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 per Capita

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 ProductsThe percentage of people working in agriculture exceeds 75% in many LDC’s of Africa and Asia. In Anglo-America and Western Europe the figure is <5%

Africa is almost exclusively focused on Primary production.

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 from the production reinvested into new technology increasing overall output.

LDCs must rely on animal and human power which does not allow them to produce anywhere near the level of MDCs.

Raw Materials

A country must have raw materials that can be fashioned into usable products

Countries such as the United States and Russia saw rapid industrial development due to an enormous amount of available resources.

Other countries such as the United Kingdom have had to establish colonies to replace depleted resources

Raw Materials

Other countries have lots of resources but foreign private industries are responsible for mining (Diamonds in South Africa).

Consumer Goods

Consumer goods help countries develop from the inside

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

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

Years in School

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

Health and Welfare MDCs are more capable of financing health and

welfare than LDCs. Most MDCs place more than 8% of their GDP

into health care.

Health Expenditure as % of GDP

Physicians /1,000 persons

Pvt Expenditure as % of Total Health Expenditure

Infant Mortality Because of the access to health and welfare

services, infant mortality rates are usually less than 1% in MDCs compared to around 6% in LDCs.

This is also due to inadequate means of child delivery necessitated by the inability to access a proper physician.

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

Make a Prediction

Which regions have a high HDI? Low HDI?

Human Development Index