Development

Chapter 9By: Janessa Polanco, Olivia

Parra, Fiona Dam, & Juan Garcia

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• Many couples give birth to an overabundance of children in order to support family.

• There is no health care to treat things like tuberculosis, or to almost guarantee a live birth.

• Compared, to the U.S. where the average income is $4000 a month, the average working household gets around $16, barely enough to supply the minimum amount of food.

Case Study: Bangladesh’s Development Challenges

• 20 students/ 1 teacher

• 98% literacy rate• life span: 70 • Infant Mortality

Rate: <.5%• NIR: 0.2%• CBR: 12 to 1000

MDC• 30 students/ 1

teacher• 60% literacy rate• life span: 60 if

survived first 5 years• Infant Mortality

Rate: 6%• NIR: 1.5%• CBR: 23 to 1000

LDC

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Sub-Saharan Africa United States

How HDI is Calculated

You classify a country by selecting one economic factor,  two social factors, and one demographic factor. Then from there a team of analysts best reveal a country’s level of development:• Economic factor: GDP (gross domestic product)

per capita• Social factors: literacy rate and amount of

education• Demographic factor: life expectancy

More Developed Regions

HDI

North America 0.95

Europe 0.93

Russia 0.73

Japan 0.96

Oceania 0.90

Less Developed Regions HDI

Latin America 0.82

East Asia 0.77

SW Asia and N Africa 0.74

Southeast Asia 0.73

Central Asia 0.70

South Asia 0.61

Sub-Saharan Africa 0.51

Brandt Line

three-sector hypothesis: common system of division of major economic activities into: primary, secondary, and tertiary sectors

↛E primary: acquiring of natural resources and raw materials■ wood, steel, coal■ industries such as forestry, fishing, and farming↛E secondary: production/processing of merchandise■ homes, devices, vehicles, pottery, building structures

              ↛E tertiary: offered services■ real estate agents, management, financial assistance

Economic Sectors

Theories and Models of Economic Development

↛E Harrod-Domar Growth Model - economy’s growth rate:■ amount of saving/efficiency of investment

■ net investment leads to more capital accumulation, which generates higher output and income.

↛E Lewis Structural Change Model - dual economy:

■ models the change of capitalist and subsistence sectors

■ higher incomes generate savings/more savings mean more fund available for investment.

According to the UN gender inequality exists in every country in favor of males, some more than others.

Gender-Related Development Index

● Economic indicator of gender differences: Per capita female income as a percentage of per capita male income.

● Social indicators of gender differences: # of females enrolled in school compared to males and % of of literate females: % of literate males

● Demographic indicator of gender differences: life expectancy of females to males

How GDI is calculated

Self-Sufficiency

Self-Sufficiency: “Balanced equally. Equal economy, reduce poverty, isolate businesses to help, barriers limit imports, restrict local business” -quizlet

Purpose?“Under self-sufficiency, incomes in the

countryside keep pace with those in the city, and reducing poverty takes precedence over encouraging a few people to become wealthy consumers.”

How Self-Sufficiency is Promoted

❖ Taxes: also known as tariffs are placed on imported items so they are not easily affordable

❖ Quotas: used to limit the quantity of imported goods

❖ Licenses: required to restrict # of legal importers

1. End poverty and hunger2. Achieve universal primary education3. Promote gender equality4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malaria, and other diseases 7. Ensure environmental stability 8. Develop a global partnership for development

Millennium Development Goals

❖ fair trade: products are made and traded according to standards that protect workers and small businesses in LDCs

❖ productivity: the value of a particular product compared to the amount of labor needed to make it

❖ value added: the gross value of the product minus the costs of raw materials and energy

Vocabulary