Chapter 9 Development

Key Issue #1 Why Does Development Vary Among Countries?

Development The process of improving the material conditions of people through the diffusion of knowledge and technology More developed countries (MDCs) AKA developed countries Lesser developed countries (LDCs) AKA emerging or developing countries

Why Does Development Vary Between Countries? Economic indicators of development The Human Development Index (HDI) Four factors used to assess a country’s level of development: Economic = (1) gross domestic product (GDP) per capita Social = (2) literacy and (3) amount of education Demographic = (4) life expectancy

Human Development Index Fig. 9-1: Developed by the United Nations, the HDI combines several measures of development: life expectancy at birth, adjusted GDP per capita, and knowledge (schooling and literacy).

Annual GDP per Capita Fig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in most developed countries but under $5,000 in most less developed countries.

Employment Changes by Sector Fig. 9-3: Percentage employment in the primary, secondary, and tertiary sectors of MDCs has changed dramatically, but change has been slower in LDCs.

Why Does Development Vary Among Countries? Economic indicators of development Types of jobs Primary sector Secondary sector Tertiary sector Productivity Measured by the value added per capita MDCs are more productive than LDCs Consumer goods Motor vehicles, telephones, and televisions

Telephones per Population Fig. 9-4: Mean telephone lines per 1,000 persons, 2002. MDCs have several dozen phone lines per 1,000 persons, while the poorer developing countries may have less than 10.

Motor Vehicles Per 1,000 Persons Figure 9-4

Why Does Development Vary Among Countries? Social indicators of development Education and literacy The literacy rate Health and welfare Diet (adequate calories) Access to health care

Student-Teacher Ratios Fig. 9-5: Students per teacher, primary school level. Primary school teachers have much larger class sizes in LDCs than in MDCs, partly because of the large numbers of young people in the population (Fig. 2-15).

Persons per Physician Fig. 9-6: There is a physician for every 500 or fewer people in most MDCs, while thousands of people share a doctor on average in LDCs.

Calories per Capita Fig. 9-7: Daily available calories per capita as percent of requirements. In MDCs, the average person consumes one-third or more over the required average minimum, while in LDCs, the average person gets only the minimum requirement or less.

Why Does Development Vary Among Countries? Demographic indicators of development Life expectancy Babies born today in MDCs have a life expectancy in the 70s-80s; babies born in LDCs, in the 40s-60s Other demographic indicators: Infant mortality Natural increase Crude birth rate

Key Issue #2 Where Are MDCs and LDCs Distributed?

Where are MDCs and LDCs Distributed? More developed regions North America and Europe Other MDCs with high HDI = Russia, Japan, Australia, and New Zealand Less developed regions Latin America = highest HDI among LDCs Southwest Asia, Southeast Asia, Central Asia = similar HDI South Asia and sub-Saharan Africa = low levels of development

More and Less Developed Regions Fig. 9-8: The less developed regions include Latin America, Sub-Saharan Africa, Middle East, South Asia, East Asia, and Southeast Asia.

More and Less Developed Regions Figure 9-10

Air Pollution in Eastern Europe Fig. 9-1-1: Sulfate emissions in the Czech Republic and Slovakia. GIS was used to map previously secret data on air pollution after the fall of the communist regime. Extremely high levels were found in some of the main industrial areas.

Minerals in Africa Fig. 9-9: Although several African countries have important minerals, the world prices of many of these have lagged the prices of industrial products, services, and energy.

Key Issue #3 Where Does Level of Development Vary by Gender?

Where Does Level of Development Vary by Gender? Gender-Related Development Index (GDI) Compares the level of women’s development with that of both sexes Four measures (similar to HDI): Per capita female incomes as a percentage of male per capita incomes Number of females enrolled in school compared to the number of males Percent of literate females to literate males Life expectancy of females to males

Gender-Related Development Index (GDI) Figure 9-17

Where Does Level of Development Vary by Gender? Gender Empowerment Measure (GEM) Compares the decision-making capabilities of men and women in politics and economics Uses economic and political indicators: Per capita female incomes as a percentage of male per capita incomes Percentage of technical and professional jobs held by women Percentage of administrative jobs held by women Percentage of women holding national office

Gender Empowerment Measure (GEM)

Demographic Indicator of Gender Difference: Life Expectancy Figure 9-21

Economic Indicator of Empowerment: Professionals

Key Issue #4 Why Do Less Developed Countries Face Obstacles to Development?

Progress Toward Development Figure 9-26

Income and Demographic Change, 1980–2004 Fig. 9-19: Per capita GDP has increased more in MDCs than in LDCs during this period, while population growth and infant mortality have declined more rapidly in MDCs than in LDCs.

Why Do LDCs Face Obstacles to Development? Development through self-sufficiency Characteristics: Pace of development = modest Distribution of development = even Barriers are established to protect local business Three most common barriers = (1) tariffs, (2) quotas, and (3) restricting the number of importers Two major problems with this approach: Inefficient businesses are protected A large bureaucracy is developed

Why Do LDCs Face Obstacles to Development? Development through international trade Rostow’s model of development Examples of international trade approach The “four Asian dragons” (aka “four little tigers”) Petroleum-rich Arabian Peninsula states Three major problems: Uneven resource distribution Increased dependence on MDCs Market decline

Why Do LDCs Face Obstacles to Development? International trade approach triumphs The path most commonly selected by the end of the twentieth century Countries convert because evidence indicates that international trade is the more effective path toward development Example: India World Trade Organization Foreign direct investment Transnational corporations

Triumph of International Trade Approach Figure 9-28 Figure 9-27

Foreign Investment Flows Fig. 9-21: Three-quarters of foreign investment flows from one MDC to another. Only one-quarter goes from an MDC to an LDC.

Core and Periphery in World Economy Fig. 9-22: This north polar projection of the world shows that most of the MDCs are in a core area north of 30° N latitude. The LDCs are mostly on the periphery of this map.