Key issue 1.

Why Does Development Vary Among Countries?

Development Process of improving conditions through the diffusion of technology
and knowledge.
More Developed Country (MDC)Progress further along the development process.
Less Developed Country (LDC) Earlier stage of development.
Human Development Index (HDI)A measurement of a countrys level
of development,
created by the UN, and includes three factors, economic, social, and demographic.

Economic Indicators of Development

The economic factor is based off of gross domestic product (GDP) per capita.
The social factors are based off of literacy rate and amount of education.
The demographic factor is life expectancy.
The highest HDI possible is 1.0

Since 1990s
Highest in Europe and Candai.
Highest country is Norway (0.971)ii.
Lowest is Niger (0.340)1.

Gross Domestic Product Per Capitaa.

Gross Domestic Product (GDP) The value of the total output of goods and services
in a year.
Divide by population
MDC > 30K; LDC > 3Ki.
US - $45,6002.
Types of Jobs
Primary SectorWorkers directly extract materials from Earth.
Agricultural, mining, fishing, and forestry

Secondary Sector Manufacturers that process, transform, and assembles the raw
materials into products.
Tertiary SectorProvides goods in exchange for money.(1)
Retailing, banking, law, education, and government
Primary sectordecreased in LDCs, but higher than MDCs
Secondary sectordecreased in MDCs, so less than in LDCs
Tertiary sector large in MDCs

Productivity
ProductivityValue of a product compared to the amount of labor it took to make.
Higher in MDCs
Access to more machines
Value AddedGross value of the product minus the costs of the raw materials and
energy
High in US and japan; Low in China and India
Consumer Goods
Vehicles, telephones, and computers are important in MDCs.

Social Indicators of Development

MDCs have better education, hospitals, and welfare.
Education and Literacy
Two measures of education are student/teacher ratio and literacy rate.
LDCsS/T Ratio in elementary is 30 rather than 20 in MDCs
Literacy RatePercentage of a population that can read and write.
MDCsOver 98%, rather than 60%
Education receives higher GDP in LDCs.
Health and Welfare
People in MDCs receive more caloric intake than needed, whereas people in LDCs
dont receive enough.
MDCs spend a higher % of GDP on health (8%).

In the US, individuals have to pay for 55% of medical expenses, whereas in
Europe, individuals pay 30%
In recent years, economic growth has slowed whereas people needing public
assistance has increased.

Demographic Indicators of development

Life Expectancy
Better health in MDCs allow people to live longer.
MDC70s
LDC 60s
Males live longer in LDCs and less in MDCs
The number of young people in LDCs are 6x higher than the elderly.

Infant Mortality Rate.

Better health permits more babies to survive in MDCs
MDC99.5% survive
LDC 94% survive

Natural Increase Rate

Natural increase rate is higher in LDCs
MDC 0.2%
LDC1.5%4.

Crude Birth Rate

Higher crude birth rates in LDCs
MDC12 per 1000;
LDC23 per 1000b.
*Crude death rate does not indicate development
Higher in LDCs because medicine is helping and in MDCs, the elderly
are dying.