1. Presented by Veronica Hardy
Development Chapter 9
Presented by Veronica Hardy

2. Human Development Index (HDI)
Vocabulary
Key Issue One
Development: The process of improving the material conditions of people through diffusion of knowledge and technology
Globalization: Actions or processes that make something worldwide through diffusion
Human Development Index (HDI)
Determines a country’s development by economic, social, and demographic factors. It was created by the United Nations in 1990.
Economic Indicators Social Indicators Demographic Indicators
Economic structure
Worker productivity
Access to raw materials
Availability of consumer goods
Education and Literacy
Health and Welfare
Life expectancy
Infant Mortality Rate
Natural Increase Rate
Crude Birth Rate

3. Help determine a country’s potential to be/ or become developed
Key Issue One
Gross Domestic Product
The value of the total output of goods and services produced in a country, typically in a year
---Higher GDPs are found in MDCs
---Lower GDPs are found in LDCs
Productivity
The value of a particular product compared to the amount of labor needed to make it
---Workers in MDCs are more productive than those in LDCs
Value Added
The gross value of the product minus the costs of raw materials and energy needed to make it
--- $5,000 per capita in MDCs
--- $300 per capita in LDCs
--- $40 per capita in sub-Saharan Africa
Raw Materials
Help determine a country’s potential to be/ or become developed
---Most LDCs with abundant supplies of petroleum use the revenues from the sale of them to finance development
Consumer Goods
--- Wealth used to buy nonessentials promotes expansion of manufacturing, which in turn generates additional wealth in the society
--- Sale and production of motor vehicles, televisions, and telephones are a good measure of development

4. Education and Literacy
Key Issue One
Education and Literacy
The student/teacher ratio is used to measure the quality of education (The fewer the number of students educated by one teacher, typically the better the education system is in a country)
Literacy Rate is the percentage of the population that can read and write (Higher in MDCs)
Health and Welfare
Cost of healthcare is more affordable and easily accessible in MDCs
Average amount of calories each citizen in the country consumes in a day is higher in MDCs
Life Expectancy
The average number of years a newborn infant can expect to live at current mortality levels
Better health and welfare permit people to live longer
Females are expected to live longer than males in both MDCs and LDCs
Females in MDCS live longer than females in LDCs by fourteen years
Males in MDCS live longer than males in LDCs by nine years
Infant Mortality Rate
Better health and welfare also permit babies to live longer
One percent of infants in MDCs die
Ninety percent of infants in LDCs die
Malnutrition and dehydration are prevalent in most LDCs
Natural Increase Rate
On average MDCs have increase rates of less than one percent
While on average LDCs have increase rates of more than two percent

5. Key Issue One Natural Increase Rate
On average MDCs have increase rates of less than one percent
While on average LDCs have increase rates of more than two percent
Crude Birth Rate
Due to contraceptive use and the role of women is society, the annual crude birth rate in MDCs is less than fifteen in one thousand
Compared to an annual birth rate of more than forty in one thousand in LDCs
Types of Jobs
Primary Jobs: The extraction of materials from Earth’s surface
Agriculture
Mining
Forestry
Fishing
Secondary Jobs: Processing, transforming, and assembling of raw materials and other products to construct finished goods
Manufacturing
Tertiary Jobs: The provision of goods and services to people in exchange for payment
Trucking products to market
Retailing
Banking
Law
Government

6. More Developed Regions Less Developed Regions
Key Issue Two
The North-South Split
Nearly every MDC is located north of the thirty degree north latitude line
More Developed Regions Less Developed Regions
Anglo-America
Western Europe
Eastern Europe
Japan
South Pacific
Latin America
East Asia
Southeast Asia
Middle East
South Asia
Sub-Saharan Africa
Anglo-America (HDI 0.94)
Ninety percent of this region use English as their first language and adhere to Christianity(excluding the non-religious)
Well endowed with minerals and is the world’s most important food exporter
Prior to the last quarter of a century, Anglo- America was the world’s major producer of steel, automobiles, and other goods
Latin America (HDI 0.78)
Mostly speak Spanish or Portuguese and adhere to Roman Catholicism
Culturally diverse
Mostly urban areas
World’s leading producers and exporters of wheat and corn

7. Key Issue Two Western Europe (HDI 0.92)
Speak Indo-European languages and practice Christianity
Since the end of WWII in 1945, this region has become more unified
The sale of high-valued goods and services pays for the importing of food, energy, and minerals
This region has the world’s largest and richest economy
Eastern Europe (HDI 0.78)
With the downfall of communism in this region, the structure of many countries has been severely damaged, resulting in a lower HDI overall for this region
Japan (HDI 0.93)
Extremely unfavorable ratio of population to resources
Some of the world’s most intensively farmed land and one of the highest physiological densities
Diet consists of mostly rice
Abundant supply of people willing to work for low wages
East Asia (HDI 0.72)
The communist government in China is in control of the agriculture there and even assign certain farmers specific jobs
Some farmers rent their land and sell the extra crops for their own profit
With the communist government, the natural increase rate is much lower
Southeast Asia (HDI 0.71)
Tropical climate
Dense population
Active volcanoes and frequent typhoons
Rice, the most important food in the region is not readily available in every country of this region
Large producers of palm oil, coconut oil(copra), natural rubber, abaca(fibers from banana leaves used for fabric and rope), and kapok(fibers from the ceiba tree used for insulation and filling)

8. Sub-Saharan Africa (HDI 0.47)
Key Issue Two
Middle East (HDI 0.66)
Desert
Large petroleum reserves
Ninety-five percent of the population practices the Islamic religion
Alternate Human Development Index(AHDI), created by the United Nations, is determined by lack of political freedom, low education and literacy rates, and lack of opportunities for women
Terrorism
South Pacific (HDI 0.93)
Australia and New Zealand
Ninety percent of residents are descendants of British settlers
Considerably small population
Net food exporters, especially to the United Kingdom
South Asia (HDI 0.58)
High population density
India is the world’s leading producer of jute(used to make burlap), peanuts, sugarcane, and tea
Sub-Saharan Africa (HDI 0.47)
Two parts: North of the Sahara Desert share economic and cultural characteristics with the Middle East/South of the Sahara Desert is the sub-Saharan Africa
Population density is lower than in any other less developed region
World’s highest percentage of people living in poverty

9. Gender-Related Development Index (GDI) Gender Empowerment Index (GEM)
Key Issue Three
Gender-Related Development Index (GDI)
Level of development of both sexes
Economic (average income of females and males in a country)
Literacy and Education (women are less likely to attend school in LDCs than in MDCs) Ratio of women to men who attend school 99/100 in MDCs, 60/100 in LDCs
Life Expectancy
Gender Empowerment Index (GEM)
A comparison of the ability of women and men to participate in economic and political decision making
Economic: Income(national income shared by women) and professional jobs( offer opportunities for advancement to positions of influence in a country’s economy)
Political Power: Managerial jobs(the ability to influence the process of decision making) and Elected jobs
In MDCs and LDCs, fewer women than men holed positions of economic and political power

10. Self-Sufficiency Approach Rostow’s Development Model
Key Issue Four
Self-Sufficiency Approach
A country tries to spread investment as equally as possible across all of its economy and in all regions
Problems:
Inefficiency and little drive to increase quality, lower production costs, reduce prices, or increase production
Large bureaucracy encourages abuse and corruption and leaves entrepreneurs struggling
Rostow’s Development Model
The traditional society(not started development yet)
The preconditions for takeoff(starting conditions that lead to productivity, such as railroads)
The takeoff(rapid growth)
The drive to maturity(wide variety of industry and diffusion of modern technology)
The age of mass consumption(economy shifts from heavy industry to consumer goods)
Created in the 1950s and was adopted by several countries in the 1960s
Created to follow t he self-sufficiency approach
The Four Asian Dragons
South Korea
Hong Kong
Singapore
Taiwan
---These countries were among the first to adopt the international trade alternative

11. Problems with International Trade Alternative
Key Issue Four
Problems with International Trade Alternative
Uneven resource distribution
Market stagnation(such as the four dragons and their dependence on the sale of low-cost manufactured goods)
Increased Dependence on MDCs
World Trade Organization (WTO)
Ninety-seven percent of the world’s countries established this organization in 1995 in order to promote the international trade development model
The WTO does this by negotiating reduction or elimination of restrictions on manufactured goods, and movement of money by banks, corporations, and wealthy individuals; and by enforcing agreements