II. Inequalities in wealth and development on every scaleA. How can we measure wealth and development?

1. Wealth

GNP Gross National Product: the total value of goods and services produced

within a country

• GNI (Gross National Income) : The total value of goods and services produced within a country together with the balance of income and payments from or to other countries (trade balance – imports/exports)

GNI/capita: the instrument used to measure the level of production in a country using the addition of the value of the goods and services produced in one year, divided by the number of inhabitants.

The GNI in PPP (Purchasing Power Parity) is an indicator of the standard of living (takes into account inflation, local cost of living)

World map for the year 2007, shaded by gross national income (PPP) per capita. Source: World Bank.

Which countries are the wealthiest? The poorest?

Map 1 Wealth and Poverty

Map 1: Wealth and Poverty

• Developed countries in the north have a high GNI/GDP $8,600 - $30,000 per capita

• Poor countries in the south have a low GNI/GDP less than $1,000 to $8,600 per capita.

• In subsaharan Africa and southeast and central Asia, 70 -74% of the population lives with less than $2/day

Income cartograph animationThis handy animation rescales the size of each country to depict

the number of people living there at any given income level. Then it runs up the income chain, from the poorest of the poor to the affluent. It highlights that even though many more people live in India than live in Germany or France or Japan, India contains many fewer affluent people than those countries. These kind of considerations are crucial to major global firms trying to understand where their biggest market opportunities are. Some goods can expect stellar sales in China, while others are still too pricey for the mass market there. The United States' combination of scale and affluence makes it far and away the best single country for products targeting relatively high-end consumers.

animated map of daily income around the world

2. Limits of wealth measurements to assess development

• GNI and GNP are criticized as indicators of development because they do not take into account social factors

• In 1990, the UN implemented another indicator in order to measure development levels

UN Development Indicator:

HDI (Human Development Indicator) is calculated by:

• the per capita revenue ($/year),

• life expectancy per capita,

• literacy rates of adults and

• educational rates of children under 15

The value is expressed from 0 to 1

Map 2: Human Development Index

Map 3: North South Divide GDP in PPP

Maps 2 & 3: HDI

– What do you notice about the European, Asian and African continents when comparing maps 2 & 3?

The North South Divide (Map 3)

– Gap between North and South

– HDI ≥0.9 located in the north

– HDI ≤ 0.5 in the south

B. To what extent is development unequal?

Comparing Geographic Scales

Global, regional, country, city scales

1. On a world scale:

Long-standing development in the North, recent in the south

• Even if it is constantly evolving, a line separates the North from the South (Map 3)

The North

• In the North, development dates back to the 18th century (demographic growth, industrialization and urbanization in Europe, North America and Japan – The Triad)

• The Triad dominates– more than 70% of the planetary production of

wealth,

– 80% of trade and new scientific discoveries

• ≥ 80% of the world’s inhabitants, produces ≤30% of its wealth.

• localized areas of development began in the 30’s, but not generalized until the 60’s.

• Demographic explosion has slowed down development in the south (population has increased 3.5 times since 1950)

• Certain emerging countries in the south now compete against the north (BRICS countries: Brazil, Russia, India, China, South Africa etc…)

The South

2. On a Regional Scale:•In the North: contrast between Northern and Western Europe vs. Southern and Eastern Europe

•In the South: even greater contrast between regional areas

- Eastern Africa and Central America, poorest areas

- Great heterogeneity between emerging powers (BRICS), intermediary developing countries (baby tigers like Indonesia) and LEDCs (Less Economically Developed Countries)

2. Regional Inequalities of DevelopmentMap 4: Regional HDI African Continent

How can you explain these regional differences in Africa?

European Regional Differences in development

Map 5: Discrepancies in HDI Ranking in Europe

Describe the regional discrepancies in Europe

3. On a Country/City Scale:Case of the NorthUnited States – Wealth Distribution

video TED

Map 6: Number of High Income Households for Each County in the US 2007-2011

Where is wealth concentrated geographically in the U.S.?