International Development Chapter 9 Meaning of Development Measuring Development Location of More...
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Transcript of International Development Chapter 9 Meaning of Development Measuring Development Location of More...
International DevelopmentChapter 9
• Meaning of Development • Measuring Development• Location of More and Less Developed Countries• Strategies for International Development
What Do We Mean By Development?
The three objectives of development increases in availability and improvements
in the distribution of food, shelter, health, protection, etc.
improvements in ‘levels of living,’ including higher incomes, more jobs, better education, etc.
expansions in the range of economic and social choices available to individuals and nations
Measuring DevelopmentEconomic Indicators
Gross Domestic Product (GDP) Types of Jobs (Economic Sectors) Natural Resources
• Deemed essential, but Japan? • Some more important than others.
Consumer Goods (Nonessentials)• Motor Vehicles, Telephones, Televisions
New International Division of Labor
Source: U.N. World Development Report, 1998
Life expectancy
Adult literacy rate
GDP per capita
Human development index (HDI)
USA 76.4 99 26977 0.943 Norway 77.6 99 22427 0.943 Canada 79.1 99 21916 0.96 France 78.7 99 21176 0.946 Iceland 79.2 99 21064 0.942 Netherlands 77.5 99 19876 0.941 China 69.2 81.5 2935 0.65 Albania 70.6 85 2853 0.656 Uzbekistan 67.5 99 2376 0.659 Ukraine 68.5 98 2361 0.665 Turkmenistan 64.9 98 2345 0.66 Pakistan 62.8 37.8 2209 0.453 India 61.6 52 1422 0.451 Burkina Faso 46.3 19.2 784 0.219 Niger 47.5 13.6 765 0.207 Burundi 44.5 35.3 637 0.241Sierra Leone 34.7 31.4 625 0.185 Mali 47 31 565 0.236All developing countries 62.2 70.44 3068 0.5864Least developed countries 51.16 49.2 1008 0.3439Industrial countries 74.17 98.63 16337 0.9114World 63.62 77.58 5990 0.7715
Total value of goods and services produced in a country each year, usually stated in per capita terms.
Gap Between MDCs and LDCs growing
Last two decades: GDP up $10,000 in MDCs compared to $200 in LDCs. Many in Africa and Latin America actually decreased!
Measures average, not distribution of wealth
Gross Domestic Product (GDP)
Measuring DevelopmentSocial Indicators
Education and Literacy Health and Welfare
Measuring DevelopmentSocial Indicators
Education and Literacy Health and Welfare
Measuring DevelopmentDemographic Indicators
Life Expectancy (37 - 80 years) Infant Mortality (<10 - >100 per
thousand) Natural Increase (0 - 4.7 %)
Singapore 80.1 77.1 83.2 6.1Australia 79.8 76.9 82.7 5.8Jordan 77.4 74.9 79.9 5Luxembourg 77.1 73.8 80.6 6.8United States 77.1 74.2 79.9 5.7Botswana 39.3 38.6 39.9 1.3Angola 38.3 37.1 39.6 2.5Zimbabwe 37.8 39.2 36.3 -2.8Malawi 37.6 37.2 38 0.8Mozambique 37.5 38.3 36.7 -1.7Zambia 37.2 37.1 37.4 0.3World 64 62 65 3
Nation
Life Expectancy for everyone
Life Expectancy for Females
Years women expected to outlive men
Life Expectancy for Males
Life Expectancy
Source: CIA World Factbook, 2001
Measuring Development
Human Development Index (HDI):•Economic - GDP•Social - literacy and education•Demographic - life expectancy
* The single most important geographic fact of development is its striking unevenness.
* Read pages 293 - 301 carefully. You’re expected to be familiar with the information for each region.
Location of More and Less Developed Countries
Development generally reflects a North-South split in the world.
Institutions of International Development
United Nations - formed in 1945 to promote peace. 189 current members.
World Bank - financial assistance and loans. Owned by 189 United Nations members.
International Monetary Fund - arm of U.N. that surveys and oversees international money exchange to prevent monetary crises. Also provides loans and training to help countries with balance of payment problems.
Non-Governmental Organizations (NGOs) - World Watch, Human Rights Watch, World Commission on Dams, many others.
Strategies for International Development
Self-Sufficiency ModelInternational Trade Model (Economic
Growth) Rostow’s Model
Basic Needs Model/Appropriate Technology Model
Revolutionary/Radical Reform Model
Rostow’s ModelAmerican economist and political advisor during 1950s developed model, arguing that each country passes through five stages from traditional society to high mass consumption.
TRADITIONAL SOCIETYPRECONDITIONS FOR TAKE-OFF - elite group initiates economic innovations, leads to productivity.TAKE-OFF - rapid growth in a number of specific economic activities, technical advances.DRIVE TO MATURITY - Modern technology diffuses to a wide variety of industriesAGE OF MASS CONSUMPTION - economy shifts from heavy industry to consumer goods.
Problem’s with Rostow’s Model and the International Trade Approach
•Developmentalism: the idea that every country and region will eventually make economic progress toward “high mass consumption” provided that they compete to the best of their ability. This is not likely and is hard on the planet.• Increased dependence on MDCs and their markets. Undue influence on many global policies, including those of the U.N. and World Bank. •Market Stagnation: the MDCs have very limited population growth. Markets for low-cost manufactured goods grow slowly today. Undervalues the obstacles and competitive disadvantages faced by late starters versus those in the Core.
Other Problems in International Development
High Debt CountriesHostility Regarding World Bank and IMF
Structural Adjustment Programs IMF “Free Market” Requirements for Loans and
Assistance
Warfare and Instability Limit Foreign Investment
Core-Periphery Relationships May Be Necessary for Economic Growth
Within Countries Globally
High Debt Countries
• The developing world now spends $13 on debt repayment for every $1 it receives in grants. • For the poorest countries (approximately 60), $550 billion has been paid in both principal and interest over the last three decades, on $540bn of loans, and yet there is still a $523 billion dollar debt burden. Source: Debt relief hope brings out the critics, Jorn Madslien, BBC, June 29, 2005
High Debt Countries
• June, 2005 – G8 Nations (eight wealthiest democracies) agreed to immediately cancel debt of 18 poorest nations and extend this to 20 more if they agree to IMF “structural adjustment” and corruption controls. Total immediate cost to the G8: $40.
• Relief is spread over 40 years and effects only a handful of countries.
• Interesting Iraq’s $30 billion debt was entirely cancelled in 2005 with little debate.
• However, G8 Nations spend $350 billion on farm subsidies and more than $700 billion on military expenditures.
Case Study
The G8 Nations include: U.S., France, Germany, Italy, Japan, Russia, Canada, European Union (EU)
Warfare and Instability Limit Foreign Investment
Progress Towards Development
NIR = Natural Increase Rate
IMR = Infant Mortality Rate