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Development
Three factors of Development
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Economic
Social
Demographic
HDI
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HDI: Human Development Index, created by
the United Nations, is a reflection of those
three factors
The UN selects one economic factor, two
social factors, and one demographic factor to
compute the HDI
The highest HDI possible is 1.0, or 100%
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Canada usually ranks the highest at 0.932
Economic Factors
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The United Nations using gross domestic
product per capita as the economic factor
for calculating HDI
Other economic factors are considered:
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Types of jobs
Productivity
Raw Materials
Consumer Goods
GDP Per Capita
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Individuals in MDCs typically earn more
income than in LDCs
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Per capita income is difficult to calculate in LDCs
GDP is the value of the total output of goods and
services produced within a country, normally
during a year
Geographers use GDP per capita instead
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GDP divided by total population
Types of Jobs
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Jobs typically fall into three categories:
primary, secondary, and tertiary
In an LDC, sometimes 75% of workers are in
a primary sector, compared to 5% in an MDC
In an MDC, jobs have decreased in primary
and secondary sectors, and increased in
tertiary
Productivity
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Workers in an MDC are more productive
than workers in an LDC
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Productivity: the value of a particular product
compared to the labor used to make it
Machinery can help increase productivity
Raw Materials
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Development requires access to raw materials
and energy sources
LDCs that have petroleum are able to advance
more quickly than those that do not
Not all developed countries have raw materials
(ex: Japan)
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Developed through world trade and technology
Consumer Goods
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Wealth can be divided between necessities
(clothing, shelter, and food) and luxuries
(television, cars, technology)
The type of goods and services purchased
by consumers is another indicator of
economic development
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How important is the car? Telephone?
Television?
Social Indicators
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The United Nations uses literacy rate and
Gross Enrollment Rate as the social
factors for calculating HDI.
MDCs use their wealth to provide schools,
hospitals, and welfare services
Social factors include:
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Education and literacy
Health and welfare
Education and Literacy
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The higher the level of development, the
greater are both the quantity and quality of
education
The quality of education is measured in the
student/teacher ratio and the literacy rate
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Literacy Rate: the percentage of a country’s
people that can read and write
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Typically 95% in MDC, and less than 33% in LDC
Health and Welfare
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People are healthier in MDCs
Most developed states have socialized
healthcare
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United States is only major developed country
where health care is privatized
MDCs also offer welfare assistance to help
those unable to work
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Denmark, Norway, and Sweden provide the most
welfare assistance
Demographic Indicators
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The United Nations uses life expectancy
as the demographic indicator for HDI.
Demographic indicators include:
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Life Expectancy
Infant Mortality Rate
Natural Increase Rate
Crude Birth Rate
Life Expectancy
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Better health and welfare cause people in
MDCs to live longer
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Life expectancy: the average number of years a
newborn can expect to live at current mortality
levels
Babies are expected to live to their mid-40s in
LDCs, and mid-70s in MDCs
MDCs have large number of elderly people,
and LDCs have large number of children
Infant Mortality Rate
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Infant Mortality Rate: The annual number of
deaths or infants under one year of age,
compared to the number of live births
More babies survive infancy in an MDC
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90% of infants survive in an LDC
99% of infants survive in an MDC
Natural Increase Rate
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NIR: the percentage by which a population
grows in a year.
It is computed by subtracting the CBR-CDR
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The NIR is about 2% in LDCs, and 1% in MDCs
Crude Birth Rate
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Crude Birth Rate: the total number of live
births in a year for every 1,000 people alive
in the society
LDCs have higher NIRs, because they have
higher CBRs
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The CBR in an LDC is 40 per 1,000
The CBR in an MDC is 15 per 1,000