2 Key Issue #1Why Does Development Vary Among Countries?
3 DevelopmentThe process of improving the material conditions of people through the diffusion of knowledge and technologyMore developed countries (MDCs)AKA developed countriesLesser developed countries (LDCs)AKA emerging or developing countries
4 Why Does Development Vary Between Countries? Economic indicators of developmentThe Human Development Index (HDI)Four factors used to assess a country’s level of development:Economic = (1) gross domestic product (GDP) per capitaSocial = (2) literacy and (3) amount of educationDemographic = (4) life expectancy
5 Human Development Index 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).
6 Annual GDP per CapitaFig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in most developed countries but under $5,000 in most less developed countries.
7 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.
8 Why Does Development Vary Among Countries? Economic indicators of developmentTypes of jobsPrimary sectorSecondary sectorTertiary sectorProductivityMeasured by the value added per capitaMDCs are more productive than LDCsConsumer goodsMotor vehicles, telephones, and televisions
9 Telephones per Population Fig. 9-4: Mean telephone lines per 1,000 persons, MDCs have several dozen phone lines per 1,000 persons, while the poorer developing countries may have less than 10.
11 Why Does Development Vary Among Countries? Social indicators of developmentEducation and literacyThe literacy rateHealth and welfareDiet (adequate calories)Access to health care
12 Student-Teacher Ratios Fig. 9-5: 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 (Fig. 2-15).
13 Persons per PhysicianFig. 9-6: There is a physician for every 500 or fewer people in most MDCs, while thousands of people share a doctor on average in LDCs.
14 Calories per CapitaFig. 9-7: 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.
15 Why Does Development Vary Among Countries? Demographic indicators of developmentLife expectancyBabies born today in MDCs have a life expectancy in the 70s-80s; babies born in LDCs, in the 40s-60sOther demographic indicators:Infant mortalityNatural increaseCrude birth rate
16 Key Issue #2Where Are MDCs and LDCs Distributed?
17 Where are MDCs and LDCs Distributed? More developed regionsNorth America and EuropeOther MDCs with high HDI = Russia, Japan, Australia, and New ZealandLess developed regionsLatin America = highest HDI among LDCsSouthwest Asia, Southeast Asia, Central Asia = similar HDISouth Asia and sub-Saharan Africa = low levels of development
18 More and Less Developed Regions Fig. 9-8: The less developed regions include Latin America, Sub-Saharan Africa, Middle East, South Asia, East Asia, and Southeast Asia.
20 Air Pollution in Eastern Europe Fig : Sulfate emissions in the Czech Republic and Slovakia. GIS was used to map previously secret data on air pollution after the fall of the communist regime. Extremely high levels were found in some of the main industrial areas.
21 Minerals in AfricaFig. 9-9: Although several African countries have important minerals, the world prices of many of these have lagged the prices of industrial products, services, and energy.
22 Key Issue #3Where Does Level of Development Vary by Gender?
23 Where Does Level of Development Vary by Gender? Gender-Related Development Index (GDI)Compares the level of women’s development with that of both sexesFour measures (similar to HDI):Per capita female incomes as a percentage of male per capita incomesNumber of females enrolled in school compared to the number of malesPercent of literate females to literate malesLife expectancy of females to males
24 Gender-Related Development Index (GDI) Figure 9-17
25 Where Does Level of Development Vary by Gender? Gender Empowerment Measure (GEM)Compares the decision-making capabilities of men and women in politics and economicsUses economic and political indicators:Per capita female incomes as a percentage of male per capita incomesPercentage of technical and professional jobs held by womenPercentage of administrative jobs held by womenPercentage of women holding national office
31 Income and Demographic Change, 1980–2004 Fig. 9-19: Per capita GDP has increased more in MDCs than in LDCs during this period, while population growth and infant mortality have declined more rapidly in MDCs than in LDCs.
32 Why Do LDCs Face Obstacles to Development? Development through self-sufficiencyCharacteristics:Pace of development = modestDistribution of development = evenBarriers are established to protect local businessThree most common barriers = (1) tariffs, (2) quotas, and (3) restricting the number of importersTwo major problems with this approach:Inefficient businesses are protectedA large bureaucracy is developed
33 Why Do LDCs Face Obstacles to Development? Development through international tradeRostow’s model of developmentExamples of international trade approachThe “four Asian dragons” (aka “four little tigers”)Petroleum-rich Arabian Peninsula statesThree major problems:Uneven resource distributionIncreased dependence on MDCsMarket decline
34 Why Do LDCs Face Obstacles to Development? International trade approach triumphsThe path most commonly selected by the end of the twentieth centuryCountries convert because evidence indicates that international trade is the more effective path toward developmentExample: IndiaWorld Trade OrganizationForeign direct investmentTransnational corporations
35 Triumph of International Trade Approach Figure 9-28Figure 9-27
36 Foreign Investment Flows Fig. 9-21: Three-quarters of foreign investment flows from one MDC to another. Only one-quarter goes from an MDC to an LDC.
37 Core and Periphery in World Economy Fig. 9-22: 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.