Development Notes.docx

Development is a process of improvement in the material/living conditions of people through the diffusion of knowledge/technology -it is a continuum and mostly linear \- most countries start at similar points and process toward higher development However, there are points of crisis, for example,...

Development is a process of improvement in the material/living conditions of people through the diffusion of knowledge/technology -it is a continuum and mostly linear \- most countries start at similar points and process toward higher development However, there are points of crisis, for example, war/pandemic -development is constantly changing \- to measure the level of development, UN developed HDI HDI ranks countries according to three criteria -decent standard of living long and healthy life( number of doctors, access to healthcare, number of vaccines, infant mortality rate, maternal mortality rate) Access to knowledge is how long for school HDI ranks countries on a scale of zero (very undeveloped) to 1.0 (very developed) 4 HDI categories: \- A country over 0.8 is a more developed country \- High developing equals.7-.79 \- low developing equals.51 and below Brandt line was drawn in the 1980s and divides the Rich Global North from the poor Global South Decent standard of living measured by GNI and GDP GNI is the inflow/outflow of money GDP is the same as GNI without money flow. It is the value of goods/services produced by a country per year -adjusts GNI/GDP to show buying power per capita: adjusts gni/gdp to a per person basis (averaged) HDI also accounts for economic sectors: -primary: extraction of materials from Earth. Example: cut down a tree -secondary: beginning to manufacture. example: tree is a desk \- tertiary: service industry; goods/services in exchange for money. example: sell desk Productivity impacts a nation's wealth Productivity: how much each worker is able to produce \- in MDCs productivity per worker is higher HDI can be adjusted to reflect a country\'s inequality this is called IHDI Long/healthy life: how long will people live? life expectancy at birth: current world average is 70 mdc\'s see 70/80 LDC are much lower in developing countries the number of young is about 6 times higher than number of elderly more than 99.5% of babies in MDCs survive their first year versus 94% in LDCs years of schooling is number of school years of people age 25 plus in a country has increased; now the years of schooling a typical 5 year old will experience pupil-teacher ratio: number of kids per teacher literacy rate: percent that can read/write GII: \- empowerment: how many women in the national legislature/ have completed high school \- labor force: number of women working full-time outside the home -reproductive health: maternal mortality ratio and adolescent fertility rate gender inequality trends: -declined in nearly every country \- us is one of the few developed countries where GII increased Variations: often a divide exists between urban haves and rural have-nots in developing countries -energy drives development development is dependent on the availability of low-cost energy Supply: amount of something available for use/sale demand: amount of something consumers are willing/able to purchase 5/6 of world energy is supplied by fossil fuels examples of fossil fuels are coal, petroleum, and natural gas -developed countries make up a small share of the population but use almost half of all energy China is the number one energy consumer two types of Reserves: proven: Supply held in discovered/ confirmed sources potential: Supply undiscovered/infeasible to extract or utilize 12 OPEC nations: regulate the price of oil nuclear power: issues are limited uranium and high cost hydroelectric: most widely used renewable resource biomass is burning natural waste; not efficient or sustainable geothermal is Earth\'s internal heat used to produce energy Wind power is using wind to rotate turbines; expensive/not dependable nuclear fusion: no material contains this heat source Solar power is using solar rays two types of solar energy: passive is harnessing solar rays without specialized technology for certain tasks Example: to heat water active is harnessing solar rays with specialized technology to produce energy example: solar panels two fundamental obstacles to development: -adopting policies successfully promote development -funds to pay for development two approaches to development: self-sufficiency is relying on self-protectivism International trade (globalism) sufficiency is domestic production, no foreign ownership, domestic businesses are protected from international competition using barriers, tariffs, quotas, and licenses ITP is open to foreign investment, government spending and budget are reduced, social protections removed Rostow\'s model for development has five stages the first stage is traditional society: farming the second stage is preconditions for takeoff: make something efficient/a small group of people with new ideas The third stage is the takeoff: ideas become popular The fourth stage is the drive to maturity: modern technology sparks rapid growth Fifth stage is High Mass consumption issues of self-sufficiency: \- Inefficient \- subsidized businesses have little reason to innovate \- bureaucracy: corruption \- lots of forms you have to fill out to discourage you from doing things LDCs get money for development in two ways from MDCS: -loans: \- FDI (foreign direct investment) It is direct investment by foreign companies into a national economy two sources for loans: the World Bank and the International Monetary fund huge loans; hundreds of millions to billions of dollars intended to provide funds to improve conditions/infrastructure bring in FDI over 50% of loans are labeled as failed debt trap: debt from projects that don\'t give back much money failing loan payment leads to structural adjustment programs: mandating major changes, removing all trade barriers, reducing government spending SAPs help trade but go backward sometimes stimulus: government spending increases austerity: cut government spending and use money to pay debt and raise taxes Hans Rowling: up and to right equals development Wallerstein World System Theory model: \- core equals high development/MDC. for example: US, UK, Germany \- periphery is the LDC -semi-periphery is Brazil, Russia, Etc.( developing in the middle) \- ideas from core resources from the periphery go to make stuff in semi-periphery fair trade is buying straight from the person or people who make the product (like coffee) -combats uneven development \- cuts out the middleman microcredit is small loans given to people in less developed countries \- mostly women \- \$60 on average \- goes to help them for entrepreneurial reasons -99% repayment rate \- popular place to get these is the Grameen Bank