chapter 9 development. intro world is divided between relatively wealthy and relatively poor regions...

CHAPTER 9

DEVELOPMENT

INTRO• World is divided between relatively

wealthy and relatively poor regions– geographers try to understand why

• World’s countries can be classified according to their levels of development– More Developed Country (MDC)– Less Developed Country (LDC)

• Development – the process of improving the material conditions of people through diffusion of knowledge and technology

ISSUE #1

Why Does Development Vary Among Countries?

(Study the maps in this key issue!!!!!!!!)

MEASURING DEVELOPMENT

• A country’s level of development can be identified according to 3 factors:– Economic (GDP)– Social (Literacy rates and

education)– Demographic (life expectancy)

• Human Development Index (HDI) – combination of these factors to measure a state’s level of development

• High ranking HDI countries tend to be in the West (W. Europe and North America)

• Many of the lowest ranking are in sub-Saharan Africa

– highest in recent years• Norway

– U.S. ranked 10th in 2005 (why?)

2011 HDI rankings

2011 HDI map

Human Development Index, 2005

Fig. 9-1: Developed by the United Nations, the HDI combines several measures of development: life expectancy at birth, adjusted GDP per capita, and knowledge (schooling and literacy).

ECONOMIC INDICATORS OF DEVELOPMENT

• Economic indicators factored into the HDI include:

1. GDP - Measures average, NOT distribution

2. Economic Structure /Types of Jobs

- Know primary, secondary and tertiary jobs!

3. Worker Productivity 4. Access to raw materials5. Availability of consumer goods

Annual GDP per capita, 2005

Fig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in most developed countries but under $5000 in most less developed countries.

HDI

GDP

Employment Changes by Sector

Fig. 9-3: Percentage employment in the primary, secondary, and tertiary sectors of MDCs has changed dramatically, but change has been slower in LDCs.

SOCIAL INDICATORS OF DEVELOPMENT

• Social indicators factored into the HDI include:

1. Education & literacy2. Health & welfare

Primary Student-Teacher Ratios

Fig. 9-6: Students per teacher, primary school level. Primary school teachers have much larger class sizes in LDCs than in MDCs, partly because of the large numbers of young people in the population.

Calories per capita

Fig. 9-9: Daily available calories per capita as percent of requirements, 2005. In MDCs, the average person consumes one-third or more over the required average minimum, while in LDCs, the average person gets only the minimum requirement or less.

AMERICANS & CALORIES

• Recommended daily caloric intake is between 2,000 – 2,500 /day

• Avg. American daily caloric intake is about 3,800/day

(these are for adults)

Health Care Expenditures per GDP

Fig. 9-7: Expenditures on health care as percent of GDP, 2005. MDCs have much higher GDP and spend a greater proportion of GDP on health care than do LDCs.

Physicians per Population

Fig. 9-8: Physicians per 1000 people, 2005. MDCs have three or more physicians per 1000 people compared to less than one in most LDCs.

Physicians per

Population

HDI

DEMOGRAPHIC INDICATORS OF DEVELOPMENT

• Demographic indicators factored into the HDI include:

1. Life Expectancy2. Infant Mortality Rate3. Natural Increase Rate4. Crude Birth Rate

TYPE 2

1. List the 3 types of indicators used to measure a nation’s development

TYPE 2

1. List the 3 types of indicators used to measure a nation’s development

- Economic, Social, Demographic

TYPE 2

2. List the most important economic indicator

3. List the social indicators

4. List the demographic indicator most used

5. True/False – in MDCsthe percentage of agricultural workers has sharply decreased while the percentage of service workers has sharply increased

TYPE 22. List the economic indicators(GDP)

3. List the social indicators(Education and literacy rates)

4. List the demographic indicator most used

(life expectancy)

5. True/False – in MDCsthe percentage of agricultural workers has sharply decreased while the percentage of service workers has sharply increased

ISSUE #2

Where are More and Less Developed Countries Distributed?

Human Development Index, 2005

Based on this map, and using More Developed Region and Less Developed Region as your categories, categorize the following:

A. Anglo-America (U.S./Canada) D. Japan G. South Asia J. S-S Africa

B. East Asia E. Latin America H. South Pacific K. W. Europe

C. Eastern Europe F. Middle East I. Southeast Asia

---- compare your answers to those on the map located on page 301

HOW THE WORLD IS ORGANIZED

• Organized into 9 regions based on development

• in a global economy geographers are very interested in comparing/contrasting the economic patterns of the regions

REGIONS

MORE DEVELOPED

1. Anglo-America2. Western Europe3. Eastern Europe4. Japan5. South Pacific

LESS DEVELOPED

1. Latin America2. East Asia3. Middle East4. Southeast Asia5. South Asia6. Sub-Saharan Africa

More & Less Developed Regions

Fig. 9-11: The less developed regions include Latin America, Sub-Saharan Africa, Middle East, South Asia, East Asia, and Southeast Asia.

REGIONS cont.

1. Anglo-America & Latin America– distinguished on basis of dominant languages, religions, and natural increase rates

2. Europe – share many cultural traditions but different political developments have produced different levels of economic development

3. Asia – various regions are distinguished by demographic, religious, linguistic, ethnic and political characteristics

4. Japan – cultural and demographic characteristics contrast greatly with states in East Asia

5. South Pacific – large area but less populous than the other regions

ISSUE #3

Where Does Level of Development Vary by Gender?

• Development may mask inequality

• According to UN, gender inequality exists in every country

• GDI – compares the level of development of women with that of both sexes

• GEM – compares the ability of women and men to participate in economic and political decision making

(GDI) GENDER-RELATED DEVELOPMENT INDEX

• Combines same indicators as the HDI– economic, social, demographic

• “high” vs. “low” GDI (what does this mean?)– Why does Mexico have a higher GDI than

Iran?

• Highest GDIs – Western Europe and North America

• Lowest GDIs – SS Africa

• Overall, status of women has been increasing since 1970

Gender-Related Development Index (GDI), 2005

Fig. 9-13: The GDI combines four measures of development, reduced by the degree of disparity between males and females.

INDICATORS OF GENDER DIFFERENCES

ECONOMIC INDICATORS• Looks at average incomes of

males and females

• It is lower in EVERY country

• In LDCs this difference is relatively low in terms of dollars, but high in terms of percentage

SOCIAL INDICATORS• Looks at education and

literacy

• Women are less likely to attend school in LDCs than in MDCs

• In SS Africa and the ME fewer than 1/3 of girls attend schools

Female-Male Income Differences

Fig. 9-14: Female income as a percent of male income, 2005. Women’s income is lower than men’s in all countries, but the gender gap is especially high in parts of the Middle East, South Asia, and Latin America.

Gender Differences in School Enrollment

Fig. 9-15: As many or more girls than boys are enrolled in school in more developed countries, but fewer girls than boys are enrolled in many LDCs.

Male & Female Literacy Rates

Fig. 9-16: Female literacy (bottom) is lower than male literacy (top) in many LDCs, with substantial gender gaps in parts of the Middle East, Africa, and South Asia.

Male Literacy Rates, 2005

Fig. 9-16a: Percent of males literate, 2005. Literacy is close to 100% among males in MDCs, but it is below 60% in some of the world’s poorest countries.

Female Literacy Rates, 2005

Fig. 9-16b: Low rates of female literacy are much more common than male literacy. Female literacy is also lower than male literacy in parts of the Middle East, Africa, and South Asia.

GDI cont.

DEMOGRAPHIC INDICATORS• Looks at life expectancy

• Pattern here is different; the gap is actually larger in MDCs than in LDCs– Baby girl born in the U.S. is

expected to live 6 years longer than a baby boy; in most LDCs it is only 1 or 2 years

• Hazards of childbearing play a big role in this trend

Life Expectancy & Gender, 2005

Fig. 9-17: Differences between male & female life expectancy. Women’s life expectancy is several years longer than men’s in MDCs, but only slightly longer in many LDCs.

GENDER EMPOWERMENT• Reflects improvements in the

standard of living and well-being of women

• Calculated by combining:– Economic indicators– Political indicators

• Highest GEMs are in Northern Europe, North America, South Pacific

• Lowest GEMS are in Africa and Asia (problems reporting in LDCs?)

GEM cont.

ECONOMIC INDICATORS• Looks at income and

professional jobs

• UN looks specifically at % of women occupying professional and technical jobs - influence over the economy

• Role of cultural barriers in job opportunities?

POLITICAL INDICATORS• Looks at managerial jobs and

elected jobs- influence over decision making process

• More women than men vote in most places

• No country has a parliament or congress with a female majority

Gender Empowerment Measure (GEM)

Fig. 9-18: The GEM combines two measures of economic power and two of political power by women. (Little data are available for LDCs.)

-compare to HDI map on page 293

Women Professional & Technical Workers

Fig 9-19: Half or more of professional and technical workers are women in most MDCs and some LDCs, such as Brazil, but only a small proportion are women in most LDCs.

Women Administrators & Managers

Fig. 9-20: More than one-third of top administrators are women in North America and some other MDCs and LDCs, but 20% or fewer top administrators are women in many other countries.

Women as Legislators

Fig 9-21: Over 30% of legislative seats in northern Europe and over 20% of those in China and other nations are held by women . In many other LDCs, under 10% are held by women.

REVIEW QUESTIONS

1. List the More Developed Regions of the world.

MDCs - Anglo-America, Western Europe, Eastern Europe, Japan, South Pacific

2. List the Less Developed Regions of the world.

LDCs - Latin America, East Asia, Middle East,Southeast Asia,South Asia, Sub-Saharan Africa

3. True/False – areas with higher HDIs tend to also be areas with higher GDPs.

True

4. What three types of indicators are used to determine HDI? Provide a specific example of each type.

Economic – GDP, Economic Structure (types of jobs), Worker Productivity, Access to raw materials, Availability of consumer goods

Social – Education & literacy, Health & welfare

Demographic - Life Expectancy, Infant Mortality Rate,Natural Increase Rate, Crude Birth Rate

5. How does GDI differ from GEM? What does each stand for?

GDI – Gender Related Development Index – measures each nation’s gender inequality

GEM – Gender Empowerment Index –

compares the ability of women and men to participate in economic and political decision making

6. True/False – the lowest GDIs tend to be in Latin America.

False – SS Africa

7. What three types of indicators are used to determine GDI? Provide a specific example of each type.

Economic – average income

Social – literacy and education

Demographic – life expectancy

8. True/False – professional jobs measure economic power and managerial jobs measure political power

TRUE

9. Summarize and/or list an example for each of the following:

Primary sector – agriculture, mining, fishing

secondary sector- manufacturing, producing finished goods

tertiary sector – service oriented; retailing, banking, law, education, government

10. True/False – most countries where the parliament/congress consists of a female majority are located in Western Europe

FALSE – no country has a female majority

ISSUE #4

Why Do Less Developed Countries Face Obstacles to Development?

INTRO• Key indicators are looking

better for LDCs in recent years – infant mortality rate, natural

increase rate…

• But key indicators still remain wide between MDCs and LDCs – ex. 1/5 of world’s population

living in MDCs consumes 5/6 of the world’s goods

– 14% of world’s population who live in Africa consume only 1% of those goods

• LDCs face two basic problems in trying to improve development:

1. Adopting policies that successfully promote development

2. Funding development

Income & Demographic Change, 1980- 2005

Fig. 9-22: Rates of natural increase and infant mortality have remained much higher in LDCs than in MDCs. Since 1980, the natural increase rate has declined at about the same rates in MDCs and LDCs, while the infant mortality rate has declined more rapidly in LDCs. Per capita GDP has increased more in MDCs than in LDCs during this period.

DEVELOPMENT THROUGH SELF-SUFFICIENCY

• Also called “balanced growth” – the preferred method of development for most of the 20th century (exs. China, India)

• Main concept:– Country spreading

investment equally across all sectors of its economy

• Promoted by setting barriers:– High tariffs on imports, fixed

quotas, requiring licenses

SELF-SUFFICENCY cont.

BENEFITS1. People/businesses

throughout the country share equally in development

2. Helps “fledgling” businesses by protecting them from certain competitors

3. Rural incomes keep up with urban incomes

PROBLEMS1. Inefficiency – protects

inefficient businesses

2. Large bureaucracy – encourages abuse and corruption

DEVELOPMENT THROUGH INT’L TRADE

• Calls for a country to identify its key assets and then sell them, thus helping finance other development

• What can we manufacture and sell that others will buy?

• Concentrate resources on distinctive industries (that will lead to economic growth)

• Much more common than the self-sufficiency model, many countries converted to this model in the 1990s

ROSTOW’S STAGES

1. Traditional Society: not started development, high % of population in agriculture

2. Preconditions for Takeoff: development begins when an elite group begins activities to spur development

3. Takeoff: rapid growth is generated in a limited # of activities (textiles, food production)

4. Drive to Maturity – modern technology diffuses to more industries; workers become more skilled and specialized

5. Age of Mass Consumption – economy shifts from production of heavy industry to consumer goods

ROSTOW cont.

• Each state is on one of the stages– MDCs : 4 or 5– LDCs : 1-3

• Assumes LDCs will move through the stages

To stage 4!!!!

EXAMPLES OF INT’L TRADE APPROACH

4 ASIAN DRAGONSPETROLEUM RICH ARABIAN

PENINSULA STATES

S. KOREASINGAPORE

TAIWANHONG KONG

SAUDI ARABIA BAHRAIN

KUWAITOMAN

UAE

PROBLEMS W/ INT’L TRADE ALTERNATIVE

1. Uneven Resource Distribution and price instability (ex. Copper in Zambia)

2. Market Stagnation- markets for their goods may grow

slowly in the future, increasing competition

3. Increased Dependence on MDCs - Funds dedicated to maintaining

relationships with MDCs rather than funding needed sectors of their own society such as food and education

RECENT TRIUMPHS W/ INT’L TRADE

WORLD TRADE ORGANIZATION TRANSATIONAL CORPORTATIONS

FINANCING DEVELOPMENT

• Regardless of the model followed, LDCs lack money for development and usually have to get it from MDCs

• 2 primary sources for funds going to LDCs come from:– Direct investment by transnational corporations– Loans from banks and/or int’l organizations

Foreign Direct Investment Flows

Fig. 9-23: Most transnational companies invest in the three core regions of North America, Western Europe, and Japan. Outside these core regions, the largest investment is in China.

LOANS

• 2 major lenders are the IMF and World Bank– Created in 1944 to

promote economic development & stability

• LDCs use loans for things such as:– New infrastructure, dams,

flood protection, roads, hotels, water supplies….

LOANS cont.

WORLD BANK• includes the IBRD & IDA

– Know their differences/roles

• World bank often funds specific projects, IMF does not

IMF• provides loans to countries

experiencing balance-of payment problems that threaten the expansion of int’l trade

• IMF loans are designed to help with things such as:– Rebuilding int’l reserves, stabilizing

currency exchanges rates…

• how is the IMF funded?

Understand problems w/ loans and specific examples, including the Structural Adjustment Programs – pp.320-321

Microfinance in Bangladesh

The Grameen Bank provides small loans to women (and men) in Bangladesh. Women in this village are repaying their loans.

FAIR TRADE

• Fair Trade – products are made & traded according to standards that protect workers % small businesses in LDCS– a variation of the int’l trade model

– Standards of FT are set by the FLO (2 types of standards)

– NA – products tend to be home accessories, jewelry, ceramics…

– Europe - tend to be food

FAIR TRADE STANDARDS

PRODUCER STANDARDS• Work with cooperatives to help

those in LDCs:– get credit, reduce raw material

costs, learn skills, ensure healthy working conditions…

• Removes middle man so costs are cut and greater % of profits to producers/workers

WORKER STANDARDS• Workers in LDCs “allegedly”

work long hours in poor conditions for low pay

• Fair Trade requires employers to:– Pay fair wages, allow for

unionizing, comply with environmental & safety standards

Core and Periphery in World Economy

Fig. 9-25: This north polar projection of the world shows that most of the MDCs are in a core area north of 30° N latitude. The LDCs are mostly on the periphery of this map.

Chapter 09: REVIEW

09.01 Of the following areas, the Human Development Index is highest in

1. South Asia2. East Asia3. South America4. Sub-Saharan Africa5. Europe

09.01 Of the following areas, the Human Development Index is highest in

1. South Asia2. East Asia3. South America4. Sub-Saharan Africa5. Europe

09.02 GDP per capita is highest in

1. South America2. East Asia3. Middle East4. Eastern Europe5. North America

09.02 GDP per capita is highest in

1. South America2. East Asia3. Middle East4. Eastern Europe5. North America

09.03 Regarding sector employment in MDCs and LDCs over the last 100 years, it is true that:

1. The primary sector has increased in MDCs2. The tertiary sector has decreased in MDCs3. The primary sector has trended slightly lower in LDCs4. The tertiary sector has increased in LDCs5. The secondary sector has decreased in LDCs

09.03 Regarding sector employment in MDCs and LDCs over the last 100 years, it is true that:

1. The primary sector has increased in MDCs2. The tertiary sector has decreased in MDCs3. The primary sector has trended slightly lower in LDCs4. The tertiary sector has increased in LDCs5. The secondary sector has decreased in LDCs

09.04 Malnutrition is highest in

1. Sub-Saharan Africa2. East Asia3. South Asia4. South America5. Central America

09.04 Malnutrition is highest in

1. Sub-Saharan Africa2. East Asia3. South Asia4. South America5. Central America

09.05 Sub-Saharan Africa has all of the following problems, except:

1. Corrupt and/or inefficient governments2. Low levels of female empowerment3. High levels of poverty4. A lack of mineral resources5. A relatively uneducated populace

09.05 Sub-Saharan Africa has all of the following problems, except:

1. Corrupt and/or inefficient governments2. Low levels of female empowerment3. High levels of poverty4. A lack of mineral resources5. A relatively uneducated populace

09.06 The Gender-Related Development Index is lowest in

1. Sub-Saharan Africa2. Eastern Europe3. North America4. South America5. East Asia

09.06 The Gender-Related Development Index is lowest in

1. Sub-Saharan Africa2. Eastern Europe3. North America4. South America5. East Asia

09.07 The self-sufficiency approach to development

1. Has had the support of the United States2. Relies on free trade with more developed countries3. Has been the preferred approach over the last two decades4. Frequently suffers from inefficiency 5. Relies on market forces with little guidance from government

09.07 The self-sufficiency approach to development

1. Has had the support of the United States2. Relies on free trade with more developed countries3. Has been the preferred approach over the last two decades4. Frequently suffers from inefficiency 5. Relies on market forces with little guidance from government

09.08 According to Rostow’s development model, a country with a lot of heavy industry that uses modern technology is in Stage

1. One 2. Two 3. Three 4. Four 5. Five

09.08 According to Rostow’s development model, a country with a lot of heavy industry that uses modern technology is in Stage

1. One 2. Two 3. Three 4. Four 5. Five

09.09 All of the following statements about the World Trade Organization are true, except:

1. Liberals charge it is anti-democratic2. Conservatives charge it compromises sovereignty3. It seeks to lower tariffs4. It encompasses around 70% of world trade5. It promotes a capitalist economic view

09.09 All of the following statements about the World Trade Organization are true, except

1. Liberals charge it is anti-democratic2. Conservatives charge it compromises sovereignty3. It seeks to lower tariffs4. It encompasses around 70% of world trade5. It promotes a capitalist economic view

09.10 Foreign debt as a percentage of income is highest in

1. South Asia2. East Asia3. Middle East4. Central Africa5. Eastern Europe

09.10 Foreign debt as a percentage of income is highest in

1. South Asia2. East Asia3. Middle East4. Central Africa5. Eastern Europe