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Engage Activity. Why are some countries more developed than others?. Economic Development. What is Economic Development?. A measure of the welfare of people in a society that tells how advanced an economy is Development is not purely an economic phenomenon but rather a multidimensional one.
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Engage Activity Why are some countries more developed than others?
What is Economic Development? • A measure of the welfare of people in a society that tells how advanced an economy is Development is not purely an economic phenomenon but rather a multidimensional one.
We used to label countries as 1st, 2nd, and 3rd world. This originated after WWII. • The 1st world was the U.S. and its allies. • The 2nd world was the USSR and its allies. • The 3rd world was the remaining countries, which were unaligned and had less political and military power. 3rd 2nd 1st
This terminology is now considered politically incorrect, so we say “more developed country” (MDC), and “less developed country” (LDC). Less Developed More Developed
What is Economic Development? • Countries are classified into 3 categories • More Developed (MDCs) • Less Developed (LDCs) • Newly Industrialized (NICs) • Based on the country’s Human Development Index (HDI)
More Developed Countries • Countries with a modern industrial society, well advanced economy, and a higher standard of living
More Developed Countries • MDCs usually share some other common features, including: • a highly industrialized society with modern technology • efficient transportation and communication systems • commercial agriculture • urban population • high per capita GNP (gross national product),
Less Developed Countries • Countries with less advanced technologies and lower standards of living
Less Developed Countries • LDCs usually share some other common features, including: • Low GDP per capita • Exhibits lowest indicators of economic development • Lowest HDI ratings of all the countries in the world • Large % of population in agriculture • Poor infrastructure
Country A Country B Analyze the images Below
Newly Industrialized Countries • Countries that are moving from less to more developed economies
Newly Industrialized Countries • NICs usually share some other common features, including: • Increased social freedoms and civil rights • Strong political leaders • Shift from agricultural to industrial economies • Increasingly open-market economy • Multinational corporations • Strong capital investment from foreign countries • Lowered poverty rates
Human Development Index • Numerical index developed by the United Nations • Ranks countries based on development issues, progress, and policies • Looks at a number of factors • Demographic indicators • Economic indicators • Social indicators • Political indicators
Demographic indicators • Life expectancy • Birth rate • Death rate • Infant mortality rate
Life expectancy (M, F): The average number of years a newborn infant can expect to live under current mortality levels. (US = 75, 80)
Infant Mortality: the annual number of deaths of infants under age 1 year per 1,000 live births. A country, which has less than 50 per 1,000, is said to have conquered hunger. (US = 6.6 per 1,000)
Population and Population Double Time: the number of years it would take for the population to double if the rate of natural increase remained constant. (US = 297 million people, doubles in 116 years.)
True or False: A more developed nation has a high birth rate, high infant mortality rate, and a short life expectancy.
GDP GDP per capita GNP GNP per capita employment rate # of automobiles per capita # of computers per capita # of telephones per capita # of televisions per capita Economic Indicators
GNP per capita: total goods and services produced by a country divided by its population. This is the most typical indicator of economic development. (US = $32,000)
Small Group Discussion How do GDP and HDI differ? What are the pros and cons of using these indicators to determine the level of development of a country?
Literacy rates % attending college # of professionals Housing Water supply Sanitation Access to basic services Social Indicators
Literacy rate: % of people over the age of 16 who can read and write. (US = 97%)
Population/physician: the total population divided by the number of doctors. (US = 446/1)
% of people employed in agriculture: the # of people involved in agriculture indicates subsistence (more farmers) vs. commercial (less farmers) and industrial vs. non-industrial. (US = 2%)
Subsistence Farming: people grow only enough for their own family’s or village’s needs. They grow food to eat, not sell.
Commercial Farming: farmers raise crops and livestock to sell in the market. Modern equipment makes these farmers more productive, so there are fewer farmers as a percentage of the work force. Characteristic of developed nations.
True or False: A less developed nation has a high literacy rate and a small number of doctors and hospitals to serve the population.
Freedoms enjoyed Type of governance Voting rights Level of human rights impact of colonialism Degree of government oppression Level of tolerance for different points of view Political Indicators
True or False: There is a direct relationship between economic development and the type of government a country has.
climate access to water (landlocked) natural disasters availability of natural resources Physical Indicators
HDI Classification Activity • Select four countries: • United States • A country with high human development • A country with medium human development • A country with low human development • In a table, identify and list the components of the HDI (life expectancy, literacy rate, GDP per capita, birth rate, infant mortality rate, type of government, and population per doctor) • Rank the countries according to their respective HDIs
Small Group Discussion • Explain the relationship between each indicator and economic development. • Discuss the consistency of relationship between their HDIs and the HDI components. • If you were to judge the country by its GDP or GNP only, would it still have the same level of development? Why?