1. Concepts of Development

2. A. Describing development
world is divided between relatively rich & poor countries
Names for these countries:
outdated names: 1st, 2nd, 3rd, or 4th World
today: Developed---Developing---Underdeveloped
or MDC---NIC---LDC
geographic description: “North/South line”

3. The Brandt Line: distribution of MDCs & LDCs

4. B. Measuring Development
“Economic indicators”:
- GDP (gross domestic product): total value of all goods produced
- per capita income
- PPP (purchasing power parity):
value of a dollar equalized across countries

5. Per capita GDP

6. Purchasing Power Parity:

7. Telephones per Person

8. 2. “Social indicators”:
- education, literacy, healthcare, happiness

9. Health Indicator: caloric intake

10. Positive correlation:
Ex: countries with higher literacy rates have higher % employment in tertiary activities

11. Life expectancy at birth

12. Negative correlation
Ex: Countries with high GDPs have low infant mortality rates

13. C. Characteristics of Developing Countries
1. lower levels of living & productivity

15. Reversing
the Cycle
Of Poverty

16. 2. Lower levels of human capital

17. Higher levels of inequality & absolute poverty

18. 4. Higher population growth rates
Fertility Rate

19. Larger rural populations
(more agricultural)

20. …but rapid rural-to-urban migration

21. % of labor force in agriculture

22. Less industrialization
Adverse geography
Lingering colonial impacts
- resource extraction
- monocrops (coffee, sugar, bananas)
- weak governments
- ethnic strife