GDP (Gross Domestic Product) HDI (Human Development Index)
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Transcript of GDP (Gross Domestic Product) HDI (Human Development Index)
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GDP(Gross Domestic Product)
HDI(Human Development Index)
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Productivity Well Being
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• 42 Developed Countries• 43 Newly Industrializing Countries• 84 Developing Countries– The poorest 42 of these are:• Highly Indebted Poor Country (HIPC)
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OECD – Organization for Economic Co-operation and Development
*What is the most critical blue square in determining poverty?
Would you add or subtract anything?
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Developed Country:• Strong economies and happy citizens. • Usually have governments that function well
enough to serve their people.• Live long, low infant mortality, high literacy
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• Newly Industrializing Country:• Building up industry and infrastructure
• Eg. Brazil (agriculture and bio-fuels) and Indonesia (oil and minerals)
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• Developing Country:• Very little infrastructure or few industries
• India, Cambodia, Vietnam, Thailand
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• Lowest Developing Countries are classified as HIPC (Highly Indebted Poor Country)
• Mozambique, Uganda, Ethiopia, Zimbabwe
Eg. Uganda – 1% have access to electricity that costs about 10x more than in BC.
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HIPC
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GDP(Gross Domestic Product)
private consumption + gross investment + government spending + (export-
import)
HDI(Human Development Index)
GDP, Life expectancy (under 5 mortality and full life span), literacy, standard of living, child welfare
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#8
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HDI – Human Development Index
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• PROBLEMS/ CHALLENGES OF DEVELOPMENT:• 1) Globalization• - Poor infrastructure = Poor economic growth • - Multi-National Corps often control the land• - Culture washing or Culture Exchange
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Climate, Landscape, Resources, Soils, Vegetation, Water
Government Policies, Disease, Development, Culture, Communication
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Women of Niger (352-353)• Life expectancy - 49 years• Literacy 14%• Average children 7.4 (cultural currency)• 65% of the pop. Lives on less than $180/year• One industry uranium and it has dropped• Donor aid withheld due to a Dictator
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The Cycle of Poverty
CounterPoints: Exploring Canadian Issues
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Saudi Arabia (55) and Ethiopia (157)
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Off-Shore Farming
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The IMF (International Monetary Fund)
&The World Bank
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The IMF
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The World Bank
I want to grow economically and create some infrastructure in my country…
I want to build some MEGA PROJECTS
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Playing with the big boys
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Jamaica
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SAP (structural adjustment program)
Jamaica
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Challenges:• Poverty Trap:• - LOANS to developing countries
– IMF, World Bank, – (Megaprojects – exporting minerals & agricultural products –
commodities – failing markets = more debt (see page 396)– Monoculture – ie. Cotton farming in India (refer to 100%
Cotton)
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CYCLE OF DEBT:In 2005 Niger was forced to:•Raise taxes on milk, bread, water, & electricity•Social programs like education and healthcare have minimum charges
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• Burden of Debt:• - resources on world market low prices due to over supply• Most resources under control of MNCs ie cocoa in West Africa
(produces 70% of world’s cocoa, sells it to four MNCs that control price, and farmer sees little return)
• Burden of debt countries try to pay off debt, spend less on social services
• Ie. Mozambique 10X more spending on debt repayment than healthcare.
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• Burden of Debt cont.• Debt is exacerbated by:• - natural disasters – floods, droughts• - desertification• - civil wars (examples)• - dictators, corrupt governments (examples)• - example of Zimbabwe (show ranking as last on scale
again – flag – issues of cholera, inflation, Mugabe, etc)
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Additional Issues:Children: child labour, child soldiers, sexual slavery, lack of education, U5MR, Diseases: -(diseases of poor sanitation) cholera, dysentery, typhoid-Malaria-HIV/AIDS
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Possible Responses To Development Issues
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Development Assistance Goals:-PM Lester Pearson led a UN commission in the 1960s which set a target of 0.7 percent of donor countries GNP (gross national product).-Countries rarely meet this goal-Canada’s contributions have dropped in past 2 decades-2008: Canada’s aid was at 0.32 of the GNP
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The Millennium Development Goals(MDGs)
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• Watch this video on the UN Millennium Development Goals (there are spelling mistakes in the movie but it is fairly good)
• http://www.youtube.com/watch?v=v3p2VLTowAA&feature=channel_video_title
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1. International Aid
-Bilateral aid – assistance from one country to another -When Canada provides aid, much of it goes through CIDA (Canadian
International Development Agency)
- CIDA finds “partners” (universities, NGOs, and businesses) that administer aid programs, or gives $ directly to governments, or through UN groups.
- Supports upgrades in technology, train teachers, improve agriculture (Cdn gov’t supports GMOs), courses in gender equality, leadership, women’s rights
- Most of CIDA’s aid will now go to 20 “priority countries”, primarily in South America… the budget to the HIPC of Africa has significantly decreased…
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Certain UN programs are created to address specific issues:
Ie. UNAIDS created to oversee programs working on issues of HIV/AIDS
- coordinates bodies such as the World Bank, the WHO, UNICEF, and UNESCO
(United Nations Educational, Scientific, and Cultural Organization)
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-Multi-lateral aid - funded by a number of gov’ts -usually involves large scale projects
(ie. Dam building)
- int’l organizations such as the UN and the World Bank Eg. UNICEF, WHO (World Health Organization)
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- Tied-aid – aid given to a foreign country with conditions attached
-More than 40% of Canadian bilateral & multi-lateral aid is tied aid
-Canadian gov’t has pledged that food aid is fully untied, and by 2013, CIDA’s funding would be untied.
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Foreign Aid vs Military Spending-In 2008, military spending was est. US$1464 billion worldwide
-UN agencies estimate that meeting MDGs would cost US$189 billion in 2015
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What If….
Canada and the United States put all of their military spending for one year into foreign aid? What do you think the results might be?
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Aid from NGOs• NGO = Non-governmental organization
• Examples: KIVA, Rotary International, Free the Children, OXFAM, The Stephen Lewis Foundation, World Vision, Red Cross, Doctors Without Borders (MSF)
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What would make the biggest difference?-ELIMINATE EXTREME POVERTY!-Debt reduction-Improving Women’s status-Improving living conditions/ sanitation/ infrastructure/healthcare- Education & employment opportunities
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NGOs often work from “grassroots” level:
-ie. Funding for alternative income or microcredit loans-women’s weaving cooperative in Philippines-Cell phone businesses-Grameen Bank – Muhammad Yunus-Kiva.org