Measures of Development

Human Development Index

recognizes a country’s development level as a function of economics (GDP per capita), social (literacy rate & level of education),

and demographic factors (life expectancy)

Highest possible rank is 1.0

Economic Indicator

GDP per capita: the value of the total output of goods and services produced in a country in a normal year divided by total population

GDP per Capita European countries have the highest per

capita GDP because of high GDP and low population. Luxembourg – $79,000 Norway - $53,300

Africa the lowest per capita GDP due to low GDP and high population Zimbabwe - $300 DRC - $350

GDP

GDP Which countries have high GDP? Which countries have low GDP? (don’t

just pick the easy ones you know) What is Luxembourg’s category of

GDP? Which other countries are in the same category?

Explain how the Western European country of Luxembourg has this level of GDP.

GDP Throughout this presentation – pay

attention to Brazil, Russia, China, India, and South Africa.

Let me explain when I say Rule of Thumb – what is generally happening in

the area Weird exception – in an area everything is

generally one way except this one country is noticeably different

For example – on the next slide the rule of thumb is Sub-Saharan Africa has a low GDP per capita, the weird exception is South Africa & Botswana

GDP per Capita

GDP per Capita

Check Luxembourg – Is your explanation still valid?

Check B, R, I, C, and SA Which regions have high GDP per

capita? Any weird exceptions? Which regions have low GDP per

capita? Any weird exceptions? Can you see the core, semi-periphery,

and periphery pattern?

What is the correlation of landlocked states and low GDP per capita? Weird exceptions?

Monarchies: Constitutional Monarchy Traditional Monarchy Absolute Monarchy

Republics: Democracy Restricted Democratic Practice Authoritarian Regime

      Totalitarian Regime

Non-Sovereign: Protectorate Colonial Dependency Empire

Source: Matthew White, 2003. http://users.erols.com/mwhite28/othergov.htm Adapted from FreedomHouse.org

What is the correlation of gov’t type and low GDP per capita?

Another map of government type

http://chartsbin.com/view/6kx

Correlation means when something happens then the other things happens to –

The left side of the x-axis means the government is very corrupt

Does HDI correlate government corruption? What is the relationship between

government corruption and economic development?

Social Indicators

Literacy rate – the percentage of a country’s people who can read and write.

Literacy rates exceed 98% in MDCs

Amount of education – measured by taking the average number of years a student attends school in a country.

Literacy Rate

Literacy Rate Check B, R, I, C, and SA – anything

unusual Which regions are high? Weird

exceptions? Which regions are low? Weird

exceptions? Why do the former Soviet countries,

which is semi-periphery, have a high literacy rate

Years in School

Years in School

Check B, R, I, C, and SA – anything unusual?

Which regions are high? Weird exceptions?

Which regions are low? Weird exceptions?

Compare – any significant differences?

Do you see core, semi-periphery, and periphery?

Demographic Indicators

Life expectancy This is the average age of death for the

citizenry Because of better healthcare, people in

MDCs tend to live 10-13 years longer than in LDCs.

Life Expectancy

Life Expectancy

Do you see core, semi-periphery, and periphery?

Check B, R, I, C Pay particular attention to South

Africa – Why?

Make a Prediction

Which regions have a high HDI? Low HDI?

Human Development Index

HDI

Do you see core, semi-periphery, and periphery?

Check B, R, I, C and SA

Other Indicators

Health Expenditure as % of GDP

Physicians /1,000 persons

Physicians /1,000 persons

Why do the former Soviet countries have so many physicians?

Pvt Expenditure as % of Total Health Expenditure

Infant Mortality Rates

Natural Increase rate Rate at which the population increases Around 1.5% in LDCs and .1% in MDCs This causes social strain due to increased social

cost. Crude Birth rate

Rate at which children are being born into the population

LDCs face a rate around 24 per 1000 while MDCs are around 11 per 1,000

Because LDCs death rate is 8 per 1000 this leads to an enormous increase in population

NIR

Other Economic Indicators

Sectors of the Economy Productivity Raw Materials Consumer goods

Sectors of the Economy

Primary –lowest sector of sophistication. Involves extracting materials directly from the earth; mining, agriculture, fishing, and forestry

Higher % of population = greater chance of poverty

Sectors of the Economy

Secondary sector – manufacturing that transforms raw materials into useful products.

Sectors of the Economy Tertiary – occupations based on

providing services; tourism, restaurants, retail, etc.

Most MDCs have the majority of their economy in this sector.

Quantenary – service based occupations that are intellectual in nature; education, library services, government, etc.

Quinary – service based occupations that involve cutting edge technology

Make a Prediction

Regions that are primarily Primary Secondary Tertiary

Primary Products

The percentage of people working in agriculture exceeds 75% in many LDC’s of Africa and Asia. In Anglo-America and Western Europe the figure is <5%

Africa is almost exclusively focused on Primary production.

Industrial Sector

The way to read this map – shown larger on the next slide

The country with the highest secondary sector output, Merica, is set to 100%.

The other countries production is given as a percentage of what the USA is producing.

So USA is producing $2.5 trillion, then Japan is producing 50% or $1.25 trillion.

Ditto for the Service slide

Industrial Sector

Productivity Value of a product in comparison to the

labor needed to make it. It is measured by assessing the value

added per worker Value added is the gross value of the

product minus the costs of raw materials and energy

US has a value added of $80,000 in comparison to countries such as India at $500

Productivity

MDCs - produce more because of access to technology, tools, and equipment.

Money earned is reinvested into new technology increasing overall output.

LDCs - rely on animal and human power resulting in less production

Raw Materials Necessary for production Ex. United States and Russia - rapid

industrial development due to an enormous amount of available resources.

Ex. United Kingdom have had to establish colonies to replace depleted resources

Ex. Botswana, Namibia, South Africa – DeBeers Diamonds (founded by Cecil Rhodes)

Diamond Mines

Raw Materials

Other countries have lots of resources but foreign private industries are responsible for mining (Diamonds in South Africa).

Consumer Goods

Communication, Internet use, and motor vehicles help citizens communicate and transport resources and information

This helps to connect the resources and manufacturers which increases overall production

Consumer Goods

LDCs are not likely to have this equipment available.

creates a dichotomy between the urban dwellers who have this technology and the rural population that lacks it.

Motor vehicles per capita

Differences in Communications Connectivity Around the World

Does Place Matter?