Chapter 9 - AP Human Geography Development Chapter 9 - AP Human Geography

Human Development Index (HDI) The UN’s HDI bases the level of development on: decent standard of living long and healthy life access to knowledge Countries are grouped into 4 classes ranging from developed to developing.

Economic Indicators Economic indicators for determining development include: GNI GDP PPP Poverty Rates

Sociodemographic Indicators Socioeconomic indicators include: Infant Mortality Rate Access to skilled health personnel Access to education

Environmental Indicators Includes access to safe drinking water

Gender Equality Index The UN created the Gender Inequality Index (GII) based on the following: Empowerment Labor Force Reproductive Health UN claims that gender inequality has declined in nearly every country since the 1990s.

OECD Members Thirty countries belong to the Organization for Economic Cooperation and Development (OCED) The countries are mostly very wealthy and industrialized

Measuring and Mapping Income Inequality Lorenz curves disclose income inequality within countries, showing the relationship between a country’s income and population. The Gini coefficient shows income inequality. It is computed from the area between the line of equal income distribution and a country’s Lorenz curve.

Income Distribution Factors affecting income distribution Individual Social Policy Related Historical Globalization and income distribution Trickle-down theory The theory of the widening gap between the rich and poor

Energy Supply and Demand Development is based on availability of abundant low-cost energy. 5/6 of the world’s energy needs are supplied by fossil fuels. Developed countries consume 1/2 of the world’s energy Earth’s energy resources are distributed unevenly

Energy Resources Two types of energy reserves exist: Proven Reserves Potential Reserves

Energy Sources OPEC formed in 1960 to gain more control over their resource. Prices are set by governments possessing oil reserves instead of petroleum companies. In general, higher pries of petroleum caused consumption to decrease.

Alternative Energy Sources Nuclear energy is considered an alternative energy source. It supplies 14% of the world’s electricity. The use of nuclear energy presents challenges: Radioactive waste is lethal. Uranium is a nonrenewable source. It comes at a high cost.

Alternative Energy Sources Renewable energy sources include hydroelectric power, biomass energy, wind energy, and solar energy. Wind power energy has a minimal impact on the environment and has a greater potential for increased use. The ultimate renewable resource is solar energy. The potential growth is limitless.

Development Theory Developing countries need to increase per capita GNI while improving social and economic conditions. They can choose either self-sufficiency or international trade to promote development.

Self-Sufficiency Path Self-Sufficiency Path Key Elements Limit import of goods Businesses don’t have to compete with international corporations Investment spread equally Minimized discrepancies in wages Challenges to this Path Protection of inefficient businesses Need for large bureaucracy

Rostow’s Model of Development International Trade Path Transform a country with a traditional or premodern socioeconomic system into one with a highly modern society and economy Challenges to this path Uneven resource distribution Increased dependence on developed countries Market decline

Dependency Theory Dependency can develop through imperial dominance or financial-technological dominance

Wallerstein’s World-System Theory Capitalism led to an international division of labor between core states, peripheral regions, semi- peripheral regions

Neoliberal Model of Development Capitalism can drive development if their are appropriate reforms in place.

Poverty-Reduction Theory Poverty-reduction theory has been the focal point of present development theory since 1999 It’s often advanced by the World Bank and IMF Poverty-reduction strategies have been developed in concert with the Millennium Development Goals These goals were developed by the UN

International Trade Approach Most countries have embraced the international trade approach since the late 20th century

Closing the Gap Progress in reducing the gap in the level of development varies based on the variable Infant mortality gap has narrowed Life expectancy cap hasn’t narrowed Gap in wealth has widened

Financing Development Financing comes from direct investments by transnational corporations or loans from banks and international organizations Foreign Direct Investments (FDI) is investment made by a foreign company in the economy of another country The major lenders to developing countries are the World Bank and the International Monetary Fund (IMF)

Financing Challenges Developing countries The IMF, World Bank, and developed countries fear that granting, canceling, or refinancing debts create bad habits in developing countries Developed countries The heart of global economic crisis in developed countries was the poor condition of banks and other financial institutions Bad loans were especially widespread in housing