MCD & LDC • MDC: More developed country is further along on the development spectrum. • LDC: Less developed countries are in an earlier stage of development. Some like to use phrasing like: developing or emerging • Implying that some progress has already been made.
HDI: Human Development Index • 3 factors: economic, social, and demographic • The UN chooses 1 econ factor, 2 social factors, 1 demo factor. • Econ: GDP (Gross Domestic Product) • Social: literacy & amount of education • Demo: Life expectancy
HDI • Highest HDI is 1.0 or 100%. • The HDI is calculated every year, and has been since 1990. • Highest include many places in Europe. Norway is .971 (Highest ever in 2009) • Lowest in 2009 Niger .340
GDP • Gross Domestic Product is the value of the total output of goods and services during a year. • Divide GDP by total population and it averages the amount made by the average individual. • 2009: GDP in U.S. was $14 trillion with a population of 307 million. • GDP per capita was $45,600 • The higher the per capita GDP the greater chances for citizens to have a good life.
Other Economic Factors • Jobs, Productivity, & Availability of Consumer Goods • Jobs fall in to 3 categories: • Primary (includes agriculture) • Secondary (includes manufacturing) • Tertiary (includes services)
Job Sectors • Primary: directing extract materials from the earth (mining, farming, fishing) • Secondary: Processing & transforming raw materials. (manufacturing of all kinds) • Tertiary: provision of goods and services in exchange for $. (retail, banking, law, education, government)
Jobs on GDP • In order to determine levels of development you must figure out what percentage of the GDP each sector represents. • LDCs: High percent of jobs in primary sector • MDCs: percentage of jobs in secondary sector is diminishing • MDCs: percentage of jobs in tertiary sector is very large
Productivity • Productivity is the value of a product compared to the amount of labor necessary to make it. • Its measured by value added. • Value added: gross value of the product minus the cost of raw material and energy. • Workers in MDCs produce more with less effort. • Why?
Consumer Goods • The wealth generated by production is used to purchase consumer goods. • Especially goods related to transportation and communication. • In an MDC these products are accessible to almost all residents, while in an LDC these products do not play a role in daily life. • In LDCs these goods tend to show the gap between the “haves” and the “have nots” in a society.
Social Indicators: Education • Generally: Higher HDI the better the education services. • One aspect is the number of students per teacher. Fewer students means more individual attention. • Literacy Rate: MDCs this rate exceeds 98% compared to 60% in LDCs • In LDCs education DOES received a higher percentage of the GDP.
Social Factors: Health & Welfare • In MDCs people are healthier which is often influenced by diet. • According to the UN guidelines MDCs often have a higher caloric intake than necessary, while LDCs get less than recommended. • In most European countries government pays for 70% or more of health costs. In LDCs people pay more than half. • The exception is the U.S. where people pay on average 55% of their healthcare costs.
Demographic Indicators • Life Expectancy • Infant Mortality Rate • Natural Increase Rate • Crude Birth Rate • Just as in the Stages of Population growth, these affect the level of development of a country.