2 Indicators of Development Economic indicators of developmentGross domestic product per capitaTypes of jobsRaw materialsConsumer goodsSocial indicators of developmentEducation and literacyHealth and welfareDemographic indicators of developmentLife expectancy – Infant mortality rateNatural increase rate – Crude birth rate
3 Human Development Index, 2005 Fig. 9-1: Developed by the United Nations, the HDI combines several measures of development: life expectancy at birth, adjusted GDP per capita, and knowledge (schooling and literacy).
4 Annual GDP per capita, 2005Fig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in most developed countries but under $5000 in most less developed countries.
6 Employment Changes by Sector Fig. 9-3: Percentage employment in the primary, secondary, and tertiary sectors of MDCs has changed dramatically, but change has been slower in LDCs.
7 Cellular Phones per Population Fig. 9-5: Cellular telephone lines per 1000 persons, Cell phones are now more common than land lines in much of Europe and Africa, but they are less common than land lines in North America.
8 Primary Student-Teacher Ratios Fig. 9-6: Students per teacher, primary school level. Primary school teachers have much larger class sizes in LDCs than in MDCs, partly because of the large numbers of young people in the population.
9 Health Care Expenditures per GDP Fig. 9-7: Expenditures on health care as percent of GDP, MDCs have much higher GDP and spend a greater proportion of GDP on health care than do LDCs.
10 Physicians per Population Fig. 9-8: Physicians per 1000 people, MDCs have three or more physicians per 1000 people compared to less than one in most LDCs.
11 Calories per capitaFig. 9-9: Daily available calories per capita as percent of requirements, In MDCs, the average person consumes one-third or more over the required average minimum, while in LDCs, the average person gets only the minimum requirement or less.
12 TerminologyNorth/South- Geography based terminology that generalizes the productivity of the global North and South1st World/3rd World- Cold war based terminology that generalizes based on free market alignment and countries that weren’t soviet or us aligned.More Developed/Less Developed- Generalization based on HDI and other development indicators.
13 More & Less Developed Regions More developed regionsAnglo-America – Western EuropeEastern Europe – JapanSouth PacificLess developed regionsLatin America – East AsiaSoutheast Asia – Middle EastSouth Asia – Sub-Saharan Africa
14 More & Less Developed Regions Fig. 9-11: The less developed regions include Latin America, Sub-Saharan Africa, Middle East, South Asia, East Asia, and Southeast Asia.
15 China, GDP per capita by Province Fig. 9-12: GDP per capita, China provinces, The highest gross GDP per capita is found along the eastern coast where manufacturing is concentrated, while income in much of the interior is far lower.
16 Development Strategies Development through self-sufficiencyElements of self-sufficiency approachProblems with self-sufficiencyDevelopment through international tradeRostow’s development modelExamples of international trade approachProblems with international tradeFinancing developmentFair trade
17 India Self-Sufficiency Approach India placed an emphasis on agricultural self- sufficiencyStrategyNurse domestic businessesLimit imports through tariffsDiscourage exporting goodsProblemsInefficiency- businesses can sell all they make at high government controlled prices.Large Bureaucracy- necessary to administer all the controls on the economy
18 Development Through International Trade Model Rostow’s Development Model1. Traditional Society2. The Preconditions for Takeoff3. The Takeoff4. The Drive to Maturity5. The Age of Mass ConsumptionEx: 4 Asian Dragons-Singapore, Taiwan, Hong Kong, South Korea and Arabian Peninsula Counties
19 Income & Demographic Change, 1980- 2005 Fig. 9-22: Rates of natural increase and infant mortality have remained much higher in LDCs than in MDCs. Since 1980, the natural increase rate has declined at about the same rates in MDCs and LDCs, while the infant mortality rate has declined more rapidly in LDCs. Per capita GDP has increased more in MDCs than in LDCs during this period.
20 Poor Infrastructure in Ghana Many roads in Africa and other developing nations are not paved. This and other problems of infrastructure are obstacles to economic development.
22 Debt as Percent of Income, 2005 Fig. 9-24: Many developing countries have accumulated large debts relative to their GDPs. Much of their budgets now must be used to finance their debt.
23 Core and Periphery in World Economy Fig. 9-25: This north polar projection of the world shows that most of the MDCs are in a core area north of 30° N latitude. The LDCs are mostly on the periphery of this map.
24 Halford Mackinder’s Heartland Theory Three core beliefs of Mackinder’s theory.Who rules East Europe commands the HeartlandWho rules the Heartland commands the World-IslandWho rules the World-Island commands the world