Unit 6: Industrialization and Economic Development Chapter 9: Development Chapter 11: Industry and Manufacturing

Key Issue #1: Why does development vary among countries? Chapter 9: Development Key Issue #1: Why does development vary among countries?

1. Growing Food 2. Manufacturing Products 3. Providing Services Chapter 9 Key Issue #1 3 basic ways to earn a living 1. Growing Food 2. Manufacturing Products 3. Providing Services

1. Growing Food 2. Manufacturing Products 3. Providing Services Chapter 9 Key Issue #1 3 basic ways to earn a living 1. Growing Food 2. Manufacturing Products 3. Providing Services

1. Growing Food 2. Manufacturing Products 3. Providing Services Chapter 9 Key Issue #1 3 basic ways to earn a living 1. Growing Food 2. Manufacturing Products 3. Providing Services

Human Development Index (HDI) Chapter 9 Key Issue #1 Measures the Development of a country (MDC vs. LDC)

Human Development Index (HDI) Chapter 9 Key Issue #1 Measures the Development of a country (MDC vs. LDC) Started by the U.N. in 1980 so all of the statistics are relatively new

Human Development Index (HDI) Chapter 9 Key Issue #1 Measures the Development of a country (MDC vs. LDC) Started by the U.N. in 1980 so all of the statistics are relatively new Computed every year

Human Development Index (HDI) Chapter 9 Key Issue #1 Measures the Development of a country (MDC vs. LDC) Started by the U.N. in 1980 so all of the statistics are relatively new Computed every year Highest score is 100% or 1.0

Human Development Index (HDI) Chapter 9 Key Issue #1 2014 Rankings Norway .944 Australia .935 Switzerland .930 United States .915 Mexico Niger .348

Human Development Index (HDI) Chapter 9 Key Issue #1 2014 Rankings Norway .944 Australia .935 Switzerland .930 United States .915 Mexico Niger .348

Human Development Index (HDI) Chapter 9 Key Issue #1 2014 Rankings Norway .944 Australia .935 Switzerland .930 United States .915 Mexico Niger .348

Human Development Index (HDI) Chapter 9 Key Issue #1 2014 Rankings Norway .944 Australia .935 Switzerland .930 United States .915 Mexico Niger .348

Human Development Index (HDI) Chapter 9 Key Issue #1 2014 Rankings Norway .944 Australia .935 Switzerland .930 United States .915 8.

Human Development Index (HDI) Chapter 9 Key Issue #1 2014 Rankings Norway .944 Australia .935 Switzerland .930 United States .915 Mexico .756 8. 74.

Human Development Index (HDI) Chapter 9 Key Issue #1 2014 Rankings Norway .944 Australia .935 Switzerland .930 United States .915 Mexico .756 Niger .348 8. 74. 188.

Decent Standard of Living HDI Considerations Chapter 9 Key Issue #1 Decent Standard of Living

Decent Standard of Living A Long and Healthy Life HDI Considerations Chapter 9 Key Issue #1 Decent Standard of Living A Long and Healthy Life

Decent Standard of Living A Long and Healthy Life Access to Knowledge HDI Considerations Chapter 9 Key Issue #1 Decent Standard of Living A Long and Healthy Life Access to Knowledge

Human Development Index (HDI) Chapter 9 Key Issue #1 Four Classes of Development Very High Developed High Medium Less Developed Low

Human Development Index (HDI) Chapter 9 Key Issue #1 Four Classes of Development Very High (80% +) or .800 – 1.000 High (70% - 80%) or .700 – .799 Medium (55% - 70%) or .550 – .699 Low (below 55%) or .000 – .549

Gross National Income (GNI) Chapter 9 Key Issue #1 The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country

Gross National Income (GNI) Chapter 9 Key Issue #1 The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country Accounts for all of the money earned by the people of a country, no matter where that money was earned.

Gross National Income (GNI) Chapter 9 Key Issue #1 Nike is headquartered in the USA, but the shoes are produced in China. The profits (after expenses) for the sale of those shoes, no matter where they’re sold, would count toward USA’s GNI

Gross National Income (GNI) Chapter 9 Key Issue #1 Nike is headquartered in the USA, but the shoes are produced in China. The profits (after expenses) for the sale of those shoes, no matter where they’re sold, would count toward USA’s GNI The wages to the workers in China would count towards China’s GNI

Gross National Income (GNI) Chapter 9 Key Issue #1 GNI is not a perfect system because it does not account for distribution of wealth. It only measures the wealth of a nation as a whole. GNI measures “mean” wealth. There are 8 kids in the class 7 of the kids have no money Johnny has $800.00 The GNI of the class is $100.00 per student because GNI does not account for distribution of wealth

Gross National Income (GNI) Chapter 9 Key Issue #1 GNI is not a perfect system because it does not account for distribution of wealth. It only measures the wealth of a nation as a whole. GNI measures “mean” wealth. There are 8 kids in the class 7 of the kids have no money Johnny has $800.00 The GNI of the class is $100.00 per student because GNI does not account for distribution of wealth

Gross National Income (GNI) Chapter 9 Key Issue #1 GNI is not a perfect system because it does not account for distribution of wealth. It only measures the wealth of a nation as a whole. GNI measures “mean” wealth. There are 8 kids in the class 7 of the kids have no money Johnny has $800.00 The GNI of the class is $100.00 per student because GNI does not account for distribution of wealth

Gross Domestic Product (GDP) Chapter 9 Key Issue #1 The value of the output of goods and services produced in a country in a year, but it does not account for money that leaves and enters the country

Gross Domestic Product (GDP) Chapter 9 Key Issue #1 The value of the output of goods and services produced in a country in a year, but it does not account for money that leaves and enters the country Value of all the goods and services produced within a country (whether that country keeps the money or not)

Gross Domestic Product (GDP) Chapter 9 Key Issue #1 It doesn’t matter that Nike is headquartered in the USA, those shoes are produced in China and will count toward China’s GDP.

Gross Domestic Product (GDP) Chapter 9 Key Issue #1 It doesn’t matter that Nike is headquartered in the USA, those shoes are produced in China and will count toward China’s GDP. All that matters is where they are produced, hence, Gross Domestic PRODUCT

GNI vs. GDP Chapter 9 Key Issue #1 In summary…

GNI is WHO makes the money GNI vs. GDP Chapter 9 Key Issue #1 In summary… GNI is WHO makes the money (which country are they living/from?)

GNI is WHO makes the money GNI vs. GDP Chapter 9 Key Issue #1 In summary… GNI is WHO makes the money (which country are they living/from?) GDP is WHERE the item is produced (which country does the work?)

Purchasing Power Parity (PPP) Chapter 9 Key Issue #1 An adjustment made to the GNI to account for differences among countries in the cost of goods Adjustment made to GNI based on the cost of living Rent in the United States is much higher than it is in Botswana $300 per month there may be equivalent to $1,000 per month here

Purchasing Power Parity (PPP) Chapter 9 Key Issue #1 An adjustment made to the GNI to account for differences among countries in the cost of goods Adjustment made to GNI based on the cost of living Rent in the United States is much higher than it is in Botswana $300 per month there may be equivalent to $1,000 per month here

Purchasing Power Parity (PPP) Chapter 9 Key Issue #1 An adjustment made to the GNI to account for differences among countries in the cost of goods Adjustment made to GNI based on the cost of living Rent in the United States is much higher than it is in Botswana $300 per month there may be equivalent to $1,000 per month here

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 Modifies the HDI to account for inequality within a country

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 Modifies the HDI to account for inequality within a country Perfect Equality = HDI and IHDI are the same

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 Modifies the HDI to account for inequality within a country Perfect Equality = HDI and IHDI are the same A country where only a few people have high incomes, college degrees, and good health care would have a bad IHDI

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 When concerning IHDI…

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 When concerning IHDI… High scores are BAD

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 When concerning IHDI… High scores are BAD Low scores are GOOD

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 When concerning IHDI… High scores are BAD Low scores are GOOD A high score would mean you have a lot of inequality. A lot of inequality is a bad thing.

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 The highest IHDI’s (worst scores) are…

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 The highest IHDI’s (worst scores) are… Sub-Saharan Africa South Asia

Inequality-Adjusted HDI (IHDI) Chapter 9 Key Issue #1 The highest IHDI’s (worst scores) are… Sub-Saharan Africa South Asia Southwest Asia & North Africa has no data

Additional Standard of Living Considerations Chapter 9 Key Issue #1 Economic Structures Productivity Value Added Consumer Goods

Additional Standard of Living Considerations Chapter 9 Key Issue #1 Economic Structures Productivity Value Added Consumer Goods

Additional Standard of Living Considerations Chapter 9 Key Issue #1 Economic Structures Productivity Value Added Consumer Goods

Additional Standard of Living Considerations Chapter 9 Key Issue #1 Economic Structures Productivity Value Added Consumer Goods

Additional Standard of Living Considerations Chapter 9 Key Issue #1 Economic Structures Productivity Value Added Consumer Goods

Additional Standard of Living Considerations Chapter 9 Key Issue #1 Economic Structures Productivity Value Added Consumer Goods We’ll talk about each of these in more detail

Directly Extracting Earth’s Materials Economic Structures Chapter 9 Key Issue #1 Primary Sector Directly Extracting Earth’s Materials

Directly Extracting Earth’s Materials Economic Structures Chapter 9 Key Issue #1 Primary Sector Directly Extracting Earth’s Materials Agriculture (very few farmers in MDC’s) Mining Fishing Forestry

Directly Extracting Earth’s Materials Economic Structures Chapter 9 Key Issue #1 Primary Sector Directly Extracting Earth’s Materials Agriculture (very few farmers in MDC’s) Mining Fishing Forestry Decreased in LDC’s but still higher than in MDC’s

Economic Structures Secondary Sector Chapter 9 Key Issue #1 Secondary Sector Manufacturers that process, transform, and assemble raw materials into useful products.

Economic Structures Secondary Sector Chapter 9 Key Issue #1 Secondary Sector Manufacturers that process, transform, and assemble raw materials into useful products. Industries that fabricate manufactured goods into finished consumer goods

Economic Structures Secondary Sector Chapter 9 Key Issue #1 Secondary Sector Manufacturers that process, transform, and assemble raw materials into useful products. Industries that fabricate manufactured goods into finished consumer goods Cars are assembled from metal that has already been manufactured – still counts

Provisions of goods and services in exchange for payment Economic Structures Chapter 9 Key Issue #1 Tertiary Sector Provisions of goods and services in exchange for payment

Provisions of goods and services in exchange for payment Economic Structures Chapter 9 Key Issue #1 Tertiary Sector Provisions of goods and services in exchange for payment Retailing Banking Law Education Government

Provisions of goods and services in exchange for payment Economic Structures Chapter 9 Key Issue #1 Tertiary Sector Provisions of goods and services in exchange for payment Retailing Banking Law Education Government Small in LDC’s, large and growing in MDC’s

Value of a product compared to amount of labor needed to produce it. Productivity Chapter 9 Key Issue #1 Value of a product compared to amount of labor needed to produce it.

Value of a product compared to amount of labor needed to produce it. Productivity Chapter 9 Key Issue #1 Value of a product compared to amount of labor needed to produce it. MDC’s are more productive than LDC’s Industrial Revolution Machines Tools Equipment Technology

Gross value of a product minus the cost of raw materials and energy Value Added Chapter 9 Key Issue #1 Gross value of a product minus the cost of raw materials and energy

Gross value of a product minus the cost of raw materials and energy Value Added Chapter 9 Key Issue #1 Gross value of a product minus the cost of raw materials and energy $0.10 to manufacture Sell for $1.00

Gross value of a product minus the cost of raw materials and energy Value Added Chapter 9 Key Issue #1 Gross value of a product minus the cost of raw materials and energy $0.10 to manufacture Sell for $1.00 Per capita value added in U.S. in 2010 was $5,900 (think computers)

Gross value of a product minus the cost of raw materials and energy Value Added Chapter 9 Key Issue #1 Gross value of a product minus the cost of raw materials and energy $0.10 to manufacture Sell for $1.00 Per capita value added in U.S. in 2010 was $5,900 (think computers) Per capita value added in India in 2010 was $100

Consumer Goods Chapter 9 Key Issue #1 Motor Vehicles, Telephones, and Computers are especially important in MDC’s

Consumer Goods Chapter 9 Key Issue #1 Motor Vehicles, Telephones, and Computers are especially important in MDC’s Motor Vehicles Access to jobs and services Distribution of products 170/1,000 worldwide 630/1,000 in MDC’s

Consumer Goods Telephones Chapter 9 Key Issue #1 Telephones Enhance communication between providers of raw materials and customers for goods and services 800/1,000 worldwide 1,100/1,000 in MDC’s Cell phone usage in LDC’s is expanding rapidly because cell phones do not require the costly investment of connecting wires to each building and many people can get service from a single tower.

Consumer Goods Computers Sharing of information Internet users Chapter 9 Key Issue #1 Computers Sharing of information Internet users 300/1,000 worldwide 700/1,000 in MDC’s

Life expectancy is an important factor in the UN’s formula for HDI Long and Healthy Life Chapter 9 Key Issue #1 Life expectancy is an important factor in the UN’s formula for HDI

Life expectancy is an important factor in the UN’s formula for HDI Long and Healthy Life Chapter 9 Key Issue #1 Life expectancy is an important factor in the UN’s formula for HDI Life Expectancy

Life expectancy is an important factor in the UN’s formula for HDI Long and Healthy Life Chapter 9 Key Issue #1 Life expectancy is an important factor in the UN’s formula for HDI Life Expectancy Worldwide – 70 years

Life expectancy is an important factor in the UN’s formula for HDI Long and Healthy Life Chapter 9 Key Issue #1 Life expectancy is an important factor in the UN’s formula for HDI Life Expectancy Worldwide – 70 years MDC’s – 80 years

Life expectancy is an important factor in the UN’s formula for HDI Long and Healthy Life Chapter 9 Key Issue #1 Life expectancy is an important factor in the UN’s formula for HDI Life Expectancy Worldwide – 70 years MDC’s – 80 years Sub-Saharan Africa – 55 years

Life expectancy is an important factor in the UN’s formula for HDI Long and Healthy Life Chapter 9 Key Issue #1 Life expectancy is an important factor in the UN’s formula for HDI Life Expectancy Worldwide – 70 years MDC’s – 80 years Sub-Saharan Africa – 55 years Congo – 48 years

Life expectancy is often reflective of medical availability Chapter 9 Key Issue #1 Life expectancy is often reflective of medical availability

Life expectancy is often reflective of medical availability Chapter 9 Key Issue #1 Life expectancy is often reflective of medical availability Public assistance for elderly, unemployed, disabled, orphaned

Life expectancy is often reflective of medical availability Chapter 9 Key Issue #1 Life expectancy is often reflective of medical availability Public assistance for elderly, unemployed, disabled, orphaned More babies survive first year

MDC Infant Mortality Rate – 99.5% LDC Infant Mortality Rate – 95% Chapter 9 Key Issue #1 MDC Infant Mortality Rate – 99.5% LDC Infant Mortality Rate – 95%

Access to Knowledge Chapter 9 Key Issue #1 Years of Schooling: How many years an average 25 year old has spent in school

Access to Knowledge Chapter 9 Key Issue #1 Years of Schooling: How many years an average 25 year old has spent in school Worldwide – 7 years

Access to Knowledge Chapter 9 Key Issue #1 Years of Schooling: How many years an average 25 year old has spent in school Worldwide – 7 years MDC’s – 11 years

Access to Knowledge Chapter 9 Key Issue #1 Years of Schooling: How many years an average 25 year old has spent in school Worldwide – 7 years MDC’s – 11 years LDC’s – 6 years

Access to Knowledge Chapter 9 Key Issue #1 Expected Years of Schooling: How much school will the average 5 year old attend? MDC’s – 16 years LDC’s – 11 years The average student will get 5 more years of education in the future, but the gap between MDC’s and LDC’s will remain the same

Access to Knowledge Chapter 9 Key Issue #1 Expected Years of Schooling: How much school will the average 5 year old attend? MDC’s – 16 years LDC’s – 11 years The average student will get 5 more years of education in the future, but the gap between MDC’s and LDC’s will remain the same

Access to Knowledge Chapter 9 Key Issue #1 Expected Years of Schooling: How much school will the average 5 year old attend? MDC’s – 16 years LDC’s – 11 years The average student will get 5 more years of education in the future, but the gap between MDC’s and LDC’s will remain the same

Access to Knowledge Chapter 9 Key Issue #1 Expected Years of Schooling: How much school will the average 5 year old attend? MDC’s – 16 years LDC’s – 11 years The average student will get 5 more years of education in the future, but the gap between MDC’s and LDC’s will remain the same

Years of Schooling vs. Expected Years of Schooling in summary… Chapter 9 Key Issue #1 Years of Schooling vs. Expected Years of Schooling

Expected Years of Schooling in summary… Chapter 9 Key Issue #1 Years of Schooling vs. Expected Years of Schooling How much school are kids getting now vs. how much are they going to get in the future.

Expected Years of Schooling in summary… Chapter 9 Key Issue #1 Years of Schooling vs. Expected Years of Schooling How much school are kids getting now vs. how much are they going to get in the future. The trend is upward

Expected Years of Schooling in summary… Chapter 9 Key Issue #1 Years of Schooling vs. Expected Years of Schooling How much school are kids getting now vs. how much are they going to get in the future. The trend is upward The MDC vs. LDC gap is staying the same

Quality of Schooling

Quality of Schooling Chapter 9 Key Issue #1 Pupil vs. Teacher Ratio: The fewer students a teacher has, the more individual instruction each one receives

Quality of Schooling Chapter 9 Key Issue #1 Pupil vs. Teacher Ratio: The fewer students a teacher has, the more individual instruction each one receives Literacy Rate: The percentage of a country’s people who can read and write

Quality of Schooling Chapter 9 Key Issue #1 Pupil vs. Teacher Ratio: The fewer students a teacher has, the more individual instruction each one receives Literacy Rate: The percentage of a country’s people who can read and write MDC’s – 99%

Quality of Schooling Chapter 9 Key Issue #1 Pupil vs. Teacher Ratio: The fewer students a teacher has, the more individual instruction each one receives Literacy Rate: The percentage of a country’s people who can read and write MDC’s – 99% 90% in East Asia and Latin America

Quality of Schooling Chapter 9 Key Issue #1 Pupil vs. Teacher Ratio: The fewer students a teacher has, the more individual instruction each one receives Literacy Rate: The percentage of a country’s people who can read and write MDC’s – 99% 90% in East Asia and Latin America 70% in Sub-Saharan Africa

Quality of Schooling

Variations Within Regions Chapter 9 Key Issue #1 Because of their large scale, there are often variations of development within regions, and even within countries. Just because a certain region has a development score of .743 does not mean that every country, and especially every city, within that country has that same score.

Variations Within Regions Chapter 9 Key Issue #1 Southwest Asia & North Africa

Variations Within Regions Chapter 9 Key Issue #1 Southwest Asia & North Africa Petroleum: Saudi Arabia, United Arab Emirates

Variations Within Regions Chapter 9 Key Issue #1 Southwest Asia & North Africa Petroleum: Saudi Arabia, United Arab Emirates Limited Reserves: Egypt, Jordan, Syria

Variations Within Countries Chapter 9 Key Issue #1 Major cities typically have the largest shares of national services and manufacturing sectors. Cities contain most leaders and public and private sectors, but also have the most extensive slums and areas of poverty.

Variations Within Countries Chapter 9 Key Issue #1 USA New England: 122% of National Average GDP per capita

Variations Within Countries Chapter 9 Key Issue #1 USA New England: 122% of National Average GDP per capita Southeast: 90% of National Average GDP per capita

Chapter 9 Key Issue #1

Variations Within Countries Chapter 9 Key Issue #1 Brazil Wealthy along Atlantic Coast

Variations Within Countries Chapter 9 Key Issue #1 China Wealthy along East Coast

Variations Within Countries Chapter 9 Key Issue #1 Mexico Relative wealth along U.S. border and Yucatan Peninsula (Tourism)

End of Key Issue #1