Development Chapter 9 By: Janessa Polanco, Olivia Parra, Fiona Dam, & Juan Garcia VS

Many couples give birth to an overabundance of children in order to support family. There is no health care to treat things like tuberculosis, or to almost guarantee a live birth. Compared, to the U.S. where the average income is $4000 a month, the average working household gets around $16, barely enough to supply the minimum amount of food. Case Study: Bangladesh’s Development Challenges

20 students/ 1 teacher 98% literacy rate life span: 70 Infant Mortality Rate: <.5% NIR: 0.2% CBR: 12 to 1000 MDC 30 students/ 1 teacher 60% literacy rate life span: 60 if survived first 5 years Infant Mortality Rate: 6% NIR: 1.5% CBR: 23 to 1000 LDC

VS Sub-Saharan Africa United States

How HDI is Calculated You classify a country by selecting one economic factor, two social factors, and one demographic factor. Then from there a team of analysts best reveal a country’s level of development: Economic factor: GDP (gross domestic product) per capita Social factors: literacy rate and amount of education Demographic factor: life expectancy

More Developed Regions HDI North America0.95 Europe0.93 Russia0.73 Japan0.96 Oceania0.90 Less Developed RegionsHDI Latin America0.82 East Asia0.77 SW Asia and N Africa0.74 Southeast Asia0.73 Central Asia0.70 South Asia0.61 Sub-Saharan Africa0.51

Brandt Line

three-sector hypothesis: common system of division of major economic activities into: primary, secondary, and tertiary sectors ↛ primary: acquiring of natural resources and raw materials ■ wood, steel, coal ■ industries such as forestry, fishing, and farming ↛ secondary: production/processing of merchandise ■ homes, devices, vehicles, pottery, building structures ↛ tertiary: offered services ■ real estate agents, management, financial assistance Economic Sectors

Theories and Models of Economic Development ↛ Harrod-Domar Growth Model - economy’s growth rate: ■ amount of saving/efficiency of investmentefficiency ■ net investment leads to more capital accumulation, which generates higher output and income. ↛ Lewis Structural Change Model - dual economy: ■ models the change of capitalist and subsistence sectors ■ higher incomes generate savings/more savings mean more fund available for investment.

According to the UN gender inequality exists in every country in favor of males, some more than others. Gender-Related Development Index

● Economic indicator of gender differences: Per capita female income as a percentage of per capita male income. ● Social indicators of gender differences: # of females enrolled in school compared to males and % of of literate females: % of literate males ● Demographic indicator of gender differences: life expectancy of females to males How GDI is calculated

Self-Sufficiency Self-Sufficiency: “Balanced equally. Equal economy, reduce poverty, isolate businesses to help, barriers limit imports, restrict local business” -quizlet Purpose? “Under self-sufficiency, incomes in the countryside keep pace with those in the city, and reducing poverty takes precedence over encouraging a few people to become wealthy consumers.”

How Self-Sufficiency is Promoted ❖ Taxes: also known as tariffs are placed on imported items so they are not easily affordable ❖ Quotas: used to limit the quantity of imported goods ❖ Licenses: required to restrict # of legal importers

1.End poverty and hunger 2.Achieve universal primary education 3.Promote gender equality 4.Reduce child mortality 5.Improve maternal health 6.Combat HIV/AIDS, malaria, and other diseases 7.Ensure environmental stability 8.Develop a global partnership for development Millennium Development Goals

❖ fair trade: products are made and traded according to standards that protect workers and small businesses in LDCs ❖ productivity: the value of a particular product compared to the amount of labor needed to make it ❖ value added: the gross value of the product minus the costs of raw materials and energy Vocabulary