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
