Chapter 9, Development
Rubenstein

Key Issue #1: Where are more and less developed countries (MDCs and LDCs) distributed?

1 Development is the process of improving the material conditions of people through diffusion of knowledge and technology
A Development is a continuous process
B Geographically, most MDCs lie north of the 30N parallel and the LDCs south of that line
C Human Development Index (HDI) created by the UN:
1). Country’s level of development is a function of 3 factors: a). economic – gross domestic product/capita (GDP/capita) b). social – literacy rate and amount of education c). demographic – life expectancy
2). In 1997, Canada had the world’s highest HDI
3). USA is usually in top 6, but has never been first
4). Lowest HDI in 1996 was Sierra Leone (Africa)
5). 19 of the countries with the lowest HDIs are in Africa
2 Nine major cultural regions and 2 other “areas” in the world
A Of these, 3 are more developed:
1). Anglo-America (Canada and USA) - HDI of .95
2). Western Europe – HDI of .93
3). Eastern Europe – HDI of .78
B Of these, 2 “areas” are also well developed:
1). Japan – HDI of .94
2). South Pacific (Australia, New Zealand, and Papua, New Guinea – HDI of .93
C Of these, 6 are less developed:
1). Latin America – HDI of .8
2). Southeast Asia – HDI of .67 (Indonesia, Thailand, etc.)
3). Middle East – HDI of .66
4). East Asia – HDI 0f .63 (China)
5). South Asia – HDI of .44 (India, Bangladesh, Pakistan, etc.)
6).Sub-Saharan Africa – HDI of .35

Key Issue # 2: Why does development vary among countries?
3 Recall the 3 ways development is measured: (economic, social, and demographic)
4 Economic indicators:
A GDP in MDCs is usually much higher because incomes are much higher
B Average GDP in MDCs is $20,000/person while only $1000/person
C Types of jobs in MDCs:
1). Primary – working directly with land – agriculture, mining, fishing, forestry
2). Secondary - manufacturing
3). Tertiary – provides goods and services
4). Quaternary – book says this category is no longer used, but it was/is information
5). Quinary – book says this obsolete also, but was/is managers of information
6). Of interest, quaternary sector was/is fastest growing sector in world
D Productivity
1). How much each worker produces
2). In MDCs higher level of technology which helps productivity
3). Value added is the value added per worker and is a measure of productivity a). In manufacturing, value added is gross value of the product minus cost of raw materials and energy b). Value added in MDCs usually 30 times that of LDCs
4). Raw materials – MDCs usually have better access to large supplies of raw materials and energy a). Some MDCs do not have access to large quantities of raw materials, yet have managed to become productive – e.g. Japan
5). Higher consumption of consumer goods in MDCs due to higher incomes
5 Social Indicators
A Education – measured in 2 ways:
1). Teacher-student ratio – higher in MDCs
2). Literacy rate – how many can read and write
3). Average student in school 10 years in MDC; a couple of years in LDCs 4). Women more likely to attend school in MDCs than in LDCs
B Health care much better in MDCs also
C Public assistance – MDCs take better care of those who are not able to work (sick, elderly, poor, disabled, etc.)
1). Countries in Northwestern Europe usually provide highest level of public assistance (Denmark, Norway, and Sweden)
6 Demographic indicators
A Life expectancy – in general, MDC females live 13 years longer than LDC females; MDC males live 9 years longer than LDC males
B Infant mortality rate – 10/1000 per year in many MDCs; 100/1000 in LDCs
C Rate of natural increase – averages greater than 2% in LDCs; less than 1% in MDCs
D Crude birth rate – averages 40/1000 in LDCs; 15/1000 in MDCs

Key Issue #3: Why do less developed countries face obstacles to development?
7 They face obstacles for all of the above reasons.
8 How can LDCs promote