1. Chapter 9a: Distribution and Measures of Development

2. Development
The process of improving the material conditions of people through the diffusion of knowledge and technology
More developed countries (MDCs)
AKA developed countries
1st world = US & Allies
2nd world = USSR & Allies
Less developed countries (LDCs)
AKA emerging or developing countries
or “least developed” or “underdeveloped” countries
3rd world

3. Human Development Index

4. Theories on the Distribution of Development

5. “Brandt’s Line” or the “North-South Split” (proposed 1980s)
FIGURE 9-11
Remember that Brandt’s line includes Australia and New Zealand as part of the wealthy “North”. That is a given in the establishment of the pattern. Do NOT include them as exceptions to the rule.

6. Wallerstein’s World Systems Theory (Core-Periphery Model)
Reading posted on my website for homework tonight. Discussion on Monday

7. Measuring Development

8. Human Development Index (HDI) used by the United Nations (UN)
3 areas examined to measure HDI.
Economic =
(1) gross national income (GNI) per capita
Other
Types of jobs, productivity, consumer goods
Social =
(2) amount of education
literacy
Other (health and welfare factors like access to health care, calories consumed)
Demographic
(3) life expectancy
Other demographic statistics
CBR (Crude Birth Rate), NIR (Natural Increase Rate) and the IMR (Infant Mortality Rate)

9. Gross National Income (GNI) = includes all the income earned (compensation and investment income) by a country's residents and businesses, including those earned abroad.
measures the size of an economy but must be made comparable across different sized populations (per capita calculation)
Other measures used including GDP (Gross Domestic Product) and GNP (Gross National Product) all estimate the size of an economy
GNI per capita = Total GNI/population
U.S. (2014) = $17.6 trillion/325,000,000 people
U.S. GNI per capita > $52,000
China (2014) = $10.1 trillion/1,364,000,000 people
China GNI per capita = $7,400
How might this per capita # paint an inaccurate picture?
Affected by inequality (see GINI coefficient) !!!!
Much higher in MDCS (> $30,000)
Lowest in some LDCs < $4,000
GNI per capita

10. Per Capita GNI
FIGURE 9-2

11. Types of jobs Primary sector – raw materials
Secondary sector - manufacturing
Tertiary sector – services
Incl. sales, transportation and distribution, entertainment, restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law.
Quaternary sector – intellectual, data driven
intellectual activities incl. govt., culture, libraries, scientific research, education, and info tech.
Quinary sector – decision-making
highest levels of decision-making in a society or economy incl. the top executives or officials in such fields as govt., science, universities, nonprofit, healthcare, culture, and the media.

13. FIGURE 9-3

14. Primary Dramatic decrease from historic levels in MDCs
Now stable
can’t get much lower
Also decreasing in LDCs
mechanization
Much higher % of economies in LDCs than MDCs

15. Secondary Has decreased sharply in MDCs since 1980s
“deindustrialization”
Lesser % of workforce in MDCS than in LDCs
Lower wage areas (ex. China) now dominate manufacturing

16. Tertiary Large rise in MDCs and continues to grow.
much smaller in LDCs. But should grow w/ development
Much higher % employed in tertiary jobs in MDCs than in LDCs

17. Productivity Consumer goods
Measure of how efficiently a product can be made.
“value added”: comparison of the value of a good compared to the value of raw materials, energy and labor needed to get it to that point in production.
Where is productivity, value-added higher?
MDCs are more productive, add more value than LDCs, Why?
Mainly technology, but also skills and education
Consumer goods
especially considered are communication and transportation
MDCs = Accessible to all, vital for functioning of economy
LDCs = not unknown but don’t play a vital role, more available/used in urban areas connected to MDCs.

18. Motor Vehicles Per 1,000 Persons

19. Cell phones per 1,000 persons
FIGURE 9-5

20. Social indicators of development
education and literacy
literacy rate (higher in MDCs, but difficult to measure what is truly adequate literacy)
mean and expected years of schooling
higher in MDCs, why?

21. FIGURE 9-3

22. Social indicators of development (2 areas)
education and literacy
literacy rate (higher in MDCs, but difficult to measure what is truly adequate literacy)
mean and expected years of schooling
higher in MDCs because why?
to function in the economy you must have more education
other education “funding” measures (be careful how these stats are presented! Use your common sense!)
student to teacher ratio
higher in LDCs
teacher/student ratio in MDCs is higher
$ spent/student
higher in MDCS
but % of GDP spent on education is higher in LDCs

23. Students Per Teacher, Primary School

24. Social indicators of development
Health and welfare
Diet (adequate calories = 2,350)
Access to health care
Most MDCs have large social safety net programs that provide minimum support
Social Security
Food stamps
Medicaid

25. Caloric intake as % of requirements
FIGURE 9-7

27. Health expenditures as % of GDP
FIGURE 9-8

28. Physicians per 1,000 persons
FIGURE 9-9

29. Demographic indicators of development
Life expectancy
How long will babies born today live?
MDCs = 70s, LDCs = 60s

30. Demographic Indicator of Gender Difference: Life Expectancy

31. Demographic indicators of development
Life expectancy
Babies born today
MDCs = 70s, LDCs = 60s
Other demographic indicators:
All higher in LDCs, but decreasing
Infant mortality = 6% (60) LDCs vs .5% (< 5) MDCs

32. Infant mortality rate
FIGURE 2-12

33. Demographic indicators of development
Life expectancy
Babies born today
MDCs = 70s, LDCs = 60s
Other demographic indicators:
All higher in LDCs, but decreasing
Infant mortality = 6% (60) LDCs vs .5% (< 5) MDCs
Crude birth rate = 23/1,000 LDCs vs 12/1,000 MDCs

34. Crude Birth Rate
FIGURE 2-10

35. Demographic indicators of development
Life expectancy
Babies born today
MDCs = 70s, LDCs = 60s
Other demographic indicators:
All higher in LDCs, but decreasing
Infant mortality = 6% (60) LDCs vs .5% (< 5) MDCs
Crude birth rate = 23/1,000 LDCs vs 12/1,000 MDCs
Natural increase = 1.5% LDCs vs 0.2% MDCs

36. Natural Increase Rate
FIGURE 2-9

37. Progress Toward Development

38. How does Gender affect Development ?
From 1995 – 2010
Gender-Related Development Index (GDI)
Compares women’s dev. w/men’s
Uses HDI as a starting point

39. Gender-Related Development Index (GDI)

40. How does Gender affect Development ?
From 1995 – 2010
Gender-Related Development Index (GDI)
Compares women’s dev. w/men’s
Uses HDI as a starting point
Criticized as too dependent on income
Penalizes poor countries with more gender equality but rewards high income unequal countries like Saudi Arabia
Gender Empowerment Measure (GEM)
Compares the involvement of women in decision-making roles
Criticized as having an “elite” bias/“Regular” women are not reflected
Women in leadership often aren’t gender advocates
Proposed switch to women in local rather than national govt.
Or, a measure of women who actually participate in voting

41. How does Gender affect Development ?
Current
Gender Inequality Index (GII)
Reproductive health
Maternal Mortality Ratio (MMR)
rate of women who die due to childbirth
Adolescent Fertility Rate (AFR)
rate of teenage pregnancy
Empowerment
Share of parliamentary seats
Labor market participation
Lower index (closer to 0) = more equality
High index (closer to 1) = less equal

42. Female labor market participation

43. Lower GII = higher development. Why
Lower GII = higher development. Why? How does having more gender equality improve the HDI of a country?
When women enjoy more equality:
women are included in the formal economy
informal economic activity not counted for HDI
become major economic assets.
Wage earners, entrepreneurs, innovators
smaller family sizes
less children = more economic investment
GNI is higher
More equality = women stay in school longer
Increase in mean years of schooling
Women who have more educational and economic opportunity have less children
fewer pregnancies leads to longer lives
Increase in female life expectancy