Key Issue 1: Why Does Development Vary Among Countries? Pages 350-358 1. Quick Reference: As you read define the following terms: Development A process of improvement in the condition of people in the conditions of people through diffusion of knowledge and technology. Developing Country A country is a relatively early stage in the process of development. Human Development Index (HDI) An indicator constructed by the U.N to measure the level of development for a country through a combination of income, education, and life expectancy. 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. Purchasing Power Parity (PPP) The amount of money needed in one country to purchase the same goods and services in another country Gross Domestic Product (GDP) The value of the total output of goods and services produced in a country in a year, nit accounting for money that leaves and enters the country. Primary sector The portion of the economy is concerned with the direct extraction of materials from Earth, generally through agriculture. Secondary sector The portion of the economy is concerned with manufacturing useful products through processing, transforming, and assembling raw materials. 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. Productivity The value of a particular product compared to the amount of labor needed to make it. Value-added pupil/teacher ratio The number of enrolled students is divided by the number of teachers. Literacy rate The percentage of a country’s people who can read and write 2. Taking into account that progress varies widely between countries, the UN divides developed and developing countries into 3 categories: high, medium, and low developing. Use figure 12-2 to give an example of each category for MDCs and LDCs. Developed countries are those with very high HDI scores. The other three are for developing countries. (High, Medium, Low, No data) 3. The highest rating for HDI is: 1.0 or 100% 4. Three factors that help determine HDI: a. A decent standard of living b. A long and healthy life c. Access to knowledge 5. Use figure 10-2 Four categories within HDI: Regions within each Very High Developed Africa, Eastern Europe, Nothern Amercia, Oceania High Developing Africa, Central America, Asia Medium Developing Africa, Eastern Europe Low Developing Africa, Oceania 6. Which two development regions have the lowest HDI? South Asia and Sub-Saharan have the lowest HDI. 7. Why are Japan and South Korea classified separately from the East Asia region? Japan and South Korea are classified separately from the East Asia region because their level of development is much higher than their neighboring countries. 8. How is Russia classified? Russia is classified because it has an HDI score that places it on the boundary between very high and high developed. 9. What is the difference between GNI and GDP? GNI is the value of the output of goods and services produced in a year, while GDP 10. Why is GNI not a perfect measure of a country’s wealth? 11. What are the three categories for jobs? a. b. c. 12. Use figure 10-5/ Within MDCs, what is the trend (increasing or decreasing) for each of the sectors? a. Primary: b. Secondary: c. Tertiary: 13. Why are workers in developed countries more productive? 14. Explain the two measures of the knowledge component for HDI: a. Years of schooling for today’s adults: b. Expected years of schooling for today’s youth: 15. Describe the pattern of pupil-teacher ratio for MDCs and LDCs (use figure 10-9 to help). How does this pattern affect developing countries? 16. Why are people healthier in developed countries? 17. Describe the availability differences for transportation and communication consumer goods on MDCs and that compares to LDCs. 18. Is this pattern changing? If so how? What consumer good? Key Issue 2: Where are Inequalities in Development Found? Pages 359-367 1. 2. Quick Reference: As you read define the following terms: Inequality-adjusted human development index (IHDI) Gender-related development index (GDI) Gender inequality index (GII) Female labor force participation rate Maternal mortality rate Adolescent fertility rate 3. Why would we care about Inequality within a country or a region? What is the Gini Coefficient? (you will need to look it up http://www.bbc.com/news/blogs-magazine-monitor-31847943 ) How does it differ from the Inequality-Adjusted HDI? 4. How has inequality recently changed in developed countries? 5. Why is measuring gender inequality important? 6. Where is the GII higher? What is the largest contributor to this inequality in those regions? 7. Why does the U.S. have a lower GII? 8. Study Figure 10-20. Explain the pattern you see, relating it to Core, Semi-periphery, and Periphery. 9. Discuss Gender Empowerment related to Political, Educational, and Employment opportunities. 10. Explain the two GII indicators of reproductive health 11. What are core and periphery regions? 12. Explain Wallerstein’s World Systems theory. Key Issue 3: Why Do Countries Face Challenges to Development? Pages 368-375 1. Quick Reference: As you read define the following terms: Foreign direct investment (FDI) Structural adjustment program Microfinance 2. Explain the two paths a country can take towards development and give an example for each. a. Self-Sufficiency: i. Example: b. International trade: i. example: 3. Explain the Rostow Model: 4. What is the World Trade Organization? Explain its importance and what it does. 5. Explain the distribution of FDI. 6. List the two major lenders to developing countries. What was the theory behind the creation of these two agencies and giving money to developing countries? 7. Explain the two strategies for combating economic downturns: a. Stimulus strategy: b. Austerity Strategy: 8. Why do countries have adopt austerity programs? 9. What do critics say about the structural adjustment programs? 10. Explain microfinance: Key Issue 4: Why Are Countries Making Progress in Development? Pages 376-379 1. Quick Reference: As you read define the following terms: Fair trade Cooperative store Sustainable development goals Millennium development goals 2. How is sustainability promoted through fair trade? 3. Explain each standard of fair trade: a. Fair trade for procedures: b. Fair trade for workers: c. fair trade for consumers: 4. What are the indicators of progress? a. HDI: b. GNI per capita: c. Education: d. Life expectancy: 5. Summarize the sustainable development goals: