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DEVELOPMENT Development Indicators Countries grouped as… More Developed Countries – MDC Less Developed Countries – LDC Indicators of Development… Economic Social Demographic Gross Domestic Product Gross Domestic Product (GDP)… Total value of Goods & Services produced in a Country GDP/capita… Divide GDP by total population GDP Purchasing Parity GDP PPP… GDP Purchasing Power Parity… • Equalizes cost of buying same Goods & Services within different Countries GDP PPP / capita… Common statistic for income per person Population Data Sheet World Population Data Sheet… Population Reference Bureau • www.prb.org – for 2009 Source of most Country Data PRB Data Demographic… Population • Current & Projected Birth & Death Rates, NIR IMR, TFR Life Expectancy, HIV/AIDS Contraception % Urban PRB Data Economic… GNI PPP/capita Poverty Environmental… CO2 emissions /capita Development Indicators Economic indicators… GDP per Capita Types of Jobs Raw materials Consumer goods Development Indicators Social indicators… Education Literacy Health and Welfare Development Indicators Demographic indicators… Life Expectancy Infant Mortality Rate Natural Increase Rate Crude Birth Rate Human Development Index 4 Factors for HDI… Economic – 1/3 • Gross Domestic Product (GDP)/capita Social (Education) – 1/3… • Adult Literacy (2/3) • School Enrollment (1/3) Demographic – 1/3 • Life Expectancy Index scale from 0 Æ 1.0 Human Development HDI varies for regions… Highest? • MDC… Lowest? • LDC… Human Development HDI varies for Countries… Highest? Lowest? HDI – Country Rank Rank Country HDI Rank Country HDI 1 Norway 0.971 44 Chile 0.878 2 Australia 0.970 49 Argentina 0.866 4 Canada 0.966 53 Mexico 0.854 6 Netherlands 0.964 71 Russia 0.817 8 France 0.961 75 Brazil 0.813 9 Switzerland 0.960 92 China 0.772 10 Japan 0.960 105 Philippines 0.751 13 U.S.A. 0.956 111 Indonesia 0.734 15 Spain 0.955 134 India 0.612 18 Italy 0.951 141 Pakistan 0.572 20 New Zealand 0.950 146 Bangladesh 0.543 21 United Kingdom 0.947 158 Nigeria 0.511 22 Germany 181 Afghanistan 0.352 0.947 GDP per Capita Highest? Lowest? Worker Productivity Manufacturing value added per worker Highest? Lowest? Consumer Goods Land-line Phones Cell Phones Adult Literacy School Enrollment Highest? Lowest? Health – Undernourished Highest? Lowest? Health – Calories/Capita Healthcare Physicians Healthcare $ Gender Development (GDI) Gender Development Index Highest? Lowest? Women & Education Female vs. Male Literacy College Women Gender Empowerment Female vs. Male Income Women – % of National Legislature MDC vs. LDC Trends Both improved, but Gap continues… NIR – National Increase Rate (Pop. Growth) IMR – Infant Mortality Rate GDP/capita • Gap Increasing GLOBALIZATION Economic Globalization Political Economy… Interaction between… • Economic & Political Systems Comparative study of global economic and political changes Economic Globalization Since 1960’s… Capitalist Multi-national corporations Free Trade… • WTO Consumerism Economic Development 2 historical paths to Development… Self-Sufficiency Where? • Former USSR… • India 20 years ago Problems? • Inefficient Production • Defective Products No longer pursued Global Trade Where? • East Asia • Latin America Problems? • Uneven resources • Market stagnation • MDC Dependence Rostow Development Model 1. Traditional Society Agriculture dominant 2. Preconditions for Takeoff Elite initiates innovations (investment/technology) 3. Takeoff Rapid growth in a few industries (textiles, food) 4. Drive to Maturity Broadens to other industries 5. Age of Mass Consumption Shift from heavy industry to consumer goods Foreign Trade Products Manufactured in… LDC where cheapest Labor Shipped to MDC consumers Financed by MDC… Foreign investment Core vs. Periphery MDC… Transnational Corporation HDQ Decision controls Capital Markets for consumption Profit gain LDC… Raw Materials Cheap Labor Industrial site locations Industrial pollution Resource depletion Profit drain Core vs. Periphery Core Advancing MDC… • USA & Canada • Europe • Australia & NZ • Japan & East Asia “Tigers” Periphery Falling behind LDC… • Africa Semi-Periphery Emerging ??? • Latin America • South Asia ? Fair Trade Production & Trade… Standards that protect workers… • Minimum Wage • Union organizing • Environmental safety