Unit 5 Chapter 9: Development Questions

Class Notes: What statistics are used to calculate standard of living?

Economic structure- Developing countries usually have more primary sector jobs (farming) than secondary (manufacturing) or tertiary (service) jobs. Consumers goods- Regular people in developed countries are able to buy whatever they need, like phones

Class Notes 2: How does the self-sufficiency plan work? Identify a country that followed this system successfully.

-Arabian Peninsula had a natural resource (Oil) -export oil to increase development in their country

Section 10: Identify three examples of periphery countries.

-Latin America -Southwest Asia and North Africa -Sub-Saharan -Central Asia -South Asia -East Asia -Southeast Asia

Section 5: Look at the Gender Inequality Index map on page 206. Make three observations about what you see.

-Low rate is in Australia -No data in Madagascar and in some countries in Africa and Asia -Low rate in Canada - High rates in African and South Asian countries

Class Notes 2: What is the World Systems Model? (which states are in the core? Which states are in the periphery?)

-North (developed)/South (developing) split -Wallerstein uses "core" and periphery to describe this: - CORE- NORTH AMERICA JAPAN EUROPE RUSSIA -PERIPHERY- EVERYONE ELSE -Australia benefited from GB power

Section 10: Identify three examples of core countries.

-North America -Europe -Russia -Japan

Class Notes 2: How does the "international trade" path work?

-Open yourself to foreign investments and international markets -Find something your country can excel in and grow that industry

Diamonds of War: Why doesn't the rest of Sierra Leone get wealthy off the diamond trade?

-Whoever controlled the diamonds, controlled the war. forced family to dig for diamonds. used to buy more weapons

Class Notes 2: What are the two paths to economic development?

1. Development through self-sufficiency: -Encourage domestic production of goods -Discourage foregin ownership of businesses and resources -Protect their business from international competition 2. Development through international trade: -Open themselves to foreign investment and international markets -Find something your country can excel in and grow that industry -W.W Rostow's model

Section 1: Looking at the map on page 198, make three observations about HDI of countries throughout the world.

1. There is above .79 in the US and Europe 2. The least amount of HDI is in sub-Sahara Africa 3. There is a high amount of HDI in Australia

Section 10: List the 8 Millennium Development Goals set by the UN.

1: End poverty and hunger - Extreme poverty has been cut substantially in the world because of success in Asia, but it has not declined in sub-Saharan Africa 2: Achieve universal primary education -The percentage of children not enrolled in school remains high in south Asia and sub- Saharan Africa 3: Promote gender equality and empower women - Gender disparities remain in all regions 4: Reduce Child Mortality Rate - Infant mortality rates have decline in most regions, except sub-Saharan Africa 5: Improve Maternal Health - 1/2 million women die from complications during pregnancy; 99% of these women live in developing countries 6: Combat HIV/AIDS, malaria, and other diseases -the # of people living with HIV is still high, even in sub- Saharan Africa 7: Ensure environmental sustainability -Water scarcity and quality, deforestation, and over fishing are still especially critical environmental issues, according to the UN. 8: Develop a global partnership for development -Aid from developing countries has instead been declining.

Section 6: Explain how International trade works as a path to development.

A country can develop economically by concentrating scarce resources on expansion of its distinctive local industries. The sale of these products in the world market brings funds into the country that can be used to finance other development. W.W. Rostow proposed a five-stage model of development in 1960. -The traditional society- A very high percentage of people engaged in agriculture and a high percentage of national wealth allocated to what Rostow called "nonproductive" activities like military and religion. -The preconditions of takeoff- An elite group of well-educated leaders initiates investment in technology and infrastructure, like water supplies and transportation systems, made to increase productivity. -The takeoff- Rapid growth is generated in a limited number of economic activities, like textiles or food products -The drive to maturity- Modern technology, previously confined to a few takeoff industries, diffuses to a wide variety of industries -The age of mass consumption- The economy shifts from production of heavy industry, such as steel and energy, to consumer goods, such as motor vehicles and refrigerators.

Section 1: What does it mean to say a country is "developed"?

A country that is "developed" has progressed further along the development continuum. The UN considers these countries to have very high development. A decent standard of living, a long and healthy life, and access to knowledge.

Section 2: Compare the differences between developed and developing countries within regard to economic structure.

Average per capita income is higher in developed countries because people typically earn their living by different means than in developing countries. Developing countries have a higher share of primary (agricultural), and secondary (manufacturing) works and a smaller share of tertiary (services) sector workers than developed countries. The relatively low % of primary-sector workers in developed countries indicates that a handful of farmers produce enough food for the rest of society. Freed from the task of growing their own food , most people in a developed country can contribute to an increase in the national wealth by working in the secondary and tertiary sectors.

Section 8: How do developing countries use loans to develop?

Borrow money to build new infrastructure, like hydroelectric dams, electric transmission lines, flood-protection systems, water supplies roads, and hotels. New infrastructure attracts businesses, which in turn pays taxes used to repay the loans and to improve people's living conditions.

Section 7: What are the two criticisms of the WTO by conservatives?

Conservative critics charge that the WTO compromises the power and sovereignty of individual countries because it can order changes in taxes and laws that it considers unfair trading products.

Section 8: Why do some claim that poverty in developing countries worsens under structural adjustment programs?

Cuts in health, education, social services that benefit the poor. Higher unemployment. Loss of jobs in state enterprises and the civil service. Less support for those in need, such as poor or pregnant women, nursing mothers, young children, elderly people. Structural reforms punish earth's poorest people for waste-corruption misappropriation, military buildups.

Section 10: List characteristics of the "core" countries.

Developed countries account for a high percentage of the world's economic activity and wealth.

Class Notes: What is the difference between a developed and a DEVELOPING country?

Developed countries are usually wealthier and more powerful Developing countries are usually poorer and less powerful

Section 4: Describe health care expenditures in developed countries.

Developed countries spend more than $4,000 per person annually. 7% of GNI. Developed countries have much higher GNI per capita than developing countries and spend a higher percentage of that GNI on healthcare. Health is a public service at little/no cost. Developed countries also use part of their wealth to protect people who , for many reasons, are unable to work. Developed countries are hard pressed to maintain their current levels of public assistance.

Section 10: List characteristics of "periphery" countries.

Developing countries in the periphery have less access to the world centers of consumption, communications, wealth and power.

Section 4: Describe health care expenditures in developing countries.

Developing countries spend $200 per person on healthcare. Hospitals, medicines, doctors spending in less than developing countries.

Section 8: Explain how "structural adjustment programs" work.

Economic reforms or adjustments. Spend only what it can afford. Direct benefits to the poor not the elite. Divert investment from military to health and education spending. Invest scarce resources where they would have the most impact. Encourage a more productive private sector. Reform the govt., like a more efficient civil service, more accountable fiscal management, more predictable rules and regulations, and more dissemination of information to the public.

Section 9: How does Fair Trade impact worker standards?

Fair trade requires employers to: Pay workers fair wages. permit union organization. Comply with minimum environmental and safety standards. People in developing countries work long hours in poor conditions for low pay with minimal oversight by governments and international lending agencies. The workforce may include children or forced labor. Poor sanitation and safety may result in health problems and injuries. Injured, ill, or laid-off workers are not compensated. Fair trade returns on average 1/3 of the price back to the producer in the developing country. The resr goes to the wholesaler who imports the item and for the retailer's rent, wages, and other expenses. On the other hand, only a good reaches the individual in the developing country responsible for making or growing it, charge critics of international trade. A HAITIAN SEWING CLOTHING FOR THE US MARKET, FOR EXAMPLE, EARNS LESS THAN 1 PERCENT OF THE RETAIL PRICE, ACCORDING TO THE NATIONAL LABOR COMMITTEE.

Section 10: Explain what is meant by the "core" and "periphery" in the world economy.

In an increasingly unified world economy, developed countries from an inner-core area, whereas developing countries occupy peripheral locations.

Section 6: Explain how self-sufficiency works as a path to development.

Investment is spread as equally as possible across all sectors of a country's economy and in all regions. The pace of development may be modest, but the system is fair because residents and enterprises throughout the country share the benefits of development. Reducing poverty takes precedence over encouraging a few people to become wealthy consumers. Fledgling businesses are isolated from competition with large international corporations. The import of goods from other places is limited by barriers like tariffs, quotas, and licenses.

Class Notes: How is HDI calculated? (Three factors, scores)

It is measured by finding out a country's ability to provide: Decent standard of living, Access to knowledge, and a Long and Healthy Life. -Measured on a scale of 0 (undeveloped) to 1 (developed)

Class Notes: What statistics are used to calculate health indicators?

Life Expectancy: How long a person is expected to live -Developed countries have longer life expectancy Healthcare access: How many people have access to health care, which can be measured with things like immunization rates -Developed countries have more healthcare access Health Care expenditures: How much money is spent on healthcare -Usually, developed countries can afford to spend more on health care

Section 6: What are two short comings of the international trade model?

Local hardships- Building up a handful of takeoff industries has forced some developing countries to cut back on production of food, clothing, and other necessities for their own people. Slow market growth- Developing countries trying to take advantage of their low-cost labor to find that markets in developed countries are growing more slowly than when the "four dragons" used this strategy a generation ago.

Section 9: How does Fair Trade impact producer practices?

Many farmers and artisans in developing countries are unable to borrow from banks the money they need to invest in their businesses, by banding together in fair trade cooperatives, they can get credit, reduce their raw material costs, and maintain higher and fairer prices for their products.

Section 9: Explain the achievement for which Muhammad Yunus was awarded the Nobel Peace Prize in 2006.

Many would be entrepreneurs in developing countries are too poor to qualify for regular bank loans. An alternative source of loans for development, the Grameen Bank, based in Bangladesh has made several hundred thousand loans to women in South Asia. Only 1 percent of borrowers have failed to make their weekly loan repayments, an extraordinary low % for a bank. Several million loans have also been provided to women by the Bangladesh Rural Advancement Committee. For founding the bank, Muhammad Yunus was awarded the Nobel Peace Prize in 2006.

Section 5: How is reproductive health measured?

Maternal mortality ratio- the # of women who die giving birth per 100,000 births. Adolescent fertility rate- the # of births per 1,000 women ages 15-19.

Section 8: What is foreign aid?

Most developing countries also receive aid directly from government of developed countries. The US government allocates approx. 0.2% of its GNI to foreign aid. Euro countries average a good hit move, approx 0.5%.

Section 8: Why does the World Bank judges many of its development projects to be failures?

Projects do not function as intended because of faulty engineering. AID is squandered, stolen, or spent on armaments by recipient nations. New infrastructure does not attract over investment.

Section 4: Describe how the level of development varies across Latin America and how Latin America's level of development compares with that of other regions.

Neighborhoods with some large cities along the South Atlantic Coast enjoy a level of development comparable to that of developed countries. The coastal area as a whole has a relatively high GNI per capita. Outside the coastal area, development is lower. Among developing regions, Latin America, along with East Asia, has relatively high life expectancy, high immunization rates, more hospital beds per capita, and more money spent on healthcare.

Section 2: How has the north american economy changed in order to make it the region with the highest per captia income?

North America was once the world's major manufacturer of steel, motor vehicles, and other goods but since the late twentieth century other regions have taken the lead. Now the world's highest % of tertiary sector employment, like healthcare, leisure, and financial services. Remain the leading consumers and the world's largest market for many products. The wealth generated in the US and Canada enables the residents of those countries to purchase more consumer goods than in other regions.

Section 7: Why does foreign investment not flow evenly around the world?

Only 30% of FDI in 2009 went from a developed to a developing country whereas 70% moved between two developed countries. Among developing regions, more than 1/4 each was directed to East Asia and Latin America.

Section 2: Compare the difference between developed and developing countries with regard to the prevalence of consumer goods.

Part of the wealth generated in developed countries is used to purchase goods and services. Vital to the economy's functioning and growth are goods and services related to communications, like telephones and computers. Computers and telephones are not essential to people who live in the same village as their friends and relatives and work all day growing food in nearby fields.

Section 4: How does access to health care impact life expectancy?

People live longer and are healthier in developed countries than in developing countries because of better access to health care. The greater wealth that is generated in developed countries is used in part to obtain health care. A healthier population in turn

Section 7: What are the two criticisms of the WTO by progressives?

Progressive Critics charge that the WTO is anti democratic, because decisions made behind closed doors does promote the interest of large corporations rather than the poor.

Class Notes: What statistics are used to calculate access to education?

Quantity of Education: Years of schooling: Developed countries tend to have more education, even if schools are bad -Expected years of schooling: Developed countries tend to expect children to go to school longer than in developing countries. Quality of Education: -Literacy Rate: Developed countries have higher numbers of adults that can read in their native language -Pupil/Teacher Ratio- Developed countries generally have fewer students per teacher.

Section 7: Explain how the World Trade Organization works to reduce barriers to trade.

Reduce or eliminate restrictions- manufactured goods like government subsides of exports, quotas, and tariffs. movement of money by banks, corp. wealthy indicators. Enforce agreements: rule on whether a country violated WTO agreements. ordering remedies when one country has been found to violate agreements. Protect intellectual property - hearing charges from an individual or corp. concerning copyright and patent violations in other places. ordering illegal copyright.

Section 6: What are two shortcomings of the self-sufficiency model?

Self-Suff. protected inefficient industries. A big bureaucracy needed to administer the controls. Businesses could sell all they made, at high government controlled prices, to customers culled from long waiting lists. So they made little incentive to improve quality, lower production costs, reduce prices, or increase production, nor did they keep a breast of rapid technological changes elsewhere. -A large bureaucracy was needed to administer the controls- A complex administrative system encouraged abuse and corruption. Aspiring entrepreneurs found that struggling to produce goods or offer services was less rewarding financially than advising others how to get around the complex regulations.

Section 6: Who are the "Four Dragons?" What did they do?

South Korea, Singapore, Taiwan, and the then-British colony of Hong-Kong (aka "The Four Little Tigers" and "gang of 4") developed by making a handful of manufactured goods, like clothing and electronics, that depended on low labor costs.

Section 3: According to the UN, how does schooling impact the process of development?

The UN considers years of schooling to be the most critical measure of the ability of an individual to gain access to knowledge needed for development. The assumption is that no matter how poor the school, the longer the pupils attend, the more likely they are to learn something

Section 5: In what two indicators does the US rank particularly low in?

The United States ranks especially poorly in the percentage of teenagers who give birth and in the percentage of women serving in Congress.

Section 1: What are the differences between developed and developing countries?

The difference between developed and developing countries is: Developed Countries have progressed further along the development continuum and they have very high development. Developing Countries have made some progress towards development less than developed countries. Recognizing that progress has varied widely among developing countries, the UN divides them into high, medium, and low development.

Section 5: How is the empowerment of women measured?

The empowerment dimension is measured by two indicators: The percentage of seats held by women in the national legislature. The percentage of women who have completed high school. Both measures are lower in developing regions than in developed ones.

Section 3: Explain each of the measures of equality of education.

The fewer pupils a teacher has, the more likely that each student will receive instruction. The pupil/teacher ratio is 2x high in developing countries (30). Only 15 in developed countries. Pupil/teacher ratio exceeds 40 in sub-Saharan Africa and South Asia. The literacy rate exceeds 99% in developed countries. In developing regions, the literacy rate exceeds 90% in East Asia and Latin America. Less than 70% in S.S Africa and South Asia. Most books, newspapers, and magazines are published in developed countries. Dominate scientific and non-fiction on publishing.

Section 2: Compare the differences between developed and developing with regards to income.

The figure is approx. $40,000 in developed countries compared to approx. $5,000 in developing countries.

Section 6: List two examples of what India did to achieve development through self-sufficiency.

To import goods into India, most foreign companies had to secure a license that had to be approved b several dozen government agencies. An importer with a license was severely restricted in the quantity it could sell in India. Heavy taxes on imported goods doubled or tripled the price to consumers. Indian money could not be converted to other currencies. Businesses required government permission to sell a new product, modernize a factory, expand production, set prices, hire or fire workers, and change the job classification of existing workers.

Section 6: State two ways that countries can become more developed.

To promote development , developing countries usually follow one of two development models. One emphasizes self sufficiency, the other international trade.

Section 1: Identify the nine world regions (and the three "distinctive areas"), specifying which are considered developed and which are considered developing.

Two of the nine regions- North America and Europe: developed. Other Seven: Latin America, East Asia, Southwest Asia and North Africa, Southeast Asia, Central Asia, South Asia, and Sub-Saharan Africa are developing. Three Distinctive Areas- Japan, Russia, and South Pacific Japan and South Pacific are grouped with developed. Because of limited progress in-development both under and since Communism, Russia is now classified as developing by the UN.

Section 2: Compare the difference between developed and developing countries with regard to productivity of workers.

Workers in developed countries are more productive than those in developing ones. Workers in developed countries produce more with less effort because they have access to more machines, tools, and equipment to perform much of the work.