1. Development

2. Three factors of Development
Economic
Social
Demographic

3. HDI
HDI: Human Development Index, created by the United Nations, is a reflection of those three factors
The UN selects one economic factor, two social factors, and one demographic factor to compute the HDI
The highest HDI possible is 1.0, or 100%
Canada usually ranks the highest at 0.932

4. Economic Factors
The United Nations using gross domestic product per capita as the economic factor for calculating HDI
Other economic factors are considered:
Types of jobs
Productivity
Raw Materials
Consumer Goods

5. GDP Per Capita
Individuals in MDCs typically earn more income than in LDCs
Per capita income is difficult to calculate in LDCs
GDP is the value of the total output of goods and services produced within a country, normally during a year
Geographers use GDP per capita instead
GDP divided by total population

6. Types of Jobs
Jobs typically fall into three categories: primary, secondary, and tertiary
In an LDC, sometimes 75% of workers are in a primary sector, compared to 5% in an MDC
In an MDC, jobs have decreased in primary and secondary sectors, and increased in tertiary

7. Productivity
Workers in an MDC are more productive than workers in an LDC
Productivity: the value of a particular product compared to the labor used to make it
Machinery can help increase productivity

8. Raw Materials
Development requires access to raw materials and energy sources
LDCs that have petroleum are able to advance more quickly than those that do not
Not all developed countries have raw materials (ex: Japan)
Developed through world trade and technology

9. Consumer Goods
Wealth can be divided between necessities (clothing, shelter, and food) and luxuries (television, cars, technology)
The type of goods and services purchased by consumers is another indicator of economic development
How important is the car? Telephone? Television?

10. Social Indicators
The United Nations uses literacy rate and Gross Enrollment Rate as the social factors for calculating HDI.
MDCs use their wealth to provide schools, hospitals, and welfare services
Social factors include:
Education and literacy
Health and welfare

11. Education and Literacy
The higher the level of development, the greater are both the quantity and quality of education
The quality of education is measured in the student/teacher ratio and the literacy rate
Literacy Rate: the percentage of a country’s people that can read and write
Typically 95% in MDC, and less than 33% in LDC

12. Health and Welfare People are healthier in MDCs
Most developed states have socialized healthcare
United States is only major developed country where health care is privatized
MDCs also offer welfare assistance to help those unable to work
Denmark, Norway, and Sweden provide the most welfare assistance

13. Demographic Indicators
The United Nations uses life expectancy as the demographic indicator for HDI.
Demographic indicators include:
Life Expectancy
Infant Mortality Rate
Natural Increase Rate
Crude Birth Rate

14. Life Expectancy
Better health and welfare cause people in MDCs to live longer
Life expectancy: the average number of years a newborn can expect to live at current mortality levels
Babies are expected to live to their mid-40s in LDCs, and mid-70s in MDCs
MDCs have large number of elderly people, and LDCs have large number of children

15. Infant Mortality Rate
Infant Mortality Rate: The annual number of deaths or infants under one year of age, compared to the number of live births
More babies survive infancy in an MDC
90% of infants survive in an LDC
99% of infants survive in an MDC

16. Natural Increase Rate
NIR: the percentage by which a population grows in a year.
It is computed by subtracting the CBR-CDR
The NIR is about 2% in LDCs, and 1% in MDCs

17. Crude Birth Rate
Crude Birth Rate: the total number of live births in a year for every 1,000 people alive in the society
LDCs have higher NIRs, because they have higher CBRs
The CBR in an LDC is 40 per 1,000
The CBR in an MDC is 15 per 1,000