Download Human Development Index (HDI)

Measures of Development
Human Development Index
 recognizes a country’s development
level as a function of
 economics (GDP per capita),
 social (literacy rate & level of education),
and
 demographic factors (life expectancy)
 Highest possible rank is 1.0
Economic Indicator
 GDP per capita: the value of the total
output of goods and services
produced in a country in a normal
year divided by total population
GDP per Capita
 European countries have the highest per
capita GDP because of high GDP and low
population.
 Luxembourg – $79,000
 Norway - $53,300
 Africa the lowest per capita GDP due to low
GDP and high population
 Zimbabwe - $300
 DRC - $350
GDP
GDP
 Which countries have high GDP?
 Which countries have low GDP? (don’t
just pick the easy ones you know)
 What is Luxembourg’s category of
GDP? Which other countries are in the
same category?
 Explain how the Western European
country of Luxembourg has this level
of GDP.
GDP
 Throughout this presentation – pay
attention to Brazil, Russia, China, India,
and South Africa.
 Let me explain when I say
 Rule of Thumb – what is generally happening in
the area
 Weird exception – in an area everything is
generally one way except this one country is
noticeably different
 For example – on the next slide the rule of
thumb is Sub-Saharan Africa has a low GDP per
capita, the weird exception is South Africa &
Botswana
GDP per Capita
GDP per Capita
 Check Luxembourg – Is your
explanation still valid?
 Check B, R, I, C, and SA
 Which regions have high GDP per
capita? Any weird exceptions?
 Which regions have low GDP per
capita? Any weird exceptions?
 Can you see the core, semi-periphery,
and periphery pattern?
 What is the
correlation of
landlocked
states and low
GDP per capita?
Weird
exceptions?
 What is the
correlation of gov’t
type and low GDP
per capita?
Monarchies:
Republics:
Constitutional Monarchy
Traditional Monarchy
Absolute Monarchy
Democracy
Restricted Democratic Practice
Authoritarian Regime
Totalitarian Regime
Non-Sovereign:
Protectorate
Colonial Dependency
Empire
Source: Matthew White, 2003. http://users.erols.com/mwhite28/othergov.htm Adapted from FreedomHouse.org
Another map of government type
http://chartsbin.com/view/6kx
 Correlation means when something
happens then the other things happens to –
 The left side of the x-axis means the
government is very corrupt
 Does HDI correlate government corruption?
 What is the relationship between
government corruption and economic
development?
Social Indicators
 Literacy rate – the percentage of a
country’s people who can read and
write.
 Literacy rates exceed 98% in MDCs
 Amount of education – measured by
taking the average number of years a
student attends school in a country.
Literacy Rate
Literacy Rate
 Check B, R, I, C, and SA – anything
unusual
 Which regions are high? Weird
exceptions?
 Which regions are low? Weird
exceptions?
 Why do the former Soviet countries,
which is semi-periphery, have a high
literacy rate
Years in School
Years in School
 Check B, R, I, C, and SA – anything
unusual?
 Which regions are high? Weird
exceptions?
 Which regions are low? Weird
exceptions?
 Compare –
any
significant
differences?
 Do you see
core, semiperiphery,
and
periphery?
Demographic Indicators
 Life expectancy
 This is the average age of death for the
citizenry
 Because of better healthcare, people in
MDCs tend to live 10-13 years longer
than in LDCs.
Life Expectancy
Life Expectancy
 Do you see core, semi-periphery, and
periphery?
 Check B, R, I, C
 Pay particular attention to South
Africa – Why?
Make a Prediction
 Which regions have a high HDI?
 Low HDI?
Human Development Index
HDI
 Do you see core, semi-periphery, and
periphery?
 Check B, R, I, C and SA
Other Indicators
Health Expenditure as % of GDP
Physicians /1,000 persons
Physicians /1,000 persons
 Why do the former Soviet countries
have so many physicians?
Pvt Expenditure as % of Total
Health Expenditure
Infant Mortality Rates
 Natural Increase rate
 Rate at which the population increases
 Around 1.5% in LDCs and .1% in MDCs
 This causes social strain due to increased social
cost.
 Crude Birth rate
 Rate at which children are being born into the
population
 LDCs face a rate around 24 per 1000 while
MDCs are around 11 per 1,000
 Because LDCs death rate is 8 per 1000 this
leads to an enormous increase in population
NIR
Other Economic Indicators




Sectors of the Economy
Productivity
Raw Materials
Consumer goods
Sectors of the Economy
 Primary –lowest sector of
sophistication. Involves extracting
materials directly from the earth;
mining, agriculture, fishing, and
forestry
 Higher % of population = greater
chance of poverty
Sectors of the Economy
 Secondary sector – manufacturing
that transforms raw materials into
useful products.
Sectors of the Economy
 Tertiary – occupations based on
providing services; tourism,
restaurants, retail, etc.
 Most MDCs have the majority of their economy
in this sector.
 Quantenary – service based occupations
that are intellectual in nature; education,
library services, government, etc.
 Quinary – service based occupations that
involve cutting edge technology
Make a Prediction
 Regions that are primarily
 Primary
 Secondary
 Tertiary
Primary Products
The percentage of people working in
agriculture exceeds 75% in many
LDC’s of Africa and Asia. In AngloAmerica and Western Europe the
figure is <5%

Africa is almost
exclusively
focused on
Primary
production.
Industrial Sector
 The way to read this map – shown larger
on the next slide
 The country with the highest secondary
sector output, Merica, is set to 100%.
 The other countries production is given as a
percentage of what the USA is producing.
 So USA is producing $2.5 trillion, then
Japan is producing 50% or $1.25 trillion.
 Ditto for the Service slide
Industrial
Sector
Productivity
 Value of a product in comparison to
the labor needed to make it.
 It is measured by assessing the value
added per worker
 Value added is the gross value of the
product minus the costs of raw materials
and energy
 US has a value added of $80,000 in
comparison to countries such as India at
$500
Productivity
 MDCs - produce more because of
access to technology, tools, and
equipment.
 Money earned is reinvested into new
technology increasing overall output.
 LDCs - rely on animal and human
power resulting in less production
Raw Materials
 Necessary for production
 Ex. United States and Russia - rapid
industrial development due to an enormous
amount of available resources.
 Ex. United Kingdom have had to establish
colonies to replace depleted resources
 Ex. Botswana, Namibia, South Africa –
DeBeers Diamonds (founded by Cecil
Rhodes)
Diamond Mines
Raw Materials
 Other countries have lots of resources
but foreign private industries are
responsible for mining (Diamonds in
South Africa).
Consumer Goods
Communication, Internet use, and
motor vehicles help citizens
communicate and transport resources
and information
 This helps to connect the resources
and manufacturers which increases
overall production
Consumer Goods
 LDCs are not likely to have this
equipment available.
 creates a dichotomy between the
urban dwellers who have this
technology and the rural population
that lacks it.
Motor vehicles per capita
Differences in
Communications
Connectivity
Around the World
Does Place Matter?