Development. 3 basic ways to make a living: 1. Growing food 2. Manufacturing products 3. providing...
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Transcript of Development. 3 basic ways to make a living: 1. Growing food 2. Manufacturing products 3. providing...
Development
3 basic ways to make a living:1. Growing food
2. Manufacturing products
3. providing services Countries are classified by development:
MDC (aka more developed country/developed country)
LDC (aka less developed country/developing country
Geographic tasks associated with development: Identify where MDCs and LDCs are located Concern for why some areas are more
developed than others
WHY DOES DEVELOPMENT VARY AMONG COUNTRIES?
Key Issue #1:
Human Development Index
Developed by the UN What does it recognize? How is the HDI created?
Economic: gross domestic product per capita Social: literacy rate and amt of education Demographic: life expectancy
Economic Indicators of Development
How do we distinguish MDCs from LDCs? Economic structure Worker productivity Access to raw materials Availability of consumer goods
GDP per capita
Why GDP instead of per capita income? Value of total output of goods and
services produced in a country, normally in a year
GDP/total population-measures the contribution of the average individual makes to the wealth of the country every year
GDP cont.
What is the difference b/t GDP and GNP? Why can’t GDP measure the level of a
country’s development perfectly? Per capita GDP measures average
wealth, not distribution of wealth- explain.
Types of Jobs
Avg GDP per capita higher in MDCs b/c of the way the earn a living
1 of 3 ways: Primary Secondary Tertiary
Can also use quaternary
Types of jobs cont.
Distribution of workers varies b/t MDCs and LDCs
1st priority of people: to obtain food high percentage of workers in agricultural
jobs indicates people looking for food to survive
Low percentage of workers means primary sector can produce enough food for eveyone
Types of jobs cont.
If do not have to find food, can move onto secondary and tertiary jobs
What does the decline in manufacturing jobs reflect?
Employment in service sector continues to rise
Productivity
Value of a particular product compared to the labor required to make it
Why are workers in MDCs more productive than those in LDCs?
Measured by value added per worker Gross value of product-minus raw materials
and energy costs
Raw Materials
Measures a country’s potential for development
Some countries do not need raw materials to develop-may develop through trade
As certain raw materials become important, level of development may advance Sale of resources to finance development
Consumer goods
Wealth used to buy nonessentials increases manufacturing which increases wealth for a nation
Quantity and type of goods and services indicates level of development
In LDCs, some goods and services may become desireable Development of “haves” and “have-nots”
Social Indicators of Development
Education and Literacy Higher level of development, greater the quantity
and quality of education Quantity measured by avg # of years spent in
school Quality measured by literacy rate and
teacher/student ratio
Social Indicators cont.
Health and Welfare MDCs have more resources to care for
people when they get sick Health influenced by diet MDCs also have the means to provide for
those that are unable to work (welfare, food stamps, etc.)
• Now facing a choice b/t reducing benefits or raising taxes to pay for these programs.
Demographic Indicators of Development Life Expectancy
Better healthcare=longer life Can strain the system, however
Infant Mortality Rate Greater in LDCs-Why?
Natural Increase Rate LDC higher than MDC Strains an already strained system
Crude Birth Rate Does not indicate a country’s level of development-
Why?
WHERE ARE MORE AND LESS DEVELOPED COUNTRIES DISTRIBUTED?
Chapter 9 Development
Countries can be categorized into 9 regions based on level of development Also have distinctive demographic and cultural
characteristics Western Hemisphere: Anglo-America and Latin
America Europe: Western and Eastern Asia: East, South, Southeast and Southwest Can also include Japan and the South Pacific
Distribution of MDCs and LDCs shows a global pattern- what is it?
More Developed Regions: Anglo-America, Western Europe and Eastern
Europe Less Developed Regions:
Latin America, East Asia, Southeast Asia, Middle East, South Asia, sub-Saharan Africa
See Chart
WHERE DOES LEVEL OF DEVELOPMENT VARY BY GENDER?
Chapter 9: Development
Overall development of a country masks gender inequalities
To solve this, UN created GDI and GEM
Gender-Related Development Index
Similar to HDI A country w/complete equality has a GDI of 1.0 Economic Indicators
How does the UN determine this?
Social Indicators Education and literacy
Demographic Indicators How does GDI differ from HDI? Why do men outlive women in LDCs?
Gender Empowerment Measures ability of women to participate in
achieving improvements to std of living How is GEM determined? Complete power equality if GEM=1.0 Economic Indicators of Gender Empowerment
Percentage of women holding professional or technical jobs
• What may bar a women from getting one of these jobs?
Power over economic resources (Share of nat’l income held by women)
Gender Empowerment cont. Political Indicators of Empowerment
Percentage of the country’s administrative and managerial jobs they hold
Percentage of women elected to public office Every country’s GEM is lower than its GDI A higher GEM than GDI means women
possess a greater share of a country’s resources than power over allocating those resources
WHY DO LESS DEVELOPED COUNTRIES FACE OBSTACLES TO DEVELOPMENT?
Chapter 9 Development
Development through self-sufficiency
Elements of self-sufficiency approach Adopted by China, India most African and
Eastern European nations Spread investments as equally as possible
across all sectors of its economy and in all regions
How do countries promote self-sufficiency?
Problems with Self-Sufficiency
2 major problems:1. Inefficiency-protects inefficient businesses
Do not have to keep on top of technological innovations
2. Large bureaucracy-needed to administer the controls Encourages corruption
Development Through International Trade
Countries have to identify its distinctive or unique economic assets
Can economically develop by concentrating scarce resources on expanding unique local industries
International Trade cont. Rostow’s Development Model
• 5 stage model of development- What is it?• Based on 2 factors:
1. Other MDCs have followed this model and it was successful so why couldn’t others use it
2. Many LDCs contain many of the scarce resources and raw materials that many MDCs are seeking
Examples: Persian-Gulf states and the Four Asian Dragons
International Trade cont.
Problems:1. Uneven Resource Distribution
2. Market Stagnation
3. Increased dependence on MDCs
International Trade cont.
Preferred alternative for spurring economic development
World wealth is increasing Switching from self-sufficiency to
international trade b/c it promotes better development- explain.
International Trade cont.
World Trade Organization Established in 1995- Why? Works to reduce trade barriers by:
1. Negotiating the reduction or elimination of international trade restrictions on manufactured goods and the movement of money
2. Enforcing agreements Protects the validity of material on the Internet
3. Can also bring charges that someone has violated a copyright or patent
International Trade cont.
Why do liberals attack the WTO? Why do conservatives attack the WTO?
Financing Development
Loans Borrow money to build infrastructure
• Why infrastructure?• Problem: most of them are failures• Many LDCs cannot repay the loans which
damages the stability of banks in the MDCs which loaned the money
• What do MDCs now require in order to prevent some of their losses on loans to LDCs?