Chapter 10- Development
Traditional Society
Characterised by - subsistence economy - output not traded or recorded - high levels of agriculture and labor intensive agriculture - Wealth allocated to nonproductive activities (religious, military
Based on the data in the table, which of the following statements explains a limitation of using gross national income per capita compared to the Human Development Index as a measure of development?
Using gross national income per capita as a measure of development puts too much importance on economic production as the sole measure of development.
Gender Inequality Index (GII)
measures the gender gap in the level of achievement in three dimensions: reproductive health, empowerment, and the labor market. The higher the GII the greater the inequality between men and women. A score of 0 would mean that men and women fare equally, whereas a a score of 1.0 would mean that m=women fare as poorly as possible in all measures. The GII is higher in developing countries than in developed ones. Sub saharan Africa, South Asia, Central Asia, and Southwest Asia and North Africa are the developing regions with the highest levels of gender inequality. Reproductive health is the largest contributor to gender inequality in these regions. South Asia and Southwest Asia and North Africa also have relatively poor female empowerment scores. At the other extreme, 10 countries in Europe have GIIs less than 0.1 meaning that men and women are nearly equal -Countries with high HDIs have low GIIs and vise versa -The U.N has donut that the Gender Inequality has declined since the 1990s in all but 4 of 138 countries for which time-series data are available. The greatest improvement has been in Southwest Asia and North Africa. -two main reasons for U.s. low GII ranking: The U.s has a much higher birth rate among teenage women and a higher mortality rate among women during childbirth. Also the percentage of women in the national legislature is lower in the US
Developed country
progressed further along the development continuum
Microfiance
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
Chile is able to grow and harvest grapes and strawberries in the months of October through April, while in the United States such fruit is harvested from April through October. The United States has a much larger manufacturing capacity and ships durable goods such as cars and trucks to Chile. These examples can best be explained by
the economic principle of comparative advantage
Development
the process of improving the conditions of people through diffusion of knowledge and technology
Wallerstein's World Systems Theory
-Describes the relationship between developed and developing countries as one of "core" and "periphery." According to Wallerstein's world-systems analysis, in an increasingly unifies world economy, developed countries form an inner core area, whereas developing countries occupy peripheral locations -Developing. countries in the periphery have less access to the world centers of consumption, communications, wealth, and power, which are clustered in the core -sem-periphery countries are either intermediate in the level of economic development or situated close to both core ad periphery regions
Fair Trade for Consumers
-Most fair trade products include coffee, tea,bananas,chocolate, etc. Fir trade products reach consumers primarily through cooperatively owned groceries -Buying fair trade products Fromm cooperatives helps consumers connect more directly with the companies and workers responsible for the items -Most Products: Food bought and co-op groceries; 1st Era: Great Depression; 2nd Era: 1960s and 1970s (Counter-culture movement); 3rd Era: 2000s-now- Buy healthier, local, organic, and non-GMO; Connect with producers; Cut cost on exploitative intermediaries
Foreign Direct Investment
Investment made by a foreign company in the economy of another country.
More Developed Country (MDC)
A country that has progressed relatively far along a continuum of development.
Less Developed Country (LDC)
A country that is at a relatively early stage in the process of economic development
developing country
A country that is at a relatively early stage in the process of economic development
California's Silicon Valley is an example of a high-technology region. Which of the following would best accompany the map shown to help explain the origins of this high-technology region?
A description of how the area's research institutions, including Stanford University and the NASA Ames Research Center, served as growth poles for development
Which of the following statements explains the data relationship between the statistics shown in the table?
A high level of economic development does not guarantee that women will have an equitable position in society.
Inequality-adjusted Human Development Index (IHDI)
A modification of the HDI to account for inequality. The IHDI modifies the HDI to account for inequality within a country. Under perfect equality, the HDI and the IHDI are the same. The lower the HDI, the country has some inequality; the greater the difference between the two measures, the greater the inequality. Developed countries have the lowest gap between HDI and IHDI, indicating a relatively modest level of inequality by a worldwide standards - the lowest scores are in sub-saharan Africa and south asia meaning they have the highest inequality
Pre-conditions:
An elite group initiates development - Investments in technology and infrastructure - Commercialization of agriculture The use of some capital equipment can help increase productivity and generate small surpluses which can be traded.
In 2008, a debt crisis within the United States housing market triggered a global economic crisis. Which of the following best explains how this process occurred?
Because the global financial system is interconnected, banks in other countries were negatively affected by the crisis in the United States.
Explain how the map represents an incomplete picture of the economy in India.
The data do not measure the informal economy, which in regions with high employment in agriculture could be significant.
Each image shows a different way that products of the Industrial Revolution were transported. Which of the following statements best compares the impacts of the two forms of transportation?
Both forms of transportation accelerated production and distribution of goods.
Gross Domestic Product (GDP)
The value of the output of goods and services produced in a country in a year. GDP does not account for money that leaves and enters the country.
Gender Empowerment Measure
Compares the ability of men and women to participate in economic and political decision making
Which of the following best explains the relationship of a country's economic sector employment to its development level?
Core countries have the highest percentage of workers in the tertiary sector and the lowest percentage of workers in the primary sector because of the economic emphasis on services.
Fair Trade for Workers
Critics of Normal Trade: Minimal government oversight of working conditions, workers have long hours in poor conditions at low pay, child/forced labor, health problems from poor sanitation and injuries, injured, ill, and fired workers not compensated; FT: Paid fair wages, right to unions and collective bargaining, increase environmental and safety standards
Which of the following changes in global economic patterns occurred because of the innovations depicted in the two images
Early adopters of the two innovations began to increase colonization in search of new sources of raw materials for manufacturing goods.
Structural Adjustment Program
Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.
Fair Trade
Fair Trade is international trade that provides greater equity ti workers, all businesses, and consumers. Fair Trade products are made and traded according to standards that protect workers and small businesses in developing countries. The fair trade movement focuses primarily on products exported from developing countries to developed countries
The map shows gross domestic product (GDP) by country. Which of the following factors best explains a limitation of GDP by country in comparing the level of productivity among countries?
GDP indicates the volume or size of a country's economy but cannot be used to compare productivity between countries without being divided by the population size to determine per capita GDP. China, Japan, and the United States all have multitrillion-dollar economies, but China's population size is three times the size of the United States population, which in turn is much larger than that of Japan. By comparison, China's GDP per capita production is much lower than those of the United States and Japan, which are more developed countries.
In less developed countries, ecotourism blends environmental sustainability with the travel and hospitality service industry. This combination attracts global tourists to locations such as Mount Kilimanjaro, the Serengeti Plain, and Victoria Falls in Africa. Which of the following best explains the relationship between global ecotourism and economic sustainability at the local scale?
Global ecotourism does not necessarily lead to local economic sustainability, as workers might not be paid a living wage at ecotourism resorts.
Agriculture vs. Industrial Workforce
In agriculture workforce
The image shows an open-pit coal mine in the United States. Which of the following best explains a limitation of the image in analyzing economic patterns of coal mining?
It does not indicate patterns of restructuring that have resulted in a decrease in coal mining jobs.
Which of the following explains how microlending policies can lead to interdependence in the world economy?
Increased funding opportunities for individuals in less developed countries have led to increased economic stability on a local level and trade opportunities with other countries.
Human Development Index (HDI)
Indicator of level of development for each country, constructed by United Nations, each country gets an overall HDI score based off of these three factors: a decent standard of living, a long and healthy life, access o knowledge. The highest HDI possible is 1.00 or 100 percent. -Sub-saharan AAFRICA AND South Asia are the regions with he lowest HDI scores. -Australia, New Zealand, Europe, Japan, South Korea, North America is developed
Gender-Related Development Index
Measures the gap in the level of achievement for the three dimensions of the HDI: Income, education, and life expectancy. The GDI uses the same methodology as the HDI. Countries are ranked based on their deviation from gender parity in the three dimensions of HDI. Id females and males had precisely the same HDI scores, the GHDI would be 1.000.
Microfinance is a form of banking whereby financial institutions issue small loans to people with low incomes, generally in less developed countries. Which of the following best explains how microfinance loans are intended to contribute to the United Nations Sustainable Development Goals?
Microfinance loans enable people to start small businesses, which contributes to the goal of ending poverty.
Maternal Mortality Rate
Number of deaths per thousand of women giving birth.
Semi-periphery
Places where core and periphery processes are both occurring. Places that are exploited by the core but then exploit the periphery. * Serves as a buffer between core and periphery
core
Processes that incorporate higher levels of education, higher salaries, and more technology * Generate more wealth in the world economy
Productivity
Productivity is the value of a particular product compared to the amount of labor needed to make it Developed: —workers are more productive because they produce more with less effort because they have access to machines -the larger per capita FNI in developed countries in part pays for the manufacture and purchase of machinery Develeoping:-relies more on human and animal power
Which of the following best explains a political-economic weakness or limitation of Rostow's stages of economic growth?
Rostow made the inaccurate assumption that all countries want modernization as defined in the model
Economic Structure
Shows the division of a country's economy between primary, secondary and tertiary industries.
Which of the following scenarios is best explained by the increasing global popularity of ecotourism?
The development of small, locally owned lodges near ecological preserves in the Brazilian Amazon due to tourists' desire to benefit the local economy and minimize their environmental impact
International Monetary Fund (IMF)
The IMF provides loans to countries experiencing balance of payments problems that threaten expansion of international trade. IMF assistance is designed to help a country rebuild international reserves, stabilize currency exchange rates, and pay for import without the imposition of harsh trade restrictions or capital controls that could hamper the growth of world trade
World Bank
The World Bank includes the International Bank for Reconstruction and Development and the International Development Association. The IBRD provides loans auto counties to reform public admin and legal institutions, develop and strengthen financial institutions, and implement transportation and social service projects. The ID provided support to poor countries considered too risky to qualify for the IBRD loans. The IBRD lends money raised from sales of bonds to private investors; the IDA lends money from government contributions
Which of the following explains the development patterns for a country that has a large proportion of its economy engaged in the secondary economic sector?
The country has access to shipping lanes and inexpensive transport options that lead to establishment of factories close to raw materials or to markets, depending on the manufacturing process.
By tradition it is uncommon for women to hold personal bank accounts in Pakistan, and until the 1990s this was much the same in Bangladesh. Which of the following best explains the significant change in the percent of women with bank accounts in Bangladesh?
The increased access to microlending institutions for women, such as the Grameen Bank
The map shows GDP per capita by country, with darker shading indicating higher GDP per capita. Which of the following best explains a limitation of the map in answering questions about the world's changing economic landscape?
The map shows economic productivity as GDP per capita in each country for a single year, but does not show change over time that would indicate a level of economic growth or decline.
Pupil/teacher ratio
The number of enrolled students divided by the number of teachers
Female labor force participation rate
The percentage of women holding full-time jobs outside the home -In general, women in developed countries are more likely than women in developing countries to hold full-time jobs outside the home.
Primary Sector
The primary sector includes activities that directly extract materials from Earth through agriculture and sometimes by mining, fishing, and forestry
Secondary Sector
The secondary Sector includes manufactures that process, transform, and assemble raw materials into useful products, as well as industries that fabricate manufactured goods into finished consumer goods
Which of the following best explains how the diffusion of industrialization relates to the two images shown?
The stone bridge predates the Industrial Revolution. The technology for steel bridgework became available through the diffusion of steel manufacturing processes.
Tertiary Sector
The tertiary sector involves the provision of goods and services to people in exchange for payment, scubas retailing, banking, law, education, and government
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
In a number of countries there remains significant inequality between men and women. Based on a comparison of the patterns on the map, which of the following statements draws an accurate conclusion?
Women in Libya have more equality with men than do women in other African countries.
Which of the following explains the most significant weakness of Wallerstein's world system theory?
World system theory provides little explanation about how a country like South Korea could rise from a peripheral country to a core economy.
Purchasing Power Parity (PPP)
an adjustment made to the GNI to account for differences among countries in the cost of goods. For example if a resident of country A has the same income as a resident of country B but must pay for a Big Mac or a Starbucks latte, the resident of country B is better off
Drive to Maturity:
evelops broad manufacturing and commercial base - Industry more diversified - Increase in levels of technology utilized
High mass consumption
high output levels - Mass consumption of consumer durables - High proportion of employment in service sector
The higher gross domestic product per capita in some less developed countries such as Brazil, South Africa, and Malaysia is best explained by increases in the value of the country's
manufacturing output and service industry employment
Millennium Development Goals
might goals adopted by the UN in 2002 to reduce disparities between developed and developing countries by 2015
Take off:
ncreasing industrialization in limited areas (food or textiles) - Foreign investment increases - Infrastructure improvements - Some regional growth - Economy still dominated by traditional practices
Rostow's stages of development can easily be applied to countries such as the United States and Japan, but not so easily to countries such as the Democratic Republic of the Congo and Bolivia, because the theory
places emphasis on developed nations having less developed nations to exploit for resources
Periphery
processes that incorporate lower levels of education, lower salaries, and less technology * Generate less wealth in the world economy
Criticisms •
• Assumes LDCs will achieve each level of development before advancing • Uneven resource distribution (Zambia's one commodity market of copper developed trouble when world copper price fell) • Market Stagnation - MDCs market are saturated, need to increase sales in LDCs • Increased dependence on MDCs - when concentrating resources in a "takeoff" industry, then buy necessities from MDCs Does not account for - Global politics - Colonialism - Physical geography - War - Culture - Ethnic conflict - Deindustrialization • Cannot compare Nepal (stage 1) to Denmark (stage 5) to Saudi Arabia • Development does not necessarily lead to high consumption, can mean social welfare
