Where Does Level of Development Vary by Gender? C9K3

OBJECTIVES Gender-Related Development Index Gender Empowerment

Gender Related Development Index (GDI): compares the level of women’s development with that of both sexes Economic: income to man Social: school/ literacy to man Demographic: life expectancy to man Complete equality is 1.0

Gender Empowerment Measure (GEM): compares ability of women and men to participate in economic and political decision making. Economic indicators of empowerment: % of income & professional/technical jobs to (m) Political indicators of empowerment: % administration/ elected offices to (m) Complete equality is 1.0

Why Do LDCs Face Obstacles to Development? C9K4

OBJECTIVES Development Through Self-Sufficiency Development Through International Trade International Trade Approach Triumphs Financing Development Fair Trade

Path of Obstacles or Assistance Obstacles: 1) adopting policies that successfully promote development 2) Finding funds to pay for development 2 Models to Overcome: 1) international trade 2) self sufficiency

Development Through Self-Sufficiency “Socialist” approach to business: isolate LDC businesses from competition with MDC. Why? How it’s done? 1) High tariffs on imports 2) on imports 3) requiring licenses to import. Story of India: closed from foreign business: gov. controlled communications, transportation, power, insurance, and automakers.

Problem with the Self Sufficiency Alternative. 1) Protection of inefficient businesses: little incentive to improve quality, lower production costs, reduce prices, or increase production. Why? 2) Need for large bureaucracy: too many hands in the process = encouraged abuse & corruption.

Development Through International Trade 1) Traditional society agri/ nonproductive like religion and military 2) precondition for takeoff 3) takeoff

Examples of the International Trade Approach The Four Asian Dragons: South Korea, Singapore, Taiwan, Hong Kong: focused on a few manufacturing goods and low labor costs. Petroleum-Rich Arabian States: Saudi, Kuwait, Bahrain, Oman, UAB.

Problems with the International Trade Alternative Uneven resource distribution: decrease price of one commodity Increased dependence on MDCs: over dependency on export at the cost of domestic food, clothing producation Market Decline: decline on the dependency on low-cost manufactured goods

International Approach Triumphs Late 20th century: trade increased more rapidly than wealth. 1) foreign companies allowed to set up shop 2) free trade 3) monopolies were eliminated 4) increased competition improved quality LDC that converted to international trade from self sufficiency grew 4%

World Trade Organizations WTO: works to reduce or eliminate trade restrictions, movement of money by banks, companies, and individuals. Protects intellectual property, copyright violations Critics accuse WTO of advocating for MDC at the expense of LDC

Foreign Direct Investment FDI: Investments made by a foreign company in the economy of another country. FDI grew from 130 billion to 1.5 trillion in ten years. Uneven distribution ¾ from MDC to MDC. LDC = 1/3 to China. (TNCs) Transnational Corporation: invests and operates in countries other than the one it’s headquarters in.

Financing Development What’s the solution to LDC lack of financing? The World Bank: loans to reform government, develop/ strengthen financial institutions, and implement transportation/social services. The IMF: provides loans to needy countries: intended to prevent global depression. Critics: 1) don’t function bc of poor engineering 2) fraud, waste, abuse of funds 3) inability to attract other investments.

Structural Adjustment Programs MDC fear LDC ability to repay loans. Solution? Structural adjustment program: 1) loan only what it can afford 2) target poor 3) divert investment to health/ education 4) private sector investment 5) reform gov… more efficiency, transparent and accountable.

Fair Trade Benevolent Intention: Products are made and traded according to standards that protect workers and small businesses in LDCs. (cooperatives) farmers/ artisans can borrow in order to invest. Targets poor women. Encouraged to reinvest in community KIVA.org Consumers pay more to support fair trade (bypass exploitive middlemen) Critics: 1) have found in some cases less than 1% of the sale goes to the worker. 2) Child labor. 3) Poor working conditions.

Interesting Perspective