Chapter 9 Development
Intro • What are some popular vacation spots? • Would you consider those places to be MDCs or LDCs? • How do you think local residents feel about the tourism?
Human Development Index (HDI) • A country’s level of development can be distinguished according to three factors – economic, social, and demographic • HDI created by the UN, recognizes that a country’s level of development is a function of all three of these factors • HDI- uses one economic factor, two social factors and one demographic factor to best reveal a country’s level of development • What region of world has highest? Lowest? Flash Card
Economic Indicators of Development • What words come to mind when you think ECONOMY or ECONOMIC? • What types of economic indicators determine whether a country is an LDC or an MDCs? • With a partner brainstorm 3-4 characteristics for each
Read Key Issue 1: p.293-296 Economic Indicators of Development • GDP: • value of total output of goods & services produced IN a country, usually in 1 year • Which 15 countries do you think had HIGHEST? • GDP 2011 Flash Card
GDP • Can be misleading. • Cannot perfectly measure level of a country’s devlp’t • Why? • US: GDP per capita $40,000 • 1/8 of US is in poverty
Types of Jobs • Average per capita income higher in MDCs • Jobs are different • What types of jobs do you imagine most people do in LDCs? MDCs?
Types of Jobs • Primary Sector: • Directly extract materials from Earth through agriculture, mining, fishing, forestry • Secondary Sector: • Includes manufacturers that process, transform & assemble raw materials into products or finished consumer goods • Tertiary Sector: • The provision of goods & services to people in exchange for service • Provide an example for each Flash Card
Types of Jobs MDCs have decreasing amount of jobs in Primary & Secondary Sectors Why???
Types of Jobs • Why do MDCs have less jobs in Primary & Secondary Sectors? • Primary: • better technology in MDCs, less farmers needed • Secondary: • Increased global competition for factory jobs
Productivity • The value of a particular product compared to the amount of labor needed to make it • Workers in MDCs are more productive than LDCs
Productivity • “Value Added” : the total value of product minus costs of raw materials and energy • How are workers in MDCs able to produce more with less effort? • What do LDCs rely on to increase production? • MDCs use higher GDP to pay for machinery more productivity more wealth
Raw Materials • Need access to raw materials for development • Why? Examples? • Coal, Oil, Natural Gas, Uranium (nuclear power) • US & Soviet Union • Powerful industrial countries • Wide variety of raw materials/energy sources for devlp’t
Raw Materials • UK – 1st country to develop • Coal & iron ore: make & power machines • European countries followed industrial trend • Ran out of raw materials. Now what??? • Colonized Africa & Asia for more! • Slowed down their chance for development • Why didn’t they develop right after gaining independence?
Raw Materials • LDCs continued to export Raw Materials • Potential for development • Raw materials gain/lose importance • Examples???? • Oil in Middle East • Cotton in India
Raw Materials • Country with abundance resources has better chances to develop • Not ALWAYS the case • Japan: manufacturing & service (75% of total output) • South Korea: export-oriented • Switzerland: 73% tertiary (service) sector • Active in World Trade
Consumer Goods • Wealth used to purchase goods & services • Transportation & communication products accessible in MDCs • Not as important for LDCs
Consumer Goods • What does this image tell us?
Consumer Goods LDCs are familiar but cannot afford these goods Minority that can are business owners, gov’t officials The Haves and Have Nots
Social Indicators of Development • What types of social indicators do you think would determine whether a country is an LDC or an MDCs? • With a partner brainstorm 3 characteristics for each
Social Indicators of Development • MDCs use wealth to provide schools, hospitals & welfare services • Better educated, healthier, better protected from hardships • Infants more likely to survive • Adults more likely to live longer • Population can be more economically productive
Education and Literacy • Higher development greater quantity & quality of education • To measure quantity of education: • Years of school attended • To measure quality of education: • Student/teacher ratio • Literacy rate: percentage of a country’s people who can read & write Flash Card
Education and Literacy MDCs publish more books, newspapers, magazines per person b/c more people can read/write MDCs dominate scientific & nonfiction publishing LDCs must learn language of books in order to read
Health and Welfare • People in MDCs are healthier. Why? • More resources to care for people • Spend more than 8% of GDP on health care • More hospitals, doctors, nurses • People in LDCs • Spend less than 6% of GDP on health care
Health and Welfare • Health is influenced by diet • MDCs receive more daily calories & proteins than needed • LDCs of Africa, Asia receive less than minimum daily allowance
Health and Welfare • Health care is public service in many wealthy countries • Gov’t pays more than 70% of costs in most European countries • In LDCs, private individuals pay for more than 50% • What would you expect the pay out cost for the US to be? 55%
Health and Welfare • MDCs protect people who are unable to work • Sick • Elderly • Poor • Disabled • Orphaned • Veterans • Widows • Unemployed • Single parents
Health and Welfare • What has made funding these public assistance programs difficult in recent years? • Economic growth has slowed down • Percentage of people needing assistance has grown • Gov’ts must decide to reduce benefits or increase taxes
Demographic Indicators of Development • Many demographic differences between MDCs & LDCs • What types of demographic differences do you expect? • Life Expectancy • Infant Mortality Rate • Natural Increase Rate • Crude Birth Rate
Life Expectancy • MDCs permit people to live longer • MDCs: 70s • LDCs: 60s • Females live longer • 10yrs more in LDCs • 13yrs more in MDCs • What problems can arise from this?
Infant Mortality Rate • Why is infant mortality rate greater in LDCs? • Malnutrition • Lack of medicine • Dehydration, diarrhea • Poor medical practices • Dirty knife to cut umbilical cord
Natural Increase Rate • Percentage growth of a population • 1.5 in LDCs • 0.1 in MDCs
Crude Birth Rate • LDCs have higher CBR • 24 per 1000 • MDCs • 11 per 1000 • Why is CBR higher in LDCs? • Women in MDCs choose to have less children for econ & social reasons, birth control
Crude Birth Rate • Why isn’t CDR used to determine level of development? • CDR is lower in LDCs • Diffusion of medical technology from MDCs • MDCs have higher percentage of older people (high mortality) & lower percentage of children (low mortality)