Development. 3 basic ways to make a living: 1. Growing food 2. Manufacturing products 3. providing services Countries are classified by development: MDC.

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?