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International Development

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1 International Development
LQ’s for Development – chapter 9 1) Why does development vary among countries? 2) Where are more and less developed countries distributed? 3) How does development affect gender? 4) Why do LDC’s face obstacles to development? The single most important geographic fact of development is its striking UNEVENNESS. 1

2 Development indicators? Take notes under each column as we discuss!
Economic Social Demographic

3 What is development? What does it mean to be developed? Developing?

4 Development: evolution, growth, expansion, enlargement, progress
More Developed Country (MDC): have a highly developed economy and advanced technological infrastructure. The criteria for evaluating the degree of economic development are gross domestic product (GDP), the per capita income, level of industrialization, amount of widespread infrastructure and general standard of living.

5 Development: evolution, growth, expansion, enlargement, progress
Less Developed Country (LDC): Meets three criteria: Poverty Human resource weakness (poor nutrition, health, education and adult literacy) Economic vulnerability: unstable agricultural production, lacking exports of goods and services, and the percentage of population displaced by natural disasters

6 Human Development Index (HDI)
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).

7 What Do We Mean By Development? Key Issue 1…
The three objectives of development increases in availability and improvements in the distribution of food, shelter, health, protection, etc. improvements in ‘levels of living,’ including higher incomes, more jobs, better education, etc. expansions in the range of economic and social choices available to individuals and nations

8 What is the Human Development Index? (HDI)

9 Measuring Development - HDI
United Nations Development Program Overview 2005 Click for Animated Graphs Economic Indicators Gross Domestic Product (GDP, also GNIPP) Types of Work (Economic Sectors) Social Indicators Education and Literacy Health and Welfare Demographic Indicators Life Expectancy ( years) Infant Mortality (<10 - >100 per thousand) Natural Increase ( %)




13 ECONOMIC INDICATORS Gross domestic product: value of total output of goods and services produced in a country.


15 Gini: income distribution of a nation’s residents
GNI: Gross national income PPP: purchasing power parity, compares currencies




19 ECONOMIC INDICATORS Primary sector: directly extract materials from Earth through agriculture, mining, fishing, and forestry Secondary sector: includes manufacturers that process, transform, and assemble raw materials into useful products Tertiary sector: involves the provision of goods and services to people in exchange for payment.

20 Types of Jobs: Comparing MDC vs. LDC

21 ECONOMIC INDICATORS **Quinary sector: jobs in health, education, research, government, retailing, tourism, and recreation. **Quaternary sector: jobs in business services such as trade, insurance, banking, advertising, and wholesaling.

22 ECONOMIC INDICATORS Productivity: value of a particular product compared to the amount of labor needed to make it. Value added: gross value of the product minus the cost of raw materials and energy. Gross=total

23 ***New International Division of Labor!!!***
Why have primary and secondary jobs declined in MDC’s in recent years??? What are businesses doing? OUTSOURCING! What does AP call this? ***New International Division of Labor!!!***

24 Social Indicators Access to healthcare
8% is spent on healthcare in MDC, 6% in LDC MDC = more calories per day Public healthcare: Obamacare (ACA), Europe’s healthcare system Social Security, public assistance Sanitation and utility (gas, power)services Education and Literacy Average schooling years: 10 years in MDC’s, a couple years in LDC’s Student/teacher ratio is twice as high in MDC’s

25 Measuring Development
Social Indicators Education and Literacy

26 Measuring Development
Social Indicators Health and Welfare

27 Demographic Indicators
Life Expectancy: 60’s in LDC, 70’s MDC Young people is 6 times higher than old people in LDC Literacy Infant Mortality NIR CBR GII: Gender Inequality index GDI: Gender related Development Index GEM: Gender empowerment index

28 Key Issues 2 & 3 2: Where are more and less developed countries distributed? 3: Where does level of development vary by gender?

29 Let’s read intro to Key Issue 2 on page 301

30 Location of More and Less Developed Countries
Development generally reflects a North-South split in the world.


32 Why the HDI? Read about your assignmed region and tell us something about it! Pages 301-309
MDC LDC Anglo-America: 0.94 Western Europe: 0.93 Eastern Europe: 0.80* Japan 0.94* South Pacific: 0.87 Latin America: 0.80 East Asia: 0.76 Middle East: 0.68 Southeast Asia 0.58 South Asia: 0.58 Sub-Saharan Africa: 0.51


34 3: Where does level of development vary by gender?
Key Issues 3 3: Where does level of development vary by gender?

35 Let’s read the intro to Key Issue 3 on pg. 309.

36 Gender-Related Development Index
GDI similar to HDI: separates men and women Country penalized for having disparities between men and women (ex: school enrollment) No country has a 1: complete gender equality Norway highest again: 0.960 U.S. high, but not very top Sub-Saharan Africa lowest

37 Gender Empowerment Measure (GEM)
Compares the ability of women and men to participate in economic and political decision making. In both MDC’s and LDC’s women hold less economic and political positions than men Combines income and professional jobs (econ) and managerial jobs and elected jobs (polit) High: North America, North Europe, South Pacific Low: Africa and Asia

38 Gender Inequality Index

39 Read in your book about each of the indicators for development and empowerment (pg ) and fill in the charts Girl Rising: watch as you read the article about he Top 10 worst places for women and work on the handout Peru Nepal

40 We will wrap up tomorrow with Key Issue 4
We will wrap up tomorrow with Key Issue 4. Please read it tonight and complete the handout that goes with it in your packet. …packet time.

41 Why Do Less Developed Countries Face Obstacles to Development?
Key Issue 4 Why Do Less Developed Countries Face Obstacles to Development?

42 Strategies for International Development
Self-Sufficiency Model (Balanced Growth) Spread investment as equally as possible. Set barriers that limit imports/ limit international trade. Mexico and India Problems = Inefficiency/ lack of advancement and large bureaucracy. International Trade Model (Economic Growth) Rostow’s Model World Bank lending Basic Needs Model/Appropriate Technology Model Microlending (Grameen Bank, Revolutionary/Radical Reform Model Cuba, U.S.S.R

43 Institutions of International Development
United Nations - formed in 1945 to promote peace. 189 current members. World Bank - financial assistance and loans. Owned by 189 United Nations members. International Monetary Fund - arm of U.N. that surveys and oversees international money exchange to prevent monetary crises. Also provides loans and training to help countries with balance of payment problems. Non-Governmental Organizations (NGOs) - World Watch, Human Rights Watch, World Commission on Dams, Grameen Bank,, many others.

44 Rostow’s Model TRADITIONAL SOCIETY – Development not started yet
American economist and political advisor during 1950s developed model, arguing that each country passes through five stages from traditional society to high mass consumption. TRADITIONAL SOCIETY – Development not started yet PRECONDITIONS FOR TAKE-OFF - elite group initiates economic innovations, leads to productivity and investments in infrastructure. TAKE-OFF - rapid growth in a number of specific economic activities, technical advances. DRIVE TO MATURITY - Modern technology diffuses to a wide variety of industries. AGE OF MASS CONSUMPTION - economy shifts from heavy industry (steel) to consumer goods (cars).


46 Examples of Int’l Trade Approach
Four Asian Dragons Lacking resources, they concentrated on manufactured goods. South Korea, Singapore, Taiwan, and Hong Kong. Arabian Peninsula States Petroleum rich. Used revenue to fund large scale projects.

47 Textile manufacturing: Taiwan
Electronics: S. Korea Textile manufacturing: Taiwan Arabian Peninsula: Dubai, UAE

48 Problem’s with Rostow’s Model and the International Trade Approach
Developmentalism: the idea that every country and region will eventually make economic progress toward “high mass consumption” provided that they compete to the best of their ability. This is not likely and is hard on the planet. WHY? Increased dependence on MDCs and their markets. Undue influence on many global policies, including those of the U.N. and World Bank. Market Stagnation: counting on selling to MDC’s can be risky… MDCs have very limited population growth. May force LDC’s to cut back on production of food, clothing, and other necessities.

49 Other Problems in International Development
High Debt Countries Hostility Regarding World Bank and IMF Structural Adjustment Programs IMF “Free Market” Requirements for Loans and Assistance Warfare and Instability Limit Foreign Investment Core-Periphery Relationships May Be Necessary for Economic Growth Within Countries Globally

50 High Debt Countries Loans to LDCs by 2000 exceeded $2.1 trillion dollars. Interest payments consume some small economies, encouraging export earnings instead of internal improvements.

51 Warfare and Instability Limit Foreign Investment



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