Unit VI Development & Industry

1. Unit VI Development & Industry Key Process #1 Why does development vary among countries?

2. What is Development? The process of improving the material conditions of people through the diffusion of knowledge and technology More developed countries (MDCs) Lesser developed countries (LDCs)

3. Human Development Index (HDI) • Measurement of the level of development designed by the United Nations • Highest HDI possible is 1.0 • Considers develop. to be a function of 3 factors: • Decent standard of living • Long & healthy life • Access to knowledge • Categories/Classes of HDI: very high (developed), high, medium, & low (developing)

4. HDI

5. Nine Regions in order of their HDI 1. North America: U.S. & Canada (very high) 2. Europe: All but a handful of E. European countries (very high) • Japan and the S. Pacific (New Zealand & Australia) are grouped w/ the developed regions 3. Latin America: most are high developing 4. E. Asia: most are medium developing 5. Central Asia: medium overall; Iran (high) & Afghanistan (low) 6. SE Asia: most are medium 7. SW Asia & N. Africa: overall medium; Saudi Arabia (high) & Yemen (low) 8. S. Asia: medium 9. Sub-Saharan Africa: low • Russia: UN now classifies it as a developing country b/c of its limited progress

6. Economic indicators of development 1. Economic Structure (types of jobs) • Primary sector • Secondary sector • Tertiary sector: Quaternary, Quinary • From what you have learned thus far what kind of countries are associated w/ each economic sector?

7. 2. Standard of Living • UN measures standard of living called annual gross national income per capital at purchasing power parity • Gross National Income (GNI): value of the output of goods & services produced in a country in a yr., including $ that leaves & enters the country • By dividing GNI by the total pop., it is possible to measure the contribution made by the avg. individual toward generating a country’s wealth in a yr. • EX. U.S. GNI 2011= $15 trillion, Pop.=312 million, so GNI per capita was about $47000 • Per capita GNI in developed countries was approx. $34,000 compared to $7,000 in developing • Per capita GNI measures avg. (mean) wealth, not the distribution of wealth • Purchasing power parity (PPP): adjustment made to the GNI to account for the differences among countries in the cost of goods • Gross Domestic Product (GDP): value of the output of goods & services produced in a country in a yr., but does not account for the $ that leaves or enters the country

8. 3. Productivity • Value of a particular product compared to the amount of labor needed to make it • Can be measured by the value added per capita • Value added in manufacturing is the gross value of a product minus the costs of raw materials & energy • Workers in MDC’s produce more w/ less effort b/c they have access to more machines, tools, & equipment to perform much of the work

9. 4. Consumer Goods • MDC & consumer goods • Part of the wealth in developed countries is used to purchase goods & services • Ex. telephones, computers, vehicles • Why are these goods & services important for development? • Also use some wealth to establish infrastructure • LDC & consumer goods • b/c possession of consumer goods is not universal in developing countries, a gap can emerge btw. the “haves” and “have-nots” • Minority who have goods/services may include gov’t officials, business owners, other elites • Those who have these products are concentrated in urban areas

10. Social indicators of development 1. Access to Knowledge • Quantity of Schooling: UN uses 2 measures • Years of schooling: # of yrs. that the avg. person aged 25 & up has spent in school (avg. years for MDC=11, LDC=6) • Expected years of schooling: # of years that a 5 yr. old is expected to spend in school (avg. years for MDC=16, LDC= 11) • Quality of Schooling: UN uses 2 measures • Pupil/teacher ratio: Lower in MDC • Literacy rate: % of a country’s people who can read and write (higher in MDC) • Most books, newspapers, & mag. Are published in developed countries • Many technical information in books that are used in LDC are printed in English, German, Russian, or French

11. Social indicators of development 2. Health and welfare • Diet (adequate calories) • Access to health care

12. Demographic indicators of development 1. Life expectancy • Babies born today in MDCs have a life expectancy in the 80s; babies born in LDCs, in the 60s 2. Other demographic indicators: • Infant mortality • Natural increase • Crude birth rate • Dependency ratio

14. Variation within countries & regions • Variation within regions • Variation high in SW Asia & N. Africa and in Central Asia • Differences on who possesses oil • Ex. Saudi Arabia, UAE, etc. • Causes tension in region • Variations within countries • Brazil, China, & Mexico are among the world’s most populous countries and largest • Brazil: richest along coast, lowest in interior • China: richest along E. coast, lowest in interior • Mexico: richest along border w/ U.S. & tourist areas

15. Inequality-Adjusted HDI (IHDI) • Indicator of development that modifies that HDI to account for inequality within a country • If the IHDI is lower that the HDI the country has some inequality; the greater the distance btw. them the greater the inequality • A country where only a few people have high incomes, college degrees, and good healthcare would have a lower IHDI than a country where differences in income, level of education, and access to healthcare are minimal • Lowest scores are in sub-Saharan Africa (highest inequality) **the lower the score the greater the inequality Ex. The IHDI is 0.77 in the U.S. and 0.83 in Canada. Which country has a greater inequality?

16. Hans Rosling 200 years 200 countries