Haiti and Japan Earthquake Comparison • Magnitude – Haiti-7.0 – Japan-9.0 which caused a Tsunami • Left Homeless – Haiti- 1.5 million – Japan- 1-2 million • Death – Haiti- 220,000 – Japan- 15,000 • Cost – Haiti- $14 billion – Japan- $230 Billion epidemic as a result 6,000 more died, 216,000 were infected – Japan-Much of their Nuclear power is still damaged with many people evacuated from surrounding towns – Hawk Hook 2/27 • Our next unit is on development, how do you think development played a role in
Haiti and Japan Earthquake Comparison. Magnitude Haiti-7.0 Japan-9.0 which caused a Tsunami Left Homeless Haiti- 1.5 million Japan- 1-2 million Death Haiti- 220,000 Japan- 15,000 Cost Haiti- $14 billion Japan- $230 Billion Additional Effects - PowerPoint PPT Presentation
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Haiti and Japan Earthquake Comparison• Magnitude
– Haiti-7.0– Japan-9.0 which
caused a Tsunami• Left Homeless– Haiti- 1.5 million– Japan- 1-2 million
• Death– Haiti- 220,000– Japan- 15,000
• Cost– Haiti- $14 billion– Japan- $230 Billion
• Additional Effects– Haiti-Cholera
epidemic as a result 6,000 more died, 216,000 were infected
– Japan-Much of their Nuclear power is still damaged with many people evacuated from surrounding towns
–Hawk Hook 2/27• Our next unit is
on development, how do you think development played a role in these statistics?
Development: Models of
Economic Growth, Diffusion, and
World Variations
Basic Development Info
• Definition of Development: process of improving the material conditions of people through diffusing knowledge and technology• Continuous process of
improvement • MDC’s: developed
countries• LDC’s: developing
countries
Indicators of Development
• UN measure of Development: level of development is a based on 3 indicators: economic, social, and demographic
Human Development Index
Overview of HDI:• 1 Economic Factor:• Gross Domestic Product (GDP):
the total value of goods and services produced in a country
• 2 Social Factors:• Literacy Rate and Amount of
Education (average # of school years attended)
• 1 Demographic Factor• Life expectancy (average # of
years a newborn can expect to live)
• Highest Possible HDI is 1.0 or 100%
• What country do you believe has the highest HDI?–Norway at .938 in 2010
• What country do you believe has the lowest HDI?– Zimbabwe at .140
• Where do you believe the 2 dozen lowest ranking countries were located? Why?– Sub-Saharan Africa
Current World Trends (Overview)
The US Situation
• Ranked 4th
• What do you believe accounts for this rank?• Near the top in GDP and
Literacy• Lower in Education and
Life Expectancy• High School Drop-out Rates
and Inadequate Health Care for low-income people
Economic Indicators of Development
1. GDP2. Types of Jobs Available 3. Productivity of workers 4. Access of raw materials5. Availability of
consumer goods• Goods purchased to
satisfy immediate wants and needs
• What are some examples?
5 Economic Indicators of Development
• Use per capita GDP (how much each person’s portion of the GDP is) • Figured by
dividing GDP by population• EX: GDP = $100
and population = 10, then each person receives, on average, $10
Gross Domestic Product
• Average per capita GDP in MDC’s $27,000–Has increased 55% since 1990
($10,000)–US: approx 40,000
Per Capita GDP MDC’s
• Average per capita GDP in LDC’s: $4,000–Has increased 450% since 1990 (bit under $4,000)–Not equal growth China huge changes, Africa few– 18 countries (15 in Africa, 3 in Asia) below $1000
Per Capita GDP LDC’s
• Why is per capita GDP not an adequate measure of development on its own?• Measures average wealth not
distribution• If few people hold all the wealth then
standard of living for most lower than average would indicate
Critical Thinking Question
• What are the 3 sectors of the economy? Where is each most prevalent?
Types of Jobs Available
• Productivity: value of a product compared to the amount of labor necessary to make it
• Higher in MDC’s• Produce more with less
effort• Why?
• LDC’s rely more on human and animal labor
Productivity of Workers
Access to Raw Materials
• Includes access to minerals, trees, energy sources (oil, coal, natural gas, or uranium for nuclear power)
• Indicates potential for Development not actual development
• Using real world examples how can the availability of natural resources not be a perfect indicator of level of development?• Ex: Japan, Singapore, South Korea, and
Switzerland have few natural resources but have become highly developed through trade• Much of Africa is rich in natural
resources but lacks the infrastructure to be considered developed states
Critical Thinking Question
• Industrial Revolution• Occurred in countries rich in
both natural resources and energy sources (Ex. UK)
• Colonialism and Imperialism• Occurred to create steady
supply of resources in resource depleted Europe
• Sustained development in Europe, hindered it in Africa and Asia• Why is this flow a problem for
development in the LDC’s?
Historical Relationship btwn
Resources and Development
Consumer Goods
• Most important consumer goods to consider: transportation and communication technologies• Examples?• Why?
• Transportation: access to jobs and distribution of products
• Communication: telephones and computers enhance communication between suppliers, producers, and sellers
Consumer Goods and MDC’s versus LDC’s
• How accessible are consumer goods to MDC’s?• Virtually all citizens• VITAL to business of tertiary and
secondary jobs• How accessible are consumer
goods to LDC’s?• Not as available• Not as important for subsistence
living (creating just enough food to live with little extra)
• Access to consumer goods creates gap between the “haves” and “have-nots” in LDC’s– Typical Characteristics of
Haves:• Higher Economic Status:
government officials, business owners, elite classes• Live in urban areas (more
variety of job opportunities requiring additional technology)
–Have- Nots?• Usually rural areas engaging
in primary sector work or simple services
Haves and Have-nots in the LDC’s
• How can transportation and communication technologies increase educational opportunities and leisure activities?
Critical Thinking Question
Social Indicators of Development
• Economic Development = Great Wealth• Spend portion of wealth on social services
(schools, hospitals, welfare services) = Smarter, healthier, and secure workforce = more economic productivity
Reciprocal Relationship Btwn Economic and Social
Development
• Measured by quantity and quality of education• Quantity: Number of years of
schooling• Quality: student/teacher ratio
and literacy rate• Education number one way
to improve economy• Better education = highly
qualified workforce = higher wages = better access to consumer goods = higher standard of living
products used for manufacturing (fibers for ropes, clothing, oils, etc)
• Manufacturing:– Cheap labor:
textile industry
Southeast Asia Cont’
South Asia• HDI: .58• Second Highest
Pop• Second Lowest
per capita income• High NIR• High population
densities
• High in resources but still population too high for sustainability
• Agricultural Productivity dependent upon Monsoon rains (good when they come BAD when they do not)
• India 4th largest economy– The growth of their
economy has been a result in an expansion of what sector of the economy?• Tertiary: service jobs
South Asia Cont’
• HDI: .51• Low population densities• Major source of minerals and natural resources• Least prospect for development: high poverty,
poor health, low education (deteriorating)
Sub-Saharan Africa
Sub-Saharan Africa Cont’
• How has the legacy of Colonialism Affect Sub-Saharan Africa?• Resources only
for European factories
• Superimposed Political Boundaries
• Situational Problems:• Landlocked states
incapable of easy exportation
• Site Problems• Climate: Tropical or
Dry• What does this mean
for its physiological densities and their capacity to feed their people?
• How does Sub-Saharan Africa’s NIR affect this problem?
Sub-Saharan Africa Cont’
Hawk Hook 3/81. Why are literacy rates a good
measure of development?2. What does education mean for
increasing GDP?3. Looking at the areas of
development in the MDCs, how does cultural homogony relate to development? (Provide 2 examples to support your theory).
Gender Inequality and Development
• Gender-Related Development Index (GDI): compares level of development of women to that of men–Measures standard of living and
well-being–Uses same measures as HDI• Adjusted to reflect gender differences• Penalized for gender disparity
–How do you think GDI compares to HDI worldwide?• Similar: Top Norway and other top HDI
countries, Lowest in Sub-Saharan Africa
Measures of Gender Inequality
• Gender Empowerment Measure (GEM): compares ability of women and men to participate in economic and political decision making–Measures ability of
women to participate in developmental improvements
– Less women in these roles in EVERY country
Measures of Gender Inequality
Gender-Related Development Index
Economic Indicator of GDI
• Incomes of women lower in EVERY country
• MDC’s: women 2/3 income of men
• LDC’s: varies but considerably lower than MDC levels
• Number of School Years Attended:– Secondary Ed: nearly even in MDC’s (99/100 men); in
LDC’s (60/100 men)– Middle East and Sub-Saharan Africa: < 33% of girls
attend school• Literacy
– MDC’s near universal for all men and women– Sub-Saharan Africa and Middle East: substantially low
Social Indicators of GDI
• Life Expectancy: Who usually outlives who?
• 6 year gap in MDC’s• 1-2 year gap in LDC’s
Demographic Indicators of GDI
Worldwide GDI Trends
• Gap lessoning everywhere–¼ in MDC’s– 2/3 in LDC’s
Gender Empowerment Measure
• Percentage of women occupying professional and technical jobs–Why not primary sector jobs?• Northern Europe: > 50% to women• LDC’s < 50%
– Also look at GDP per capita
Economic Indicators of GEM
Political Indicators of GEM• % of managerial and
administrative positions– Why do these show
political influence?– North America, Northern
Europe, and South Pacific: 1/3
– LDC’s: ¼• % of women elected to
public office– Highest Northern Europe:
1/3 hold national offices– 1/5 in MDC’s– 1/10 in LDC’s
• Every Country Lower GEM than GDI: Meaning?
Troubles Developing: the LDC’s
• Adopting policies that cause development
• Paying for the development
2 Obstacles to Development:
2 Policy Approaches
• Center on Self-Sufficiency • Focus on International Trade
Self-Sufficiency: 3 Features of
the Balanced Growth
Approach
• Spread growth over all economic sectors and all over the country–Modest
growth for all not large growth for some
Modest Growth
Nationalize Business• Reduce number of international
corporations– Isolates local businesses from
international competition and MDC business and government policies
• 3 Decisions– Tariffs (high taxes
on imported goods)• Makes domestic
products the cheapest
–Quotas (fixed number of imports allowed)
– Licenses • Buy ability to
import goods or export goods
Reduce Imports
• What country do you believe used this model and was successful?– China (sort of)
• What country do you believe used this model and was unsuccessful?– India
Critical Thinking
Problem: Inefficiency
• Reduces competition–No incentive to modernize or
improve quality because Governments subsidize and bail out failing industries and no other options for people to purchase
• Ex: Indian Auto Industry
• Complex Government Controls inhibit entrepreneurship
• Financially easier to buy and sell on the black market
Problem: Large Bureaucracy
International Trade Model; Rostow’s
Development Model: Exploiting your
assests
Overview• W.W. Rostow’s 5-stage
model of development–Based on Following
beliefs:• All countries have gone
through these stages• International competition
encourages companies to continue improving• Abundance of resources in
LDC’s could be used to fund development
• Society has not begun development
• High percentage of agricultural work
• National wealth towards “nonproductive” activities
• Religion and Military• Why are these “nonproductive”?
Stage 1: The Traditional Society
• Well-educated leaders invest in infrastructure–Build water supplies, transportation,
invest in new technologies
Stage 2: Preconditions for
Takeoff
Stage 3: The Takeoff• Rapid growth and improvement
in a few industries, 1-2 industries advanced and productive–Others still traditional
• Diffusion of Technology into a variety of industries
• Workers become skilled and specialized
Stage 4: Drive to Maturity
• Shift in economy from heavy industry: steel and energy to consumer goods
Stage 5: Age of Mass Consumption
Critical Thinking• Throughout the history of the US, at what
point were we in each of Rostow’s stages?– Stage One:
• Colonial Times– Stage Two:
• Antebellum Period (Pre Civil War)– Stage Three:
• Mid 19th Century– Stage Four:
• Late 19th Century– Stage Five:
• Early 20th Century
• What country, we have recently talked about, used this model?– Japan– Others include South Korea, Singapore, Taiwan, and
Hong Kong
Critical Thinking• Critical Thinking• According to Rostow, development requires
substantial investment in capital such as infrastructure like transportation systems, water, etc. However, for the economies of LDCs to grow, the right conditions for such investments would have to be created.
• • Question: Investments of aid from other
countries will only help LDCs develop if they have reached which stage of Rostow’s model? Why?
• Not all resource prices rose higher than necessary commodities (Africa)– Few people at the top
rich, others remain poor
Problem: Uneven Resource
Distribution
• Markets not growing (population and economic downturn)–No new markets to sell products– Competing for already
established markets
Problem: Market Stagnation
Problem: Increase Dependence on
MDCs• Rely on MDC’s for
food, clothing, etc. bc only producing takeoff industries
• Proven better method of development• GDP growth faster in LDCs using
this model• India, China, etc switch to this
model• WTO: World Trade Organization
developed to reduce barriers to trade
Positive International Trade Model: Truth in
Numbers
Financing Development
2 Methods for Funding
Development• Loans• Investments by Transnational
Corporations (article)–What were some of the positives and
negatives we discussed regarding Transnational Corporations?
• 2 Major Loan Institutions:• UN Financial Institutions• World Bank
• Money for governments and financial institutions to implement transportation and social services
• To risky nations too poor to qualify for other loans
• International Monetary Fund• Helps build international reserves• Stabilize currency exchange rates• Help them pay for imports
Loans
• Why loan money for infrastructure in a small underdeveloped foreign country?
• What do you think could be some of the problems with investing in these areas?–Money stolen– Spent on other things (arms, etc)– Can’t repay debt
Critical Thinking Question
Fair Trade
• Alternative to international trade model
• Creates standards that protect workers and small businesses in the LDC’s
Overview
• Small worker owned businesses form cooperatives to better afford loans to build their businesses
• Fair Trade Organizations work straight with producers– Cuts out middle man fees–Higher wages to cooperatives