AP HUMG Notes CH. 10 Test
gender inequality
Long standing cultural and legal obstacles can limit women's participation in development and access to benefits UN not found single country where women are treated as well as men; achieved near equality Major factor keeping country from achieving higher level of development
microfinance development
Many would-be businesses owners in developing countries are too poor to qualify for regular bank loans and an alternative is microfinance
a decent standard of living
Enough wealth for decent living key to development Average income much higher in developed than developing Wealth generated and spent in different ways
Fair Trade Standards
Focus: products exported from developing countries to developed countries Sustainability- offer better trading and working conditions for producers and workers in developing countries Three sets of standards distinguish fair trade: for producers, workers on farm and factories, and consumers (esp. In developed countries)
stimulus or austerity
Political Leaders and independent analysts have been sharply divided between optimal strategies for fighting economic downturns
reproductive health
Poor reproductive health- major contributor to inequality Developed country MMR- 16:100,000 Developing- 171:100,000 Highest rates in sub-Saharan Africa Adolescent fertility rate- 19: 1000 in developed; 53 in developing teen pregnancy very low in europe, very high in Sub-Saharan africa Reproductive health contributor to GII- countries where effective reproduction control is universal, women have fewer children, maternal and child health improved Full range of reproductive health options- very low TFR
Development
Process of improving the conditions of people through diffusion of knowledge and technology
Austerity strategy
Proponents of austerity argue that government should sharply reduce taxes to that people and businesses can revive the economy by spending their tax
stimulus strategy
Proponents of stimulus argue that during a downturn, governments should spend more money than they collect in taxes, governments should stimulate the economy by putting people to work by building infrastructure project savings, spending on government programs should be sharply cut as well in order to keep the debt from swelling and hampering the economy in the future
international trade ex.
The four asian dragons- First places to adopt international trade path- south korea, singapore, taiwan, hong kong Large cities with lacking rural land Promoted development by concentrating on producing handful of manufactured goods Low labor costs enable them to sell products inexpensively in developed countries
three factors of development
decent standard of living Long and healthy life Access to knowledge Greater opportunities to be creative and productive and enjoy human rights
examples of material conditions include
drinking water and sewage systems
the inequality-adjusted human development index of the US is
inferior to that of Canada and most Western European countries
semi-peripheral
intermediate in level of economic development or situated close to both core and periphery regions Spatial connections btw core and periphery- development prospects in Latin America- tied to governments and businesses in north america Africa and eastern europe to western europe Asia to japan
Fair trade
international trade that provides greater equity to workers, small businesses, and consumers; products are made and traded according to standards that protect workers and small businesses in developing countries
Foreign direct investment (FDI)
investment made by a foreign company in the economy of another country
tertiary sector
involves the provision of goods and services to people in exchange for payment, such as retailing, banking, law, education, and government
one approach the World Trade Organization does not take to reduce barriers to trade is
it discourages subsidies on exports
gender inequality is a challenge to development because
it leads to larger family sizes
severe gender inequality is a challenge to development because
it severely limits the economic and social mobility of women, as well as families that are headed by women
Developing country (less developed country)
made some progress toward development, though less than the developed countries
Human development index (HDI)
measure the level of development of every country
Inequality-adjusted human development index (IHDI)
measures the extent of inequality; modifies the HDI to account for inequality within a country
gender -related development index (GDI)
measures the gender gap in the level of achievement for the three dimensions of the HDI: income, education, and life expectancy
Gender inequality index (GII)
measures the gender gap in the level of achievement in three dimensions: reproductive health, empowerment and the labor market
development is continuous
never ending actions to constantly improve the health and prosperity of the people
Adolescent fertility rate:
number of births per 1000 women ages 15-19
Maternal mortality rate:
number of women who die giving birth per 100,000 births
literacy rate
percentage of a country's people who can read and write
Female labor force participation rate
percentage of women holding full-time jobs outside the home
compared to less developed countries, more developed countries have lower
percentages of GDP spent on education
per capita GDP is a good indicator of which of the following
potential for providing all citizens with a comfortable life
world trade organization
promote international trade- WTO WTO works to reduce barriers to international trade in two principle ways negotiate reduction or elimination of international trade restriction on manufactured goods, and it promotes international trade by enforcing agreements Critics- antidemocratic, promotes decisions of large corporations, can order changes in taxes and laws
microfinance
provision of small loans and other financial services to individuals and small businesses in developing countries that are unable to obtain loans from commercial banks
sustainable development goals
replaced millennium development goals; seventeen goals adopted by UN in 2015 to reduce disparities between developed and developing countries by 2030
which country is the only semi peripheral nation-state in africa
south africa
what is the poorest region in the US
southeast
which is the least developed region among the following
southwest asia
one finds the highest rate of women's labor force participation in
sub-saharan africa
in MDCs, employment is increasing more rapidly in which of the following sectors?
tertiary
Value added (in manufacturing)
the gross value of a product minus the costs of raw materials and energy pupil/teacher ratio: number of enrolled students divided by the number of teachers
productivity
the value of a particular product compared to the amount of labor needed to make it
Gross domestic product (GDP)
the value of the output of goods and services produced in a country in a year
Gross national income (GNI)
the value of the output of goods and services produced in a country in a year, including money that leaves and enters the country
gross domestic product (GDP) is the
total value of outputs of goods and services produced in a country during a year
the value of a product minus the costs of raw materials and energy is
value added
what do critics charge are some effects of structural adjustment programs for refinancing loans to LDCs
workers in state enterprises losing their jobs and support for dependent citizens being cut
Developed country/more developed country (MDC)
a very high developed country that has progressed further along the development continuum
rostow model
1950s- proposed five-stage model of development Traditional society: not yet started process of development Contains very high percentage of national wealth allocated to what rostow called non productive activities, such as the military and religion Preconditions for takeoff: elite group initiates innovative economic activities Under the influence of well educated leaders, country starts to invest in new technology and infrastructure, such as water supplies and transportation systems Support from international funding sources often emphasizes the importance of constructing new infrastructure Stimulate increase in productivity Takeoff: rapid growth by limited number of economic activities Achieve technical advances and become productive Other sectors of economy remain dominated by traditional practices Drive to maturity: modern technology diffuses to wide variety of industries Experience rapid growth comparable to growth of the takeoff industries Workers become more skilled and specialized Age of mass consumption: economy shifts from production of heavy industry to consumer goods Steel---motor vehicles
co-op business origin
19th cent.- reaction to poor working conditions in Industrial Revolution First era- great depression 1930s; cooperatives brought electricity to rural areas Second- 1960s and 70s; counterculture movement Third- began 2000 Cooperatively owned grocery stores opened to provide places to buy healthier food than available in large supermarkets Local farmers and national brands that do not use chemicals or GMOS have place to sell Buying fair trade from co-ops helps consumers connect with companies and workers responsible for items Doesn't necessarily cost more Bypass exploitative intermediaries- cut costs
secondary school
54% women have completed some secondary (high) school 64% of men north America- girls more likely than boys to complete some high school boys slightly ahead in Europe developing countries- boys much more likely than girls to be high school graduates 10:6 ratio for boys to girls attendance gap in education esp. high in south asia
case study india
After independence from britain- leading ex. Of self-sufficiency strategy Limit foreign companies, exercising strong control over companies operating in India Limitations on imports: To import to india- foreign companies secure license, long process Company holding import license severely restricted in how much it could import Heavy taxes on imported goods raised prices consumers had to pay Indian money could not be converted to other currencies Controls over indian companies: Business needed government permission to sell a new product, modernize a factory, expand production, set prices, hire or fire workers, change the job classification of existing workers Unprofitable business received government subsidies, cheap electricity, elimination of debts Government owned communications, transportation, power companies, insurance companies and automakers Insurance and auto usually left to private sector in most countries
income
Annual gross national income per capita at purchasing power parity Divide GNI by total pop.- measure contribution made by average individual toward generating country's wealth in a year GDP does not account for money that leaves and enters the country Per capita GNI cannot perfectly measure level of country's development Measures mean wealth, not distribution Higher per capita GNI, greater the potential for ensuring that all citizens can enjoy comfortable life
economic structure
Average per capita income higher in developed Earn living by different means; primary, secondary, tertiary sector Contribution to GNI among each sector varies between developed and developing GNI for primary sector decreased in developing countries, remains higher than in developed countries Low share in developed countries indicates that a handful of farmers produce enough food for the rest of society GNI in secondary sector has decreased sharply in developed countries and is now less than in developing countries GNI in tertiary is relatively high in developed countries, now growing in developing countries
inequality in developing countries
Brazil and turkey- among world's largest and most populous countries Two countries fall somewhere in middle of HDI Turkey- 69th, Brazil 79th Extent on inequality seen in two ways- Difference between HDI and IHDI Brazil has lower IHDI- Brazil more inequality Differences in GNI per capita in states or provinces Turkey- wealth much higher in western part, closest to Europe Lower in east, home to kurds seeking independence Brazil- wealth highest along east coast, esp. in largest city Sao Paulo
fair trade for producers
Business practices: Raising incomes of small-scale farmers and artisans by eliminating some of the intermediaries Distributing the profits and risks associated with production and sale of goods more fairly among producers, distributors, retailers and financiers Increasing the entrepreneurial and management skills of the producers Promoting safe and sustainable farming methods as well as working conditions, prohibit use of pesticides and herbicides and promote certified organic crops International FT organizations- monitor audit and certify practices
co-op business
Co-op business: Owned by the people who shop in the store rather than by a corporation Democratically governed by a member-elected board rather than appointed by a corporation owner Financed primarily by investments made by the member-owners rather than by commercial lenders Controlled by people living in the community rather than by distant shareholders Educates the public on importance of sustainable development rather than hiding information about poor working conditions Helps other cooperatives through sharing expertise and sharing of sources of fair trade products rather than competing with other cooperatives Helps to improve the community in which the cooperative is locating rather than seeking to extract max. Profit out of the community
Introducing development
Countries cluster at high and low ends of development Developed and developing Human Development Index Highest HDI possible is 1 or 100%
self-sufficiency path to development
Countries encourage domestic production of goods Discourage foreign ownership of businesses and resources and protect businesses from international competition Key elements- Barriers limit import of goods from other places 3 kinds- high taxes (tariffs) on imported goods; makes them more expensive than domestic ones Fixing quotas to limit quantity of imported goods Require license in order to restrict the number of legal importers Fledgling businesses are nursed to success by being isolated from competition with large international corporations Insulation from potentially adverse impacts of decisions by businesses and government in developed countries- encourages fragile businesses to be independent Investment spread equally across sectors of country's economy and all regions Incomes in countryside keep pace with city, reducing poverty takes precedence of encouraging a few people to be wealthy consumers
international trade path
Countries open themselves to foreign investment and international markets International trade became more popular beginning in the 20th cent. International trade model of development- calls for country to identify distinctive or unique economic assets Resources other countries are willing to buy? Products able to manufacture and sell at high quality with lower cost than other countries Country can develop economically by concentrating scarce resources on expansion of its distinctive local industries Sale of these products in world markets brings into the country funds that can be used to finance other development
critics of international trade
Critics of international trade- only tiny % of price a consumer pays reaches individual in developing country responsible for making Contrast- fair trade returns ⅓ of price to producer
productivity details
Developed country workers- more productive than developing Productivity measured in value added per capita Developed country workers produce more with less effort- access to more machines, tools, equipment Production in developing relies more on human and animal power Larger per capita GNI in developed pays the manufacture and purchase of machinery, makes workers more productive and generates more wealth
health and wealth
Development goal- provide nutrition and medical services to lead long lives Long and healthy life: Life expectancy at birth- contributor to HDI Developed countries possess resources to care for sick or protect unable to work Public assistance is offered to sick, elderly, poor, disabled, orphaned, veterans, widows, unemployed, single parents; better health and welfare permits longer lives Longer life expectancies- higher % of older people retired that receive public support and lower % of children under 15 who are too young to work and must also be supported by employed adults Number of young people- 6X higher than elderly in developing vs. same in developed Babies survive infancy in developed countries- 94% in developed vs. 99.5% in developed Morality higher in developing due to malnutrition, lack of medicine for dehydration/diarrhea May die from poor medical practices- lack of education
Europe's Sovereign Debt Crisis-
Europe has faced and especially difficult challenge in responding to the sharp economic slowdown of the early twenty-first century Most Europeans adopted the Euro, as their common currency in 1999 believed that if every country operated with the same currency trade would be enhanced but was in reality was a burden to poorer countries Greece no longer has the option of devaluing its currency against Germany's currency
gender-related development index
GDI uses same methodology as HDI Countries ranked on deviation from gender parity in three dimensions of HDI If HDI same for men and women, GDI would be 1.000 Average in developed regions is .920 Lowest in south asia, sub-Saharan africa, and southwest asia and north Africa
GII over time
Gender inequality declined since 1990s in all but 4 of 138 countries Greatest improvement- southwest asia and north Africa Modest improvement in US US has GII rank of 47 Ranks 5th in world on HDI Two factors: Compared with other very high HDI countries- US much higher birth rate among teenage women and higher mortality rate among women during childbirth % of women in the national legislature is lower in US than in other high HDI countries
indicators of progress
HDI- gap between developed and developing has narrowed since 1980; HDI increased more rapidly in developing regions than developed GNI per capita- increased much more rapidly in developed countries than developing Education- mean years has increased about same Life expectancy- years increased about same
HDI and gender inequality-
HDI- measure of country's level of development; higher score indicating higher level of development GII measures extent of country's gender inequality, higher score indicating higher inequality
gender inequality index
Higher the GII, the greater the inequality between men and women Score of 0, mean that women and men fare equally GII is higher in developing countries than developed ones Sub-saharan Africa, south asia, central asia, southwest asia, north Africa- highest levels South asia, southwest asia and north Africa= relatively poor female empowerment scores 10 countries in Europe- GII less than 0.1 countries with high HDIs have low GIIs and vice versa
international monetary fund
IMF provides loans to countries experiencing balance-of-payment problems that threaten expansion of international trade Designed to help a country rebuild international reserves, stabilize currency exchange rates, and pay for imports Developing countries borrow money to build new infrastructure Theory is the new infrastructure will make conditions more favorable for domestic and foreign businesses to open or to expand World bank itself has judged half o the projects funded in Africa to be failures because projects don't function as intended because of faulty engineering, recipient nations squander of spend aid on armaments, or aid is stolen, and new infrastructure doesn't attract other investment Cannot repay debt- developed countries refuse to make further loans and needed construction stops
foreign direct investment
International trade requires corporations based in a particular country to invest in other countries, has grown rapidly FDI is not evenly distributed between different countries Major sources of FDI are transnational corporations that invest and operate in countries other than the one in which there headquarters are located developing countries receive money from developed
Fair Trade for Consumers
Most are food- coffee, tea, bananas, chocolate, cocoa, juice, wine, sugar and honey Reach consumers primarily through cooperatively owned groceries
world trade
Most countries embraced the international trade approach as the preferred alternative for stimulating development International Trade Triumphs- Trade increased more rapidly than wealth during the late twentieth and early twenty-first century Due to three main observations Others joined developed countries in Europe and North America in Southern and Eastern Europe and japan during the second half of the twentieth century Developing countries contained an abundant supply of many raw materials sought by manufacturers and producers in developed countries, in global economy these resources can generate funds to promote development Country that concentrates on international trade benefits from exposure to the demands, needs, and preferences of other countries Longtime advocated of the self-sufficiency approach converted to international trade during the 1990's Foreign companies were allowed to set up factories and sell in India Tariffs and restrictions on the import and export of goods were reduced or eliminated Monopolies in communications, insurance, and other industries were eliminated Countries like India converted from self-sufficiency to international trade because of overwhelming evidence at the time that international trade better promoted development Worldwide- GNI increased more in countries oriented towards international trade
national legislature
No particular gender skills required to be elected as a representative and to serve effectively Every country in world- both developing and developed- fewer women than men hold positions of political power More women than men vote in most places Only one country has national parliament or congress with a majority women- Rwanda With exceptions- highest percentages are in Europe, women comprise ¼ of national parliaments Lowest rates in southwest asia and north Africa US- 19-20% ; much lower than average for developed countries and slightly below for all countries in world
sustainable development goals
Reduce disparities between developed and developing countries- 193 members of UN adopt 17 sustainable development goals Members agreed to achieve goals by 2030
empowerment
Refers to the ability of women to achieve improvements in their own statues, achieve economic and political power Dimension of GII measured by two indicators- % of seats held by women in national legislature and % of women who have completed some secondary school
Inequality within developed countries
Regional internal variations in GNI per capita less extreme than in developing countries US- GNI is 122% of national average in wealthiest region (New England), 90% in poorest region (Southeast Most of 20th cent. Gap of rich and poor narrowed in developed Inequality reduced- used wealth to extend health care, education and financial assistance to poor Since 1980- inequality increased in most developed countries- US and UK
core and periphery
Relationship between developed and developing- north-south split Developed in north or equator Developing in south Immanuel wallerstein- core and periphery In an increasingly unified world economy, developed countries form an inner core area, developing occupy peripheral locations Uneven development- increasing gap in economic conditions btw core and peripheral regions as a result of globalization of economy Developing have less access to centers of consumption, communications, wealth and power; all in core
Petroleum-rich arabian peninsula states
Saudi arabia, kuwait, bahrain, oman, and UAE Used to be least developed- transformed by escalating petroleum prices Revenue used to finance large scale projects Steel, aluminum competes on world market with help of government subsidies Landscape changed by diffusion of consumer goods Food imported from europe and north america
world bank
The World Bank includes the International bank for reconstruction and development and the international development association IBRD provides loans to countries to reform public administration and legal institution develops and strengthens financial institution, and implement transportation and social service projects IDA supports countries considered too risky to qualify for IBRD loans
debate trade
Trade Approach- Do not embrace international trade Some countries that are dependent on the sale of one commodity have suffered because the price of that commodity has not risen as rapidly as the cost of the products that they need to buy Building up a handful of takeoff industries that sell to people in developed countries has forced some developing countries to cut back on production of food, clothing, and other necessities for their own people Countries that depend on selling low-cost manufactured goods have found that the world market for many products has declined in recent years Embrace international trade Under self-sufficiency businesses have little incentive to improve quality, lower production costs, reduce prices, or increase production Companies protected from international competition are not pressured to keep with rapid technological changes Potential entrepreneurs find that struggling to produce goods or offer services is less rewarding financially than advising other how to get around the complex government regulations
development regions
Two developed regions and seven developing regions; each with score Sub-saharan africa and south asia two lowest scores In addition to nine regions, three other distinctive areas- Japan, South Korea- separate because development much higher than neighbors South pacific much less populous than regions- Australia and New Zealand developed, other countries developing Russia used to be developed country- limited progress since communism made it a highly developing country Regions are- 1North america 2Europe 3Latin america 4East asia 5Southwest asia and north africa 6,7Southeast asia and central asia (tie of two regions) 8. South asia 9. sub-Saharan Africa
consumer goods
Wealth used to purchase goods and services Esp. important- related to transportation and communication- vehicles, telephones, computers Vehicles provide access to jobs and services; permit business to distribute product Telephones enhance interaction with providers of raw materials and customer for foods and services Computers facilitate sharing of info with other buyers and suppliers Products that promote better transportation and communications are accessible to virtually all residents in developed countries Vital to economy's functioning and growth Developing countries- no central role Familiar with goods, even though can't afford Possession of goods not universal in developing- gap of have and have nots Minority who have may include government officials, business owners, elites Lack among majority- provoke political unrest Developing countries- those who have products are concentrated in urban areas- those who do not live in countryside Technological innovation diffuse from urban to rural Access more important in urban due to dispersion of homes, factories, offices and shops Technological change helping reduce gap btw developed and developing Cell phone ownership expanding
fair trade requirements
Workers paid fair wages- at least enough to cover food, shelter, education, health care, and other basic needs Works must be permitted to organize a union and to have the right to collective banning Workers must be protected by high environmental and safety standards
fair trade for workers
Workers rights- not high priority in internal trade development approach Critics- oversight of workers' conditions by governments and international lending agencies is minimal Workers allegedly work long hours in poor conditions for low pay Children or forced labor may be in the workforce Health problems may result from poor sanitation and injuries from inadequate safety precautions Injured, il or laid-off workers are not compensated
employment
Worldwide- 51% of women work outside the home; 77% of men Developed countries more likely to have women hold job outside of home Vary widely among developing regions South asia and southwest asia and north Africa- substantial gaps btw men and women in labor participation East asia and sub-Saharan Africa- smaller gaps Women holds jobs in agriculture or services in SS Africa, even with highest fertility rates
access to knowledge
Years of schooling- critical for individual to access knowledge needed for development No matter how poor school; longer they attend, more chance to learn something Combines two measures of years of schooling: Years of schooling for today's adults: measures number of years that average person aged 25 or older in a country has spent in school Expected years of schooling for today's youth: measures the number of years that an average 5 year old will spend in school Other indicators of access to knowledge: the fewer pupils a teacher has, the more likely each student will receive effective instruction Literacy rate Improved education is major goal of many developing countries- lack funds Education may receive higher % of GNI in developing countries, but GNI is far lower to begin with Books, newspapers, magazines are published in developed countries, more citizens can read and write and can buy them Dominate scientific and nonfiction publishing worldwide Developing country students- must learn in different language
FDI is defined as the investment of ----- in the economy of another country
a foreign company
which country converted to an international trade model in the early 1990s
india
Purchasing power parity (PPP)
an adjustment made to the GNI to account for differences among countries in the cost of goods
according to rostow's development model, the process of development begins when
an elite group initiates innovative activities
Structural Adjustment Programs
apply for a debt relief a country is required to adopt an austerity program Include Spending only what it can afford Directing benefits to the poor, not just the elite Diverting investment from military spending to health and education spending Investing scarce resources where they will have the most impact Encouraging a more productive private sector Reforming the government, including making the civil service more efficient, increasing accountability in fiscal management, implementing more predictably rules and regulations, and dissemination more information to the public Critics charge that poverty worsens under structural adjustment programs Cuts in health, education, and social services that benefit the poor Higher unemployment Loss of jobs in state enterprises and civil services Less support for those most in need, such as poor pregnant women, nursing mothers, young children, and elderly people Structural reforms allegedly punish poorest people for actions that they did not commit
world bank assistance goes largely to countries in
asia
Reduce disparities btw poor and rich countries
increase per capita GNI of poorer and use funds to improve social and economic conditions Obstacles- Adopting policies that successfully promote development Finding funds to pay for development
the principal benefit of the self-sufficiency approach is to promote
balanced growth of all economic sectors
the gender inequality index (GII)
compares the levels of indicators for females to those of males within a country
the secondary sector of the economy includes which of the following?
construction
structural adjustment program
contains economic "reforms" or "adjustments," such as economic goals, strategies for achieving the objectives, and external financing requirements
gender inequality index is scored by
empowerment, employment and healthcare
the GII combines which three measures to derive a composite score
empowerment, employment, reproductive health
advantages of cooperatives
enable small-scale farmers to undertake fair trade Qualification for credit so that funds can be borrowed to buy equipment and invest in improving farms Materials can be purchased at a lower cost People who grow or make the products democratically manage allocation of resources and assure safe and healthy working conditions Profits are reinvested in the community instead of going to absentee corporate owners
which of the following is not an indicator of global gender inequality
female life expectancy is less than males in every country of the world
since 1990, most countries have seen a decline in previous patterns of
gender inequality
the UN argues that
gender inequality is a major factor that keeps a country from achieving a higher level of development
a leader in microfinance has been
grameen bank
ex. of microfinance
grameen bank almost all pay back loans specializes in loans to women
people are more productive in more developed countries because they
have access to more technology
according to the international trade approach to development, a country should identify all but which of its following assets?
imports that it should limit
the biggest problem faced by less developed countries in financing development is
inability to repay loans
Primary sector
includes activities that directly extract materials from earth through agriculture and sometimes buy mining, fishing, and forestry
Secondary sector
includes manufacturers that process, transform, and assemble raw materials into useful products, as well as industries that fabricate manufactured goods into finished consumer goods
