1. Chapter 9
Development

2. Intro What are some popular vacation spots?
Would you consider those places to be MDCs or LDCs?
How do you think local residents feel about the tourism?

3. What is this map showing us?

4. Human Development Index (HDI)
A country’s level of development can be distinguished according to three factors – economic, social, and demographic
HDI created by the UN, recognizes that a country’s level of development is a function of all three of these factors
HDI- uses one economic factor, two social factors and one demographic factor to best reveal a country’s level of development
What region of world has highest? Lowest?
Flash
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5. Economic Indicators of Development
What words come to mind when you think ECONOMY or ECONOMIC?
What types of economic indicators determine whether a country is an LDC or an MDCs?
With a partner brainstorm 3-4 characteristics for each

6. Read Key Issue 1: p.293-296 Economic Indicators of Development
GDP:
value of total output of goods & services produced IN a country, usually in 1 year
Which 15 countries do you think had HIGHEST?
GDP 2011
MDC
LDC
$15/hour
$2/hour
Gov’t mandated min. wage
Per Capita GDP $27,000
$4,000
Luxembourg: $60,000
Some LDCs <$1,000
Flash
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7. GDP
Can be misleading.
Cannot perfectly measure level of a country’s devlp’t
Why?
US: GDP per capita $40,000
1/8 of US is in poverty

8. Types of Jobs Average per capita income higher in MDCs
Jobs are different
What types of jobs do you imagine most people do in LDCs? MDCs?

9. Types of Jobs Primary Sector: Secondary Sector: Tertiary Sector:
Directly extract materials from Earth through agriculture, mining, fishing, forestry
Secondary Sector:
Includes manufacturers that process, transform & assemble raw materials into products or finished consumer goods
Tertiary Sector:
The provision of goods & services to people in exchange for service
Provide an example for each
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10. Types of Jobs
LDCs
MDCs
Agriculture 60% of people
Agriculture <5% of people
Spend days producing food for survival
Small amt of farmers produce enough for entire society
MDCs have decreasing amount of jobs in Primary & Secondary Sectors
Why???

12. Types of Jobs
Why do MDCs have less jobs in Primary & Secondary Sectors?
Primary:
better technology in MDCs, less farmers needed
Secondary:
Increased global competition for factory jobs

13. Productivity
The value of a particular product compared to the amount of labor needed to make it
Workers in MDCs are more productive than LDCs
MDC
LDC
Output
5 factory workers
100 factory workers
1,000 shoes
5 farmers
100 farmers
1,000lbs of corn

14. Productivity
“Value Added” : the total value of product minus costs of raw materials and energy
How are workers in MDCs able to produce more with less effort?
What do LDCs rely on to increase production?
MDCs use higher GDP to pay for machinery more productivity  more wealth
Country
Value Added per Manufacturing Worker
United States
$80,000
Japan
$70,000
China
$1,000
India
$500

15. Raw Materials Need access to raw materials for development
Why? Examples?
Coal, Oil, Natural Gas, Uranium (nuclear power)
US & Soviet Union
Powerful industrial countries
Wide variety of raw materials/energy sources for devlp’t

16. Raw Materials UK – 1st country to develop
Coal & iron ore: make & power machines
European countries followed industrial trend
Ran out of raw materials. Now what???
Colonized Africa & Asia for more!
Slowed down their chance for development
Why didn’t they develop right after gaining independence?

17. Raw Materials LDCs continued to export Raw Materials
Potential for development
Raw materials gain/lose importance
Examples????
Oil in Middle East
Cotton in India

18. Raw Materials
Country with abundance resources has better chances to develop
Not ALWAYS the case
Japan: manufacturing & service (75% of total output)
South Korea: export-oriented
Switzerland: 73% tertiary (service) sector
Active in World Trade

19. Consumer Goods Wealth used to purchase goods & services
Transportation & communication products accessible in MDCs
Not as important for LDCs
Importance for Development
Motor Vehicles
Access to jobs & services, distribute products
Computers
Sharing info with buyers
Telephones
Communicate with customers

20. Consumer Goods
What does this image tell us?

21. Consumer Goods Per 1000 LDCs MDCs Land-Line Phones <100 500
Motor Vehicles
400
Internet Users
300
LDCs are familiar but cannot afford these goods
Minority that can are business owners, gov’t officials
The Haves and Have Nots

22. Why don’t these maps match?

23. Social Indicators of Development
What types of social indicators do you think would determine whether a country is an LDC or an MDCs?
With a partner brainstorm 3 characteristics for each

24. Social Indicators of Development
MDCs use wealth to provide schools, hospitals & welfare services
Better educated, healthier, better protected from hardships
Infants more likely to survive
Adults more likely to live longer
Population can be more economically productive

25. Education and Literacy What can we infer from this data?

26. Education and Literacy
Higher development  greater quantity & quality of education
To measure quantity of education:
Years of school attended
To measure quality of education:
Student/teacher ratio
Literacy rate: percentage of a country’s people who can read & write
Flash
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27. Education and Literacy
MDCs
LDCs
Years in School
10years
a couple years
Student/Teacher Ratio
Ex: 30/1
2x greater. Ex: 60/1
Literacy Rate
98%
Less than 60%
MDCs publish more books, newspapers, magazines per person b/c more people can read/write
MDCs dominate scientific & nonfiction publishing
LDCs must learn language of books in order to read

28. Health and Welfare People in MDCs are healthier. Why? People in LDCs
More resources to care for people
Spend more than 8% of GDP on health care
More hospitals, doctors, nurses
People in LDCs
Spend less than 6% of GDP on health care

29. Health and Welfare

30. Health and Welfare Health is influenced by diet
MDCs receive more daily calories & proteins than needed
LDCs of Africa, Asia receive less than minimum daily allowance

31. Health and Welfare Write an observation

32. Health and Welfare
Health care is public service in many wealthy countries
Gov’t pays more than 70% of costs in most European countries
In LDCs, private individuals pay for more than 50%
What would you expect the pay out cost for the US to be?
55%

33. Health and Welfare MDCs protect people who are unable to work Sick
Elderly
Poor
Disabled
Orphaned
Veterans
Widows
Unemployed
Single parents

34. Health and Welfare
What has made funding these public assistance programs difficult in recent years?
Economic growth has slowed down
Percentage of people needing assistance has grown
Gov’ts must decide to reduce benefits or increase taxes

35. Demographic Indicators of Development
Many demographic differences between MDCs & LDCs
What types of demographic differences do you expect?
Life Expectancy
Infant Mortality Rate
Natural Increase Rate
Crude Birth Rate

36. Life Expectancy MDCs permit people to live longer MDCs: 70s LDCs: 60s
Females live longer
10yrs more in LDCs
13yrs more in MDCs
What problems can arise from this?

37. Infant Mortality Rate Why is infant mortality rate greater in LDCs?
Malnutrition
Lack of medicine
Dehydration, diarrhea
Poor medical practices
Dirty knife to cut umbilical cord

38. Natural Increase Rate Percentage growth of a population 1.5 in LDCs
0.1 in MDCs

39. Crude Birth Rate LDCs have higher CBR 24 per 1000 MDCs 11 per 1000
Why is CBR higher in LDCs?
Women in MDCs choose to have less children for econ & social reasons, birth control

40. Crude Birth Rate Why isn’t CDR used to determine level of development?
CDR is lower in LDCs
Diffusion of medical technology from MDCs
MDCs have higher percentage of older people (high mortality) & lower percentage of children (low mortality)