Chapter 9 Development H.D.I. Distribution of Countries Development Models

How does a country “Develop”?  The three objectives of development increases in availability and improvements in the distribution of food, shelter, health, protection, etc.increases in availability and improvements in the distribution of food, shelter, health, protection, etc. improvements in ‘levels of living,’ including higher incomes, more jobs, better education, etc.improvements in ‘levels of living,’ including higher incomes, more jobs, better education, etc. expansions in the range of economic and social choices available to individuals and nationsexpansions in the range of economic and social choices available to individuals and nations

Location of More and Less Developed Countries Development generally reflects a North-South split in the world.

United Nations’ Measurement for H.D.I.  Economic Indicators Gross Domestic Product (GDP) country output of productGross Domestic Product (GDP) country output of product Types of Work (Economic Sectors)Types of Work (Economic Sectors)  Social Indicators Education and LiteracyEducation and Literacy Health and WelfareHealth and Welfare  Demographic Indicators Life Expectancy ( years)Life Expectancy ( years) Infant Mortality ( 100 per thousand)Infant Mortality ( 100 per thousand) Natural Increase ( %)Natural Increase ( %)

Primary Activities Direct removal of natural resources such as mining, forestry, and agriculture -most important in the LDCs.  Subsistence Agriculture  Fishing and Forestry  Mining and Quarrying

Primary Products The percentage of people working in agriculture exceeds 75% in many LDCs of Africa and Asia. In Anglo-America and Western Europe the figure is <5%

Trade in Primary Products  Importance to Developing Economies  Danger of Commodity Trade Dependence Puerto Rico Coffee Plantation ges/frontline/gsearch.html?q =coffee+trade

Secondary Activities: Manufacturing Secondary - Processing and transforming natural resources: steel, textiles, auto assembly. These used to be most important in MDCs, but increasingly important in the semi-periphery (Korea, Mexico, Brazil, Singapore)

Tertiary and Beyond: Services Provision of services in exchange for payment. Includes retailing, banking, law, education, and government. Education, R & D, and information technology becoming most important in the postindustrial core regions. Education, R & D, and information technology becoming most important in the postindustrial core regions. Less-developed countries often focus on tourism. Services historically were clustered into settlements. Increasingly the most important service centers are massive world cities.

Tertiary and Beyond: Services Less-developed countries often focus on tourism. Club Med, The Bahamas Vendors, Bali

Tertiary and Beyond: Services

Resources and Technology  Resources affect patterns of development: cultivable land, energy sources, minerals. But changes in technology affect the value of these resources. Also, trade or lack of it can offset lack of resources (Japan) or make them less relevant (Brazil).  Technology Systems: roughly every 50 years since 1790 a new complex of technologies has revolutionized the world economic system and its structure. The most recent of these is the system which includes biotechnology, advanced materials (superconductors, solar power) and information technology. Which parts of the world benefited from the shift from coal to oil? Which suffered? Which parts of the world will benefit from the inevitable end of our reliance on petroleum and the necessary shift to wind, hydro, tide, or solar power ?

New International Division of Labor  Transnational Companies have been very aggressive in using low-cost labor in LDCs. Seek elimination of trade barriers (Tariffs)Seek elimination of trade barriers (Tariffs) No minimum standards in placeNo minimum standards in place A “rush” to the bottom?A “rush” to the bottom? Loss of U.S. jobs - “a great sucking sound” after NAFTA?Loss of U.S. jobs - “a great sucking sound” after NAFTA?

New International Division of Labor

Trading Blocks  International agreements that eliminate barriers to trade within regions: North American Free Trade Agreement (NAFTA)North American Free Trade Agreement (NAFTA) European Union (EU)European Union (EU) Oil Producing and Exporting Countries (OPEC)Oil Producing and Exporting Countries (OPEC) Trading Organizations  International agreements that eliminate barriers to trade among members: World Trade Organization (WTO)World Trade Organization (WTO)

Other Economic Indicator  Economic structure  Worker productivity  Access to raw materials  Availability to consumer goods

Measuring Development  Social Indicators Education and LiteracyEducation and Literacy

Measuring Development  Social Indicators Health and WelfareHealth and Welfare

Rank HDI Index Life Expectancy Adult Literacy GDP (US$) Arab States Arab States ,611 East Asia and the Pacific East Asia and the Pacific ,512 Latin America / Caribbean Latin America / Caribbean ,275 South Asia South Asia Sub-Saharan Africa Sub-Saharan Africa OECD na25,750 World na5,801 High Human Development 1 Norway , United States , Japan , Slovakia , Costa Rica , Mexico ,121 Medium Human Development 75 Venezuela , Armenia Philippines Turkey , Viet Nam Uganda Low Human Development 159 Rwanda Zambia

Infrastructure