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

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

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

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

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

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

7. Human Development Index (HDI)
Chapter 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

8. Human Development Index (HDI)
Chapter 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

9. Human Development Index (HDI)
Chapter 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

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

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

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

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

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

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

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

17. Decent Standard of Living
HDI Considerations
Chapter Key Issue #1
Decent Standard of Living

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

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

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

22. Human Development Index (HDI)
Chapter 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

29. Gross National Income (GNI)
Chapter 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

30. Gross National Income (GNI)
Chapter 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.

31. Gross National Income (GNI)
Chapter 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

32. Gross National Income (GNI)
Chapter 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

33. Gross National Income (GNI)
Chapter 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 $ per student because GNI does not account for distribution of wealth

34. Gross National Income (GNI)
Chapter 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 $ per student because GNI does not account for distribution of wealth

35. Gross National Income (GNI)
Chapter 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 $ per student because GNI does not account for distribution of wealth

37. Gross Domestic Product (GDP)
Chapter 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

38. Gross Domestic Product (GDP)
Chapter 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)

39. Gross Domestic Product (GDP)
Chapter 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.

40. Gross Domestic Product (GDP)
Chapter 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

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

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

43. GNI is WHO makes the money
GNI vs. GDP
Chapter 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?)

45. Purchasing Power Parity (PPP)
Chapter 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

46. Purchasing Power Parity (PPP)
Chapter 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

47. Purchasing Power Parity (PPP)
Chapter 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

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

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

51. Inequality-Adjusted HDI (IHDI)
Chapter 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

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

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

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

55. Inequality-Adjusted HDI (IHDI)
Chapter 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.

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

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

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

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

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

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

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

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

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

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

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

67. Directly Extracting Earth’s Materials
Economic Structures
Chapter 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

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

69. Economic Structures Secondary Sector
Chapter 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

70. Economic Structures Secondary Sector
Chapter 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

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

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

73. Provisions of goods and services in exchange for payment
Economic Structures
Chapter 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

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

75. Value of a product compared to amount of labor needed to produce it.
Productivity
Chapter 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

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

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

78. Gross value of a product minus the cost of raw materials and energy
Value Added
Chapter 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 was $5,900 (think computers)

79. Gross value of a product minus the cost of raw materials and energy
Value Added
Chapter 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 was $5,900 (think computers)
Per capita value added in India in was $100

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

81. Consumer Goods
Chapter 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

82. Consumer Goods Telephones
Chapter 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.

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

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

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

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

88. Life expectancy is an important factor in the UN’s formula for HDI
Long and Healthy Life
Chapter 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

89. Life expectancy is an important factor in the UN’s formula for HDI
Long and Healthy Life
Chapter 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

90. Life expectancy is an important factor in the UN’s formula for HDI
Long and Healthy Life
Chapter 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

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

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

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

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

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

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

99. Access to Knowledge
Chapter 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

100. Access to Knowledge
Chapter 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

102. Access to Knowledge
Chapter 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

103. Access to Knowledge
Chapter 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

104. Access to Knowledge
Chapter 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

105. Access to Knowledge
Chapter 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

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

107. Expected Years of Schooling
in summary…
Chapter 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.

108. Expected Years of Schooling
in summary…
Chapter 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

109. Expected Years of Schooling
in summary…
Chapter 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

110. Quality of Schooling

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

112. Quality of Schooling
Chapter 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

113. Quality of Schooling
Chapter 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%

114. Quality of Schooling
Chapter 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

115. Quality of Schooling
Chapter 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

116. Quality of Schooling

117. Variations Within Regions
Chapter 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.

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

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

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

121. Variations Within Countries
Chapter 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.

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

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

124. Chapter Key Issue #1

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

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

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

128. End of Key Issue #1