 5% – Secondary – Tertiary

8. Primary Sector Directly extract materials from the Earth Examples: Agriculture, mining, fishing, forestry

9. Secondary Sector Manufacturing of raw materials into useful products Pencil factory

10. Tertiary sector Providing goods and services to people in exchange for payment

12. Productivity Workers in MDCs are more productive with less effort Why? – Technology, mechanization Planting crops in Kenya

13. Raw Materials Development requires access to raw materials AND energy resources

14. Consumer Goods After buying essential goods (food, clothing, shelter), people in MDCs buy consumer goods – Cars, telephones, entertainment

15. Three goods in particular… Motor vehicles, telephones, televisions Ratio is approaching 1:1 Why are these products so important?

16. Social Indicators of Development Education and Literacy – Quality – Literacy rate, student/teacher ratio – Quantity – avg. number of school years attended Average student attends school for 10 years in MDCs, LDCs = 2 or 3 Student/teacher ratio twice as high in LDCs Literacy rate over 95% in MDCs, as low as 30% in LDCs

17. Demographic Indicators of Development Life expectancy – better health and welfare in MDCs, 70s vs 40s Infant Mortality Rate – LDCs = 100/ 1000 live births – MDCs = 10/ 1000 live births

18. Natural Increase rate – LDCs = more than 2 percent – MDCs = less than 1 percent Why is a high NIR difficult for a country? Crude Birth Rate – 3 or 4 times as high in LDCs – why? Crude Death Rate – not a factor, why?

19. World Birth Rate

20. Key Issue 2: Where are more and less developed countries distributed? More Developed Regions – Anglo-America, Western Europe, Eastern Europe, Japan, South Pacific Less Developed Regions – Latin America, East Asia, Southeast Asia, Middle East, South Asia, Sub-Saharan Africa

21. Location of MDCs and LDCs

22. Top countries by HDI - 2011 1. Norway 2. Australia 3. The Netherlands 4. United States 5. New Zealand

23. Anglo-America (HDI 0.94) US, Canada 90% use English as first language 90% Christian (of those professing a religion) Abundance of minerals and natural resources Major manufacturer, exporter of agricultural products

25. Western Europe (0.92) Primarily Indo- European languages and Christian religion Post WWII – more unified politically, militarily, and economically Colonization and after

26. Eastern Europe (0.78) HDI has declined here in the last 20 years Post WWII, rapid development controlled and led by the USSR Difficult transition to the market economy Previous Soviet emphasis on primary sector

27. Japan (0.93) Highly developed despite lacking resources Must import food and resources like coal and iron How? Low-wage workers to compete internationally then transitioned to high quality/value products – Electronics, motor vehicles, cameras

28. Japan focused on skilled labor force – Education systems and training Emphasis and spend resources on research and development

29. South Pacific (0.93) Australia, New Zealand 90% of residents are descendants of 19 th Century British settlers #17 on the Forbes 40 in Australia, Foster’s is worth almost 10 billion USD

30. Latin America (0.78) Spanish/Portuguese, Roman Catholicism Large urban populations Development is hindered by inequitable income distribution and land ownership

31. East Asia (0.72) China has massive economy but is also considered poor GDP per capita is $7600 – Ranked 125 th in the World (CIA Factbook) Europe and Japan have exploited China’s resources in the past, hindering development

32. Communists take over in 1949 Govt. controlled agricultural land and production Almost 40% of people work in primary sector Mao Zedong – Chairman/Leader of PRC (1949-1976)

33. China’s One Child Policy – Limits NIR – Economic growth can be used to improve standards of living for existing population – Total Fertility Rate is at 1.7

34. Southeast Asia (0.71) Indonesia is most populous country Region has suffered from warfare in the 20 th century Tropical climate limits agriculture Geography limits economic development – Mountains, islands, volcanoes, typhoons

35. Rice is most important export Cheap labor aids manufacturing efforts Rice farmers in Vietnam

36. Middle East (0.66) Impact of Desert Must import many products But….they have OIL!!! This drives development

37. Traditional cultural values of Islam can challenge development Women’s participation in business is restricted Low literacy rates among women (50% avg. but as low as 15% in Afghanistan) Strong, internal cultural disputes hurt growth

38. UAE Highest ranking in Middle East with an HDI of (0.84) Has invested in tourism and a future without oil Palm Island in Dubai

39. South Asia (0.58) 2 nd highest population, 2 nd lowest per capita income NIR is very high India has many resources but a HUGE population Jute – makes burlap and twine

40. Green Revolution in India – positive impact on agriculture Production still depends on climate and the summer monsoon season

41. Sub-Saharan Africa (0.47) Though SSA has many resources, prospective development is low Worlds highest percentage of poverty, poor health, and education levels

42. Why? Legacy of colonial era Many landlocked states Very high NIR Possibly at carrying capacity in certain areas Sahel – South of the Sahara

43. Key Issue 3: Where does level of development vary by gender? Gender-Related Development Index (GDI) – Compares the level of development to that of both sexes – Uses same criteria as HDI – Highest is 1.0 – Lower means greater disparity between sexes

44. Top Countries by GDI 1. Iceland 2. Australia 3. Norway 4. Canada 5. Sweden

45. Economic Indicators Average income in every country of world is lower for women Per capita annual income in US (2001) was $43,000 for men and $26,000 for women MDCs have $15K or more income gap LDCs have smaller number but greater percentage gap

46. Social Indicators Education and literacy Women to men in high school – MDCs = 99 to 100 – LDCs = 60 to 100

47. Primary School Enrollment and Total Fertility Rates for Selected Countries, Latest Year RankCountry Primary School Enrollment Total Fertility Rate PercentNumber of children per woman 1Japan100.01.3 2Spain99.81.5 3Iran99.71.8 4Georgia99.61.6 5United Kingdom99.61.9... 181Equitorial Guinea53.55.3 182Guinea-Bissau52.15.7 183Djibouti40.13.9 184Sudan39.24.2 185Eritrea35.74.6 Note: Rankings are based on a list of 185 countries for which primary enrollment data are available. See full table.full table Source: EPI from UNESCO

48. Demographic Indicators Life expectancy – MDCs = Women outlive men by 6 years – LDCs only a year or two – Hazards of childbearing

49. Gender Empowerment Measure (GEM) Compares ability of the men and women to participate in economic and political decision making GDI shows standard of living and well-being, GEM measures ability to participate in the process of achieving those improvements Every country has a higher GDI than GEM

50. Economic Indicators % of women in professional and technical jobs – Highest percent is in Northern Europe, around 50% of professional jobs are held by women – LDCs are around 25%

51. Political Indicators Managerial jobs have the ability to influence the decision making process 33% - North America, Northern Europe, South Pacific 10% - other MDCs Less than 5% - LDCs

52. Public Offices No government in the world has a majority of women Northern Europe – 33% US – 13% Other MDCs – 10% LDCs – less than 5% Madeleine Albright – Former US Secretary of State

53. Why do less developed countries face obstacles to development?

54. Debt Matters The developing world now spends $13 on debt repayment for every $1 it receives in grants. For the poorest countries (approximately 60), $550 billion has been paid in both principal and interest over the last three decades, on $540bn of loans, and yet there is still a $523 billion dollar debt burden. Source: Debt relief hope brings out the critics, Jorn Madslien, BBC, June 29, 2005

55. Self-Sufficiency

56. International Trade

57. Financing Development