Chapter 9 Development

Intro What are some popular vacation spots? Would you consider those places to be MDCs or LDCs? How do you think local residents feel about the tourism?

What is this map showing us?

Human Development Index (HDI) A country’s level of development can be distinguished according to three factors – economic, social, and demographic HDI created by the UN, recognizes that a country’s level of development is a function of all three of these factors HDI- uses one economic factor, two social factors and one demographic factor to best reveal a country’s level of development What region of world has highest? Lowest? Flash Card

Economic Indicators of Development What words come to mind when you think ECONOMY or ECONOMIC? What types of economic indicators determine whether a country is an LDC or an MDCs? With a partner brainstorm 3-4 characteristics for each

Read Key Issue 1: p.293-296 Economic Indicators of Development GDP: value of total output of goods & services produced IN a country, usually in 1 year Which 15 countries do you think had HIGHEST? GDP 2011 MDC LDC $15/hour $2/hour Gov’t mandated min. wage Per Capita GDP $27,000 $4,000 Luxembourg: $60,000 Some LDCs <$1,000 Flash Card

GDP Can be misleading. Cannot perfectly measure level of a country’s devlp’t Why? US: GDP per capita $40,000 1/8 of US is in poverty

Types of Jobs Average per capita income higher in MDCs Jobs are different What types of jobs do you imagine most people do in LDCs? MDCs?

Types of Jobs Primary Sector: Secondary Sector: Tertiary Sector: Directly extract materials from Earth through agriculture, mining, fishing, forestry Secondary Sector: Includes manufacturers that process, transform & assemble raw materials into products or finished consumer goods Tertiary Sector: The provision of goods & services to people in exchange for service Provide an example for each Flash Card

Types of Jobs LDCs MDCs Agriculture 60% of people Agriculture <5% of people Spend days producing food for survival Small amt of farmers produce enough for entire society MDCs have decreasing amount of jobs in Primary & Secondary Sectors Why???

Types of Jobs Why do MDCs have less jobs in Primary & Secondary Sectors? Primary: better technology in MDCs, less farmers needed Secondary: Increased global competition for factory jobs

Productivity The value of a particular product compared to the amount of labor needed to make it Workers in MDCs are more productive than LDCs MDC LDC Output 5 factory workers 100 factory workers 1,000 shoes 5 farmers 100 farmers 1,000lbs of corn

Productivity “Value Added” : the total value of product minus costs of raw materials and energy How are workers in MDCs able to produce more with less effort? What do LDCs rely on to increase production? MDCs use higher GDP to pay for machinery more productivity  more wealth Country Value Added per Manufacturing Worker United States $80,000 Japan $70,000 China $1,000 India $500

Raw Materials Need access to raw materials for development Why? Examples? Coal, Oil, Natural Gas, Uranium (nuclear power) US & Soviet Union Powerful industrial countries Wide variety of raw materials/energy sources for devlp’t

Raw Materials UK – 1st country to develop Coal & iron ore: make & power machines European countries followed industrial trend Ran out of raw materials. Now what??? Colonized Africa & Asia for more! Slowed down their chance for development Why didn’t they develop right after gaining independence?

Raw Materials LDCs continued to export Raw Materials Potential for development Raw materials gain/lose importance Examples???? Oil in Middle East Cotton in India

Raw Materials Country with abundance resources has better chances to develop Not ALWAYS the case Japan: manufacturing & service (75% of total output) South Korea: export-oriented Switzerland: 73% tertiary (service) sector Active in World Trade

Consumer Goods Wealth used to purchase goods & services Transportation & communication products accessible in MDCs Not as important for LDCs Importance for Development Motor Vehicles Access to jobs & services, distribute products Computers Sharing info with buyers Telephones Communicate with customers

Consumer Goods What does this image tell us?

Consumer Goods Per 1000 LDCs MDCs Land-Line Phones <100 500 Motor Vehicles 400 Internet Users 300 LDCs are familiar but cannot afford these goods Minority that can are business owners, gov’t officials The Haves and Have Nots

Why don’t these maps match?

Social Indicators of Development What types of social indicators do you think would determine whether a country is an LDC or an MDCs? With a partner brainstorm 3 characteristics for each

Social Indicators of Development MDCs use wealth to provide schools, hospitals & welfare services Better educated, healthier, better protected from hardships Infants more likely to survive Adults more likely to live longer Population can be more economically productive

Education and Literacy What can we infer from this data?

Education and Literacy Higher development  greater quantity & quality of education To measure quantity of education: Years of school attended To measure quality of education: Student/teacher ratio Literacy rate: percentage of a country’s people who can read & write Flash Card

Education and Literacy MDCs LDCs Years in School 10years a couple years Student/Teacher Ratio Ex: 30/1 2x greater. Ex: 60/1 Literacy Rate 98% Less than 60% MDCs publish more books, newspapers, magazines per person b/c more people can read/write MDCs dominate scientific & nonfiction publishing LDCs must learn language of books in order to read

Health and Welfare People in MDCs are healthier. Why? People in LDCs More resources to care for people Spend more than 8% of GDP on health care More hospitals, doctors, nurses People in LDCs Spend less than 6% of GDP on health care

Health and Welfare

Health and Welfare Health is influenced by diet MDCs receive more daily calories & proteins than needed LDCs of Africa, Asia receive less than minimum daily allowance

Health and Welfare Write an observation

Health and Welfare Health care is public service in many wealthy countries Gov’t pays more than 70% of costs in most European countries In LDCs, private individuals pay for more than 50% What would you expect the pay out cost for the US to be? 55%

Health and Welfare MDCs protect people who are unable to work Sick Elderly Poor Disabled Orphaned Veterans Widows Unemployed Single parents

Health and Welfare What has made funding these public assistance programs difficult in recent years? Economic growth has slowed down Percentage of people needing assistance has grown Gov’ts must decide to reduce benefits or increase taxes

Demographic Indicators of Development Many demographic differences between MDCs & LDCs What types of demographic differences do you expect? Life Expectancy Infant Mortality Rate Natural Increase Rate Crude Birth Rate

Life Expectancy MDCs permit people to live longer MDCs: 70s LDCs: 60s Females live longer 10yrs more in LDCs 13yrs more in MDCs What problems can arise from this?

Infant Mortality Rate Why is infant mortality rate greater in LDCs? Malnutrition Lack of medicine Dehydration, diarrhea Poor medical practices Dirty knife to cut umbilical cord

Natural Increase Rate Percentage growth of a population 1.5 in LDCs 0.1 in MDCs

Crude Birth Rate LDCs have higher CBR 24 per 1000 MDCs 11 per 1000 Why is CBR higher in LDCs? Women in MDCs choose to have less children for econ & social reasons, birth control

Crude Birth Rate Why isn’t CDR used to determine level of development? CDR is lower in LDCs Diffusion of medical technology from MDCs MDCs have higher percentage of older people (high mortality) & lower percentage of children (low mortality)