1. Development Review
Ch. 9

2. Big Ideas Measures of development Rostow’s Model
Wallerstein World Systems Theory
UN Millennium Goals
Fair Trade
Microfinance
Gender

3. Measure of Development
Countries are grouped into 4 classes
Very high developed
High developing
Medium developing
Low developing

4. Measure of Development
Every place lies at some point in development
Continuous process
To measure development, the UN created the Human Development Index (HDI)
Has computed HDIs since the 1980s
Highest possible score 1.0
Development is a function of three factors:
Decent standard of living
Long & healthy life
Access to knowledge

5. Decent Standard of Living
UN measures the standard of living through a annual gross national income per capita at purchasing power parity
Gross National Income (GNI): value of the output of goods & services produced in a country in a year, including the money that leaves & enters the country
Purchasing Power Parity (PPP): adjustment made to the GNI to account for differences among countries in the cost of goods

6. Decent Standard of Living
Avg. per capita is higher in developed countries because people typically earn their living by different means
Jobs fall into 3 categories/sectors
Primary – natural resource extractors
Secondary – manufacturers that process, transform, and assemble raw material
Tertiary – the provision of goods & services in exchange for payment
Contribution to GNI among the sectors varies between developed & developing

7. Decent Standard of Living
Part of the wealth generated in developed countries is to purchase goods & services
Especially important are goods & services related to transportation & communication
Every person should have access
Inequality adjusted HDI (IHDI) modifies the HDI to account for inequality within a country
Lowest scores in Sub-Saharan Africa & S. Asia

8. A Long & Healthy Life Good health is an important measure
Goal is to provide the nutrition & medical services needed
Life expectancy at birth is the HDI health indicator
With longer life expectancies, developed countries have a higher percentage of retired people & a lower percentage of children under 15

9. Access to Knowledge
UN believes that access to knowledge is essential for people to have the possibility of leading lives of value
Years of schooling is the most critical measure of the ability of an individual to gain access to knowledge
Also measures the quality of education
Pupil/Teacher ratio & Literacy rate

10. Gender Inequality
To measure extent of inequality, UN created the Gender Inequality Index
Combines multiple measures, including empowerment, labor, & reproductive health
Empowerment - % of seats held by women in national legislature & % who have completed high school
Labor – female participation rate
Reproductive health – maternal mortality ratio (# who die giving birth per 100,000) & adolescent fertility rate (# per 1000 women 15 – 19)

11. Gender Inequality
Gender inequality has declined since the 90s in nearly every country
US GII has increased
Points to two factors
Reproductive rights are lower than in any other very high HDI country
Percentage of women in national legislature is lower

12. Rostows Model Proposed in 1950s
Traditional – society has not yet started development
Preconditions to takeoff – progressive leadership moves the country toward greater productivity
Takeoff – country experiences something akin to an industrial revolution. Sustained growth takes hold, urbanization increases
Drive to maturity – technology diffuses, modernization is evident
Age of mass consumption – high incomes, widespread production, majority work in service sector

13. Rostows Model

14. Wallerstein
Depicted the relationship between the developed & developing countries
In an increasingly unified world, developed countries form a core area, whereas developing countries occupy peripheral locations

15. World-Systems Theory
North America, Europe, & Japan account for a higher percentage of the worlds economic activity & wealth
Developing country's have less access to the world centers of consumption, communications, wealth, & power.

17. UN Millennium Goals
To reduce disparities between developed & developing countries

19. Fair trade
Proposed as a variation of the international trade model of development.
Commerce in which products are made & traded according to standards to protect workers & small businesses.

20. Microfinance Alternative source of loans
Small loans & other financial services
Aids in the development of small businesses
Repayment of loans allows for future lending