Spatial Distribution of Wealth

Measuring the Wealth of Countries GNP- Gross National Product GNP- Gross National Product Countries GDP (income earned from all domestic goods and services) plus the income earned on foreign investments Countries GDP (income earned from all domestic goods and services) plus the income earned on foreign investments GNP = GDP + net income on foreign investments GNP = GDP + net income on foreign investments Usually divided by population to give GNP per capita Usually divided by population to give GNP per capita

Used to classify countries based on standard of living Used to classify countries based on standard of living LLDC = GNP per capita less than $765 LLDC = GNP per capita less than $765 LDC = GNP per capita b/w $766 and $9385 LDC = GNP per capita b/w $766 and $9385 MDC = GNP per capita more than $9386 MDC = GNP per capita more than $9386

Measuring the Health of Countries Measuring standard of living with GNP per capita can be misleading b/c … Measuring standard of living with GNP per capita can be misleading b/c … It ignores terrible pockets of poverty that exist in some MDC’s, and the pockets of wealth that exist in some LDC’s It ignores terrible pockets of poverty that exist in some MDC’s, and the pockets of wealth that exist in some LDC’s Money is not the sole factor of a countries well being Money is not the sole factor of a countries well being  Taking these things into account standard of living is now measured by the United Nations Human Development Index

Human development index takes into account: Human development index takes into account: Longevity (life expectancy) Longevity (life expectancy) Knowledge (literacy rates, education attained) Knowledge (literacy rates, education attained) Income (GDP per capita) Income (GDP per capita)

Assignment Go to Go to 1. What does UN stand for? 1. What does UN stand for? Click on About the UN Basic facts about the UN The Organization Click on About the UN Basic facts about the UN The Organization 2. What is the UN’s purpose? 2. What is the UN’s purpose? 3. What kind of budget do they have for a year? 3. What kind of budget do they have for a year? What are some of the family of organizations they have? Click on this link Look under the titles starting with United Nations (you should recognize some) What are some of the family of organizations they have? Click on this link Look under the titles starting with United Nations (you should recognize some)

Read through the links on the left hand side of the page to see how the UN supports different issues in the world (eg. Human Rights link) Read through the links on the left hand side of the page to see how the UN supports different issues in the world (eg. Human Rights link)

When finished the UN questions… Go to Go to This is the web site for the Human Development Index report 2006 This is the web site for the Human Development Index report 2006 You will find the rankings of countries on the right hand side of the page. Choose a country and click on it You will find the rankings of countries on the right hand side of the page. Choose a country and click on it Answer the following questions: Answer the following questions:

1. What does HDI not include in it’s measure? 1. What does HDI not include in it’s measure? 2. Are all three measures ranked the same? (GDP, Life expectancy and economic sectors) 2. Are all three measures ranked the same? (GDP, Life expectancy and economic sectors) 3. Look at figure 1, why is it not fair to only measure a countries standard of living based on GDP? 3. Look at figure 1, why is it not fair to only measure a countries standard of living based on GDP?

North- South Divide Economic differences between North and South countries have evolved because: Economic differences between North and South countries have evolved because: The first industrial revolution first began in Great Britain and gradual spread to other countries. This spread was very uneven in the southern hemisphere because they lacked the infrastructure of good transportation and communication systems to capitalize on new technologies The first industrial revolution first began in Great Britain and gradual spread to other countries. This spread was very uneven in the southern hemisphere because they lacked the infrastructure of good transportation and communication systems to capitalize on new technologies Many of these countries were already colonies of European countries who exploited their natural resources Many of these countries were already colonies of European countries who exploited their natural resources

LDC countries have not made it to Rostow’s “take off” stage LDC countries have not made it to Rostow’s “take off” stage Until they are able to concentrate on manufacturing and services instead of resource extraction they will not be able to grow Until they are able to concentrate on manufacturing and services instead of resource extraction they will not be able to grow