haiti and japan earthquake comparison

Haiti and Japan Earthquake Comparison• Magnitude

– Haiti-7.0– Japan-9.0 which

caused a Tsunami• Left Homeless– Haiti- 1.5 million– Japan- 1-2 million

• Death– Haiti- 220,000– Japan- 15,000

• Cost– Haiti- $14 billion– Japan- $230 Billion

• Additional Effects– Haiti-Cholera

epidemic as a result 6,000 more died, 216,000 were infected

– Japan-Much of their Nuclear power is still damaged with many people evacuated from surrounding towns

–Hawk Hook 2/27• Our next unit is

on development, how do you think development played a role in these statistics?

Development: Models of

Economic Growth, Diffusion, and

World Variations

Basic Development Info

• Definition of Development: process of improving the material conditions of people through diffusing knowledge and technology• Continuous process of

improvement • MDC’s: developed

countries• LDC’s: developing

countries

Indicators of Development

• UN measure of Development: level of development is a based on 3 indicators: economic, social, and demographic

Human Development Index

Overview of HDI:• 1 Economic Factor:• Gross Domestic Product (GDP):

the total value of goods and services produced in a country

• 2 Social Factors:• Literacy Rate and Amount of

Education (average # of school years attended)

• 1 Demographic Factor• Life expectancy (average # of

years a newborn can expect to live)

• Highest Possible HDI is 1.0 or 100%

• What country do you believe has the highest HDI?–Norway at .938 in 2010

• What country do you believe has the lowest HDI?– Zimbabwe at .140

• Where do you believe the 2 dozen lowest ranking countries were located? Why?– Sub-Saharan Africa

Current World Trends (Overview)

The US Situation

• Ranked 4th

• What do you believe accounts for this rank?• Near the top in GDP and

Literacy• Lower in Education and

Life Expectancy• High School Drop-out Rates

and Inadequate Health Care for low-income people

Economic Indicators of Development

1. GDP2. Types of Jobs Available 3. Productivity of workers 4. Access of raw materials5. Availability of

consumer goods• Goods purchased to

satisfy immediate wants and needs

• What are some examples?

5 Economic Indicators of Development

• Use per capita GDP (how much each person’s portion of the GDP is) • Figured by

dividing GDP by population• EX: GDP = $100

and population = 10, then each person receives, on average, $10

Gross Domestic Product

• Average per capita GDP in MDC’s $27,000–Has increased 55% since 1990

($10,000)–US: approx 40,000

Per Capita GDP MDC’s

• Average per capita GDP in LDC’s: $4,000–Has increased 450% since 1990 (bit under $4,000)–Not equal growth China huge changes, Africa few– 18 countries (15 in Africa, 3 in Asia) below $1000

Per Capita GDP LDC’s

• Why is per capita GDP not an adequate measure of development on its own?• Measures average wealth not

distribution• If few people hold all the wealth then

standard of living for most lower than average would indicate

Critical Thinking Question

• What are the 3 sectors of the economy? Where is each most prevalent?

Types of Jobs Available

• Productivity: value of a product compared to the amount of labor necessary to make it

• Higher in MDC’s• Produce more with less

effort• Why?

• LDC’s rely more on human and animal labor

Productivity of Workers

Access to Raw Materials

• Includes access to minerals, trees, energy sources (oil, coal, natural gas, or uranium for nuclear power)

• Indicates potential for Development not actual development

• Using real world examples how can the availability of natural resources not be a perfect indicator of level of development?• Ex: Japan, Singapore, South Korea, and

Switzerland have few natural resources but have become highly developed through trade• Much of Africa is rich in natural

resources but lacks the infrastructure to be considered developed states


• Industrial Revolution• Occurred in countries rich in

both natural resources and energy sources (Ex. UK)

• Colonialism and Imperialism• Occurred to create steady

supply of resources in resource depleted Europe

• Sustained development in Europe, hindered it in Africa and Asia• Why is this flow a problem for

development in the LDC’s?

Historical Relationship btwn

Resources and Development

Consumer Goods

• Most important consumer goods to consider: transportation and communication technologies• Examples?• Why?

• Transportation: access to jobs and distribution of products

• Communication: telephones and computers enhance communication between suppliers, producers, and sellers

Consumer Goods and MDC’s versus LDC’s

• How accessible are consumer goods to MDC’s?• Virtually all citizens• VITAL to business of tertiary and

secondary jobs• How accessible are consumer

goods to LDC’s?• Not as available• Not as important for subsistence

living (creating just enough food to live with little extra)

• Access to consumer goods creates gap between the “haves” and “have-nots” in LDC’s– Typical Characteristics of

Haves:• Higher Economic Status:

government officials, business owners, elite classes• Live in urban areas (more

variety of job opportunities requiring additional technology)

–Have- Nots?• Usually rural areas engaging

in primary sector work or simple services

Haves and Have-nots in the LDC’s

• How can transportation and communication technologies increase educational opportunities and leisure activities?


Social Indicators of Development

• Economic Development = Great Wealth• Spend portion of wealth on social services

(schools, hospitals, welfare services) = Smarter, healthier, and secure workforce = more economic productivity

Reciprocal Relationship Btwn Economic and Social

Development

• Measured by quantity and quality of education• Quantity: Number of years of

schooling• Quality: student/teacher ratio

and literacy rate• Education number one way

to improve economy• Better education = highly

qualified workforce = higher wages = better access to consumer goods = higher standard of living

Education and Literacy

MDC’s compared to LDC’s

• Quantity• MDC’s = 10 years• LDC’s = 2-3 years

• Student/Teacher Ratio• Twice as high in

LDC’s• Literacy Rate• MDC’s = > 98%• LDC’s = < 60%

• MDC’s: > 8% of GDP spent on healthcare–More doctors, hospitals, and nurses per

capita –Most of Europe: private individuals

responsible for 30% of their healthcare costs

– Public assistance (unemployment compensation, welfare, etc) Greatest in North Western Europe (Norway, Sweden, Denmark)

Health and Welfare, MDC’s

Health and Welfare, LDC’s

• LDC’s: <6%– Private individuals responsible for 50%

of their healthcare• US exception: private individuals

responsible for 55% of their healthcare costs

• Why are MDC’s struggling to maintain their levels of public assistance? What choice are they facing?• Growing Elderly Population: more

people to assist• Economic downturn cannot fund

generous programs initially in place• Choice between reducing benefits or

increasing taxes


FRQ Practice 3/51. Complete Sentences: Resources and

DevelopmentA. How do resources relate to the

development of a country?B. How did resources influence the

following:i. Industrial Revolutionii. Colonialism/Imperialism

C. How has the availability of resources and history affected the following economies:i. Japan ii. Africa

Demographic Indicators of

Development:Reflection of Health and Education

• LDC: 60’s• MDC: 70’s• What is the typical shape of the population

pyramid for an LDC?• What responsibilities do the governments of these

countries have?• What is the typical shape of the population

pyramid for an MDC?• What responsibilities do the governments of these

countries have?

Life Expectancy

Infant Mortality Rate• MDC’s: 99.5%

survive• LDC’s: 94%

survive–Result of:

malnutrition after birth, lack of medicines and immunizations, lack of education of clean medical practices

• LDC’s: 1.5%• Struggle to provide care for growing

population• MDC’s: .01%

Natural Increase Rates

• LDC’s: 24 per 1,000• MDC’s: 11 per 1,000–Why lower rates?• Access to birth control and social

reasons in LDCs

Crude Birth Rate


• Why does the Crude Death Rate not indicate a society’s level of development?• Diffusion of medical

practices has reduced instances of diseases in LDC’s

• MDC’s have a higher % of elderly

Worldwide Regions of

Development

Regions of Development• 11 Regions based on

Development• 5 Developed Regions• 6 Developing Regions

• North-South Split: Almost all MDC’s exist above 30* N Latitude and LDC’s below• Exceptions: Australia in

South, Part of Middle East and East Asia in North

• More Developed Regions• Anglo-America• Western Europe• Eastern Europe• Japan• South Pacific

• Less Developed Regions• Latin America• East Asia• Middle East• South East Asia• South Asia• Sub-Saharan Africa

Regions Overview

More Developed Regions

• HDI: .94• Cultural Patters–Homogenous• 90% speak English and

adhere to Christianity• No large minorities to be

discriminated from economy

– Exceptions• French speaking Québécois• Some intolerance against

ethnic minorities

Anglo-America

Anglo-America Cont’

• Access to Resources• Major producer of steel,

automobiles, etc.• Leading consumers of

world market

• Loss of Manufacturing• Leading provider of: financial

services, high-tech jobs, entertainment, and recreational services (media, sports, etc)

• Most important food exporter

Adaptation to Global Economy

Western Europe• HDI: .93• Cultural Patters• Strong Nation-States

(historical conflict WWI and II)

• Currently more unified politically, militarily, economically, and culturally • What are the two main

treaty organizations in Europe?

• NIR: at or below 0– Population Growth

from Muslim and Hindi migration resulting in cultural diversity

• HDI lower than Anglo America bc of periphery– Spain, Portugal,

Southern Italy, and Greece

–Other nations at or above Anglo American level

Western Europe Cont’

• Must import much of its raw materials

• Compensates by producing luxury items: insurance, banking, BMW , Mercedes

• Sacrifice economic growth for social services

Adaptation to Global Economy

• HDI: .80–Only region where HDI

has declined near LDC levels now

– Legacy of the “Iron Curtain” of Communism• Didn’t invest in long-term

economic improvements (modernizing)• Inefficient agriculture

(import food)• Pollution • Centered on basic

industry not consumer goods

Eastern Europe

Eastern Europe Cont’

• Border Countries (Czech Republic, Poland, Hungary, Slovakia, Slovenia) better transition from Communism

• May become part of Western Europe or new region of Central Europe

• Declining HDI in other Eastern European Nations result of:• Closing inefficient

businesses: rising unemployment

• Inflation: no government subsidies

• Larger gap between rich and poor



• Ethnic Disputes• Ethnic identities

suppressed during Communism

• End of Communism unleashed issues• Breakup of Soviet Union,

Czechoslovakia, and Yugoslavia

• HDI .94• Resources– VERY few natural resources

compared to population–HIGH physiological density– Leading steel producer but most

import iron ore and coal

Japan

• Greatest Resource– Large population

working for low wages• Could sell products in

other countries at prices lower than domestic competitors • Now foothold in high-

end electronics and automotives

–High investment in education and training, research and development

Japan Cont’

• HDI: .87• Why does the South Pacific

have little influence on the Global Economy? (Think Situational problem)– Lies on the periphery of other

MDC’s– Few inhabitants

• Large Exporter of Food• Culture shared with Colonial

Powers of Western Europe (some indigenous cultures)

South Pacific

Less Develope

d Regions

• HDI .80• Cultural Patterns• Speak Spanish or

Portuguese• Roman Catholic• Mix of Spanish,

Portuguese, Indigenous Cultures, and African peoples

Latin America

Latin America Cont’

• More urbanized than other LDC’s• 3 of the 10 largest cites:

Mexico City, Sao Paulo, Brazil, and Buenos Aires

• Especially along Atlantic coast

• Good agricultural development

• Large gap between rich and poor• Control much of land, rent

to small tenant farmers

• HDI: .76• Economy Driven by

China:• largest per capita GDP

growth in the world• Lower wages than MDC’s:

industrial explosion• Driving down prices of

consumer goods and worldwide wages

East Asia

• Regional Economic Inequalities• Coastal region much higher

development than interior• Rising consumption of

natural resources• Increased pollution

East Asia Cont’

Middle East

• HDI: .68• Site Problems: much

is desert with little natural resources• Must rely on imports

• Ideal Site: OIL!• Creates trade surplus• Gap between

petroleum exporting countries and those without this resource

• Goal: promote development respectful of traditional Islamic traditions• Hindrance to higher HDI

• Lack of Political Freedom • Low education and literacy

rates (especially for women)• No interest banking• Disputes: Shiites and

Sunnis, Israel, Terrorism

Middle East

Southeast Asia• HDI: .58• Highest

concentration of population: Island of Java in Indonesia• Site Perks: fertile

soil from volcanic activity, former first Dutch colony

• Constant War: Vietnam, Cambodia, Japanese and European occupations

• Overall Site Problems:– Tropical Climate (little grain production)– Poor Soil–Mountainous, volcanoes, typhoons,

tsunamis• Population Explosion after influx of

Western medicines

Southeast Asia Cont’

• Main products: – harvesting

products used for manufacturing (fibers for ropes, clothing, oils, etc)

• Manufacturing:– Cheap labor:

textile industry

Southeast Asia Cont’

South Asia• HDI: .58• Second Highest

Pop• Second Lowest

per capita income• High NIR• High population

densities

• High in resources but still population too high for sustainability

• Agricultural Productivity dependent upon Monsoon rains (good when they come BAD when they do not)

• India 4th largest economy– The growth of their

economy has been a result in an expansion of what sector of the economy?• Tertiary: service jobs

South Asia Cont’

• HDI: .51• Low population densities• Major source of minerals and natural resources• Least prospect for development: high poverty,

poor health, low education (deteriorating)

Sub-Saharan Africa

Sub-Saharan Africa Cont’

• How has the legacy of Colonialism Affect Sub-Saharan Africa?• Resources only

for European factories

• Superimposed Political Boundaries

• Situational Problems:• Landlocked states

incapable of easy exportation

• Site Problems• Climate: Tropical or

Dry• What does this mean

for its physiological densities and their capacity to feed their people?

• How does Sub-Saharan Africa’s NIR affect this problem?

Sub-Saharan Africa Cont’

Hawk Hook 3/81. Why are literacy rates a good

measure of development?2. What does education mean for

increasing GDP?3. Looking at the areas of

development in the MDCs, how does cultural homogony relate to development? (Provide 2 examples to support your theory).

Gender Inequality and Development

• Gender-Related Development Index (GDI): compares level of development of women to that of men–Measures standard of living and

well-being–Uses same measures as HDI• Adjusted to reflect gender differences• Penalized for gender disparity

–How do you think GDI compares to HDI worldwide?• Similar: Top Norway and other top HDI

countries, Lowest in Sub-Saharan Africa

Measures of Gender Inequality

• Gender Empowerment Measure (GEM): compares ability of women and men to participate in economic and political decision making–Measures ability of

women to participate in developmental improvements

– Less women in these roles in EVERY country

Measures of Gender Inequality

Gender-Related Development Index

Economic Indicator of GDI

• Incomes of women lower in EVERY country

• MDC’s: women 2/3 income of men

• LDC’s: varies but considerably lower than MDC levels

• Number of School Years Attended:– Secondary Ed: nearly even in MDC’s (99/100 men); in

LDC’s (60/100 men)– Middle East and Sub-Saharan Africa: < 33% of girls

attend school• Literacy

– MDC’s near universal for all men and women– Sub-Saharan Africa and Middle East: substantially low

Social Indicators of GDI

• Life Expectancy: Who usually outlives who?

• 6 year gap in MDC’s• 1-2 year gap in LDC’s

Demographic Indicators of GDI

Worldwide GDI Trends

• Gap lessoning everywhere–¼ in MDC’s– 2/3 in LDC’s

Gender Empowerment Measure

• Percentage of women occupying professional and technical jobs–Why not primary sector jobs?• Northern Europe: > 50% to women• LDC’s < 50%

– Also look at GDP per capita

Economic Indicators of GEM

Political Indicators of GEM• % of managerial and

administrative positions– Why do these show

political influence?– North America, Northern

Europe, and South Pacific: 1/3

– LDC’s: ¼• % of women elected to

public office– Highest Northern Europe:

1/3 hold national offices– 1/5 in MDC’s– 1/10 in LDC’s

• Every Country Lower GEM than GDI: Meaning?

Troubles Developing: the LDC’s

• Adopting policies that cause development

• Paying for the development

2 Obstacles to Development:

2 Policy Approaches

• Center on Self-Sufficiency • Focus on International Trade

Self-Sufficiency: 3 Features of

the Balanced Growth

Approach

• Spread growth over all economic sectors and all over the country–Modest

growth for all not large growth for some

Modest Growth

Nationalize Business• Reduce number of international

corporations– Isolates local businesses from

international competition and MDC business and government policies

• 3 Decisions– Tariffs (high taxes

on imported goods)• Makes domestic

products the cheapest

–Quotas (fixed number of imports allowed)

– Licenses • Buy ability to

import goods or export goods

Reduce Imports

• What country do you believe used this model and was successful?– China (sort of)

• What country do you believe used this model and was unsuccessful?– India

Critical Thinking

Problem: Inefficiency

• Reduces competition–No incentive to modernize or

improve quality because Governments subsidize and bail out failing industries and no other options for people to purchase

• Ex: Indian Auto Industry

• Complex Government Controls inhibit entrepreneurship

• Financially easier to buy and sell on the black market

Problem: Large Bureaucracy

International Trade Model; Rostow’s

Development Model: Exploiting your

assests

Overview• W.W. Rostow’s 5-stage

model of development–Based on Following

beliefs:• All countries have gone

through these stages• International competition

encourages companies to continue improving• Abundance of resources in

LDC’s could be used to fund development

• Society has not begun development

• High percentage of agricultural work

• National wealth towards “nonproductive” activities

• Religion and Military• Why are these “nonproductive”?

Stage 1: The Traditional Society

• Well-educated leaders invest in infrastructure–Build water supplies, transportation,

invest in new technologies

Stage 2: Preconditions for

Takeoff

Stage 3: The Takeoff• Rapid growth and improvement

in a few industries, 1-2 industries advanced and productive–Others still traditional

• Diffusion of Technology into a variety of industries

• Workers become skilled and specialized

Stage 4: Drive to Maturity

• Shift in economy from heavy industry: steel and energy to consumer goods

Stage 5: Age of Mass Consumption

Critical Thinking• Throughout the history of the US, at what

point were we in each of Rostow’s stages?– Stage One:

• Colonial Times– Stage Two:

• Antebellum Period (Pre Civil War)– Stage Three:

• Mid 19th Century– Stage Four:

• Late 19th Century– Stage Five:

• Early 20th Century

• What country, we have recently talked about, used this model?– Japan– Others include South Korea, Singapore, Taiwan, and

Hong Kong

Critical Thinking• Critical Thinking• According to Rostow, development requires

substantial investment in capital such as infrastructure like transportation systems, water, etc. However, for the economies of LDCs to grow, the right conditions for such investments would have to be created.

• • Question: Investments of aid from other

countries will only help LDCs develop if they have reached which stage of Rostow’s model? Why?

• Not all resource prices rose higher than necessary commodities (Africa)– Few people at the top

rich, others remain poor

Problem: Uneven Resource

Distribution

• Markets not growing (population and economic downturn)–No new markets to sell products– Competing for already

established markets

Problem: Market Stagnation

Problem: Increase Dependence on

MDCs• Rely on MDC’s for

food, clothing, etc. bc only producing takeoff industries

• Proven better method of development• GDP growth faster in LDCs using

this model• India, China, etc switch to this

model• WTO: World Trade Organization

developed to reduce barriers to trade

Positive International Trade Model: Truth in

Numbers

Financing Development

2 Methods for Funding

Development• Loans• Investments by Transnational

Corporations (article)–What were some of the positives and

negatives we discussed regarding Transnational Corporations?

• 2 Major Loan Institutions:• UN Financial Institutions• World Bank

• Money for governments and financial institutions to implement transportation and social services

• To risky nations too poor to qualify for other loans

• International Monetary Fund• Helps build international reserves• Stabilize currency exchange rates• Help them pay for imports

Loans

• Why loan money for infrastructure in a small underdeveloped foreign country?

• What do you think could be some of the problems with investing in these areas?–Money stolen– Spent on other things (arms, etc)– Can’t repay debt


Fair Trade

• Alternative to international trade model

• Creates standards that protect workers and small businesses in the LDC’s

Overview

• Small worker owned businesses form cooperatives to better afford loans to build their businesses

• Fair Trade Organizations work straight with producers– Cuts out middle man fees–Higher wages to cooperatives

(producers)–Not always higher price for

consumers

Producer Standards

Worker Standards

• Fair Trade requires:– Fair wages–Unionization–Minimum

environmental and safety standards

– Encouraged to invest profits in the community

haiti and japan earthquake comparison

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