Presentation on theme: "MCD & LDC MDC: More developed country is further along on the development spectrum. LDC: Less developed countries are in an earlier stage of development."— Presentation transcript:
MCD & LDC MDC: More developed country is further along on the development spectrum. LDC: Less developed countries are in an earlier stage of development. Some like to use phrasing like: developing or emerging – Implying that some progress has already been made.
HDI: Human Development Index 3 factors: economic, social, and demographic The UN chooses 1 econ factor, 2 social factors, 1 demo factor. Econ: GDP (Gross Domestic Product) Social: literacy & amount of education Demo: Life expectancy
HDI Highest HDI is 1.0 or 100%. The HDI is calculated every year, and has been since 1990. Highest include many places in Europe. Norway is.971 (Highest ever in 2009) Lowest in 2009 Niger.340
GDP Gross Domestic Product is the value of the total output of goods and services during a year. Divide GDP by total population and it averages the amount made by the average individual. 2009: GDP in U.S. was $14 trillion with a population of 307 million. – GDP per capita was $45,600 The higher the per capita GDP the greater chances for citizens to have a good life.
Other Economic Factors Jobs, Productivity, & Availability of Consumer Goods – Jobs fall in to 3 categories: – Primary (includes agriculture) – Secondary (includes manufacturing) – Tertiary (includes services)
Job Sectors Primary: directing extract materials from the earth (mining, farming, fishing) Secondary: Processing & transforming raw materials. (manufacturing of all kinds) Tertiary: provision of goods and services in exchange for $. (retail, banking, law, education, government)
Jobs on GDP In order to determine levels of development you must figure out what percentage of the GDP each sector represents. – LDCs: High percent of jobs in primary sector – MDCs: percentage of jobs in secondary sector is diminishing – MDCs: percentage of jobs in tertiary sector is very large
Productivity Productivity is the value of a product compared to the amount of labor necessary to make it. Its measured by value added. Value added: gross value of the product minus the cost of raw material and energy. Workers in MDCs produce more with less effort. – Why?
Consumer Goods The wealth generated by production is used to purchase consumer goods. – Especially goods related to transportation and communication. In an MDC these products are accessible to almost all residents, while in an LDC these products do not play a role in daily life. In LDCs these goods tend to show the gap between the “haves” and the “have nots” in a society.
Social Indicators: Education Generally: Higher HDI the better the education services. – One aspect is the number of students per teacher. Fewer students means more individual attention. – Literacy Rate: MDCs this rate exceeds 98% compared to 60% in LDCs In LDCs education DOES received a higher percentage of the GDP.
Social Factors: Health & Welfare In MDCs people are healthier which is often influenced by diet. According to the UN guidelines MDCs often have a higher caloric intake than necessary, while LDCs get less than recommended. In most European countries government pays for 70% or more of health costs. In LDCs people pay more than half. The exception is the U.S. where people pay on average 55% of their healthcare costs.
Demographic Indicators Life Expectancy Infant Mortality Rate Natural Increase Rate Crude Birth Rate Just as in the Stages of Population growth, these affect the level of development of a country.