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					Development
   3 basic ways to make a living:
    1.   Growing food
    2.   Manufacturing products
    3.   providing services
    Countries are classified by development:
        MDC (aka more developed
         country/developed country)
        LDC (aka less developed
         country/developing country
   Geographic tasks associated with
    development:
     Identify where MDCs and LDCs are located
     Concern for why some areas are more
      developed than others
Key Issue #1:

WHY DOES DEVELOPMENT
VARY AMONG COUNTRIES?
Human Development Index
 Developed by the UN
 What does it recognize?
 How is the HDI created?
     Economic: gross domestic product per capita
     Social: literacy rate and amt of education

     Demographic: life expectancy
Economic Indicators of
Development
   How do we distinguish MDCs from LDCs?
     Economic structure
     Worker productivity

     Access to raw materials

     Availability of consumer goods
GDP per capita
 Why GDP instead of per capita income?
 Value of total output of goods and
  services produced in a country, normally
  in a year
 GDP/total population-measures the
  contribution of the average individual
  makes to the wealth of the country every
  year
GDP cont.
 What is the difference b/t GDP and GNP?
 Why can’t GDP measure the level of a
  country’s development perfectly?
 Per capita GDP measures average
  wealth, not distribution of wealth- explain.
Types of Jobs
 Avg GDP per capita higher in MDCs b/c
  of the way the earn a living
 1 of 3 ways:
     Primary
     Secondary

     Tertiary

   Can also use
       quaternary
Types of jobs cont.
 Distribution of workers varies b/t MDCs
  and LDCs
 1st priority of people: to obtain food
     high percentage of workers in agricultural
      jobs indicates people looking for food to
      survive
     Low percentage of workers means primary
      sector can produce enough food for eveyone
Types of jobs cont.
 If do not have to find food, can move onto
  secondary and tertiary jobs
 What does the decline in manufacturing
  jobs reflect?
 Employment in service sector continues
  to rise
Productivity
 Value of a particular product compared to
  the labor required to make it
 Why are workers in MDCs more
  productive than those in LDCs?
 Measured by value added per worker
       Gross value of product-minus raw materials
        and energy costs
Raw Materials
 Measures a country’s potential for
  development
 Some countries do not need raw
  materials to develop-may develop through
  trade
 As certain raw materials become
  important, level of development may
  advance
       Sale of resources to finance development
Consumer goods
 Wealth used to buy nonessentials
  increases manufacturing which increases
  wealth for a nation
 Quantity and type of goods and services
  indicates level of development
 In LDCs, some goods and services may
  become desireable
       Development of “haves” and “have-nots”
Social Indicators of Development
   Education and Literacy
       Higher level of development, greater the quantity
        and quality of education
       Quantity measured by avg # of years spent in
        school
       Quality measured by literacy rate and
        teacher/student ratio
Social Indicators cont.
   Health and Welfare
     MDCs have more resources to care for
      people when they get sick
     Health influenced by diet

     MDCs also have the means to provide for
      those that are unable to work (welfare, food
      stamps, etc.)
        • Now facing a choice b/t reducing benefits or
          raising taxes to pay for these programs.
Demographic Indicators of
Development
   Life Expectancy
       Better healthcare=longer life
       Can strain the system, however
   Infant Mortality Rate
       Greater in LDCs-Why?
   Natural Increase Rate
       LDC higher than MDC
       Strains an already strained system
   Crude Birth Rate
       Does not indicate a country’s level of development-
        Why?
Chapter 9 Development

WHERE ARE MORE AND LESS
DEVELOPED COUNTRIES
DISTRIBUTED?
   Countries can be categorized into 9 regions
    based on level of development
       Also have distinctive demographic and cultural
        characteristics
       Western Hemisphere: Anglo-America and Latin
        America
       Europe: Western and Eastern
       Asia: East, South, Southeast and Southwest
       Can also include Japan and the South Pacific
   Distribution of MDCs and LDCs shows a
    global pattern- what is it?
   More Developed Regions:
       Anglo-America, Western Europe and Eastern
        Europe
   Less Developed Regions:
       Latin America, East Asia, Southeast Asia, Middle
        East, South Asia, sub-Saharan Africa
   See Chart
Chapter 9: Development

WHERE DOES LEVEL OF
DEVELOPMENT VARY BY
GENDER?
 Overall development of a country masks
  gender inequalities
 To solve this, UN created GDI and GEM
Gender-Related Development
Index
   Similar to HDI
   A country w/complete equality has a GDI of 1.0
   Economic Indicators
       How does the UN determine this?
   Social Indicators
       Education and literacy
   Demographic Indicators
       How does GDI differ from HDI?
       Why do men outlive women in LDCs?
Gender Empowerment
   Measures ability of women to participate in
    achieving improvements to std of living
   How is GEM determined?
   Complete power equality if GEM=1.0
   Economic Indicators of Gender Empowerment
       Percentage of women holding professional or
        technical jobs
         • What may bar a women from getting one of these jobs?
       Power over economic resources (Share of nat’l
        income held by women)
Gender Empowerment cont.
   Political Indicators of Empowerment
       Percentage of the country’s administrative and
        managerial jobs they hold
       Percentage of women elected to public office
   Every country’s GEM is lower than its GDI
   A higher GEM than GDI means women
    possess a greater share of a country’s
    resources than power over allocating those
    resources
Chapter 9 Development

WHY DO LESS DEVELOPED
COUNTRIES FACE OBSTACLES
TO DEVELOPMENT?
Development through self-sufficiency
   Elements of self-sufficiency approach
     Adopted by China, India most African and
      Eastern European nations
     Spread investments as equally as possible
      across all sectors of its economy and in all
      regions
     How do countries promote self-sufficiency?
Problems with Self-Sufficiency
   2 major problems:
    1.   Inefficiency-protects inefficient businesses
            Do not have to keep on top of technological innovations
    2.   Large bureaucracy-needed to administer
         the controls
            Encourages corruption
    Development Through International
                 Trade
   Countries have to identify its distinctive or
    unique economic assets
   Can economically develop by concentrating
    scarce resources on expanding unique local
    industries
International Trade cont.
     Rostow’s Development Model
      • 5 stage model of development- What is it?
      • Based on 2 factors:
          1. Other MDCs have followed this model and it was
             successful so why couldn’t others use it
          2. Many LDCs contain many of the scarce resources
             and raw materials that many MDCs are seeking
         Examples: Persian-Gulf states and the Four
          Asian Dragons
International Trade cont.
   Problems:
    1.   Uneven Resource Distribution
    2.   Market Stagnation
    3.   Increased dependence on MDCs
International Trade cont.
 Preferred alternative for spurring
  economic development
 World wealth is increasing
 Switching from self-sufficiency to
  international trade b/c it promotes better
  development- explain.
International Trade cont.
   World Trade Organization
     Established in 1995- Why?
     Works to reduce trade barriers by:
        1. Negotiating the reduction or elimination of
           international trade restrictions on manufactured
           goods and the movement of money
        2. Enforcing agreements
              Protects the validity of material on the Internet
        3. Can also bring charges that someone has
           violated a copyright or patent
International Trade cont.
 Why do liberals attack the WTO?
 Why do conservatives attack the WTO?
Financing Development
   Loans
       Borrow money to build infrastructure
         • Why infrastructure?
         • Problem: most of them are failures
         • Many LDCs cannot repay the loans which
           damages the stability of banks in the MDCs which
           loaned the money
         • What do MDCs now require in order to prevent
           some of their losses on loans to LDCs?

				
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posted:1/11/2013
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