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Measures of Development

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Presentation on theme: "Measures of Development"— Presentation transcript:

1 Measures of Development

2 Human Development Index
recognizes a country’s development level as a function of economics (GDP per capita), social (literacy rate & level of education), and demographic factors (life expectancy) Highest possible rank is 1.0

3 Economic Indicator GDP 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 Capita European countries have the highest per capita GDP because of high GDP and low population. Luxembourg – $79,000 Norway - $53,300 Africa the lowest per capita GDP due to low GDP and high population Zimbabwe - $300 DRC - $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 GDP Throughout this presentation – pay attention to Brazil, Russia, China, India, and South Africa. Let me explain when I say Rule of Thumb – what is generally happening in the area Weird exception – in an area everything is generally one way except this one country is noticeably different For 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

8 GDP per Capita

9 GDP per Capita Check Luxembourg – Is your explanation still valid?
Check B, R, I, C, and SA Which 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 Monarchy Traditional Monarchy Absolute Monarchy Republics: Democracy Restricted Democratic Practice Authoritarian Regime Totalitarian Regime Non-Sovereign: Protectorate Colonial Dependency Empire Source: Matthew White, Adapted from

12 Another map of government type


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 corrupt Does HDI correlate government corruption? What is the relationship between government corruption and economic development?

15 Social Indicators Literacy rate – the percentage of a country’s people who can read and write. Literacy rates exceed 98% in MDCs Amount of education – measured by taking the average number of years a student attends school in a country.

16 Literacy Rate

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

18 Years in School

19 Years in School Check B, R, I, C, and SA – anything unusual?
Which regions are high? Weird exceptions? Which regions are low? Weird exceptions?

20 Compare – any significant differences?
Do you see core, semi-periphery, and periphery?

21 Demographic Indicators
Life expectancy This is the average age of death for the citizenry Because of better healthcare, people in MDCs tend to live years longer than in LDCs.

22 Life Expectancy

23 Life Expectancy Do you see core, semi-periphery, and periphery?
Check B, R, I, C Pay particular attention to South Africa – Why?

24 Make a Prediction Which regions have a high HDI? Low HDI?

25 Human Development Index

26 HDI Do you see core, semi-periphery, and periphery?
Check B, R, I, C and SA

27 Other Indicators

28 Health Expenditure as % of GDP

29 Physicians /1,000 persons

30 Physicians /1,000 persons Why do the former Soviet countries have so many physicians?

31 Pvt Expenditure as % of Total Health Expenditure

32 Infant Mortality Rates

33 Natural Increase rate Crude Birth rate
Rate at which the population increases Around 1.5% in LDCs and .1% in MDCs This causes social strain due to increased social cost. Crude Birth rate Rate at which children are being born into the population LDCs face a rate around 24 per 1000 while MDCs are around 11 per 1,000 Because LDCs death rate is 8 per 1000 this leads to an enormous increase in population

34 NIR

35 Other Economic Indicators
Sectors of the Economy Productivity Raw Materials Consumer goods

36 Sectors of the Economy Primary –lowest sector of sophistication. Involves extracting materials directly from the earth; mining, agriculture, fishing, and forestry Higher % of population = greater chance of poverty

37 Sectors of the Economy Secondary sector – manufacturing that transforms raw materials into useful products.

38 Sectors of the Economy Tertiary – 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

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 Sector The way to read this map – shown larger on the next slide The 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

43 Industrial Sector


45 Productivity Value of a product in comparison to the labor needed to make it. It is measured by assessing the value added per worker Value added is the gross value of the product minus the costs of raw materials and energy US has a value added of $80,000 in comparison to countries such as India at $500

46 Productivity MDCs - 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 resources Ex. Botswana, Namibia, South Africa – DeBeers Diamonds (founded by Cecil Rhodes)

49 Diamond Mines

50 Raw Materials Other countries have lots of resources but foreign private industries are responsible for mining (Diamonds in South Africa).


52 Consumer Goods Communication, Internet use, and motor vehicles help citizens communicate and transport resources and information This 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.





58 Motor vehicles per capita

59 Differences in Communications Connectivity Around the World

60 Does Place Matter?


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