Presentation on theme: "Unit VI Development & Industry"— Presentation transcript:
1 Unit VI Development & Industry Key Process #1Why does development vary among countries?
2 What is Development?The process of improving the material conditions of people through the diffusion of knowledge and technologyMore developed countries (MDCs)Lesser developed countries (LDCs)
3 Human Development Index (HDI) Measurement of the level of development designed by the United NationsHighest HDI possible is 1.0Considers develop. to be a function of 3 factors:Decent standard of livingLong & healthy lifeAccess to knowledgeCategories/Classes of HDI: very high (developed), high, medium, & low (developing)
5 Nine Regions in order of their HDI 1. North America: U.S. & Canada (very high)2. Europe: All but a handful of E. European countries (very high)Japan and the S. Pacific (New Zealand & Australia) are grouped w/ the developed regions3. Latin America: most are high developing4. E. Asia: most are medium developing5. Central Asia: medium overall; Iran (high) & Afghanistan (low)6. SE Asia: most are medium7. SW Asia & N. Africa: overall medium; Saudi Arabia (high) & Yemen (low)8. S. Asia: medium9. Sub-Saharan Africa: lowRussia: UN now classifies it as a developing country b/c of its limited progress
6 Economic indicators of development 1. Economic Structure (types of jobs)Primary sectorSecondary sectorTertiary sector: Quaternary, QuinaryFrom what you have learned thus far what kind of countries are associated w/ each economic sector?
7 2. Standard of LivingUN measures standard of living called annual gross national income per capital at purchasing power parityGross National Income (GNI): value of the output of goods & services produced in a country in a yr., including $ that leaves & enters the countryBy dividing GNI by the total pop., it is possible to measure the contribution made by the avg. individual toward generating a country’s wealth in a yr.EX. U.S. GNI 2011= $15 trillion, Pop.=312 million, so GNI per capita was about $47000Per capita GNI in developed countries was approx. $34,000 compared to $7,000 in developingPer capita GNI measures avg. (mean) wealth, not the distribution of wealthPurchasing power parity (PPP): adjustment made to the GNI to account for the differences among countries in the cost of goodsGross Domestic Product (GDP): value of the output of goods & services produced in a country in a yr., but does not account for the $ that leaves or enters the country
8 3. ProductivityValue of a particular product compared to the amount of labor needed to make itCan be measured by the value added per capitaValue added in manufacturing is the gross value of a product minus the costs of raw materials & energyWorkers in MDC’s produce more w/ less effort b/c they have access to more machines, tools, & equipment to perform much of the work
9 4. Consumer Goods MDC & consumer goods LDC & consumer goods Part of the wealth in developed countries is used to purchase goods & servicesEx. telephones, computers, vehiclesWhy are these goods & services important for development?Also use some wealth to establish infrastructureLDC & consumer goodsb/c possession of consumer goods is not universal in developing countries, a gap can emerge btw. the “haves” and “have-nots”Minority who have goods/services may include gov’t officials, business owners, other elitesThose who have these products are concentrated in urban areas
10 Social indicators of development 1. Access to KnowledgeQuantity of Schooling: UN uses 2 measuresYears of schooling: # of yrs. that the avg. person aged 25 & up has spent in school (avg. years for MDC=11, LDC=6)Expected years of schooling: # of years that a 5 yr. old is expected to spend in school (avg. years for MDC=16, LDC= 11)Quality of Schooling: UN uses 2 measuresPupil/teacher ratio: Lower in MDCLiteracy rate: % of a country’s people who can read and write (higher in MDC)Most books, newspapers, & mag. Are published in developed countriesMany technical information in books that are used in LDC are printed in English, German, Russian, or French
11 Social indicators of development 2. Health and welfareDiet (adequate calories)Access to health care
12 Demographic indicators of development 1. Life expectancyBabies born today in MDCs have a life expectancy in the 80s; babies born in LDCs, in the 60s2. Other demographic indicators:Infant mortalityNatural increaseCrude birth rateDependency ratio
14 Variation within countries & regions Variation within regionsVariation high in SW Asia & N. Africa and in Central AsiaDifferences on who possesses oilEx. Saudi Arabia, UAE, etc.Causes tension in regionVariations within countriesBrazil, China, & Mexico are among the world’s most populous countries and largestBrazil: richest along coast, lowest in interiorChina: richest along E. coast, lowest in interiorMexico: richest along border w/ U.S. & tourist areas
15 Inequality-Adjusted HDI (IHDI) Indicator of development that modifies that HDI to account for inequality within a countryIf the IHDI is lower that the HDI the country has some inequality; the greater the distance btw. them the greater the inequalityA country where only a few people have high incomes, college degrees, and good healthcare would have a lower IHDI than a country where differences in income, level of education, and access to healthcare are minimalLowest scores are in sub-Saharan Africa (highest inequality)**the lower the score the greater the inequalityEx. The IHDI is 0.77 in the U.S. and 0.83 in Canada. Which country has a greater inequality?