Development CHAPTER 9 UNIT VIi
VACATION • Where would we like to go on vacation? • Preferably a popular, yet less-developed destination • What makes this an attractive destination? • Amenities, climate, scenery, food/lodging $ • Are the people who live in this place year-round fortunate to live at such a desirable location? • What do the local people depend on for income? • What do the people in this country who do not live in a tourist area do for work? • Can any of these people who want to vacation in the US come? Why/why not?
A world divided • The world is divided by relatively rich and relatively poor countries • We will try to understand the reasons for this division and learn what can be done about it • Caribbean island vacation • Who works at the resorts? • What is life like surrounding the resort? • How would you feel?
looking back • We’ve looked at global demographics & cultural patterns • Birth, death, & NIR vary among the world • Different social customs, languages, religions, ethnicity • Pol. Problems arise when dist. Of culture doesn’t match boundaries • Global military competition replaced by economic comp.
development • Countries classified according to development: process of improving the material conditions of people through diffusion of knowledge and technology • Never ending process • Classified in either MDC or LDC • Where are developed/less developed countries located? • Why are some regions more developed than others? • Economic, social, and demographic indicators
Annual GDP per Capita Annual gross domestic product (GDP) per capita averages over $20,000 in most developed countries but under $5,000 in most less developed countries. One large problem is, informal / traditional economies are not included in taxes.
Why does development vary? • Countries devel. Distinguished by 3 factors: • Economic, social, and demographic • Human Development Index (HDI): Created by the UN, recognizes the counties level of devel. Is a function of all 3 factors
ECONOMIC INDICATORS OF DEVELOPMENT • 5 factors: Most important GDP • Economic structure, worker productivity, access to raw materials, and availability of consumer goods GDP PER CAPITA • MDC: $15 per hour • LDC: $2 per hour • GDP: value of the total output of goods & services produced in a country • Divide GDP by population = contribution made by the ave individual toward generating a countries wealth in a year
ECONOMIC INDICATORS OF DEVELOPMENT • US GDP: $12T, Pop~300M, GDP per cap= $40,000 • 1/8 of pop. is in poverty (1/4 AA and 1/5 Hispanics) • 2005 MDCs GDP was $27,000 • 2005 LDCs GDP was $4,000 • Not all LDCs have = growth in recent years (China/Africa) • Per Capita GDP measures average (mean) wealth • Not its distribution • ^ the per capita GDP, ^ potential for comfortable life
Types of jobs • Jobs fall into 3 categories: • Primary, Secondary, Tertiary • Comparing types of economic activities in MDC/LDC • Look at the % of people working in each category • Primary sector: directly extract materials from E • Via farming, mining, fishing, foresting • Secondary: manu’s that process, transform, and assemble raw materials into useful products • Tertiary: provision of goods in exchange of $ • Retail, banking, law, education, & gov’t
Types of jobs • The amnt of ppl in each category differs w/dvlpmnt • Primary (farming) 60% in LDCs – 5% in MDCs • #1 priority for everyone = food • MDCs ppl aren’t as concerned with food production • Therefore ^ #s in secondary and tertiary jobs • V in manu jobs bc of efficiency and global competition
Employment Changes by Sector Percentage employment in the primary, secondary, and tertiary sectors of MDCs has changed dramatically, but change has been slower in LDCs.
Productivity • Productivity: value of a product compared to amount of labor needed to make it • Value added: gross value of the product – the cost of raw materials and energy • ~$80k US, $70k Japan, $1k China, $500 India • Workers in MDCs produce more w/ less effort • More machines, tools, equipment, etc. • MDC workers are more productive
Raw materials • Development requires raw materials & energy sources • Iron Ore and Coal help transform UK in late 18th C • Resources depleted, est. colonies to import more • Specific raw materials become important bring dvlpmt • If an LDC has oil, they may develop to an MDC • A country’s abundance of resources=chance of dvlpmt • Exceptions to that rule • Japan, Singapore, S.Korea, and Switzerland • Success through world trade
Consumer goods • MDC: goods & services devoted to transp & comm. • Vehicles, phones, computers • Helps provide access to jobs & spreads info • More leisure activities available • LDC: Not as concerned with tech. advances • “Haves” and “Have nots” • Spread from urban to rural • Connecting MDCs and LDCs through technology
Social Indicators of development • MDCs earn more money, therefore: • More/Better schools, hospitals, welfare services • Infants more likely to survive, adults live longer • Less hardships • BC MDCs are better educated, healthier and safe… • More focus on being economically productive • LDCs…?
Student-Teacher Ratios Students per teacher, primary school level. Primary school teachers have much larger class sizes in LDCs than in MDCs, partly because of the large numbers of young people in the population (Also, refer to Fig. 2-15).
Persons per Physician There is a physician for every 500 or fewer people in most MDCs, while thousands of people share a doctor on average in LDCs. Especially in rural areas. Urban areas tend to be much better served.
Calories per Capita Daily available calories per capita as percent of requirements. In MDCs, the average personconsumes one-third or more over the required average minimum, which accounts for the obesity found in North America and some affluent countries. In LDCs, the average person gets only the minimum requirement or less.
Education & Literacy • More developed=^quantity and quality the edu. • Quantity=ave # of school years attended • Quality=student/teacher ratio and literacy rate • Literacy rate: % of people who can read/write • MDCs=98% LDC=60% • MDC=10 years in school • LDC=a few • MDC: student/teacher ratio is 2x higher than LDC
US RANKINGS • 1st economically • 17th in education • 28th math • 18th reading • 22nd science • 1st in crime • 1st incarceration • 24th homicide • 1st obesity • 19th democratic freedoms
Location of more/less developed countries • Countries are categorized into 9 regions • Based on their development • Japan and South Pacific aren’t part of the 9 • North-south Split • Circle the earth at 30º • Above 30º=MDC (for the most part) South=LDC
More and Less Developed Regions The heavy red line separates affluent countries from the less affluent countries. Australia andNew Zealand are included. In essence, these are the countries that CONTROL the world
More Developed regions ANGLO-AMERICA (HDI .94) • USA/CANADA • English 1st lang. & most adhere to Christianity • Some cultural tension (race and religion) • Abundance of natural resources (decline of manu) • Leader in financial, mgmt, & high tech services • Big promoter and supplier of entertainment/leisure • World’s most important food exporter
More developed regions WESTERN EUROPE (HDI .93) • Indo-European languages & Christianity • Conflict arise over cultural identities • Competition among nationalities causes WWI & WWII • Influx of Muslims and Hindus spark pop growth • Highest level of development (exclude S Italy, Portugal, Spain and Greece) • Importers of food, energy minerals • Worlds largest and richest economic market
More developed regions EASTERN EUROPE (HDI .80) • Only region to decline since UN created the index in ’90 • Declining to Latin American level (LDC) due to communism • “Iron Curtain” 15º E longitude • Initially mass increase in per capita GDP ($100s1000s) • Communism didn’t cater to poor/agricultural societies • Gosplan: 5 year, 3 step economic plan • 1st: heavy industry-iron, steel, machine tools, weapons • 2nd: disperse production to the east (= development) • 3rd: Locate manu facilities near resources, not markets
More developed regions EASTERN EUROPE (HDI .80) • Abandon communist economic structure • Outdated equip, import food, impossible targets, • Lacked basic industry needs: clothes, cars, housing • Eastern Countries bordering W Europe • Easier transition to the market economy
More developed regions JAPAN (HDI .94) • Remarkable development despite natural resources • A world leader in steel prod. yet imports all coal and iron • 1 asset: abundance of ppl willing to work for low wages • Sell product overseas for cheaper than domestic co. • THEN specialize in high-valued products: electronics • Spend 2x more on R&D than the U.S. • Rigorous edu & training programs for skilled labor
More developed regions SOUTH PACIFIC (HDI .87) • High HDI but not as relative in global econ. • Smaller pop • Comparable to most other MDC HDIs
Less developed regions LATIN AMERICA (HDI .80) • Spanish or Portuguese, Roman Catholic • More likely to live in urban areas compared to other LDCs • Pop highly clustered along Atlantic Coast • Mexico’s devel aided by proximity to U.S. • Devel hindered by un= $ distribution
Less developed regions EAST ASIA (HDI .76) • China is driving East Asia into 21st century • 2nd in GDP behind U.S. • 1/3 of total world economic growth • Fastest GDP per capita rise in the world • Communist control over farm land • Manu jobs increasing dramatically • Low wage=cheap goods, driving V factory pay worldwide • East coast developed, interior is not • BIG polluter • Largest consumer of: steel, coal, copper, cement 2nd in oil
Less developed regions MIDDLE EAST (HDI .68) • Largest % of worlds petroleum reserves • Only region to have more exports than imports • Oil sales promote econ. Development • un=oil reserves un= development (Egypt, Jordan, Syria) • Large gap in GDP per capita for oil rich and oil poor • Econ devel. w/out abandoning Muslim traditions • Low levels of edu for women bring the HDI down • AHDI: lack of poli freedom, V edu & literacy rates, lack of opps for women
Less developed regions SOUTHEAST ASIA (HDI .58) • Climate limits agriculture • Hot/Humid depletes nutrients • Mountains, volcanoes, typhoons limit econ devel • War/Conflict also had negative impacts • Focus on harvesting products used in manu • Palm oil, abaca, rubber, kapok, rice • Cheap labor for manufacturing • Cars and clothing
Less developed regions SOUTH ASIA (HDI .58) • India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan • India has abundance of resources • Enormous population makes resources unfavorable • Agriculture production depends on Monsoon season • India=4th largest economy • Major provider of services
Less developed regions SUB-SAHARAN AFRICA (HDI .51) • Major source: diamonds, manganese, platinum, chromium • Worlds highest % of people living in poverty • Poor health and education levels • Legacy of colonial era • Landlocked • Political issues (borders don’t match culture) • Dramatic imbalance of # of ppl and arable land
Development varies by gender • Gender inequality measured by: Gender Related Development Index (GDI): compares level of development of women w/ men • Gender Empowerment Measure (GEM): compare ability of men & women to participate in econ & poli decision making • GDI= combination of $, edu, literacy, & life expectancy then adjusted to reflect dif. Among men & women • Score is lowered when the difference is BIG (Mexico/Iran) • The higher the GDI, the closer in equality
Economic indicators of gender differences • Women earn less on ave. the men in both LDC & MDC • Women earn 2/3 of a males income • ’03 US Males=$46.5K, Females=$29K • Switzerland, Males only make $3K more • Austria, Ireland, Japan…$20K more • In LDCs women’s earnings are significantly less
Economic Indicator of Gender Differences Fig. 9-11: Women’s income is lower than men’s in all countries, but the gender gap is especially high in parts of the Middle East, South Asia, and Latin America.
Social indicators of gender differences • 2 KEY social indicators = education & literacy • Women less likely to attend school in LDC • HS difference in F/M ratio MDC=99/100, LDC=60/100 • Sub-Saharan/ME have large disparity in ratio • Fewer than 1/3 girls attend • Literacy divides countries into 3 categories • MDC=nearly universal • Latin America/Asia=not universal, but similar rates • Sub-Saharan/ME=LOW rates and even lower for women • Low literacy rates hinder women
Gender Differences in School Enrollment Fig. 9-12: As many or more girls than boys are enrolled in school in more developed countries, but fewer girls than boys are enrolled in many LDCs.
Male Literacy Rates Fig. 9-13b: There is a gap in literacy rates between MDCs and LDCs as well as between men and women in many LDCs.
Female Literacy Rates Fig. 9-13a: Female literacy is lower than male literacy (Fig. 9-13b) in many LDCs, with significant gender gaps in parts of the Middle East, Africa, and South Asia.
Life Expectancy and Gender Fig. 9-14: Women’s life expectancy is several years longer than men’s in MDCs, but only slightly longer in many LDCs.
Demographic indicator of gender differences • Life expectancy used as the measurement • Gender gap greater in MDCs • Baby girl in MDC will live longer than a boy • In an LDC…the life expectancy is much closer • Inability for women to outlive men in LDCs • Poor medical conditions, child bearing