1. Industry & Development (CH 9 & 11)
Aphg unit VI
Industry & Development
(CH 9 & 11)

2. Why Does Development Vary Among Countries?
Key issue 1
Why Does Development Vary Among Countries?

3. DEVELOPMENT
A process of improvement in the material and living conditions of people through diffusion of knowledge and technology.

4. Development is a continuum, and for the most part it is linear.
Most countries start at a similarly undeveloped point (low income, low life expectancy), and move along the ‘process’ toward higher development.

5. War-related devastation in Syria
Points of crisis- like war or extreme political instability- can cause a country to ‘revert’ backwards developmentally, but this is usually a temporary condition.
War-related devastation in Syria

6. For example, parts of Syria and Iraq have been ‘de-developed’ under ISIS- but once freed, life in these areas slowly returns to pre-war standards.

7. Thus, to look at a country’s level of development is to see only a ‘snapshot,’ for development is dynamic and constantly changing.

8. The HDI ranks countries according to three key criteria
To measure the level of development in different countries, the UN as developed a ranking called the HUMAN DEVELOPMENT INDEX (HDI).
The HDI ranks countries according to three key criteria

9. 1.) A decent standard of living

10. 2.) A long and healthy life

11. 3.) Access to knowledge

12. The HDI ranks countries on a scale from 0 (very undeveloped) to 1
The HDI ranks countries on a scale from 0 (very undeveloped) to 1.0 (very developed).
Countries over .8 are called More Developed Countries (MDCs), while those under .8 are called Less Developed Countries (LDCs).

13. There are four HDI categories countries fall into:
1.) Very High Developed (HDI of .8 or higher)
2.) High Developing (HDI between )
3.) Medium Developing (HDI between )
4.) Low Developing (HDI .51 or below)

14. HDI Rankings by Country

15. FIGURE 9-3HDI BY REGIOIN Regions and other areas are shown in order of level of development. Developed regions are in red, and developing regions in green. Similar patterns will be used for a number of charts in this chapter.

16. BRANDT LINE
This line, drawn by Willy Brandt in the 1980s, divides the ‘rich’ global North from the ‘poor’ global South

17. EXAMINING COMPONENTS OF THE HUMAN DEVELOPMENT INDEX (HDI)

18. A DECENT STANDARD OF LIVING
People in the developed/developing world GENERATE and SPEND wealth in different ways.

19. A DECENT STANDARD OF LIVING Measured using specific metrics:
GROSS NATIONAL INCOME (GNI) – value of goods services produced by a country per year, including in/outflow of money
GROSS DOMESTIC PRODUCT (GDP) – Same as GNI without money flow in/out
PURCHASING POWER PARITY (PPP) – Adjusts GNI/GDP to reflect buying power
‘PER CAPITA’ – Adjusts GNI/GDP to a per person basis (averaged)

20. $53,000 USA GNI: $17 Trillion USA Pop’n: 320 million
GNI Per Capita Example
USA GNI: $17 Trillion
USA Pop’n: 320 million
17 trillion / 320 million
$53,000

21. A DECENT STANDARD OF LIVING
GLOBAL GNI PER CAPITA

22. A DECENT STANDARD OF LIVING
The HDI also accounts for the ECONOMIC SECTORS prevalent within a country:
PRIMARY – Extraction of materials from the Earth
SECONDARY – Refining of raw materials into finished products
TERTIARY – Provision of goods/services in exchange for money

23. A DECENT STANDARD OF LIVING
PRIMARY
SECTOR
SECONDARY
SECTOR
TERTIARY
SECTOR

24. A DECENT STANDARD OF LIVING
PRODUCTIVITY greatly impacts the wealth of a nation; it is how much EACH WORKER is able to produce.
In developed countries, productivity per worker is far higher, leading to higher profits and incomes.

25. A DECENT STANDARD OF LIVING
Notable disparities exist in the ownership of CONSUMER GOODS between the developed/developing world.

26. A DECENT STANDARD OF LIVING
CONSUMER GOODS
CARS: World Average 170 per 1,000 people.
Developed world: 630
Developing world: 80
TELEPHONES: World Average 800 per 1,000 people.
Developed world: 1,100
Developing world: 700
COMPUTERS: World Average 300 per 1,000 people.
Developed world: 700
Developing world: 200

27. A DECENT STANDARD OF LIVING
HDI can be adjusted to reflect inequality within a country, called INEQUALITY-ADJUSTED HDI.

28. A LONG AND HEALTHY LIFE
A major contributor to a country’s HDI ranking is LIFE EXPECTANCY AT BIRTH, which measures how old people will live to be on average.

29. A LONG AND HEALTHY LIFE
World average life expectancy is 70, but major disparities exist between countries and regions.
Many developed countries see lifespans in the high 70s/over 80, while many developing countries fall far short of the world average.

30. Sub-Saharan Africa: 55 years or less
A LONG AND HEALTHY LIFE
Developing countries have a wide range of life expectancy, particularly prominent at the regional level:
Latin America: 75 years
South Asia: 65 years
Sub-Saharan Africa: 55 years or less
Depends largely on food availability & social support

31. A LONG AND HEALTHY LIFE
FIGURE 9-10 LIFE EXPECT ANCY AT BIRTH The highest life expectancy is in Europe, and the lowest is in sub-Saharan Africa.

32. COUNTRIES WITH LONGEST LIFESPANS COUNTRIES WITH SHORTEST LIFESPANS
A LONG AND HEALTHY LIFE
COUNTRIES WITH LONGEST LIFESPANS
COUNTRIES WITH SHORTEST LIFESPANS

33. the two metrics are nearly equal in many developed countries.
A LONG AND HEALTHY LIFE
The number of young people is (on average) six times higher than the number of elderly in developing countries.
the two metrics are nearly equal in many developed countries.

34. In other words, child mortality is 12x higher in the developing world
A LONG AND HEALTHY LIFE
More than 99.5% of babies in the developed world survive their first year, compared to about 94% in developing countries.
In other words, child mortality is 12x higher in the developing world

35. ACCESS TO KNOWLEDGE
The UN believes that access to knowledge is essential to the possibility of leading a life of value.

36. Developed countries: 11 years Developing countries: 6 years
ACCESS TO KNOWLEDGE
The YEARS OF SCHOOLING metric measures the educational attainment of those 25 and older in a country.
World Average: 7 years
Developed countries: 11 years
Developing countries: 6 years

37. ACCESS TO KNOWLEDGE
YEARS OF SCHOOLING

38. Developed Countries: 16 years Developing Countries: 11 years
ACCESS TO KNOWLEDGE
Access to education has increased in recent decades. EXPECTED YEARS OF SCHOOLING is the years in school a typical 5-year-old will experience.
Developed Countries: 16 years
Developing Countries: 11 years

39. ACCESS TO KNOWLEDGE
These numbers imply most in the developed world will attend college, while most in the developing world will not graduate high school.

40. Also important: ACCESS TO KNOWLEDGE
Pupil/Teacher Ratio – Average 14 in developed world, 26 in developing world.
Literacy Rate – Greater than 99% in almost all developed countries; high in some developing countries, very low in others.

42. Variations in Development within Countries and Regions

43. Many developing regions contain wide disparities in development between countries.
This is largely due to the unequal distribution of wealth-generating resources and opportunities.

44. SOUTHWEST ASIA is a prime example.
Highly-developed, oil-rich nations like Saudi Arabia or the UAE stand in stark contrast to comparatively undeveloped countries like Jordan or Yemen, which lack oil resources.

45. Level of development can also vary widely within a country.
Often, a divide exists between urban ‘haves’ and rural ‘have-nots’ in developing countries.

46. CHINA’s wealth is concentrated along the Eastern coast, where manufacturing cities and ports lie.

47. Wealth is BRAZIL is highly concentrated along the southeastern Coast, where its major cities lie.

48. Wealth in MEXICO is concentrated along the US border (manufacturing) and the Yucatan peninsula (tourism)