DEVELOPMENT

INDICATORS OF DEVELOPMENT

Economic indicators of developmentGross domestic product per

capitaTypes of jobs

Primary, secondary, tertiaryRaw materials

Needed to produce finished goods and services

Consumer goodsCars, T.V., cell phones

Social indicators of developmentEducation and literacy

Student/teacher ratioHealth and welfare

Denmark, Norway and Sweden have the highest levels of public assistance

Demographic indicators of developmentLife expectancy – Infant mortality

rateCrude death rate – Crude birth rate

More developed regionsAnglo-America

0.94 HDI and major food exporter

–Western Europe 0.92 HDI. W. Germany, N.E. France, N Italy Imports food, energy but exports consumer goods EU helps create successful market

Eastern Europe 0.78 HDI. Communism caused low HDI Scarce funds, Import food, Low productivity, Pollution

– Japan 0.93 HDI. High physiological density Low wage labor=cheap products Good education/training for labor force

South Pacific 0.93 HDI Economies tied to Asian markets

(Australia)

Less developed regionsLatin America

0.78 HDI Agriculture, inequitable income distribution

– East Asia 0.72 HDI Large population, Communism, Agriculture

Southeast Asia 0.71 HDI Palm Oil, Copra, Rubber, Tin, major

manufacturing of consumer goods

– Middle East 0.66 HDI Large oil reserves, lack of political freedom, low

education and literacy rates and low status of womenSouth Asia

0.58 HDI Agriculture and Minerals, Green Revolution

– Sub-Saharan Africa 0.47 HDI Minerals, low literacy, poor health, impact of

colonialism

GENDER DEVELOPMENT AND GENDER

Gender-related development index (GDI)Economic indicator of gender difference

Income gapsSocial indicators of gender differences

Access to education and literacy ratesDemographic indicator of gender differences

Child bearing and diffusion of medical practices

Gender empowerment (GEM)Economic indicators of empowerment

Professional and technical jobsPolitical indicators of empowerment

Managerial jobs, election to office

DEVELOPMENT STRATEGIES Development through self-sufficiency

Income from rural areas match urban income to reduce poverty

Elements of self-sufficiency approach Isolate competition from large international corporations Limit imports, impose tariffs, quotas on imports Licensing Limit exporting

India No outside corporations Products were produced and consumed in India only Subsides (cheap electric)

Problems with self-sufficiency Inefficiency- no incentive to improve quality or production Large Bureaucracy- complex administration system

Development through international tradeExport most abundant product to the global

marketRostow’s development model (5 stages)Examples of international trade approach

Saudi Arabia used revenue to invest in education ectProblems with international trade

Uneven resource distribution- manipulation of prices Market stagnation-LDCs need to steal sales Increased dependence on MDCs-consumption of

consumer goods World Trade Organization (WTO)

Reduce international trade restrictions and enforcing agreements

Financing Development Loans-LDCs borrow from World Bank and International Monetary

Fund Transnational corporations- investment in a country by a

international corp.