D EVELOPMENT

I NDICATORS OF D EVELOPMENT Economic indicators of development Gross domestic product per capita Types of jobs Primary, secondary, tertiary Raw materials Needed to produce finished goods and services Consumer goods Cars, T.V., cell phones

Social indicators of development Education and literacy Student/teacher ratio Health and welfare Denmark, Norway and Sweden have the highest levels of public assistance Demographic indicators of development Life expectancy–Infant mortality rate Crude death rate–Crude birth rate

More developed regions Anglo-America 0.94 HDI and major food exporter –Western Europe 0.92 HDI. W. Germany, N.E. France, N Italy Imports food, energy but exports consumer goods EU helps create successful market Eastern Europe 0.78 HDI. Communism caused low HDI Scarce funds, Import food, Low productivity, Pollution –Japan 0.93 HDI. High physiological density Low wage labor=cheap products Good education/training for labor force South Pacific 0.93 HDI Economies tied to Asian markets (Australia)

Less developed regions Latin America 0.78 HDI Agriculture, inequitable income distribution –East Asia 0.72 HDI Large population, Communism, Agriculture Southeast Asia 0.71 HDI Palm Oil, Copra, Rubber, Tin, major manufacturing of consumer goods –Middle East 0.66 HDI Large oil reserves, lack of political freedom, low education and literacy rates and low status of women South Asia 0.58 HDI Agriculture and Minerals, Green Revolution –Sub-Saharan Africa 0.47 HDI Minerals, low literacy, poor health, impact of colonialism

G ENDER D EVELOPMENT AND G ENDER Gender-related development index (GDI) Economic indicator of gender difference Income gaps Social indicators of gender differences Access to education and literacy rates Demographic indicator of gender differences Child bearing and diffusion of medical practices Gender empowerment (GEM) Economic indicators of empowerment Professional and technical jobs Political indicators of empowerment Managerial jobs, election to office

D EVELOPMENT S TRATEGIES Development through self-sufficiency Income from rural areas match urban income to reduce poverty Elements of self-sufficiency approach Isolate competition from large international corporations Limit imports, impose tariffs, quotas on imports Licensing Limit exporting India No outside corporations Products were produced and consumed in India only Subsides (cheap electric) Problems with self-sufficiency Inefficiency- no incentive to improve quality or production Large Bureaucracy- complex administration system

Development through international trade Export most abundant product to the global market Rostow’s development model (5 stages) Examples of international trade approach Saudi Arabia used revenue to invest in education ect Problems with international trade Uneven resource distribution- manipulation of prices Market stagnation-LDCs need to steal sales Increased dependence on MDCs-consumption of consumer goods World Trade Organization (WTO) Reduce international trade restrictions and enforcing agreements Financing Development Loans-LDCs borrow from World Bank and International Monetary Fund Transnational corporations- investment in a country by a international corp.