Living Standards. Why can t I have what he s got?

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1 Living Standards Why can t I have what he s got? OR Is it possible for everyone to have the same standard of living (in a country and around the world)?

population generally measures economic welfare Other measures such as access and quality of

2 Standard of Living standard of living refers to the quality and quantity of goods and services available to people, and the way these goods and services are distributed within a population generally measures economic welfare Other measures such as access and quality of health care, educational standards and social rights are often used as well One aspect of Quality of Life

3 Quality of Life Indicator of how good life is for the citizens of a given area physically, psychologically, and socially. Includes: Wealth Personal safety Health Nutrition Status of women and children Poverty line Freedom of expression Economic freedom Right to a safe and clean environment

4 UN Human Development Index (HDI) UN rates living standards per country based on the following, and calls it the Human Development Index 1. Adult literacy rate percentage of the population 15 years and older who can read and write 2. Life expectancy rate Average number of years a person or population can expect to live 3. Per capita GDP (gross domestic product) GDP - total value of all goods and services produced in a country in one year. divide this # by the # of people in a country, you get the average GDP per person, or per capita

population who attend or attended some sort of formal education Fertility

5 Human Development Indicators Other than those used in the HDI, other human development indicators include: Education rates The percentage of the population who attend or attended some sort of formal education Fertility Rates The average number of children that would be born to a woman over her lifetime

6 Human Development Indicators Infant mortality rates Reported number of infants dying under 5 years of age, per 1,000 live births Disease Prevalence of disease in an area such as HIV/AIDS Pandemic Pandemic: an epidemic that occurs over a wide geographic area worst in developing countries like Africa where lack of education and access to medical supplies and treatments cause the disease to keep spreading at a rapid rate

7 Human Development Indicators Infant mortality rates Reported number of infants dying under 5 years of age, per 1,000 live births Disease Prevalence of disease in an area such as HIV/AIDS Pandemic Pandemic: an epidemic that occurs over a wide geographic area worst in developing countries like Africa where lack of education and access to medical supplies and treatments cause the disease to keep spreading at a rapid rate

8 Most Livable Countries, Norway HDI Australia USA Netherlands Germany New Zealand Ireland Sweden Switzerland Japan Canada :

9 Least Livable Countries, DRC HDI Niger Chad Burkina Faso Mali Central African Republic Burundi Guinea Sierra Leone Afghanistan Liberia :

10 Lack of Education Cannot find jobs that will support a family Lack of Employment Income inequalities and too few jobs for low income groups Causes of Poverty

Natural Disasters Limited Resources inhibit the

11 Causes of Poverty Armed Conflicts Disrupt attempts at aid and development (farming, infrastructure, industry) Natural Disasters Limited Resources inhibit the construction of adequate housing, infrastructure, and mechanisms

12 Causes of Poverty High birthrates Enormous demand on scarce resources Starvation Disease Low Levels of Literacy Cannot find jobs that will support a family

High Debt Burden Provide lower standards Reduced wages Undercutting their own resources in order to compete economically in the global market

13 High Debt Burden Provide lower standards Reduced wages Undercutting their own resources in order to compete economically in the global market Infectious Diseases Death of significant portions of the population Strain on resources Reliance on foreign aid New: Climate Change Causes of Poverty

14 Poverty Cycle in Developing Countries Marry young; few job opportunities; limited social influence Limited diet, poor general health Family in debt due to low wages (can lead to break-up of family & abuse) Baby born to malnourished / impoverished mother Also Natural Disaster and/or Armed Conflict = Loss of Resources = Enhanced Vulnerability to Poverty When adult need to send children to work to help support family Baby s development is slowed Poor nutrition and medical care Reduced likelihood of economic success (low job skills) Child becomes an uneducated, unskilled worker unable to earn a living wage Children go to work instead of school OR Physical and mental development are slowed Low Literacy Level (little / no education) Poor performance in school

15 The Poverty Trap gftu&feature=related

16 Illiteracy and limited education; particularly of girls and women Poverty and inequity Rapid population growth and ruralurban migration Poor Nutrition / Lack of food security Squatter settlements and poor housing Environmental degradation MAJOR DETERMINANTS OF HEALTH Inadequate access to safe water and sanitation Unhealthy human behaviour Social unrest and armed conflict Low Status of women / gender inequity Inadequate access to health services In Developing Countries

17 The root of most health issues: WATER WATER

UNICEF - PNR UNICEF: United Nations Children's Emergency Fund since 1990 has published an annual Progress of Nations Report (PNR) on the welfare of children that measures the risk of children in

18 UNICEF - PNR UNICEF: United Nations Children's Emergency Fund since 1990 has published an annual Progress of Nations Report (PNR) on the welfare of children that measures the risk of children in countries worldwide on a scale of zero to 100 Based on 5 factors: 1. mortality rates of children under age 5 2.% of children moderately / severely underweight 3.#s of children who do not attend primary school 4.risks from armed conflict 5.risks from the disease HIV/AIDS

19 UNICEF - PNR - Results Canada, the US, Australia, Japan, & other highly developed nations had risk scores of 5 or below (of no consequence) Africa s average score: 61 world average: 30

Canada s Responses to Development Issues Canada Foreign Aid Policy Gives aid ($, goods & services) to poor (developing) foreign countries Official Development Assistance (ODA) Program gives financial

20 Canada s Responses to Development Issues Canada Foreign Aid Policy Gives aid ($, goods & services) to poor (developing) foreign countries Official Development Assistance (ODA) Program gives financial aid to countries of Africa, Asia, and some in Central / Eastern Europe CIDA Canadian International Development Agency CIDA was established in 1968 to administer the bulk of Canada s official development assistance (ODA) program CIDA s aim is to reduce poverty, promote human rights, and support sustainable development

21 Bilateral Aid Aid given directly from government to government Usually in the form of grants as opposed to loans and goods and services

22 Bilateral Aid

23 Tied Aid Form of bilateral aid Loans / grants provided to a developing country with the requirement that the recipient use the funds to buy goods or services in the donor country The majority of aid is tied aid

24 Form of bilateral aid Tied Aid Loans / grants provided to a developing country with the requirement that the recipient use the funds to buy goods or services in the donor country The majority of aid is tied aid

25 funding multilateral (more than three invested parties) institutions / international organizations such as: UN i.e. UNICEF, WHO World Bank Often in form of cash Often large-scale initiatives like building dams Multilateral Aid

26 Multilateral Aid funding multilateral institutions / international organizations such as: UN i.e. UNICEF, WHO World Bank Often in form of cash Often large-scale initiatives like building dams

27 Money, goods, or services that a donornation provides to a developing country for a specific project Project Aid

NGOs (Non-Governmental Organizations) NGOs are non-governmental organizations are non-profit organizations that often conduct humanitarian and development work around the world.

28 NGOs (Non-Governmental Organizations) NGOs are non-governmental organizations are non-profit organizations that often conduct humanitarian and development work around the world. NGOs are essential to poverty relief efforts. Governments such as Canada support NGOS through donations, but do not control what NGOs do Most active in ecological, health, and general welfare programs Examples: Red Cross Oxfam Save the Children Greenpeace Amnesty International Habitat for Humanity Doctors Without Borders Mennonite Central Committee

29 Canada supports the idea of forgiving all or part of the debt developing countries owe to international banks Debt Reduction

30 Debt Reduction Canada supports the idea of forgiving all or part of the debt developing countries owe to international banks

31 Debt has been choking the world s weakest economies and blocking economic progress for billions of the world s poorest people Governments borrowed money in the past for development projects from World Bank / IMF, etc. Corrupt leaders often stole the proceeds Debt Reduction cont

32 Debt has been chocking the world s weakest economies and blocking economic progress for billions of the world s poorest people Governments borrowed money in the past for development projects from World Bank / IMF, etc. Corrupt leaders often stole the proceeds Debt Reduction cont

33 Debt Reduction cont To pay off interest and principal of the loan Governments have been forced by creditors to slash their social spending and shrink their public sector But debt still grows, placing the poorest countries in a kind of debt bondage Many countries of the UN have been encouraging the elimination of these debts or at least a reduction in the amount owed by developing nations

34 Debt Reduction cont To pay off interest and principal of the loan Governments have been forced by creditors to slash their social spending and shrink their public sector But debt still grows, placing the poorest countries in a kind of debt bondage Many countries of the UN have been encouraging the elimination of these debts or at least a reduction in the amount owed by developing nations

35 Debt Reduction con t Debt Relief Easing the obligations of a debtor nation to repay loans Debt Swap A new nation or organization takes over a nation s debt in exchange for some favour by the debtor nation Debt Forgiveness Cancelling obligations to repay debts Debt Moratorium Postponement of payments on loans

36 Debt Reduction con t Debt Relief Easing the obligations of a debtor nation to repay loans Debt Swap A new nation or organization takes over a nation s debt in exchange for some favour by the debtor nation Debt Forgiveness Cancelling obligations to repay debts Debt Moratorium Postponement of payments on loans

37 Canadian International Development Agency (CIDA) CIDA Supports foreign aid projects in over 100 of the poorest countries Manages Official Development Assistance (ODA) Promotes sustainability in developing countries

38 CIDA Focuses on 6 basic principles: 1. basic human needs 2. gender equality 3. infrastructure 4. human rights 5. environment 6. democracy / good governance Explores 4 social development sectors: 1. basic education 2. HIV/AIDS 3. health and nutrition 4. child protection

39 Does Foreign Aid Work? Issues to consider: Is Aid reaching those who need it? What do people need most in developing countries? Who is benefiting most from Foreign Aid? What are some different ways we could spend the same amount of money on Foreign Aid and get different results? Afghanistan Security Issue Phantom Aid Malnutrition Solution Myth: Foreign Aid

Chapter 18: Development and Globalization Section 2

Chapter 18: Development and Globalization Section 2 Objectives 1. Identify the causes and effects of rapid population growth. 2. Analyze how political factors and dept are obstacles to development. 3.