Chapter 9- Development

Learning Objectives- After studying this chapter you should be able to:
How does development vary among regions?
9.1.1: Explain the concept of development and the differences between developed and developing countries. 
9.1.2: Describe how the HDI factors levels of development and distinguish the HDI from the inequality-adjusted HDI.
9.1.3: Identify the nine world regions (and the three “distinctive areas”), specifying which are considered developed and which are considered developing.
9.2.1: Compare the difference between developed and developing countries with regard to income and economic structure.
9.2.2: Compare the difference between developed and developing countries with regard to productivity of workers and the prevalence of consumer goods. 
9.2.3: Describe the important regional attributes of North America that qualify it as part of the developed world.
9.3.1: Evaluate the impact quantity of schooling has on the process of development. 
9.3.2: Explain how quality of schooling is measured and hypothesize why this effects development.
9.3.3: Evaluate Europe according to its assets and deficiencies in the context of development.
9.4.1: Evaluate the impact of access to health care on life expectancy.
9.4.2: Compare and contrast developed countries with developing countries on the issue of health care expenditures.
9.4.3: Describe how the level of development varies across Latin America and how Latin America’s level of development compares with that of other regions.
9.5.1: Explain how empowerment of women is measured and its significance for development.
9.5.2: Illustrate how gender issues related to labor and reproductive health impact development.
9.5.3: Contrast East Asia’s gender inequality index indicators to other developing countries and hypothesize as to why it might compare favorably with developed regions.

How can countries promote development?
9.6.1: Identify and explain the two models (paths) for development, and provide examples for each.
9.6.2: Assess the shortcomings of the two models (paths) for development and formulate an argument as to which one would ultimately be more effective.
9.6.3: Describe how countries in southwest Asia and Northern Africa have typically developed and explain why development in that region is uneven.
9.7.1: Explain how the World Trade Organization works to reduce barriers to trade.
9.7.2: Compare the criticisms of the World Trade Organization put forth by progressives with those of Conservatives.
9.7.3 Explain how foreign direct investment is related to transnational corporations and why foreign investment does not flow evenly around the world.
9.7.4: Identify the advances Southeast Asia has made in developing and explain why development has slowed in that region.
9.8.1: Explain how developing countries attempt to finance development in ways other than direct foreign investment.
9.8.2: Explain why the World Bank judges many of its development projects to be failures. 
9.8.3: Explain how “structural adjustment programs” work and how the IMF and World Bank respond to criticisms of these programs.
9.8.4: Describe factors that have affected development in Central Asia.

What are future challenges for development?
9.9.1: Explain how the Fair Trade model of development applies to producer practices and worker standards.
9.9.2: Explain the achievement for which Muhammad Yunus was awarded the Nobel Peace Prize in 2006.
9.10.1: Explain what is meant by the “core” and “periphery” in the world economy and in what ways the gap in development between these regions has or hasn’t narrowed.
9.10.2: Evaluate the progress that has been made in the eight Millennium Development Goals set by the United Nations.
9.10.3: Assess Sub-Saharan Africa’s prospects for future development.

Terms-  You should understand these terms and be ready to identify them:
Adolescent fertility rate The number of births per 1,000 of women age 15-19.
Development A process of improvement in the material conditions of people through diffusion of knowledge and technology.
Fair Trade Alternative to international trade that emphasizes small businesses and worker-owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.
Foreign direct investment Investment made by a foreign company in the economy of another country.
Gender Inequality Index (GII) Indicator constructed by the United Nations to measure the extent of each of country’s gender inequality.
Gross domestic product (GDP) The value of the total output of goods and services produced in a country in a year.
Gross National Income (GNI) The value of the total output of goods and services produced in a country, as well as money that leaves and enters the country, in a year.
Human Development Index (HDI) Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy.
Inequality-adjusted Human Development Index (IHDI) Indicator of level of development for each countrythat modifies the HDI to account for inequality.
Less developed country (LDC) A country that is at a relatively early stage in the process of economic development.
Literacy rate The percentage of a country's people who can read and write.
Maternal mortality ratio The number of women who die giving birth per 100,000 births.
More developed country (MDC) Also known as a relatively developed country or a developed country, a country that has progressed relatively far along a continuum of development.
Primary sector The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.
Productivity The value of a particular product compared to the amount of labor needed to make it.
Secondary sector The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
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.
Tertiary sector The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.
Value added The gross value of the product minus the costs of raw materials and energy.