Download Development Review - Seaford School District

DEVELOPMENT
The Human Development Index (HDI), created by the United Nations, recognizes that a
country’s level of development is a function of all three of these factors.
Four factors that calculate HDI:
 GDP (gross domestic product) per capita
 Literacy rate
 Amount of education
 Life expectancy
Economic
Gross Domestic Product
(GDP): value of the total
output of goods and services
produces in a country,
normally during a year
•GDP per capita  Dividing
GDP by total population
measures contribution made
by the average individual
toward generating a country’s
wealth
Social
•level of development, the
greater are both the quantity
and quality of education
Demographic
•Life Expectancy: average
number of years a newborn
infant can be expected to live
•Quantity: average number of
school years attended
•Quality: student/teacher
ratio and literacy rate
•Literacy rate: percentage of
a country’s people who can
read and write
Other factors the help determine development
Economic
 Types of Jobs (primary,
secondary, tertiary)
 Productivity
 Raw Materials
 Consumer goods
Social
 Health and Welfare
Demographic
 Infant Mortality Rate
 Natural Increase Rate
 Crude birth rate
More and Less Developed Regions
More Developed Regions
Anglo-America
Western Europe
Japan
South Pacific
Eastern Europe
Less Developed Regions
Latin America
East Asia
Middle East
Southeast Asia
South Asia
Sub-Saharan Africa
Gender-Related Development Index (GDI): compares the level of development of women with
that of both sexes
Uses the same indicators as HDI
 Income
 Literacy
 Education
 Life expectancy
High GDI means both men and women have achieved a high level of development
Low GDI means that women have a low level of development
Economic Indicator
Income
Social Indicator
Education & Literacy
Demographic Indicator
Life expectancy
Average income for females is
lower than males in every
country in the world
Women less likely to attend
schools in LDCs
Gender gap greater in MDCs
than LDCs
Gap is especially high in
secondary level
Women expected to live
longer in MDCs
Women:Men 99:100 in MDCs,
60:100 LDCs
Sub-Saharan Africa & Middle
East fewer than one-third of
girls attend school
In Latin America and Asia,
boys and girls are equally
likely but attendance is much
less than in MDCs
Gender Empowerment Measure (GEM): Compares ability of women and men to participate in
economic and political decision-making. GEM measures the ability of women to participate in
the process of achieving those improvements


two indicators of economic power
o income
o professional jobs
o
two indicators of political power
o managerial jobs
o elected jobs
Countries with the highest GEMS are MDCs, especially in North America, Northern Europe and
South Pacific
Obstacles for Development
To reduce disparities between rich and poor countries, LDCs must develop more rapidly
• Increasing per capita GDP more rapidly
• Using additional funds to make more rapid improvements in people’s social and economic
conditions


Two Obstacles
Adopting policies that successfully promote development
Finding funds to pay for development
Promoting Development
o Self-Sufficiency
o International Trade
Finding Funds
o Loans from Banks
o Direct Investment
Details of Approach
Disadvantages
SELF-SUFFICIENCY
 a country should spread investments as equally as  Inefficiency
possible across all sectors of its economy and in all  Large
regions
Bureaucracy
 Countries promote self-sufficiency by setting
barriers that limit the import of goods from other
places.
o High tariffs (taxes) on imported goods to
make them more expensive than domestic
goods
o Fixing quotas to limit the quantity of
imported goods
o Requiring licenses to restrict the number of
legal importers
 Restricts local businesses from exporting to other
countries
INTERNATIONAL TRADE
Rostow’s Development Model
 The Traditional Society: has not yet started a
process of development. A traditional society
contains a very high percentage of people
engaged in agriculture and a high percentage of
national wealth allocated to what Rostow called
‘nonproductive’ activities, such as the military and
religion.
 The preconditions for takeoff: development
begins when an elite group initiates innovative
economic activities. Under the influence of these



Uneven resource
distribution
Market
stagnation
Increased
dependence on
MDCs
Example
INDIA
FOUR ASIAN
DRAGONS
South Korea,
Singapore,
Taiwan, Hong
Kong
PETROLEUMRICH ARABIAN
PENINSULA
STATES



well-educated leaders, the country starts to invest
in new technology and infrastructure. These
products will ultimately stimulate an increase in
productivity.
The Takeoff: rapid growth is generated in a limited
number of economic activities, such as textiles or
food products. These few takeoff industries
achieve technical advances and become
productive, whereas other sectors of the economy
remain dominated by traditional practices.
The Drive to Maturity: modern technology
diffuses to a wide variety of industries, which tne
experience rapid growth. Workers become more
skilled and specialized.
The Age of Mass Consumption: the economy
shifts from production of heavy industry to
consumer goods, such as motor vehicles and
refrigerators.
Saudi Arabia,
Kuwait,
Bahrain,
Oman, United
Arab Emirates
(UAE)
Loans
 The World Bank
o International Bank for Reconstruction and Development (IBRD): provides loans
to countries to reform public administration and legal institutions, develop and
strengthen financial institutions, and implement transportation and social service
projects
o International Development Association (IDA): provides support to poor countries
considered too risky to qualify for IBRD loans.
 International Monetary Fund (IMF)
o Provides loans to countries experiencing blance0of-payments problems that
threaten expansion of international trade.
o Designed to help a country rebuild international reserves, stabilize currency
exchange rates, and pay for imports without having to impose harsh trade
restrictions or capital controls that could hamper the growth of world trade
 The Theory: Borrowing money for new roads and dams will make conditions more
favorable for domestic and foreign businesses to open and expand
 Problem: many new infrastructure projects are expensive failures, and many LDCs have
been unable to repay the interest on their loans.
Structural Adjustment Program: before granting debt relief, and LDC is required to
prepare a Policy Framework Paper (PFP) outlining a structural adjustment program,
which includes economic goals, strategies for achieving the objectives, and external
financing requirements.