Measuring Development

GDP Gross Domestic Product Value of total output of goods and services within a country in a year- p.276 PER CAPITA MDCs - $30,000 LDCs - $3,000 US per capital GDP $48,100 (CIA WFB) 15.04 trillion (CIA WFB) US has the top according to the IMF China is #2

Y = C+I+E+G Y = GDP C = Consumer Spending I = Investment made by industry E = Excess of Exports over Imports G = Government Spending

GNP Gross National Product Total value of officially recorded goods and services produced by citizens and corporations. Broader than GDP (inside & outside territory)

GNP Formula Consumption + Government Expenditures + Investments + Exports + Foreign Production by US Companies – Domestic Production by Foreign Companies = Gross National Product

GNI Gross National Income Monetary worth of a country’s production PLUS income received from investments. More accurate in terms of global economy. Japan - $31,410 USA - $41, 950 Luxembourg - $65,340 India - $3,460

Literacy Rate % of people who can read and write (p. 292) Exceeds 98% in MDCs Lower than 60% in LDCs

Life Expectancy Average # of years a newborn can expect to live. 60s in LDCs 70s in MDCs

HDI Human Development Index A country’s development is comprised of economic, social, and demographic factors! GDP Literacy Rate Amt. of Education Life Expectancy

The Brandt Line (382,302) Def: An imaginary line separating the MDCs in the Northern Hemisphere from the LDCs in the Southern Hemisphere. Core countries are above the line, periphery countries are below the line. core countries above the line maintain dominance over most of Southern Hemisphere, following the historic dominance of colonies found in Latin America, Sub-Saharan Africa, and Southern Asia. most of the development aid comes from countries north of the Brandt line to help struggling countries below the Brandt line, but this maintains the dependence on the core countries (Dependency Theory) and makes it difficult for all countries to develop as stated by Rostow (Modernization Model). Countries above the Brandt line that already had resources were able to develop quickly since they had the technology and desire to use them, but countries that did not have the resources sought them around the world, thus the need for colonies for extraction of resources. For example, Europe lacked the resources overall that North America had, so they looked to Africa for resources, thus enabling them to manipulate their colonies and continue their dominance over them even today (Neocolonialism) and left the periphery countries with very little infrastructure, making it more difficult for them to become developed.

The Brandt Line

The Brandt Line