12/21/2015. What does Development Mean? Contemporary Human Geography. Human Development Index. Development. Development implies progress

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1 What does Development Mean? Development implies progress Progress in what? Do all cultures view development the same way? Do all cultures value the same kinds of development? Contemporary Human Geography Chapter 9: Development 4:47 Development World divided into more developed countries (MDC) and less developed countries (LDC). MDCs vs. LDCs: 1/5 of world s population lives in MDCs and consumes 4/6 of the world s goods. In Africa 14% of the world s population consumes 1% of world s goods. Americans spend more on cosmetics ($8 billion) than the LDCs spend on education. Europeans spend more on ice cream ($11 billion) than LDCs spend on plumbing (toilets). Human Development Index HDI (created by the UN, 1990 s) measures a country s level of development ~185 countries classified Development is a continuous process 1

2 Human Development Index (Cont.) Economic (Income) HDI uses three factors ECONOMIC (Income) Gross Domestic Product (GDP)- the value of all goods and services produced in a country. SOCIAL (Education) Literacy rate Education (years) DEMOGRAPHIC (Health) Life Expectancy Highest HDI is 1.0 Norway.944 Niger.348 United States HDI Income 8 th Education 2 nd Health 38 th 2014 Ranking 8th overall Economic Structure Average per capita income in MDCs higher due to jobs Primary Agriculture Secondary Manufacturing Tertiary Services Ratio of farmers to society equates to national wealth Changes in percent employed in primary, secondary and tertiary sectors Demographic (Health) One-third of Africans and one-sixth all people undernourished Greater MDC wealth can be used to obtain food and health care MDCs spend less on health care Focus on prevention More productive Percent of Population that is Undernourished HDI Trend All regions around the world have shown growth except Eastern Europe only region HDI has decreased. -Communist legacy -Conflict 2

3 Gender-Related Development Status of women is lower than men in every country Development gap has reduced by 2/3 in LDCs by 1/4 in MDCs Two indexes GDI (Gender-related Development Index) compares level of development of women to both sexes GEM (Gender Empowerment Measure) compares ability of women and men to participate in economic and political decisions Gender-Related Development (Cont.) GDI uses adjusted HDI Lower income than men (avg) 60% MDC 50% LDC Life Expectancy In MDC women live several years longer than men In LDC women have shorter life spans than men Education Women out number men in Colleges/Universities in MDCs In LDCs women are much less numerous Gender-Related Development (Cont.) GEM - combines: Income, Professional jobs, Managerial jobs, and Elected jobs Professional and Technical Jobs MDCs women more likely LDCs more likely men Elected Positions Women hold 1/6 Worldwide but low in Middle East and South Asia Two Paths to Development (9.6) Self-Sufficiency VS. International Trade Development through self-sufficiency Equitable investment spread across all regions Precedence for poverty reduction (modest growth) Businesses that are new or struggling are protected from international corporations Barriers for imports Drawbacks Inefficient industries protected Very bureaucratic Limited New Money 3

4 Rostow s Development Model (International Trade) Developed by W.W. Rostow (1950s) JAPAN USA -%urban 61% 75% -per capita income $34225 $ infant mortality 2.8/ /1000 TAIWAN S. KOREA -%urban 74% 75% -per capita income $19000 $31000 A country can develop economically by concentrating scarce -infant mortality 5.9/ /1000 INDIA resources on expansion of its distinctive local industries and resources AFGANISTAN 18% NEPAL 10% -%urban GHANA -%urban 26% 36% -per capita income $976 $647 -infant mortality 32/ /1000 -per capita income $345 $419 -infant mortality 154/ /1000 MALAYSIA THAILAND -%urban 51% 22% -per capita income $7027 $3841 -infant mortality 16/ /1000 USA Path to Development Stage 5: early 20 th century Stage 4: late 19 th century Stage 3: middle of 19 th century Stage 2: first half of 19 th century Stage 1: prior to independence Fair Trade Fair trade is an international development model that protects small businesses and workers Fair trade, higher percentage of sales price goes to producer Fairtrade Labeling Organizations International sets international standards Two sets of standards One applies to producers One to workers 4

5 World Trade Most LDCs have adopted the international trade development path The WTO has facilitated adoption of the international trade path Self-sufficiency advocates converted to international trade during the 1990s overwhelming evidence Three problems hindered development: Middle East petroleum allowed for quick growth while others lag Markets growing more slowly than they had in past LDCs cut production for their own people creating shortfalls in some areas World Trade (Cont.) Foreign Direct Investment Investment in the economy of another country by corporations 1970 $13 bil to $1.25 tr in US = $263 bil Only 1/3 from MDCs to LDCs ½ of all FDI goes to China India dismantled barriers created by the self-sufficiency model during 1990s Foreign companies allowed Tariffs, restrictions, and monopolies gone Indian companies improved products 5