Unit VI Development

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Unit VI Development Industry

• Key Process 1
• Why does development vary among countries?

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What is Development?

• The process of improving the material conditions
  of people through the diffusion of knowledge and
  technology
• More developed countries (MDCs)
• Lesser developed countries (LDCs)

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Human Development Index (HDI)

• Measurement of the level of development designed
  by the United Nations
• Highest HDI possible is 1.0
• Considers develop. to be a function of 3 factors
• Decent standard of living
• Long healthy life
• Access to knowledge
• Categories/Classes of HDI very high (developed),
  high, medium, low (developing)

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HDI
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Nine Regions in order of their HDI

• 1. North America U.S. Canada (very high)
• 2. Europe All but a handful of E. European
  countries (very high)
• Japan and the S. Pacific (New Zealand
  Australia) are grouped w/ the developed regions
• 3. Latin America most are high developing
• 4. E. Asia most are medium developing
• 5. Central Asia medium overall Iran (high)
  Afghanistan (low)
• 6. SE Asia most are medium
• 7. SW Asia N. Africa overall medium Saudi
  Arabia (high) Yemen (low)
• 8. S. Asia medium
• 9. Sub-Saharan Africa low
• Russia UN now classifies it as a developing
  country b/c of its limited progress

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• Economic indicators of development
• 1. Economic Structure (types of jobs)
• Primary sector
• Secondary sector
• Tertiary sector Quaternary, Quinary
• From what you have learned thus far what kind of
  countries are associated w/ each economic sector?

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2. Standard of Living

• UN measures standard of living called annual
  gross national income per capital at purchasing
  power parity
• Gross National Income (GNI) value of the output
  of goods services produced in a country in a
  yr., including that leaves enters the country
• By dividing GNI by the total pop., it is possible
  to measure the contribution made by the avg.
  individual toward generating a countrys wealth
  in a yr.
• EX. U.S. GNI 2011 15 trillion, Pop.312
  million, so GNI per capita was about 47000
• Per capita GNI in developed countries was approx.
  34,000 compared to 7,000 in developing
• Per capita GNI measures avg. (mean) wealth, not
  the distribution of wealth
• Purchasing power parity (PPP) adjustment made to
  the GNI to account for the differences among
  countries in the cost of goods
• Gross Domestic Product (GDP) value of the output
  of goods services produced in a country in a
  yr., but does not account for the that leaves
  or enters the country

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3. Productivity

• Value of a particular product compared to the
  amount of labor needed to make it
• Can be measured by the value added per capita
• Value added in manufacturing is the gross value
  of a product minus the costs of raw materials
  energy
• Workers in MDCs produce more w/ less effort b/c
  they have access to more machines, tools,
  equipment to perform much of the work

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4. Consumer Goods

• MDC consumer goods
• Part of the wealth in developed countries is used
  to purchase goods services
• Ex. telephones, computers, vehicles
• Why are these goods services important for
  development?
• Also use some wealth to establish infrastructure
• LDC consumer goods
• b/c possession of consumer goods is not universal
  in developing countries, a gap can emerge btw.
  the haves and have-nots
• Minority who have goods/services may include
  govt officials, business owners, other elites
• Those who have these products are concentrated in
  urban areas

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Social indicators of development

• 1. Access to Knowledge
• Quantity of Schooling UN uses 2 measures
• Years of schooling of yrs. that the avg.
  person aged 25 up has spent in school (avg.
  years for MDC11, LDC6)
• Expected years of schooling of years that a 5
  yr. old is expected to spend in school (avg.
  years for MDC16, LDC 11)

• Quality of Schooling UN uses 2 measures
• Pupil/teacher ratio Lower in MDC
• Literacy rate of a countrys people who can
  read and write (higher in MDC)
• Most books, newspapers, mag. Are published in
  developed countries
• Many technical information in books that are used
  in LDC are printed in English, German, Russian,
  or French

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Social indicators of development

• 2. Health and welfare
• Diet (adequate calories)
• Access to health care

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Demographic indicators of development

• 1. Life expectancy
• Babies born today in MDCs have a life expectancy
  in the 80s babies born in LDCs, in the 60s
• 2. Other demographic indicators
• Infant mortality
• Natural increase
• Crude birth rate
• Dependency ratio

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Variation within countries regions

• Variation within regions
• Variation high in SW Asia N. Africa and in
  Central Asia
• Differences on who possesses oil
• Ex. Saudi Arabia, UAE, etc.
• Causes tension in region

• Variations within countries
• Brazil, China, Mexico are among the worlds
  most populous countries and largest
• Brazil richest along coast, lowest in interior
• China richest along E. coast, lowest in interior
• Mexico richest along border w/ U.S. tourist
  areas

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Inequality-Adjusted HDI (IHDI)

• Indicator of development that modifies that HDI
  to account for inequality within a country
• If the IHDI is lower that the HDI the country has
  some inequality the greater the distance btw.
  them the greater the inequality
• A country where only a few people have high
  incomes, college degrees, and good healthcare
  would have a lower IHDI than a country where
  differences in income, level of education, and
  access to healthcare are minimal
• Lowest scores are in sub-Saharan Africa (highest
  inequality)
• the lower the score the greater the inequality
• Ex. The IHDI is 0.77 in the U.S. and 0.83 in
  Canada. Which country has a greater inequality?

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Hans Rosling 200 years 200 countries