2 Human Development Index recognizes a country’s development level as a function ofeconomics (GDP per capita),social (literacy rate & level of education), anddemographic factors (life expectancy)Highest possible rank is 1.0
3 Economic IndicatorGDP per capita: the value of the total output of goods and services produced in a country in a normal year divided by total population
4 GDP per CapitaEuropean countries have the highest per capita GDP because of high GDP and low population.Luxembourg – $79,000Norway - $53,300Africa the lowest per capita GDP due to low GDP and high populationZimbabwe - $300DRC - $350
6 GDP Which countries have high GDP? Which countries have low GDP? (don’t just pick the easy ones you know)What is Luxembourg’s category of GDP? Which other countries are in the same category?Explain how the Western European country of Luxembourg has this level of GDP.
7 GDPThroughout this presentation – pay attention to Brazil, Russia, China, India, and South Africa.Let me explain when I sayRule of Thumb – what is generally happening in the areaWeird exception – in an area everything is generally one way except this one country is noticeably differentFor example – on the next slide the rule of thumb is Sub-Saharan Africa has a low GDP per capita, the weird exception is South Africa & Botswana
9 GDP per Capita Check Luxembourg – Is your explanation still valid? Check B, R, I, C, and SAWhich regions have high GDP per capita? Any weird exceptions?Which regions have low GDP per capita? Any weird exceptions?Can you see the core, semi-periphery, and periphery pattern?
10 What is the correlation of landlocked states and low GDP per capita What is the correlation of landlocked states and low GDP per capita? Weird exceptions?
11 What is the correlation of gov’t type and low GDP per capita? Monarchies:Constitutional MonarchyTraditional MonarchyAbsolute MonarchyRepublics:DemocracyRestricted Democratic PracticeAuthoritarian RegimeTotalitarian RegimeNon-Sovereign:ProtectorateColonial DependencyEmpireSource: Matthew White, Adapted from FreedomHouse.org
14 The left side of the x-axis means the government is very corrupt Correlation means when something happens then the other things happens to –The left side of the x-axis means the government is very corruptDoes HDI correlate government corruption?What is the relationship between government corruption and economic development?
15 Social IndicatorsLiteracy rate – the percentage of a country’s people who can read and write.Literacy rates exceed 98% in MDCsAmount of education – measured by taking the average number of years a student attends school in a country.
17 Literacy Rate Check B, R, I, C, and SA – anything unusual Which regions are high? Weird exceptions?Which regions are low? Weird exceptions?Why do the former Soviet countries, which is semi-periphery, have a high literacy rate
33 Natural Increase rate Crude Birth rate Rate at which the population increasesAround 1.5% in LDCs and .1% in MDCsThis causes social strain due to increased social cost.Crude Birth rateRate at which children are being born into the populationLDCs face a rate around 24 per 1000 while MDCs are around 11 per 1,000Because LDCs death rate is 8 per 1000 this leads to an enormous increase in population
35 Other Economic Indicators Sectors of the EconomyProductivityRaw MaterialsConsumer goods
36 Sectors of the EconomyPrimary –lowest sector of sophistication. Involves extracting materials directly from the earth; mining, agriculture, fishing, and forestryHigher % of population = greater chance of poverty
37 Sectors of the EconomySecondary sector – manufacturing that transforms raw materials into useful products.
38 Sectors of the EconomyTertiary – occupations based on providing services; tourism, restaurants, retail, etc.Most MDCs have the majority of their economy in this sector.Quantenary – service based occupations that are intellectual in nature; education, library services, government, etc.Quinary – service based occupations that involve cutting edge technology
39 Make a Prediction Regions that are primarily Primary Secondary Tertiary
40 The percentage of people working in agriculture exceeds 75% in many LDC’s of Africa and Asia. In Anglo-America and Western Europe the figure is <5%Primary Products
41 Africa is almost exclusively focused on Primary production.
42 Industrial SectorThe way to read this map – shown larger on the next slideThe country with the highest secondary sector output, Merica, is set to 100%.The other countries production is given as a percentage of what the USA is producing.So USA is producing $2.5 trillion, then Japan is producing 50% or $1.25 trillion.Ditto for the Service slide
45 ProductivityValue of a product in comparison to the labor needed to make it.It is measured by assessing the value added per workerValue added is the gross value of the product minus the costs of raw materials and energyUS has a value added of $80,000 in comparison to countries such as India at $500
46 ProductivityMDCs - produce more because of access to technology, tools, and equipment.Money earned is reinvested into new technology increasing overall output.LDCs - rely on animal and human power resulting in less production
48 Raw Materials Necessary for production Ex. United States and Russia - rapid industrial development due to an enormous amount of available resources.Ex. United Kingdom have had to establish colonies to replace depleted resourcesEx. Botswana, Namibia, South Africa – DeBeers Diamonds (founded by Cecil Rhodes)
52 Consumer GoodsCommunication, Internet use, and motor vehicles help citizens communicate and transport resources and informationThis helps to connect the resources and manufacturers which increases overall production
53 Consumer Goods LDCs are not likely to have this equipment available. creates a dichotomy between the urban dwellers who have this technology and the rural population that lacks it.