1. Why Does Development Vary Among Countries?
Ch. 9 Key Issue 1
Why Does Development Vary Among Countries?

2. What do you think development is?
How should development be defined?
How should it be viewed? Is it an inherently “Western” idea?

3. What is Development?
Development implies progress- usually means improvements in tech., production, and social and economic welfare of people
Countries cluster at the high (MDC) and low (LDC) ends of the spectrum
MDCs and LDCs tend to cluster together in space

4. Key Indexes
Gross National Product (GNP)- total dollar value of the officially recorded goods and services produced in and out of a country
Gross Domestic Product (GDP)- total value of goods and services produced only within the country per year
Gross National Income (GNI):
GDP+income - payments to other countries

5. The 3 Categories of Development
Stems from idea that Indus. Rev and tech. can improve lives of people
There are three ways we can measure a country’s development:
Economic indicators
Social indicators
Demographic indicators

6. Human Development Index
To reveal the level of development, the HDI, created by the UN, combines 4 indicators:
1 economic
2 social and
1 demographic indicator
HDI ranges from 0-1
30 of lowest 32 countries found in sub-Saharan Africa

7. Economic Indicators of Development
HDI uses Gross Domestic Product (GDP) per Capita (per person)
Per capita GDP can help determine average wages in a country
Dividing GDP by the population (per capita) = contributions made by each person towards a country’s wealth
GDP alone can be misleading: Not everyone is starving in LDCs with GDP p/c of $3000. Or wealthy in US with $45,000 GDP p/c

8. Other Economic Development Indicators
These indicators are used to distinguish between MDCs and LDCs but not used by the UN to calculate HDI.
Types of Jobs
Worker productivity
Consumer goods

9. Types of Jobs
Wages are higher in MDCs than LDCs because people earn living in different ways
Called the International Division of Labor
Primary sector- extracting materials, hard manual labor (mostly LDCs)
Secondary sector- manufacturing process (raw materials into products) (more LDCs than MDCs now)
Tertiary sector- services: exchanging goods and services for money (mostly MDCs)

11. Occupational Structure
China GDP $6,200
agriculture 49%, industry 22%, services 29%
Australia GDP $32,000
agriculture 3.7%, industry 26.4%, services 70%
Philippines GDP $5,100
agriculture 36%, industry 16%, services 48%
Luxembourg GDP $59,143
Agriculture 1%, industry 30%, services 69%
Singapore GDP $21,492
agriculture 0%, industry 30%, services 70%

12. Occupational Structure
Equatorial Guinea GDP $5,900
agriculture 20%, industry 60%, services 20%
Haiti GDP $346
Agriculture 32%, industry 20%, services 48%
Malawi GDP $156
agriculture 37%, industry 29%, services 34%

13. Worker Productivity
Workers are more productive in MDCs – they produce more with less effort
MDCs have machines and tools
LDCs rely on human and animal power
Value added measures productivity
Selling price – inputs (labor, parts, etc.) = Value Added
High p/c GDP allows countries to invest in productivity which increases wealth

14. Consumer Goods
High GDP p/c wealth used to purchase cars, cell phones, internet, etc.
More necessary in MDCs than in LDCs since population is more dispersed
Creates a gap of “haves” and have-nots” in LDCs = conflict?
Owners of consumer goods are concentrated in the urban areas of LDCs

15. Social Indicators of Development
MDCs use wealth to provide schools and healthcare  healthier, educated, protected from hardships = economically productive citizens
2 social indicators used to measure HDI: Education and Literacy
Education means student/teacher ratio- Less students, more personalized instruction in MDCs
Literacy rate- More books, magazines, newspapers printed in MDCs

16. Social Indicators of Development
Health and welfare
Diet- more calories and protein in MDCs
MDCs have resources to care for sick- more hospitals/doctors p/c
LDCs have to pay more for health care- gov’t does not have GDP resources to pay for
MDCs have “safety net” programs”: Struggled to pay for recently because of slowing economic growth and aging population
Faced with cutting benefits or increasing taxes

17. Demographic Indicators of Development
Demographics: characteristics of a population (think demographic transition)
HDI uses life expectancy as main indicator
Better health and welfare permit people to live longer (60 in LDC, 70 in MDC)
Low life expectancy means more young people in LDCs (6x more young people = high youth dep. ratio)
IMR, NIR and CBR can be used to distinguish between MDCs and LDCs

19. Uneven Development within Countries
Islands of Development
Gov’t prioritizes creation of wealth in one city
Companies usually set up close to their resources, need cities to house workers and fulfill their needs
Leads to one super developed city in an “underdeveloped’ country
Informal economy is not counted- what the government does not keep track of, or is illegal

20. FIGURE 9-12

22. FIGURE 9-14

23. FIGURE 9-13