DeVELOPMENT KEY ISSUE 1

Development the process of improving the material conditions of the people through the diffusion of knowledge and technology

Key Issue 1 Why Does Development Vary Among Countries?

I See… I Wonder… There are LOTS of maps in this unit. REMEMBER! Geographers use maps as sources of reference sources of communication THINK like a geographer… what is each map depicting? Why is that info significant? Don’t “skip” the maps!

Human Development Index United Nations developed a metric to measure the level of development of every country called the Human Development Index (HDI) based on three factors: Countries group into 4 classes Level of development ranging from developed (Very High) to developing (Low). Click to Watch

HDI Measure 1: Standard of Living UN measures standard of living based on two functions: Gross national income (GNI) Value of the output of goods and services produced in a country annually, including money that leaves and enters the country. Per capita GNI measures average wealth, NOT its distribution among citizens. NOTE! Gross domestic product (GDP) is similar except it doesn’t account for money entering and leaving the country Purchasing power parity (PPP) Cost of living adjustment made to the GNI. Click to Watch

GNI Purchasing Parity Power

Big Mac Purchasing Parity Index Click to Watch Big Mac Purchasing Parity Index THE Big Mac Index is based on the theory of PPP the notion that exchange rates should move towards the rate that would equalize the prices of an identical basket of goods and services (in this case, a burger) in any two countries. For example, the average price of a Big Mac in America in January 2016 was $4.93; in China it was only $2.68 at market exchange rates. So the "raw" Big Mac index says that the yuan was undervalued by 46% at that time. Click to Read

Review with the Plaid Avenger

Inequality-adjusted HDI… Who Gets What? The IHDI combines a country’s average achievements in health, education and income with how those achievements are distributed among country’s population. Two countries with different distributions of achievements can have the same average HDI value. Under perfect equality the IHDI is equal to the HDI, but falls below the HDI when inequality rises… the “haves” vs the “have nots.”

Consumer Goods Access to consumer goods is another economic measure. Who can afford what?

HDI Measure 2: A Long and Healthy Life UN considers good health to be an important measure of development. Main health indicator contribution to the HDI is life expectancy at birth. Average life expectancies of a baby Global average: 70 years Developed country: 80 years Developing country: 68 years

Regional Outlook: Life Expectancy at Birth

HDI Measure 3: Years of Education UN considers years of schooling to be the most critical measure of the ability of an individual to gain access to knowledge needed for development. Average Years of schooling Global: 7 years Developed: 11 years Developing: 6 years Expected years of schooling Developed: 16 years Developing: 11 years

Percent of GDP Spent on Education IF LDCs want to improve education, these states must spend a HIGHER % of their GDP on education than MDCs must spend. Some LDCs are more committed than others when it comes to education. Click to Learn

Literacy Rates

Human Development Index…

Look Familiar? 2015 HDI Map Click to Review

HDI By Region

Key Issue 1 Graphic Organizer COMPLETE this table on the back of your HDI Regions world map.

Limitations of the Human Development Index Takes no account of qualitative factors such as cultural identity  political freedoms  gender equity Takes no account of factors such as environmental biodiversity. Takes no account of income distribution so may inaccurately measure the monetary well-being of the people. Inequitable development is not human development.