Chapter 9
“Part 1 - Development”
• The gap is widening between the rich (MDCs)
and poor (LDCs).
• A Country’s wealth is visible:
• A rich country has its wealth spread throughout
most of its population.
•Places like New Delhi, Mexico City, Rio de
Janeiro all have impressive buildings and
homes, BUT the vast majority of people do not
share in this wealth.
• Most of the wealth is in the hands of a few
individuals and in the hands of ‘Multi-nationals’
or ‘Trans-Nationals’.
• In order to get a clearer picture of the
differences between the MDCs and the LDCs we
need to do some measurements and
observations. There are three types of Indicators
for Development: Economic, Social and
The United Nations (UN) – uses a number of
‘indexes’ (An index is usually a number out of 1,
the closer to one the better) to illustrate the level
of development. I will now list the 4 major ones.
The first one is the most important and uses one
number to give an indication of a countries
Economic, Social and Demographic all in one
1. HDI: Human Development Index. …
A. …
B. …
C. …
An example could be for the last one could be
“The Big Mac Index” – The relative cost of a
Big Mac in various countries.
Helps measure - Income poverty. How far your
money will go?
2. HPI: Human Poverty Index.
A. …
B. …
C. …
Development Index - what you have
Poverty Index - what you don’t have
3. GEM: (Gender Empowerment Measure). …
4. GDI: (Gender-related Development Index). …
•The above two are more social indicators
• Canada in 2000 was 3rd in the world in GDI and 6th
in GEM.
• Canada has an HDI of 0.961 and is ranked 10th in
• Both HDI and HPI are used to measure the gap
between rich and poor.
Human Development Index
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).
HPI: Human Poverty Index
The further you are from the value ‘one’ the wider the gap between
rich and poor is another way to look at HPI.
Gender Empowerment Measure
The GEM combines two measures of economic power and two of political
power by women. (Little data are available for LDCs.)
Gender-Related Development Index
The GDI combines four measures of development, reduced by the degree of
disparity between males and females.
Some Definitions:
• Absolute Poverty: …
• Relative Poverty: …
• Human Poverty: …
• Income Poverty: …
The Findings:
Economic Indicators of Development:
1. GDP/GNP (per capita):
2. Types of Jobs:
Primary, Secondary, Tertiary, Quaternary, Quinary
Primary – …
Secondary - …
Tertiary – …
Quaternary – …
Quinary – …
Many texts do not use the last two and include
these jobs all under Tertiary.
Employment Changes by Sector
Percentage employment in the primary, secondary, and tertiary sectors of MDCs
has changed dramatically, but change has been slower in LDCs.
3. Raw Materials: coal, iron ore, oil etc.
4. Consumer Goods: cars, telephones, etc
Relates to
Social Indicators to Development:
1. Education and Literacy:
2. Health and Welfare:
Value Added: gross value of a
product minus the cost of raw
materials and energy (the cost to
make it).
Demographic Indicators of Development:
1. Life Expectancy:
2. Infant Mortality Rate:
3. Birth and Death Rate and Natural Increase
Annual GDP per Capita
Annual gross domestic product (GDP) per capita averages over $20,000 in most
developed countries but under $5,000 in most less developed countries.
Telephones per Population
Mean telephone lines per 1,000 persons, 2002. MDCs have several dozen
phone lines per 1,000 persons, while the poorer developing countries may have
less than 10.
Calories per Capita
Daily available calories per capita as percent of requirements. 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.
Economic and
Persons per Physician
There is a physician for every 500 or fewer people in most MDCs, while
thousands of people share a doctor on average in LDCs.
Student-Teacher Ratios
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 (Fig. 2-15).
Natural Increase Rates
The natural increase rate (NIR) is the percentage growth or decline in the
population of a country per year (not including net migration). Countries in
Africa and Southwest Asia have the highest current rates, while Russia and some
European countries have negative rates.
Crude Birth Rates
The crude birth rate (CBR) is the total number of births in a country per 1,000
population per year. The lowest rates are in Europe, and the highest rates are in
Africa and several Asian countries.
Crude Death Rates
The crude death rate (CDR) is the total number of deaths in a country per 1,000
population per year. Because wealthy countries are in a late stage of the
demographic transition, they often have a higher CDR than poorer countries.
A breakdown of Development by regions
of the World
More and Less Developed Regions
The less developed regions include Latin America, Sub-Saharan Africa, Middle East,
South Asia, East Asia, and Southeast Asia.
Some facts:
• 20% of the world’s population has 86% of the
world’s GDP, 82% of all the export markets, 68%
of all the investments and 74% of all the
• In 1998 the percentage share of the worldwide
market for the rich was:
- Telecommunications – 86%
- Pesticides – 85%
- Computers – 70%
All in the hands of Europe, Japan and North
Anglo America – HDI – 0.94
•English – unified in language
•Christian – mostly unified in religion
•Minerals and natural resources – eg. Steel
•Modern agriculture – major exporter
•Technologically advanced – computers, communications
•Headquarters for the majority of Trans-Nationals (Multi)
•Mainly Tertiary
•Losing manufacturing jobs – globalization
•Strong connection (colonies-immigrants) to Western Europe
•Eg. Canada, USA
Western Europe – HDI – 0.94
•Much more unified today – European Union
Economic, Culture, Military, Politics – unity
•Mainly Christian – Hindu and Muslim immigration has
caused problems – Guest workers/Time contract workers
•Past colonial powers
•Luxury goods – clothing, cars etc
•Core – Germany, France, U.K., Northern Italy
•Periphery – Southern Italy, Portugal, Spain, Greece
•Large importer of food, energy and minerals
•Technologically advanced
•Eg. U.K.(Great Britain), France, Germany, Italy
Eastern Europe – HDI – 0.78
•HDI dropping – collapse of communism
•Past - Communism was meant for industrialized nations and
workers not agricultural societies thus its HDI was higher
during communist rule
•Government under communism ran everything – used 5 year
plans (Gosplan) – these plans stressed heavy industry and
located plants near raw materials NOT consumers and huge
military spending – paying for this today. Communism was so
interested in showing the world that it forgot its citizens!
Eastern Europe – HDI – 0.78 - continued
•Present – Freedom, no investment in technology,
insufficient farming (import food), government was to
centralized, consumer products were ignored.
•A lot of countries have broken up – ethnic conflict Balkans
•High unemployment
•Crime, pollution
•Some countries doing well – Hungary, Poland, Ukraine
•Eg. Slovenia, Hungary, Czech Reb., Serbia, Bosnia,
Japan – HDI – 0.93
•Strong cultural unity and tradition
•Rapid development since WW2
•No raw materials
•Intense farming
•Hard, efficient, proud workers
•High in technology and electronics
•After WW2 the plan was:
oWork hard – low wages
oProduce goods at cheap prices
oGain a share of the market
oSpecialize in high quality, high value goods
oIt Worked!
South Pacific – HDI – 0.93
•Few people
•Peripheral location
•Colonial influence
•Close ties to Great Britain
•Eg. Australia and New Zealand
Latin America – HDI – 0.78
•Spanish, Portuguese influence
•Roman Catholic
•Highly populated urban centers – Mexico City, Sao Paulo,
Buenos Aires
•Majority of Population on Atlantic coast
•Agriculture is strong – mainly export – coffee, tea and fruit
•Inequitable income distribution
•Large property owners
•Peasant farming
•Issue of unrest and strong ‘socialist’ views
•Eg. Mexico, Belize, Costa Rica, Brazil, Argentina
East Asia – HDI – 0.72
•China – initially poor and mostly agricultural – Strong
emerging country – it has the potential to surpass the US –
large population is a hindrance – One child policy –
population control
•In 1949 – Communism re-organized the country into
stressing Agriculture – It worked!
•Becoming more capitalist – more incentive to work harder
•Government still controls everything
•Markets are opening up!
•The Future
•Eg. China, Korea (North and South), Mongolia
Southeast Asia – HDI 0.71
•Indonesia – largest population – 13 667 islands – 2/3 of
people on the island of Java
•A lot of wars – Vietnam, Laos, Cambodia
•Mainly rural
•Climate – Tropical – inhibits a variety of crops to be
•Rice is key
•Agricultural products that are not food - like coconut oil,
natural rubber and fibers from trees (used in making
•Food is grown for export not for citizens – kiwi,
pineapple, bananas etc.
•Eg. Indonesia, Philippines, Vietnam, Malaysia,
Thailand, Singapore – But – especially the last two –
growing in manufacturing (textiles) – offer cheap labour
Middle East – HDI – 0.66
•Mainly dry – desert
•Oil (Petroleum) rich – trade surplus
•Lots of money and potential for economic development
•Countries like Egypt, Jordan, Syria do not have oil
•Wars and conflicts is key in this area – Israel, Palestine
(not a country), Iraq, Iran, Syria, Lebanon, Kuwait,
•Development (US) vs. Islam - Terrorism
•Role of women an issue – created an AHDI for women
(Alternate HDI) – lack of political freedom, low
education, low literacy rates, lack of opportunities.
•Eg. Israel, Egypt, Iraq, Iran, Saudi Arabia, Libya
South Asia – HDI – 0.58
•Large population
•Low per capita income
•India has raw materials but population is too high – Jute
(burlap and twine), peanuts, sugar cane and tea
•India also has a large educated population that speaks
English – migration to North America and outsourcing of
work – Internet support
•Green Revolution – rice and wheat
•Climate – Agriculture – depends on Monsoon (seasonal
rains May-August)
•Eg. India, Pakistan, Bangladesh
Sub-Saharan Africa – HDI – 0.47
•Northern Africa considered part of Middle East
•South of Sahara – extremely poor – poorest in the
•Colonial influence – location of boundaries and lack of
an infrastructure
•Issues of malnutrition, starvation, Aids, tribal and ethnic
conflict, corrupt leaders
•Some raw materials – oil, bauxite, copper, uranium
•Land locked states
•Climate and land cannot support the # of people (land
is overworked) – Malthus
•Simple farming methods
•Highest Natural Increase in the world
•Eg. Kenya, Nigeria, Chad, Ethiopia, Ivory Coast,
Angola, Zambia, Sudan, Rwanda – South Africa (an
economic exception – mining, colonial influence)
Measuring levels of Poverty
Maslow's Level of Human Needs:
Love & Acceptance
Physical Needs
End of Part 1

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