1. Chapter 9: Development Chapter 11: Industry and Manufacturing

2. 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, newly industrialized, or developing countries

3.  Human Development Index (HDI)  A decent standard of living (GDP)  A long healthy life (life expectancy)  Access to knowledge (literacy rate & amount of education)  Highest score 1.0 (100%)  Four classes: 1. very high developed 2. High developing 3. Medium developing 4. Low developing

4. 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).

5. HDI BY REGION  NORTH AMERICA—USA & CANADA VERY HIGH DEVELOPED  EUROPE—MAJORITY VERY HIGH DEVELOPED, VERY FEW BELOW  LATIN AMERICA—MOST HIGH DEVELOPING  EAST ASIA—MEDIUM DEVELOPING  CENTRAL ASIA—MANY MEDIUM BUT VARIES WIDELY  SOUTHEAST ASIA—MOST IN MEDIUM DEVELOPING  SOUTHWEST ASIA & NORTH AFRICA—MANY MEDIUM DEVELOPING BUT VARIES WIDELY  SOUTH ASIA—MOST IN MEDIUM DEVELOPING  SUB-SAHARAN AFRICA—MOST IN LOW DEVELOPING

6. INEQUALITY-ADJUSTED HDI  Indicator that adjusts the HDI to account for inequality within a country  Perfect conditions: HDI=IHDI  If IHDI<HDI than some inequality exists  The greater the difference, the greater the inequalitiy  Lowest scores=highest inequality

7. A DECENT STANDARD OF LIVING  INCOME  Annual gross national income per capita income at purchasing power parity  Gross National Income (GNI) measures the output of goods and services of in country per year  Purchasing Power Parity (PPP) adjusts GNI to account for differences in costs of goods for countries around the world  GNI/total pop. allows up to measure contribution by average individual toward country’s wealth  Per capita GNI measures average (mean) wealth NOT distribution

8. MEASURING DEVELOPMENT Gross National Product (GNP) Measurement of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year. Includes things produced inside and outside a country’s territory. Gross National Income (GNI) Measure of the monetary worth of what is produced within a country plus income received from investments outside the country. ** Most common measurement used today. Gross Domestic Product (GDP) Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year.

9. ECONOMIC STRUCTURE  Primary sector—activities that extract raw materials  Secondary sector—activities that add value to raw goods  Tertiary sector—service industry

10. ISSUES WITH MEASURING ECONOMIC DEVELOPMENT All measurements count the: Formal Economy – the legal economy that governments tax and monitor. All measurements do not count the: Informal Economy – the illegal or uncounted economy that governments do not tax or keep track of.

11. PRODUCTIVITY  Workers in more developed countries are more productive than developing  Productivity—value of a particular product compared to the amount of labor needed to make it  Workers in developed countries produce more with less effort  More machines, tools, and equipment

12.  Products that promote transportation and communication are virtually available to all residents of developed countries  These goods are not essential to live (luxury items)  Create “have” and “have-nots” in developing countries  Can lead to rebellion, protest, etc  Advancements in technology have narrowed the gap between the wealthy and poor

13. MOTOR VEHICLES PER 1,000 PERSONS Good indicator of development

14. DIFFERENCES IN COMMUNICATIONS CONNECTIVITY AROUND THE WORLD

15.  The health indicator used in HDI is life expectancy at birth  Average baby boy: 70 yrs old  MCD: 80 yrs old  LDC: 68 yrs old  Developed countries has resources to care for their sick  Private insurance  Welfare  Advanced infant care= lower infant mortality rates A LONG HEALTHY LIFE

16. ACCESS TO KNOWLEDGE  # of years in school is most critical measure of an individual’s ability to gain knowledge  Quantity of schooling  Years of schooling  Expected years of schooling

17. ACCESS TO KNOWLEDGE  Quality of schooling  Pupil/teacher ratio  Smaller ratio=more effective instruction  Literacy rate  Improved education is a goal of many countries but funding is scarce

18. 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

19.  A countries history  Political/economic obstacles  Physical Geography  Access to/availability of resources  Location  http://www.ted.com/talks/hans_rosling_reveal s_new_insights_on_poverty http://www.ted.com/talks/hans_rosling_reveal s_new_insights_on_poverty

20.  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  SW Asia, SE Asia, Central Asia = similar HDI  South Asia and sub-Saharan = low levels of development WHERE ARE MDCS AND LDCS DISTRIBUTED?

21. MORE AND LESS DEVELOPED REGIONS The less developed regions include Latin America, Sub-Saharan Africa, Middle East, South Asia, East Asia, and Southeast Asia.

22.  HDI rankings can overlook gender inequality  Cultural & legal obstacles can limit women’s participation in development and access to its benefits  Gender inequality is a major factor in a country’s struggle to achieve higher development

23. GENDER INEQUALITY INDEX (GII)  Replaces other gender measures  Higher GII = greater inequality  Score of 0 means men and women are equal  Highest GII  Sub-Saharan Africa  South Asia  Central Asia  Southwest Asia  In general, countries with high HDI have low GII

24. The GDI combines four measures of development, reduced by the degree of disparity between males and females.

25. EMPOWERMENT 1. Percentage of seats held by women in the national legislature  Fewer women hold positions of political power in both MDCs & LDCs  No country has a parliament/congress with majority women  Europe has highest percentages  US= 1/6 of Senate and the House—below many developing countries 2. Percentage of women who have completed high school  North America—girls are more likely to graduate than boys  Europe—boys are slightly ahead  Developing countries graduating ratios 10:8  EX: South Asia 10:5

26. LABOR FORCE  Female labor force participation rate: % of women holding full-time jobs outside the home  Women in developed countries are more likely to hold jobs outside of the home  75:100 women to men in developed countries  65:100 women to men in developing countries  Lowest rates in Southwest Asia and North Africa 35:100  Sub-Saharan Africa holds the world’s highest ratio 77:100  Agriculture & service jobs

27. REPRODUCTIVE HEALTH 1. Maternal mortality ratio 1. 15/100,000 developed 2. 140/100,000 developing 2. Adolescent fertility rate 1. 20/1,000 developed 2. 60/1,000 developing  In countries where effective control of reproduction is universal, women have fewer children and maternal & child health are improved  Women in developing regions are more likely to die during childbirth & to give birth as teenagers

28. TRENDS  Gender inequality has declined since 1990s  Greatest improvements in Southwest Asia & North Africa  United States GII: 47  HDI: 4 th  Reproductive rights are lower  % of women in national legislature is much lower