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Chapter 9-Development. A country’s level of development is categorized according to 3 factors: Economic Social Demographic Human Development Index (HDI)-created by United Nations & recognizes a country’s level of development. HDI (continued).
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Chapter 9-Development • A country’s level of development is categorized according to 3 factors: • Economic • Social • Demographic • Human Development Index (HDI)-created by United Nations & recognizes a country’s level of development
HDI (continued) • To create HDI the UN selects 1 economic factor, 2 social factors, & 1 demographic factor that an international team determines a country’s level of development. • Economic-gross domestic product • Social-literacy rate & amount of education • Demographic-life expectancy
HDI-continued • Country with highest HDI-Norway • US is usually in top 10 • Canada & Japan were higher than Norway in 90s • Other European countries typically in top 10 • Lowest ranked country Sierra Leone • 2 dozen lowest ranking countries from sub-Saharan Africa
Gross Domestic Product • GDP-value of the total output of goods & services produced in a country, normally during a year • GDP higher in MDC than LDC • Per capita GDP measures average wealth
Types of Jobs • Average per capita is higher in MDCs because people earn their living by different means than in LDCs • Jobs fall into 3 categories: primary, secondary, tertiary • Primary sector-workers in this sector directly extract materials from Earth through agriculture, mining, fishing, & forestry.
Types of Jobs (continued) • Secondary sector includes manufacturers that process, transform, & assemble raw materials into useful products. Other secondary sector industries take manufactured goods and make them into finished consumer goods. • Tertiary sector-involves taking goods & services to people in exchange for payment. Includes retailing, banking, law, and government. Most of U.S. falls in this category-providing goods and services and linking producers and consumers.
Quarternary and Quinary Sector • Quaternary-white collar professionals working in education, government, jobs in research & information processing, management • Quinary-executive decision makers,corporate management, CEOs, ecotourism, management planning (example: Saudis buying property in U.S.)
Productivity • Productivity-value of a particular product compared to amount of labor needed to make it • Value added-occurs in manufacturing; gross value of product minus costs of raw materials and energy • Raw materials-turning minerals and trees into useful products • Consumer goods-things we as consumers buy
Education and Literacy • The higher the level of development, the greater are both the quantity and quality of a country’s education • MDCs-students attend average 10 years in school, LDCs-just a few years • Literacy rate-% of a country’s people who can read and write • Health and welfare-people are healthier in MDCs-health is determined by diet
Life Expectancy • Life expectancy • Infant mortality rate • Natural increase rate • Crude birth rate
Key Issue 2 • Create a graphic organizer for more developed countries-include some important facts-pp. 302-305 • Create a graphic organizer for less developed countries-pp. 305-309
Rostow’s Development Model-page 316 • Rostow in 1950s proposed a 5-stage model of development • 1. The traditional society • 2. The preconditions for takeoff • 3. The takeoff • 4. The drive to maturity • 5. The age of mass consumption
4 Asian Dragons-page 317 • These countries were among the 1st to adopt international trade alternatives: • South Korea, Singapore, Taiwan, & Hong Kong • Also known as “4 little tigers”-they lacked natural resources so to compensate for this they promoted development by concentrating on manufactured goods (clothing, electronics). In turn they sold these products to MDCs.
World Trade Organization • WTO was established to promote international trade • Enforce agreements among one another • Try to negotiate reduction or elimination of trade restrictions