DevelopmDevelopmentent

APHGAPHGSpring 2014Spring 2014

http://www.ted.com/talks/hans_rosling_reveals_new_insights_on_poverty.html

http://hdr.undp.org/en/mediacentre/videos/humandev/http://www.youtube.com/watch?v=IESYMFtLIis&feature=player_embedded#!

Earth at Night (NASA)

Why does development vary among countries?

Where are more and less developed countries distributed?

Where does level of development vary by gender?

Why do less developed countries face obstacles to development?

The process of improving the material conditions of people through the diffusion of knowledge and technology.

More developed countries (MDCs) AKA developed countries

Lesser developed countries (LDCs) AKA emerging, newly industrialized, or

developing countries

Economic indicators of development The Human Development Index (HDI)

▪ Four factors used to assess a country’s level of development▪ Economic = (1) gross domestic product (GDP) per capita

▪ Social = (2) literacy and (3) = amount of education

▪ Demographic = (4) life expectancy

Developed by the United Nations, the HDI combines several measures of

development: life expectancy at birth, adjusted GDP per capita, and knowledge

(schooling and literacy). http://hdr.undp.org/en/data/map/

Economic indicators of development Gross domestic product per capita Types of jobs (economic structure) Worker productivity Access to Raw materials Availability of Consumer goods

Social indicators of development Education and literacy (levels) Health and welfare

Demographic indicators of development Life expectancy – Infant mortality rate Natural increase rate – Crude birth rate*

http://www.youtube.com/watch?v=LPjzfGChGlE&feature=share

Gumballs

Gross National Product (GNP)

Measurement of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year. Includes things produced inside and outside a country’s territory.

Gross National Income (GNI)

Measure of the monetary worth of what is produced within a country plus income received from investments outside the country.

** Most common measurement used today.

Gross Domestic Product (GDP)

Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year.

•All measurements count the:Formal Economy – the legal economy that governments tax and monitor.

•All measurements do not count the:Informal Economy – the illegal or uncounted economy that governments do not tax or keep track of.

•Occupational Structure of the Labor Force•Productivity per Worker•Transportation and Communications

Facilities per Person•Dependency Ratio*

Economic indicators of development Types of jobs

▪ Primary sector▪ Secondary sector▪ Tertiary sector

Productivity▪ Measured by the value added per capita▪ MDCs are more productive than LDCs

Consumer goods

Good indicator of development

Social indicators of development Education and literacy

▪ The literacy rate Health and welfare

▪ Diet (adequate calories)▪ Access to health care

http://girlrising.com/#trailers-scenes-clips?id10x10=B8696AAAA34E1715

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

There is a physician for every 500 or fewer people in most MDCs, while

thousands of people share a doctor on average in LDCs.

Daily available calories per capita as percent of requirements. In MDCs, the average person consumes one-third or more over the required average minimum,

while in LDCs, the average person gets only the minimum requirement or less.

Demographic indicators of development Life expectancy

▪ Babies born today in MDCs have a life expectancy in the 70s; babies born in LDCs, in the 60s and in some countries the 40s.

Other demographic indicators:▪ Infant mortality▪ Natural increase▪ Crude birth rate (this is not an indicator of

development)

More developed regions North America and Europe Other MDCs with high HDI = Russia,

Japan, Australia, and New Zealand.

Less developed regions Latin America =highest HDI among LDCs SW Asia, SE Asia, Central Asia = similar

HDI South Asia and sub-Saharan = low levels

of development

The less developed regions include Latin America, Sub-Saharan Africa, Middle East, South Asia, East Asia, and Southeast Asia.

Well endowed with minerals and natural resources – important for manufacturing.

Americans remain leading consumers and world’s largest market for many products produced elsewhere.

Region has adapted relatively successfully to global eco. – because leading provider of many computing info and other high tech services as well as entertainment, mass media, sports, recreation, and other services that promote leisure time.

Most important good exporter – only region only region that could significantly expand the amount of land devoted to agriculture.

On global scale displays cultural unity, but some of the diversity of individual languages and religions can be a source of conflict.

Competition caused many wars (WWI & II) Level of development is world’s highest in a

core area (W. Germany, NE France, N Italy, Switzerland, S. Scandinavia, SE UK, Belgium, Netherlands, and Luxembourg.

Regions peripheral areas lag somewhat. Must import food, energy, minerals. Provides high-value goods and services. EU eliminated eco barriers – one of the world’s

richest market and the largest.

Central Europe’s rapidly declining HDI is a legacy of the region’s history of communist rule.

The communist promoted development during the 1950’s and 1960’s through economies directed by government officials rather than private entrepreneurs.

Central Europe’s countries in the 1990’s dismantled the economic structure inherited from the communist.

Aside from the desire for freedom, Central Europeans rejected communism was that central planning proved to be disastrous at running national economies.

Japan’s development is especially remarkable because it has an extremely unfavorable ratio of population resources.

Japan is one of the world’s leading steel producers, it must import all the coal and iron ore needed for steel production.

Having gained ground in the global economy by selling low-cost product, Japan then began to specialize in high quality products.

Japan’s dominance was achieved by concentrating resources in rigorous educational systems and training programs to create a skilled labor force.

Latin AmericaEast AsiaSoutheast AsiaMiddle East (Southwest Asia)South AsiaSub-Saharan Africa

Culturally diverse Latin Americans are more likely to live in

urban areas than people in other developing countries.

Population is highly concentrated around the Atlantic Ocean

Mexico’s development has been aided by what???

Development is lower in Central America, the Caribbean islands, and the interior of South America.

China, the largest country in East Asia, ranks among the poorest.

Within a few years China is projected to exceed the United States as the world’s largest economy. What does this mean??

In 1949, the Communist government took control of most agriculture land and farmers had to pay high rents.

Because of governmental controls, China has a lower natural increase rate than other LDCs.

Region has suffered from a half of century of war.

Region’s tropical climate limits intensive cultivation of most grains.

Economic development is also limited in Southeast Asia by several mountain ranges, active volcanoes, and frequent typhoons.

Population growth as increased due to western medicine.

Corrupt governments have delayed Southeast Asia’s development.

Much of the land is desert Most products imported but one major economic

asset – What? ME only region in which development is not

hindered by lack of capital for new construction. Larges gap in per capita income between petro rich

and those lacking resources causes great tension. Challenge – promote development without

abandoning the traditional culture values of Islam. Low level of literacy among women is main reason

UN considers these petro-rich states to be lower than wealth would indicate.

World’s second highest population

Second-lowest per capita incomeIndia’s overall population to

resources is unfavorable.Area is the main beneficiary of

“Green Revolution”

Population density is lower than any other less developed region. The region contains many mineral resources important for economic development.

Some of the region’s economic problems are a legacy of the colonial era. Why????

Political problems have also plagued this geographical realm.

European colonies were converted to states without regard for the distribution of ethnicities.

Although several African countries have important minerals, the world prices of many of these have lagged the prices of industrial products,

services, and energy.

UN uses an alternative Human Development Index (HDI) - Why? Three reasons: Lack of political freedom Low education and literacy rates Lack of opportunities for women

*Region also suffers from internal conflicts.

Special Notes on Sub Special Notes on Sub Saharan AfricaSaharan Africa

Gender-Related Development Index (GDI) Compares the level of women’s

development with that of both sexes Four measures (similar to HDI):

▪ Per capita female incomes as a percentage of male per capita incomes

▪ Number of females enrolled in school compared to the number of males

▪ Percent of literate females to literate males▪ Life expectancy of females to malesHighest - Norway; Lowest – Sub-Saharan Africa

The GDI combines four measures of development, reduced by the degree of disparity between males and females.

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.

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.

Female literacy is lower than male literacy in many LDCs, with significant gender gaps in parts of the Middle East, Africa, and South Asia.

There is a gap in literacy rates between MDCs and LDCs as well as between men and women in many LDCs.

Women’s life expectancy is several years longer than men’s in MDCs, but only slightly longer in many LDCs.

Gender Empowerment Measure (GEM) Compares the decision-making capabilities of

men and women in politics and economics Uses economic and political indicators:

▪ Per capita female incomes as a percentage of male per capita incomes

▪ Percentage of technical and professional jobs held by women

▪ Percentage of administrative jobs held by women▪ Percentage of women holding national office

The GEM combines two measures of economic power and two of political power by women. (Little data is available for LDCs.)

Half or more of professional and technical workers are women in most MDCs and some LDCs, such as Brazil, but only a small proportion are women in

most LDCs.

Development through self-sufficiency Characteristics:

▪ Pace of development = modest▪ Distribution of development = even▪ Barriers are established to protect local

business▪ Three most common barriers = (1) tariffs, (2) quotas, and (3) restricting the number of importers

▪ Two major problems with this approach:▪ Inefficient businesses are protected▪ A large bureaucracy is developed

Development through international trade Rostow’s model of development Examples of international trade approach

▪ The “four Asian dragons”▪ Petroleum-rich Arabian Peninsula states

Three major problems:▪ Uneven resource distribution▪ Increased dependence on MDCs▪ Market decline

Calls for a country to identify its distinctive or unique economic assets. According to the international trade approach, a country can develop economically by concentrating scarce resources on expansion of its distinctive local industries.

Rostow’s Development Model – -The traditional society-The preconditions for take off-The takeoff-The drive to maturity-The age of mass consumption

International trade approach triumphs The path most commonly selected by

the end of the twentieth century Countries convert because evidence

indicates that international trade is the more effective path toward development▪ Example: India

World Trade Organization Foreign direct investment

Financing development LDCs require money to fund

development Two sources of funds:

▪ Loans▪ The World Bank and the IMF▪ Structural adjustment programs

▪ Foreign direct investment from transnational corporations

Many developing countries have accumulated large debts relative to their GDPs. Much of their budgets now must be used to finance their debt.

Fair trade approach Products are made and traded in a way

that protects workers and small businesses in LDCs

Two sets of standards▪ Fair trade producer standards▪ Fair trade worker standards

Producers and workers usually earn more Consumers usually pay higher prices

Core Processes that incorporate

higher levels of education, higher salaries, and more technology

* Generate more wealth in the world economy

Periphery Processes that incorporate

lower levels of education, lower salaries, and less technology

* Generate less wealth in the world economy Semi-periphery

Places where core and periphery processes are both occurring. Places that are exploited by the core but then exploit the periphery.

* Serves as a buffer between core and periphery

This north polar projection of the world shows that most of the MDCs are in a core area north of 30° N latitude. The LDCs are mostly on the periphery

of this map.

Compare and contrast Rostow’s ladder of development with Wallerstein’s three-tier structure of the world economy.

Is the idea of economic development inherently Western? If the West (North America and Europe) were not encouraging the “developing world” to “develop,” how would people in the regions of the “developing world” think about their own economies?

•Development implies “progress”

-Progress in what?-Do all cultures view development the

same way?-Do all cultures “value” the same kinds

of development?

Dependency Theory The political and economic relationships

between countries and regions of the world control and limit the economic development possibilities of poorer areas.

-- Economic structures make poorer countries dependent on wealthier countries.

-- Little hope for economic prosperity in poorer countries.

http://www.cnn.com/video/#/video/bestoftv/2013/04/27/exp-gps-0428-witw.cnn

Dollarization – Abandoning the local currency of a country and adopting the dollar as the local currency.

El Salvador went through dollarization in 2001

•Governments -get involved in world markets-price commodities-affect whether core processes produce wealth-shape laws to affect production-enter international organizations that affect trade-focus foreign investment in certain places-support large-scale projects

Governments and Governments and Corporations can create Corporations can create Islands of DevelopmentIslands of DevelopmentPlaces within a region or country where foreign investment, jobs, and infrastructure are concentrated.

Malaysian government built a new, ultramodern capital at Putrjaya to symbolize the country’s

rapid economic growth.

The global oil industry has created the entire city of Port Gentile, Gabon to extract Gabon’s oil resources.

Nongovernmental Nongovernmental Organizations (NGOs)Organizations (NGOs)

Microcredit program:Microcredit program:

loans given to poor people, particularly loans given to poor people, particularly women, to encourage development of women, to encourage development of small businesses.small businesses.

Read Chapter 11