Understanding Development: Economic, Social, and Demographic Factors

1. Chapter 9-Development • A country’s level of development is categorized according to 3 factors: • Economic • Social • Demographic • Human Development Index (HDI)-created by United Nations & recognizes a country’s level of development

2. HDI (continued) • To create HDI the UN selects 1 economic factor, 2 social factors, & 1 demographic factor that an international team determines a country’s level of development. • Economic-gross domestic product • Social-literacy rate & amount of education • Demographic-life expectancy

3. HDI-continued • Country with highest HDI-Norway • US is usually in top 10 • Canada & Japan were higher than Norway in 90s • Other European countries typically in top 10 • Lowest ranked country Sierra Leone • 2 dozen lowest ranking countries from sub-Saharan Africa

4. Gross Domestic Product • GDP-value of the total output of goods & services produced in a country, normally during a year • GDP higher in MDC than LDC • Per capita GDP measures average wealth

5. Types of Jobs • Average per capita is higher in MDCs because people earn their living by different means than in LDCs • Jobs fall into 3 categories: primary, secondary, tertiary • Primary sector-workers in this sector directly extract materials from Earth through agriculture, mining, fishing, & forestry.

6. Types of Jobs (continued) • Secondary sector includes manufacturers that process, transform, & assemble raw materials into useful products. Other secondary sector industries take manufactured goods and make them into finished consumer goods. • Tertiary sector-involves taking goods & services to people in exchange for payment. Includes retailing, banking, law, and government. Most of U.S. falls in this category-providing goods and services and linking producers and consumers.

7. Quarternary and Quinary Sector • Quaternary-white collar professionals working in education, government, jobs in research & information processing, management • Quinary-executive decision makers,corporate management, CEOs, ecotourism, management planning (example: Saudis buying property in U.S.)

8. Productivity • Productivity-value of a particular product compared to amount of labor needed to make it • Value added-occurs in manufacturing; gross value of product minus costs of raw materials and energy • Raw materials-turning minerals and trees into useful products • Consumer goods-things we as consumers buy

9. Education and Literacy • The higher the level of development, the greater are both the quantity and quality of a country’s education • MDCs-students attend average 10 years in school, LDCs-just a few years • Literacy rate-% of a country’s people who can read and write • Health and welfare-people are healthier in MDCs-health is determined by diet

10. Life Expectancy • Life expectancy • Infant mortality rate • Natural increase rate • Crude birth rate

11. Key Issue 2 • Create a graphic organizer for more developed countries-include some important facts-pp. 302-305 • Create a graphic organizer for less developed countries-pp. 305-309

12. Rostow’s Development Model-page 316 • Rostow in 1950s proposed a 5-stage model of development • 1. The traditional society • 2. The preconditions for takeoff • 3. The takeoff • 4. The drive to maturity • 5. The age of mass consumption

13. 4 Asian Dragons-page 317 • These countries were among the 1st to adopt international trade alternatives: • South Korea, Singapore, Taiwan, & Hong Kong • Also known as “4 little tigers”-they lacked natural resources so to compensate for this they promoted development by concentrating on manufactured goods (clothing, electronics). In turn they sold these products to MDCs.

14. World Trade Organization • WTO was established to promote international trade • Enforce agreements among one another • Try to negotiate reduction or elimination of trade restrictions