4 Human Development Index (HDI) A country’s level of development can be distinguished according to three factors – economic, social, and demographicHDI created by the UN, recognizes that a country’s level of development is a function of all three of these factorsHDI- uses one economic factor, two social factors and one demographic factor to best reveal a country’s level of developmentWhat region of world has highest? Lowest?FlashCard
5 Economic Indicators of Development What words come to mind when you think ECONOMY or ECONOMIC?What types of economic indicators determine whether a country is an LDC or an MDCs?With a partner brainstorm 3-4 characteristics for each
6 Read Key Issue 1: p.293-296 Economic Indicators of Development GDP:value of total output of goods & services produced IN a country, usually in 1 yearWhich 15 countries do you think had HIGHEST?GDP 2011MDCLDC$15/hour$2/hourGov’t mandated min. wagePer Capita GDP $27,000$4,000Luxembourg: $60,000Some LDCs <$1,000FlashCard
7 GDPCan be misleading.Cannot perfectly measure level of a country’s devlp’tWhy?US: GDP per capita $40,0001/8 of US is in poverty
8 Types of Jobs Average per capita income higher in MDCs Jobs are differentWhat types of jobs do you imagine most people do in LDCs? MDCs?
9 Types of Jobs Primary Sector: Secondary Sector: Tertiary Sector: Directly extract materials from Earth through agriculture, mining, fishing, forestrySecondary Sector:Includes manufacturers that process, transform & assemble raw materials into products or finished consumer goodsTertiary Sector:The provision of goods & services to people in exchange for serviceProvide an example for eachFlashCard
10 Types of JobsLDCsMDCsAgriculture 60% of peopleAgriculture <5% of peopleSpend days producing food for survivalSmall amt of farmers produce enough for entire societyMDCs have decreasing amount of jobs in Primary & Secondary SectorsWhy???
12 Types of JobsWhy do MDCs have less jobs in Primary & Secondary Sectors?Primary:better technology in MDCs, less farmers neededSecondary:Increased global competition for factory jobs
13 ProductivityThe value of a particular product compared to the amount of labor needed to make itWorkers in MDCs are more productive than LDCsMDCLDCOutput5 factory workers100 factory workers1,000 shoes5 farmers100 farmers1,000lbs of corn
14 Productivity“Value Added” : the total value of product minus costs of raw materials and energyHow are workers in MDCs able to produce more with less effort?What do LDCs rely on to increase production?MDCs use higher GDP to pay for machinery more productivity more wealthCountryValue Added per Manufacturing WorkerUnited States$80,000Japan$70,000China$1,000India$500
15 Raw Materials Need access to raw materials for development Why? Examples?Coal, Oil, Natural Gas, Uranium (nuclear power)US & Soviet UnionPowerful industrial countriesWide variety of raw materials/energy sources for devlp’t
16 Raw Materials UK – 1st country to develop Coal & iron ore: make & power machinesEuropean countries followed industrial trendRan out of raw materials. Now what???Colonized Africa & Asia for more!Slowed down their chance for developmentWhy didn’t they develop right after gaining independence?
17 Raw Materials LDCs continued to export Raw Materials Potential for developmentRaw materials gain/lose importanceExamples????Oil in Middle EastCotton in India
18 Raw MaterialsCountry with abundance resources has better chances to developNot ALWAYS the caseJapan: manufacturing & service (75% of total output)South Korea: export-orientedSwitzerland: 73% tertiary (service) sectorActive in World Trade
19 Consumer Goods Wealth used to purchase goods & services Transportation & communication products accessible in MDCsNot as important for LDCsImportance for DevelopmentMotor VehiclesAccess to jobs & services, distribute productsComputersSharing info with buyersTelephonesCommunicate with customers
21 Consumer Goods Per 1000 LDCs MDCs Land-Line Phones <100 500 Motor Vehicles400Internet Users300LDCs are familiar but cannot afford these goodsMinority that can are business owners, gov’t officialsThe Haves and Have Nots
23 Social Indicators of Development What types of social indicators do you think would determine whether a country is an LDC or an MDCs?With a partner brainstorm 3 characteristics for each
24 Social Indicators of Development MDCs use wealth to provide schools, hospitals & welfare servicesBetter educated, healthier, better protected from hardshipsInfants more likely to surviveAdults more likely to live longerPopulation can be more economically productive
25 Education and Literacy What can we infer from this data?
26 Education and Literacy Higher development greater quantity & quality of educationTo measure quantity of education:Years of school attendedTo measure quality of education:Student/teacher ratioLiteracy rate: percentage of a country’s people who can read & writeFlashCard
27 Education and Literacy MDCsLDCsYears in School10yearsa couple yearsStudent/Teacher RatioEx: 30/12x greater. Ex: 60/1Literacy Rate98%Less than 60%MDCs publish more books, newspapers, magazines per person b/c more people can read/writeMDCs dominate scientific & nonfiction publishingLDCs must learn language of books in order to read
28 Health and Welfare People in MDCs are healthier. Why? People in LDCs More resources to care for peopleSpend more than 8% of GDP on health careMore hospitals, doctors, nursesPeople in LDCsSpend less than 6% of GDP on health care
32 Health and WelfareHealth care is public service in many wealthy countriesGov’t pays more than 70% of costs in most European countriesIn LDCs, private individuals pay for more than 50%What would you expect the pay out cost for the US to be?55%
33 Health and Welfare MDCs protect people who are unable to work Sick ElderlyPoorDisabledOrphanedVeteransWidowsUnemployedSingle parents
34 Health and WelfareWhat has made funding these public assistance programs difficult in recent years?Economic growth has slowed downPercentage of people needing assistance has grownGov’ts must decide to reduce benefits or increase taxes
35 Demographic Indicators of Development Many demographic differences between MDCs & LDCsWhat types of demographic differences do you expect?Life ExpectancyInfant Mortality RateNatural Increase RateCrude Birth Rate
36 Life Expectancy MDCs permit people to live longer MDCs: 70s LDCs: 60s Females live longer10yrs more in LDCs13yrs more in MDCsWhat problems can arise from this?
37 Infant Mortality Rate Why is infant mortality rate greater in LDCs? MalnutritionLack of medicineDehydration, diarrheaPoor medical practicesDirty knife to cut umbilical cord
38 Natural Increase Rate Percentage growth of a population 1.5 in LDCs 0.1 in MDCs
39 Crude Birth Rate LDCs have higher CBR 24 per 1000 MDCs 11 per 1000 Why is CBR higher in LDCs?Women in MDCs choose to have less children for econ & social reasons, birth control
40 Crude Birth Rate Why isn’t CDR used to determine level of development? CDR is lower in LDCsDiffusion of medical technology from MDCsMDCs have higher percentage of older people (high mortality) & lower percentage of children (low mortality)