Chapter 9

Development

Indicators of Development

• Economic indicators of development– Gross domestic product per capita– Types of jobs– Raw materials– Consumer goods

• Social indicators of development– Education and literacy– Health and welfare

• Demographic indicators of development– Life expectancy – Infant mortality

rate– Natural increase rate – Crude birth rate

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).

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.

Economic Sectors

• Primary- Raw Materials extraction based. Ex: agriculture, mining, fishing

• Secondary- Raw Materials processing based. Ex: manufacturing

• Tertiary- Services based. Ex: Education, Medicine, Banking

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.

Cellular Phones per Population

Fig. 9-5: Cellular telephone lines per 1000 persons, 2005. Cell phones are now more common than land lines in much of Europe and Africa, but they are less common than land lines in North America.

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.

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.

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.

Terminology• North/South- Geography based

terminology that generalizes the productivity of the global North and South

• 1st World/3rd World- Cold war based terminology that generalizes based on free market alignment and countries that weren’t soviet or us aligned.

• More Developed/Less Developed- Generalization based on HDI and other development indicators.

More & Less Developed Regions

• More developed regions– Anglo-America – Western

Europe– Eastern Europe – Japan– South Pacific

• Less developed regions– Latin America – East Asia– Southeast Asia – Middle East– South Asia – 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.

China, GDP per capita by Province

Fig. 9-12: GDP per capita, China provinces, 2001. The highest gross GDP per capita is found along the eastern coast where manufacturing is concentrated, while income in much of the interior is far lower.

Development Strategies

• Development through self-sufficiency– Elements of self-sufficiency approach– Problems with self-sufficiency

• Development through international trade– Rostow’s development model– Examples of international trade approach– Problems with international trade

• Financing development

• Fair trade

India Self-Sufficiency Approach• India placed an emphasis on agricultural self-

sufficiency• Strategy

– Nurse domestic businesses– Limit imports through tariffs– Discourage exporting goods

• Problems– Inefficiency- businesses can sell all they make at

high government controlled prices.– Large Bureaucracy- necessary to administer all

the controls on the economy

Development Through International Trade Model

• Rostow’s Development Model– 1. Traditional Society– 2. The Preconditions for Takeoff– 3. The Takeoff– 4. The Drive to Maturity– 5. The Age of Mass Consumption

– Ex: 4 Asian Dragons-Singapore, Taiwan, Hong Kong, South Korea and Arabian Peninsula Counties

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.

Poor Infrastructure in Ghana

Many roads in Africa and other developing nations are not paved. This and other problems of infrastructure are obstacles to economic development.

Anti-Globalization DemonstratorsSeattle, 1999

Debt as Percent of Income, 2005

Fig. 9-24: Many developing countries have accumulated large debts relative to their GDPs. Much of their budgets now must be used to finance their debt.

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.

Halford Mackinder’s Heartland Theory • Three core beliefs

of Mackinder’s theory.– Who rules East

Europe commands the Heartland

– Who rules the Heartland commands the World-Island

– Who rules the World-Island commands the world