Development

Three factors of Development Economic Social Demographic

HDI HDI: Human Development Index, created by the United Nations, is a reflection of those three factors The UN selects one economic factor, two social factors, and one demographic factor to compute the HDI The highest HDI possible is 1.0, or 100% Canada usually ranks the highest at 0.932

Economic Factors The United Nations using gross domestic product per capita as the economic factor for calculating HDI Other economic factors are considered: Types of jobs Productivity Raw Materials Consumer Goods

GDP Per Capita Individuals in MDCs typically earn more income than in LDCs Per capita income is difficult to calculate in LDCs GDP is the value of the total output of goods and services produced within a country, normally during a year Geographers use GDP per capita instead GDP divided by total population

Types of Jobs Jobs typically fall into three categories: primary, secondary, and tertiary In an LDC, sometimes 75% of workers are in a primary sector, compared to 5% in an MDC In an MDC, jobs have decreased in primary and secondary sectors, and increased in tertiary

Productivity Workers in an MDC are more productive than workers in an LDC Productivity: the value of a particular product compared to the labor used to make it Machinery can help increase productivity

Raw Materials Development requires access to raw materials and energy sources LDCs that have petroleum are able to advance more quickly than those that do not Not all developed countries have raw materials (ex: Japan) Developed through world trade and technology

Consumer Goods Wealth can be divided between necessities (clothing, shelter, and food) and luxuries (television, cars, technology) The type of goods and services purchased by consumers is another indicator of economic development How important is the car? Telephone? Television?

Social Indicators The United Nations uses literacy rate and Gross Enrollment Rate as the social factors for calculating HDI. MDCs use their wealth to provide schools, hospitals, and welfare services Social factors include: Education and literacy Health and welfare

Education and Literacy The higher the level of development, the greater are both the quantity and quality of education The quality of education is measured in the student/teacher ratio and the literacy rate Literacy Rate: the percentage of a country’s people that can read and write Typically 95% in MDC, and less than 33% in LDC

Health and Welfare People are healthier in MDCs Most developed states have socialized healthcare United States is only major developed country where health care is privatized MDCs also offer welfare assistance to help those unable to work Denmark, Norway, and Sweden provide the most welfare assistance

Demographic Indicators The United Nations uses life expectancy as the demographic indicator for HDI. Demographic indicators include: Life Expectancy Infant Mortality Rate Natural Increase Rate Crude Birth Rate

Life Expectancy Better health and welfare cause people in MDCs to live longer Life expectancy: the average number of years a newborn can expect to live at current mortality levels Babies are expected to live to their mid-40s in LDCs, and mid-70s in MDCs MDCs have large number of elderly people, and LDCs have large number of children

Infant Mortality Rate Infant Mortality Rate: The annual number of deaths or infants under one year of age, compared to the number of live births More babies survive infancy in an MDC 90% of infants survive in an LDC 99% of infants survive in an MDC

Natural Increase Rate NIR: the percentage by which a population grows in a year. It is computed by subtracting the CBR-CDR The NIR is about 2% in LDCs, and 1% in MDCs

Crude Birth Rate Crude Birth Rate: the total number of live births in a year for every 1,000 people alive in the society LDCs have higher NIRs, because they have higher CBRs The CBR in an LDC is 40 per 1,000 The CBR in an MDC is 15 per 1,000