Economic Development

1. Economic Development Mastering the TEKS in World Geography Chapter 18

2. Student Expectations • WG5B – Interpret political, economic, social, and demographic indicators (gross domestic product per capita, life expectancy, literacy, and infant mortality) to determine the level of development and standard of living in nations using the terms Human Development Index – less developed, newly industrialized and more developed.

3. Here’s what you will be learning… • You will learn how various indicators are used to describe how developed a nation’s economy is. • You will also learn how these same indicators are also used to measure the level of a country’s standards of living.

4. Essential Questions • How do economists measure a country’s level of economic development?

5. Create a Circle Map with words to describe economics.

6. Important Ideas • Various indicators are used to determine the level of development and standards of living of a country, including Gross Domestic Product (G.D.P.) per capita, life expectancy, infant mortality, and literacy rate. • The type of economic activities in a country influence its level of development.

7. Geographic Terminology • Human Development Index • Less Developed • Newly Industrialized • More Developed • G.D.P. • G.D.P. per Capita • Infant Mortality • Literacy • Primary Activities • Secondary Activities • Tertiary Activities • Quaternary Activities

8. Do you consider the United States to be a less developed country or a more developed country? Explain your answer.

9. What is an example of a developing country? • What factors do you think make a country developing?

10. Economic Development • Economic development refers to how advanced an economy is. • More Developed Nations – countries with advanced economies • Less Developed Nations – countries with lower standards of living and less advanced technologies • “Newly industrialized” or “emerging economies” – are countries that are moving from less developed to more developed

11. Newly Industrialized Countries What level of economic development do you think the countries on the map are in? Why?

12. Newly Industrialized Countries Newly industrialized countries can also be called emerging economies or developing economies. What does emerging mean? How does this relate to economics? Newly industrialized countries are those that are moving from less to more developed economies. An easy way to know the 4 major newly industrialized countries is to remember this …

13. B-R-I-C What countries do you think BRIC is referring to? Don’t forget, we are talking about emerging economies. Russia China India Brazil

14. What common characteristics do the BRIC countries share regarding their economies? Where do you think the main source of income comes from for these countries? What do you think the majority of people in these countries do for work?

15. More Developed Countries What level of economic development do you think the countries on the map are in? Why?

16. Indicators of Development

17. Now you will need the chart called “Case Study of Various Countries.” Fill in the chart as you view the maps. You may need an atlas to identify where each country on the chart is located and to choose a country of your choice.

18. Human Development Index Developed by the United Nations in 1990 as a tool for ranking countries based on their level of economic development. What indicators do you think the United Nations took into account when deciding how to determine the level of economic development? • Demographic Indicators • Economic Indicators • Social Indicators • Political Indicators

20. Demographic Indicators

21. Demographic Indicators Level of poverty Diet and malnutrition Life Expectancy The average number of years an individual in the country is expected to live. Presence of infectious diseases in the population Number of doctors What are some factors that could affect life expectancy?

22. Life Expectancy Map, 2011

23. Life Expectancy

24. Demographic Indicators Birth and Death Rates They are normally measured by how many people are born or die for every 1,000 people in that nation for a given year. What is another name for the death rate? Why does a high mortality rate generally mean a country is less developed?

25. Mortality Rate per 1,000 People per Year

26. Birth Rate per 1,000 People per Year

27. Demographic Indicators Infant Mortality The number of infants who die for every thousand births. What factors could directly influence infant mortality rates? The most common causes of infant deaths in the world has traditionally been dehydration, diarrhea, malnutrition, malaria, and lack of prenatal care.

28. Infant Deaths per 1,000 (under 1 year)

29. Economic Indicators Economic indicators tell how well an economy is performing.

30. Economic Indicators The Gross Domestic Product (GDP) is the total value of all goods and services produced by a nation in a year. The Gross Domestic Product per capita (GDP/# of people) is the value of goods and services produced in a year in a nation by an average person. Is it better for a country to have a high GDP or low GDP? Why?

31. Economic Indicators What are some other economic indicators of a country’s wealth or lack thereof?

33. What countries have the highest GDP? What color are they? Does the geographic location of a country have any bearing on its GDP? Explain your answer. What countries have the lowest GDP? What color are they?

34. Social Indicators

35. Social Indicators Because more developed nations are wealthier, they are able to provide more social services to their citizens. People are healthier, better educated and more productive than the citizens of less developed nations. • Some of the social indicators that economists consider include: • literacy rates • The percentage of people attending colleges and universities • The number of professional people – such as doctors and lawyers • Housing • Water supply • Sanitation

39. Political Indicators Political indicators include the freedoms people enjoy, the degree of democracy and voting rights, the level of human rights, the degree of government oppression, and the tolerance for different points of view.

40. One way the political indicators are measured is by using a democracy index. A group called the Economist Intelligence Unit has put together 5 indicators of democracy which can be used to rate countries on their level of democracy. 1. Electoral process and pluralism 2. Civil liberties 3. Functioning of government 4. Political participation 5. Political culture Think of a country you have learned about. How would you rate that country on each of these five points? Use a scale of 1 to 10 and explain your answers. The democracy index measures democracy (or lack of) in 167 countries, of which 165 are sovereign nations and 165 are UN members. Doesn’t it seem like countries would only increase their democratic index every year? Well, between 2010 and 2011 a few countries actually regressed and went backwards on the democratic scale. Any guess as to which ones? Russia and Portugal were downgraded. What could have caused this?

41. Norway has a democratic index of 9.80, the highest in the world. How about now? Which country do you think has the highest democracy index rating in the world? Know what it is yet? Norway

42. Know what it is yet? What about now? Which country has the lowest rating on the democracy index? North Korea has the lowest rating on the democracy index. Their rating is a 1.08.

43. Democracy Index, 2010

44. Government’s Relation to Economic Development IS there a connection?

45. True or FalseThere is no direct relationship between economic development and a nation’s system of government. True Some more developed economies have been ruled by dictators, while some democracies are less developed nations.

46. How can a democratic system lead to faster economic growth? provides People the freedom to start their own businesses Democratic Government A system of laws which allows All of this contributes to a Faster growing economy aided by… Freedom of expression Checks and balances

47. Can a nation’s economic system help transform its political system? Why or why not? • Some economists believe that the economic system can change a country’s political system. • Economic development promotes a strong middle class , the basis of democracy. • Economic development also promotes a strong sense of independence and personal freedom • Greater wealth allows individuals and businesses to strengthen their independence from the government. Some experts even believe that China may gradually become more democratic as their economy continues to prosper.