Unit 3 Review Flashcards
Development
MDC (more developed /relatively developed): progressed further upon development continum (process of steps)
LDC (developing/ less developed): some progression of development, less than MDC
3 basic ways humans make living:
1. agriculture (primary)
2. manufacturing (secondary)
3. prodividing services (tertiary)
Development continum
- MDC
- high developing
- medium developing
- low developing
Divides the world into 9 regions accroding to lvl of development
* distinctive characteristics & demographic features
Varition in development:
* signifcation variations (uneven distribution of wealth) can occur within a region/country
* sevre global economic reccession in 2008 has illustrated globalization of the 2000s century
9 Regions of Development
MDC:
1. North America (high)
2. Europe (high)
3. Japan (relative)
4. South Pacific (relative)
LDC:
5. Latin America
6. East Asia
7. Central Asia
8. Southeast Asia
9. Southwest Asia + North Africa
10. South Asia
11. Sub-Saharan Africa
12. Russia
Russia
* classifed individually (worlds largest country)
Japan
* classifed indivdualy due to high lvl of development (compared to neighbors
South Pacific
* much less populous than 9 regions of development
Development
The development process is never-ending actions to improve prosperity of the people
* clustered countries at the high and low ends of the continuum of development can be divied into MDC & LDC
Human Development Index (HDI) - a measurement of lvl of development of every country; created by the UN
* highest development (HDI) is 1.0 or 100%
HDI
* each countries data has been computed anullay since 1980
* MDC = higher HDI (South Pacific 0.91)
* LDC = lower HDI (Sub-Saharan Africa 0.48)
1. Decent standard of living (economic)
2. Long and healthy life (healthcare)
3. Access to knowledge (education; most costly)
Based on HDI grouped into: very high, high, medium, low developed
Development by Region
HDI:
1. North America - US & Canada are both very high developed
2. Europe - majority of countries are very developed
3. Latin America - majority are high developing
4. East Asia - majority are medium developing
5. Central Asia - majority medium developing, varies between high (Iran) to low (Afghanistan)
6. Southeast Asia - majority are medium developing
7. Southwest Asia & North Africa - Majority medium developing, varies between high (Saudi Arabia; oil) to low (Yemen)
8. South Asia - majority medium developing
9. Sub-Saharan Africa - majority low developing
Japan & South Pacific
*** grouped with developed regions
Russia
* commonly classified as MDC
* now LDC to minimal development under and since communism
Decent Standard of Living
Income/standard of living - measured through index called annual gross national income per capital at pruchasing power parity
* GNI: value of annual product outputs (including money that leaves and enters country
* PPP (purchasing power parity): adjustment made to GNI to account for differences among countries
EX** country A & B have the same income, but country A has to pay more for a Big Mac, then country B is better off
GNI per Capita - diving GNI/total population is the measure of the average indivduals generation towards a countries annual weath
**EXAMPLES **
US - 2011; GNI 15 trillion/population 312 million
* per capita $47,000
2011 GNI:
1. MDC per capital $34,000
2. LDC per capita $7,000
GNI per PP is highest in MDC, lowest in Sub-Saharan Africa & South Asiaworld
Per capita GNI is ONLY an average measure of wealth, few could starve in MDC but not all are poor in LDC
* higher per captia GNI = higher potenial for ensuring better standard of living
Economic Structure
- Primary sector - invovles all activites that extract from the earth (agriculuture, mining, oil extraction)
- Secondary sector - includes manufacturers that process, transform, and assemble raw materials into a product (industries that turn manufactured goods into finished consumer goods)
-
Tertiary sector - providing goods & services in exchange for a payment (retail, banking, education, law, government)
* Quaternary sector - knwoledge based & data proccessing (research development, IT, higher education)
* **Quinary sector - highest lvl of decison making (government officials, CEO, executive managers, management class)
GNI in development:
1. Primary - decreased in LDC (still higher than MDC)
2. Secondary - sharply decreased in MDC (less than LDC)
3. Tertiary - large in MDC (continues to grow)
Low percentage of primary sector workers in MDC indicate limited amt of farmers can product enough food for the rest of society (tech advances)
* freed from task of growing their own food, people in MDC contribute to national wealth through secondary and tertiary sectors (innovations + tech imrpovement jobs)
Productivity
Productivity - value of a particular product compared to the amount of labor needed to make it
* measured by value added per capita
Value added - value added through out means other than manufacture and energy to manufacutre the prodcut (marketing, promotion, brand image)
EX: smartphone raw materials cost $200, marketing makes it sell for $700; value added is $500
Value per capital 2010:
1. $5,900 in US
2. $6,700 Japan
3. $800 China
4. $100 India
Productivity in MDC vs. LDC:
* workers in MDC produce more w/ less effort due to advanced tech
* workers in LDC rely heavily on human & animal power
* larger per capita in MDC is due to more accessibility to equipment and more effienct manufacturing proccesses (more money spent on machinery = higher effiecny)
IHDI
Inequality adjusted HDI - measures inequality of access to decent standard of living, healthcare, and education (lower IHDI = greater inequality)
* IHDI = HDI indicates that there is NO inequality
* IHDI < HDI indicates there is SOME inequality (larger gap between IHDI and HDI, the greater the inequality)
IHDI in Regions:
1. lowest IHDI (highest inequality) are in Sub-Saharan Africa & South Asia
2. low in Southwest Africa & North Africa (UN lacks data)
Consumer Goods
Major part of wealth of MDC’s are used to purchase goods & services related to transportation and communication
* motor vehicles, telephones, computers
Motor Vechiles - provide access to to jobs & permit business to distribute products
* global: 170:1,000 persons
* MDC: 630:1,000 — LDC: 80:1,000
Telephones - enhance international of input providers to customers for goods & services
* global: 800:1,000
* MDC: 1,100:1,000 — LDC: 700:1,000
Computers - faciliate sharing of information w/ buyers & suppliers
* global internet users: 300:1,000
* MDC: 700:1,000 — LDC: 200:1,000
Distribution of Goods
MDC:products that promote transportation and communicaitons are accessible to virtually al residents (vital to economies function & growth)
LDC:products do not play major role in daily life
LDC consumer product use:
* motor vehicles, computer, telephones are not essential to those living in same village (all friends, family, relatives nearby)
* work all day growing crops/agriculture
* still familar with goods, but cannot afford, but still desire as symbol of development
Social Classes:
* gap can emerge those who have and those don’t have these goods
* minority can include government officals, business owners, other elites, whereas majority lack ownership (can provoke politcal unrest)
Concentration:
* those who own products are concentrated in urban areas (diffuse from urabn –> rural)
* more importnat in urban due to disperrsion of homes, factories, shops
Tech changes reduces gap between LDC&MDC (access to communication)
MDC also funds infrastructure in LDC (raods, bridges, airports, electircity, water)
* EX: trans-African Highway; encourages remote development
Healthcare
Goal of developemt is to provide nurtirition and medical servies to those in need
* extend life expectancy
Health Indicators:
1. Life expectancy at birth
* average: 70 years
* MDC: 80
* LDC: 68
LDC life expectancy:
* strong variation of highs and lows
* Lation America 75, South Asia 65, Sub-Saharan Africa 55
MDC life expectancy:
* medical resources avalible
* MDC’s use part of wealth to protect unemployed ppl
Life Expectancies
Demographic Indicatiors
MDC:
* residents lead longer lives thanks to public assistance (elderly, sick, widows, poor, disabled)
* higher elderly ratio:lower under 15 child raito (both need government/employed adult support)
* elderly and children ratio ar enearly same
* 99.5% of infants survive childbirth
LDC:
* number of young people is 6x’s higher than older
* better healthcare permit more babies to survivce childbirth (94% live)
* higher IMF in LDC due to malnutrition, lack of medicine, dehydration from diarrhea, poor medical practices (lack of education)
Life expectancty:
* highest in Europe
* Lowest in Sub-Saharan Africa
Access to Education
Access to knowledge is essentail for potential possibility of leading valuable lives
* higher development = higher quantity&quality of education
* education leads to better jobs and higher social status
Quantity of schooling (major UN indicator) - no matter how poor schooling is, the longer pupils attend the more likely they are to learn something
1. years of schooling: number of years a person aged 25+ has spent in school
* global: 7 years
* MDC: 11 years
* LDC: 6 years
2. expected years of schooling: number of years a currnet 5 year old is expected to stay in school (expected to attend coellege in MDC, not finish highschool in LDC)
* global: 11 years
* MDC: 16 years
* LDC: 11 years
Quality of Schooling - 2 measures of quality of education
1. pupil/teacher ratio: the fewer students per teacher, the more effective the education
* global primary school: 1:24
* MDC: 1:14
* LDC: 1:26 (twice as large as MDC)
2. literacy rate: percent of those who can read and write
* MDC: 99%+
* LDC: 90%+ (East Asia&Latin America), 70% (Sub-Saharan Afirca&South Asia)
UN expects global average of 5 years of education in the future
* education gap between MDC & LDC will still remian high
* education recieve high % of GNI in LDC, but GNI is originally low (spend far less than MDC)
Variation of Development
Variations within Regions:
* Southwest Asia & North Afirac & Central Asia
* not all countries contian signifcant natural resources (Egypt, Jordan, Syria)
* causes tension in region
SW Asia & N Africa - desert regions, contain sparse concentrations of plant/animal life
* possess large supply of petroleum reserves
* Saudi Arabia&Arab Emirates (concentrated on borders of Persian Gulf), used billions of dolallars made from petroluem to fund development
Varition within Countries:
* Brazil & China & Mexico are worlds most populous countries
* fall in middle of GDP per capita & other indicators (above Sub-Saharan Africa & South Aisa, behind Europe and NA)
GDP per capital:
* higher than 150% of national average in some provinces/states
* less than 75% in others
* Variation also exists intearlly, but are less exetreme in MDC
EX: US - GDP per capita is 122% of average in weealth region (New England) and 90% of average in poorest (Southeast
- Brazil - wealth highest among Atlantic coast, lowest in interior Amazon rain forest
- China - wealth highest among east coast, remote in rural moutains/deserts of interior
- Mexico - wealth highest among region bordering US, high among tourist region of Yucatn Peinsula
Developing Data
UN and World Bank extract data and information from numerous sources to decipt patterns of differnet coutries
ex: Life Expectancy Graph
Gender Inequality
Inequality - long stnading cultural and legal obstalcs tend to limit a women’s participation in development, and access to
benefits
Gender Inequality Index (GII) - empowerment, labor, reproductive health
* higher GII = higher inequality between men and women (score of 0 is farely equal)
* higher in LDC (highest Sub-Saharan Africa, South Asia, Central Asia, Southwest Asia
* largest contributor is REPORDUCTIVE HEALTH
10 countries in Europe where GII is 0.1 (almost equal)
South & Southwest Asia have relatively poor equality
