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Chapter 9: Development
9.1 – Why does development vary among countries?
Human Development Index (HDI)
Measure used by the UN that calculates the level of development in terms of human welfare
A function of three main factors:
Decent standard of living
Long healthy life
Access to knowledge
Inequality-adjusted HDI
An indicator which modifies the HDI to account for inequality within a country
The lower the IHDI the higher the inequality
If they are hypothetically equal, equality is complete
Gross National Income (GNI)
Value of the output of goods and services produced in a country in a year
Including money that leaves and enters the country
GNI is now endorsed by the World Bank, rather than GNP
Purchasing Power Parity (PPP)
A monetary measurement of development that takes into account what money buys in different
countries
Currencies of the same good or service in different countries
Gross Domestic Product (GDP)
Also a measure of goods and services produced, but does not include money that leaves and
enters the country
Primary economic activities
Activities involved with the harvest or extraction of raw materials
Fishing, agriculture, mining, etc
Secondary economic activities
Activities associated with assembling raw materials into goods for consumption
Heavy industry, manufacturing, food processing, textiles
Tertiary economic activities
Involve the exchange of goods
Retail, restaurants, basic service jobs
Quaternary economic activities
Activities associated with generating or exchanging knowledge
Research and development, teaching, tourism
Quinary
A subset that involve high level decision making and scientific research
Basic and non-basic industries
Basic industries
Production for export outside the region
Agriculture, mining, tourism, manufacturing
Non-basic
Production of goods and services for consumption inside the region
Retail, banking, necessities
As regions grow they have a higher ratio of non-basic employment to basic
employment
Productivity
A measure of goods and services produced within a particular country
Value added
Gross value of a product minus the cost of raw materials and energy
2010 value added per capita
US = $5,900, Japan = $6,700, China = $800, India = $100
Differences in manufacturing capital?
Question Time!
The IHDI is 0.77 in the US and 0.83 in Canada. Which country has greater inequality?
Create a funny metaphor to illustrate the differences between:
Countries in terms of HDI and IHDI
Primary, secondary, tertiary, quaternary, and quinary activities
Basic and non-basic industries
Purchasing Power Parity
Economic development
The process of economic growth, expansion, or realization of regional resource potential
Ecotourism
Any form of tourism that aims to provide an experience of nature or culture in an
environmentally sustainable way
Often based on the enjoyment of scenic areas or natural wonders
Economic indicators
Use various types of data to measure economic development
GNI, GDP, vehicle ownership, cell phone ownership, etc
Health/wealth indicators
Use other types of data to indicate health/wealth
Wealth
Motor vehicles, cell phones, internet users
Health
Life expectancy at birth, infant mortality
Health indicators in development
Life expectancy at birth
70 as the global average
80 in core, 68 in periphery
Wide range within each category
75 in Latin America vs. 55 in sub-Saharan Africa
Infant mortality – deaths before age 1 per 1,000 births
About 99.5% in core, 94% in periphery
Dependency ratio
People living longer and better social services can increase the dependency ratio
Education indicators
Literacy rate
Percent of the population that can read and write
Mean years of schooling
Number of years the average 25 year old has spent in school
Expected years in schooling
The number of years an average 5 year old is expected to spend in school
Pupil/teacher ratio
Lower ratio yields more effective education
Question Time!
In addition to cell phones, what other electronic devices might diffuse rapidly in
periphery countries because of low cost of equipment and lack of need for expensive
infrastructure?
The HDI reflects the quality of schools in a country as a whole. What are ways in which
differences among schools or colleges within a country might be measured?
Provide examples for how ecotourism can be used for economic development
What might some reasons that life expectancy in sub-Saharan Africa is considerably
lower than Latin America?
How can globalization affect education, both positively and/or negatively?
Regional variation in development
Especially high in SW Asia, N Africa, and central Asia
Petroleum creates major disparities
Economic backwaters
Regions that fail to gain from national economic development
Exmp: The Amazon interior in Brazil
Regionalization
Process by which specific regions acquire unique characteristics that differentiate them
from the rest of the country
Dominant economic activities in particular regions
Regional multiplier
A numerical relationship showing the number of total jobs created for each new basic job
in a region
Exmp: Jobs created by major projects like stadiums, airports, etc
Backwash effect
The negative effects on one region that result from economic growth within another
region
Exmp: Negative impact on rural settlement when people leave to the city for newly
created jobs
Question Time!
Russia and Canada are two of the world’s largest countries by land area
Which of these countries would you expect to have regional internal variation similar to
the US and which would have internal variation similar to Brazil, China, and Mexico?
Create a funny metaphor to illustrate the differences between:
Economic backwaters, regionalization, regional multiplier, backwash effect