Chapter 9a: Distribution and Measures of Development

Development The process of improving the material conditions of people through the diffusion of knowledge and technology More developed countries (MDCs) AKA developed countries 1st world = US & Allies 2nd world = USSR & Allies Less developed countries (LDCs) AKA emerging or developing countries or “least developed” or “underdeveloped” countries 3rd world

Human Development Index

Theories on the Distribution of Development

“Brandt’s Line” or the “North-South Split” (proposed 1980s) FIGURE 9-11 Remember that Brandt’s line includes Australia and New Zealand as part of the wealthy “North”. That is a given in the establishment of the pattern. Do NOT include them as exceptions to the rule.

Wallerstein’s World Systems Theory (Core-Periphery Model) Reading posted on my website for homework tonight. Discussion on Monday

Measuring Development

Human Development Index (HDI) used by the United Nations (UN) 3 areas examined to measure HDI. Economic = (1) gross national income (GNI) per capita Other Types of jobs, productivity, consumer goods Social = (2) amount of education literacy Other (health and welfare factors like access to health care, calories consumed) Demographic (3) life expectancy Other demographic statistics CBR (Crude Birth Rate), NIR (Natural Increase Rate) and the IMR (Infant Mortality Rate)

Gross National Income (GNI) = includes all the income earned (compensation and investment income) by a country's residents and businesses, including those earned abroad. measures the size of an economy but must be made comparable across different sized populations (per capita calculation) Other measures used including GDP (Gross Domestic Product) and GNP (Gross National Product) all estimate the size of an economy GNI per capita = Total GNI/population U.S. (2014) = $17.6 trillion/325,000,000 people U.S. GNI per capita > $52,000 China (2014) = $10.1 trillion/1,364,000,000 people China GNI per capita = $7,400 How might this per capita # paint an inaccurate picture? Affected by inequality (see GINI coefficient) !!!! Much higher in MDCS (> $30,000) Lowest in some LDCs < $4,000 GNI per capita

Per Capita GNI FIGURE 9-2

Types of jobs Primary sector – raw materials Secondary sector - manufacturing Tertiary sector – services Incl. sales, transportation and distribution, entertainment, restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law. Quaternary sector – intellectual, data driven intellectual activities incl. govt., culture, libraries, scientific research, education, and info tech. Quinary sector – decision-making highest levels of decision-making in a society or economy incl. the top executives or officials in such fields as govt., science, universities, nonprofit, healthcare, culture, and the media.

FIGURE 9-3

Primary Dramatic decrease from historic levels in MDCs Now stable can’t get much lower Also decreasing in LDCs mechanization Much higher % of economies in LDCs than MDCs

Secondary Has decreased sharply in MDCs since 1980s “deindustrialization” Lesser % of workforce in MDCS than in LDCs Lower wage areas (ex. China) now dominate manufacturing

Tertiary Large rise in MDCs and continues to grow. much smaller in LDCs. But should grow w/ development Much higher % employed in tertiary jobs in MDCs than in LDCs

Productivity Consumer goods Measure of how efficiently a product can be made. “value added”: comparison of the value of a good compared to the value of raw materials, energy and labor needed to get it to that point in production. Where is productivity, value-added higher? MDCs are more productive, add more value than LDCs, Why? Mainly technology, but also skills and education Consumer goods especially considered are communication and transportation MDCs = Accessible to all, vital for functioning of economy LDCs = not unknown but don’t play a vital role, more available/used in urban areas connected to MDCs.

Motor Vehicles Per 1,000 Persons

Cell phones per 1,000 persons FIGURE 9-5

Social indicators of development education and literacy literacy rate (higher in MDCs, but difficult to measure what is truly adequate literacy) mean and expected years of schooling higher in MDCs, why?

FIGURE 9-3

Social indicators of development (2 areas) education and literacy literacy rate (higher in MDCs, but difficult to measure what is truly adequate literacy) mean and expected years of schooling higher in MDCs because why? to function in the economy you must have more education other education “funding” measures (be careful how these stats are presented! Use your common sense!) student to teacher ratio higher in LDCs teacher/student ratio in MDCs is higher $ spent/student higher in MDCS but % of GDP spent on education is higher in LDCs

Students Per Teacher, Primary School

Social indicators of development Health and welfare Diet (adequate calories = 2,350) Access to health care Most MDCs have large social safety net programs that provide minimum support Social Security Food stamps Medicaid

Caloric intake as % of requirements FIGURE 9-7

Health expenditures as % of GDP FIGURE 9-8

Physicians per 1,000 persons FIGURE 9-9

Demographic indicators of development Life expectancy How long will babies born today live? MDCs = 70s, LDCs = 60s

Demographic Indicator of Gender Difference: Life Expectancy

Demographic indicators of development Life expectancy Babies born today MDCs = 70s, LDCs = 60s Other demographic indicators: All higher in LDCs, but decreasing Infant mortality = 6% (60) LDCs vs .5% (< 5) MDCs

Infant mortality rate FIGURE 2-12

Demographic indicators of development Life expectancy Babies born today MDCs = 70s, LDCs = 60s Other demographic indicators: All higher in LDCs, but decreasing Infant mortality = 6% (60) LDCs vs .5% (< 5) MDCs Crude birth rate = 23/1,000 LDCs vs 12/1,000 MDCs

Crude Birth Rate FIGURE 2-10

Demographic indicators of development Life expectancy Babies born today MDCs = 70s, LDCs = 60s Other demographic indicators: All higher in LDCs, but decreasing Infant mortality = 6% (60) LDCs vs .5% (< 5) MDCs Crude birth rate = 23/1,000 LDCs vs 12/1,000 MDCs Natural increase = 1.5% LDCs vs 0.2% MDCs

Natural Increase Rate FIGURE 2-9

Progress Toward Development

How does Gender affect Development ? From 1995 – 2010 Gender-Related Development Index (GDI) Compares women’s dev. w/men’s Uses HDI as a starting point

Gender-Related Development Index (GDI)

How does Gender affect Development ? From 1995 – 2010 Gender-Related Development Index (GDI) Compares women’s dev. w/men’s Uses HDI as a starting point Criticized as too dependent on income Penalizes poor countries with more gender equality but rewards high income unequal countries like Saudi Arabia Gender Empowerment Measure (GEM) Compares the involvement of women in decision-making roles Criticized as having an “elite” bias/“Regular” women are not reflected Women in leadership often aren’t gender advocates Proposed switch to women in local rather than national govt. Or, a measure of women who actually participate in voting

How does Gender affect Development ? Current Gender Inequality Index (GII) Reproductive health Maternal Mortality Ratio (MMR) rate of women who die due to childbirth Adolescent Fertility Rate (AFR) rate of teenage pregnancy Empowerment Share of parliamentary seats Labor market participation Lower index (closer to 0) = more equality High index (closer to 1) = less equal

Female labor market participation

Lower GII = higher development. Why Lower GII = higher development. Why? How does having more gender equality improve the HDI of a country? When women enjoy more equality: women are included in the formal economy informal economic activity not counted for HDI become major economic assets. Wage earners, entrepreneurs, innovators smaller family sizes less children = more economic investment GNI is higher More equality = women stay in school longer Increase in mean years of schooling Women who have more educational and economic opportunity have less children fewer pregnancies leads to longer lives Increase in female life expectancy