10
Development
Learning Outcomes
After reading, studying, and discussing the chapter, students should be able to:
Learning Outcome 10.1.1:
Understand the Human Development Index.
Learning Outcome 10.1.2:
Identify the HDI standard of living factor.
Learning Outcome 10.1.3:
Identify the HDI education factors.
Learning Outcome 10.1.4:
Identify the HDI health factors.
Learning Outcome 10.2.1:
Describe the U.N.’s measures of inequality.
Learning Outcome 10.2.2:
Describe the U.N.’s measures of gender inequality.
Learning Outcome 10.2.3:
Describe empowerment-related components of gender inequality.
Learning Outcome 10.2.4:
Describe reproductive health elements of the GII.
Learning Outcome 10.2.5:
Compare HDI and GII for selected countries.
Learning Outcome 10.3.1:
Summarize the two paths to development.
Learning Outcome 10.3.2:
Analyze reasons for the triumph of the international trade approach to
development.
Learning Outcome 10.3.3:
Identify the main sources of financing development.
Learning Outcome 10.3.4:
Explain alternate strategies for coping with economic downturns.
Learning Outcome 10.4.1:
Explain principles of fair trade.
Learning Outcome 10.4.2:
Describe ways in which differences in development have narrowed or
increased.
Chapter Outline
Key Issue 1: Why Does Development Vary among Countries?
Countries can be categorized according to their level of development, which is the process of improving the
conditions of people through diffusion of knowledge and technology. The development process is
continuous, involving never-ending actions to perpetually improve the health and prosperity of the people.
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Introducing Development Countries may be divided into two groups according to their level of
development:

A developed country, also known as a more developed country (MDC) and referred to by the
U.N. as a very high developed country, has progressed further along the development continuum.

A developing country, also frequently called a less developed country (LDC), has made some
progress toward development, though less than the developed countries.
The U.N. classifies developing countries into high, medium, and low developing categories.
Human Development Index The United Nations compares levels of development on an index called the
Human Development Index (HDI). The U.N. has computed HDIs for countries annually since 1980.
The highest HDI possible is 1.0, or 100 percent. The HDI considers development to be a function of three
factors: a decent standard of living, a long and healthy life, and access to knowledge. Each country gets a
score of these three factors, which are then combined into an overall HDI.
Development Regions The world is divided by geographers into two developed regions and seven
developing regions. Each region has an overall HDI score. The two regions with the lowest HDI scores
are sub-Saharan Africa and South Asia. Some notable exceptions are present in this division of regions,
with three other distinctive areas apparent. Japan and South Korea are classified separately rather than
included with the rest of East Asia, as their level of development is much higher than that of their
neighbors. In the South Pacific, Australia and New Zealand are developed, while the area’s other
countries are developing. Due to limited development both under and following communism, the U.N.
reclassified Russia from a developed country to a high developing country.
A Decent Standard of Living Accumulating enough wealth for a decent standard of living is essential to
development. Geographers have identified ways in which people generate and spend their wealth
differently in developed countries compared to those in developing countries.
Income The U.N. measures the standard of living in countries through an index called annual gross
national income per capita at purchasing power parity. The gross national income (GNI) is the value of
the output of goods and services produced in a country in a year, including money that leaves and enters
the country. The purchasing power parity (PPP) is an adjustment made to the GNI to account for
differences among countries in the cost of goods. By dividing the GNI by the total population, it is
possible to measure the contribution made by the average individual towards generating a country’s
wealth in a year. Per capita GNI measures the average (mean) wealth, not the distribution of wealth. Other
studies refer to gross domestic product (GDP), which is also the value of the output of goods and
services produced in a country in a year. The GDP does not account for money that leaves or enters the
country. Per capita GNI (or any other single indicator) cannot measure perfectly the level of a country’s
development.
Economic Structure Jobs fall into three categories. Primary sector jobs include activities extracting
materials from the Earth through agriculture, mining, fishing, and forestry. Secondary sector jobs
process, transform, and assemble raw materials into manufactured products. Tertiary sector jobs involve
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the provision of goods and services to people in exchange for payment. The share of GNI accounted for
by the primary and secondary sector has decreased dramatically in the last century in most developed
countries. The tertiary sector accounts for the greatest share of the GNI in developed countries.
Productivity Workers in developed countries are more productive than those in developing countries.
The term productivity means the value of a particular product compared to the amount of labor needed to
make it. The value added in manufacturing is the gross value of the product minus the raw materials and
energy. Productivity can be measured by the value added per capita. 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.
Access to Knowledge The U.N. 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. The
average person aged 25 or older in a developed country has attended school for 11.5 years. The average
person that is aged 25 or older in South Asia and sub-Saharan Africa has attended only 4.7 years of
schooling. The U.N. also forecasts the number of years an average 5-year-old will spend in school. In
developed countries, the U.N. expects that the average 5-year-old will spend an average of 16.3 years in
school. The expected average is 9.3 years in sub-Saharan Africa and 10.2 years in South Asia.
The fewer pupils a teacher has, the more likely that each student will receive instruction. The
pupil/teacher ratio is the number of enrolled students divided by the number of teachers. The literacy
rate is the percentage of a country’s people who can read and write. Students in developing countries are
at a disadvantage because most of the textbooks are not published in their native language. Improved
education is a major goal of many developing countries, but funds are scarce.
Health and Wealth Good health is as important a measure of development as wealth and knowledge,
according to the U.N. A goal of development is to provide the nutrition and medical services needed for
people to lead long and healthy lives.
A Long and Healthy Life The health indicator contributing to the HDI is life expectancy. The life
expectancy is 80 in developed countries, while life expectancy is 57 in sub-Saharan Africa. People are
healthier in developed countries than developing ones. When a person in a developed country gets sick,
the country possesses the resources to care for him or her. Longer life spans have led to a higher
percentage of older people who have retired and receive public support and a lower percentage of children
under age 15 who are too young to work and must also be supported by employed adults. Better health
and welfare also allow babies to survive infancy in developed countries.
Consumer Goods Part of the wealth generated in developed countries is used to purchase goods and
services. Especially important are goods related to transportation and communication, including motor
vehicles, telephones, and computers. These products are accessible to virtually all residents in developed
countries and are vital to the economy’s functioning and growth. In contrast, in developing countries,
these products do not play a central role in daily life for many people. Most people in developing
countries are familiar with vehicles and computers but cannot afford them. Cell phone ownership is
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actually expanding in developing countries, as these devices do not require the large expenditures
associated with connecting wires to each individual building.
Key Issue 2: Where Are Inequalities in Development Found?
Unequal and Uneven Development Income, gender, and region are all dimensions that can define
inequality within a country. Inequality is also present between countries in the core and periphery of
development.
Inequality-Adjusted HDI The Inequality-adjusted Human Development Index (IHDI) was created
by the U.N. to measure the extent of inequality in the world. HDI is modified to account for inequality
within a country, producing the IHDI. HDI and IHDI are the same when a country achieves perfect
equality. If the IHDI is lower than the HDI, the country has some inequality; the greater the difference
between the two measures, the greater the inequality. The highest levels of inequality are seen in subSaharan Africa and South Asia.
Inequality within Developing Countries Brazil and Turkey are among the world’s largest and most
populous countries. At the national scale, the two countries fall somewhere near the middle in terms of
HDI. Among the 186 countries with HDI scores, Turkey ranks 69th and Brazil ranks 79th. The two
countries have similar HDI scores, but Brazil has a lower IHDI, revealing more inequality in Turkey.
Inequality is also evident in the differences in GNI per capita among states or provinces within the
countries. In Turkey, wealth is concentrated in the western part of the country, closest to Europe. In the
east, where Kurdish people are clustered, wealth is low.
Inequality within Developed Countries Regional differences can be seen within developed countries by
examining variations in GNI per capita. These differences are less extreme than in developing countries.
For instance, in the United States, the GNI per capita is 122 percent of the national average in the
wealthiest region (New England), and 90 percent of the national average in the poorest region
(Southeast). Since 1980, inequality has grown in developed countries, including the United States and
U.K.
Gender Inequality A country’s overall level of development can mask inequalities in the status of men
and women. The U.N. uses two indices to measure gender inequality: the Gender Inequality Index (GII)
and the Gender-related Development Index (GDI). At best, women have achieved near-equality with men
in some countries, but in other countries the level of development for women lags far behind the level for
men. It is the belief of the U.N. that inequality between men and women is a major factor that prevents a
country from achieving a higher level of development.
Gender-Related Development Index The Gender-related Development Index (GDI) measures the
gender gap in the level of achievement for the three dimensions of the Human Development Index.
Countries are ranked based on their deviation from gender parity in the three factors of the HDI. If
females and males had exactly the same HDI scores, the GDI would be 1.000. The lowest scores are in
South Asia, sub-Saharan Africa, Southwest Asia, and North Africa.
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Gender Inequality Index The UN created the Gender Inequality Index (GII) to measure the extent of
each country’s gender inequality. The GII combines multiple measures: reproductive health, empowerment,
and the labor market. A score of 0 would indicate that men and women fare equally, and a score of 1.0
would indicate that women fare as poorly as possible in all measures. The higher the GII, the greater the
inequality between men and women. The GII is higher in developing countries than developed ones.
GII over Time The U.N. has discovered that 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. The improvement in gender inequality has been relatively modest in
the United States. The United States is ranked 47th in GII, while it also ranks 5th in HDI. This discrepancy
may be accounted for by the relatively high birth rate among teenage women and a higher mortality rate
among women during childbirth, and a low percentage of women in the national legislature relative to
other countries with high HDI.
Gender Empowerment and Employment The GII combines three sets of measures to come up with a
composite score for gender inequality: empowerment, employment, and reproductive health.
Empowerment In the context of gender inequality, empowerment refers to the ability of women to
achieve economic and political power. The empowerment dimension of GII is measured by two
indicators: the percentage of seats held by women in the national legislature and the percentage of women
who have completed high school.
National Legislature No specific gender-related skills are required to be elected as a representative and
to serve effectively. Despite this, fewer women than men hold positions of political power in both
developing and developed countries. Rwanda is the only country with a majority of women in its national
parliament or congress. The highest percentages are in Europe, with women constituting roughly onequarter of the members of national parliaments. The lowest rates are in Southwest Asia and North Africa.
Secondary School Worldwide, 54 percent of women have completed some secondary school, compared
to 64 percent of men. In North America, girls are more likely than boys to complete some high school,
and (slightly) more boys than girls are expected to complete some high school in Europe. Boys are much
more likely than girls to be high school graduates in developing countries, where for every 10 boys who
attend high school, only 6 girls attend as well. In South Asia, this gap is particularly high.
Labor Force The female labor force participation rate is the percentage of women holding full-time
jobs outside the home. Globally, 51 percent of women work outside the home, compared to 77 percent of
men. Generally, women in developed countries are more likely than women in developing countries to
hold full-time jobs outside the home. South Asia, Southwest Asia, and North Africa have substantial gaps
between male and female labor participation, while East Asia and sub-Saharan Africa have smaller gaps.
Reproductive Health Poor reproductive health is a major contributor to gender inequality around the
world.
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Reproductive Health The reproductive health factor of the GII is based on two indicators:

The maternal mortality rate is the number of women who die giving birth per 100,000 births.
The ratio is 16 deaths of mothers per 100,000 live births in developed countries and 171 in
developing countries.

The adolescent fertility rate is the number of births per 1,000 women ages 15 to 19. The rate in
developed countries is 19 births per 1,000 women ages 15 to 19, while the rate is 53 in
developing countries. The lowest teenage pregnancy rate is in Europe where it is below 10 per
1,000. In sub-Saharan Africa the teenage pregnancy rate is 110.
The U.N. includes reproductive health as a contributor to GII because in countries where effective control
of reproduction is universal, women have fewer children, and maternal and child health is improved.
Women in developing countries are more likely than women in developed countries to die in childbirth
and to give birth as teenagers. Countries that provide women a full range of reproductive health options
have a very low total fertility rate.
Core and Periphery The relationship between developed and developing countries is often described as
a north-south split because most of the developed counties are north of the equator, while many
developing countries are south. The U.S. social scientist Immanuel Wallerstein identified the relationship
between developed and developing countries as one of “core” and “periphery.” In a progressively unified
world economy, developed countries constitute an inner core area, while 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 concentrated in the core areas. Semiperiphery countries are those countries that are either intermediate in level of economic development or
situated close to both core and periphery regions.
HDI and Gender Equality Typically, development analysts anticipate that a more developed country
will have less gender inequality than a developing country.
Key Issue 3: Why Do Countries Face Challenges to Development?
Developing countries are confronted with two fundamental obstacles in attempting to stimulate more
rapid development:

Adopting policies that successfully promote development.

Finding funds to pay for development.
Two Paths to Development Developing countries can choose one of two models to promote
development: self-sufficiency or international trade.
Self-Sufficiency Path In the self-sufficiency model, countries encourage domestic production of goods,
discourage foreign ownership of business and resources, and protect their businesses from international
competition. Key elements of the self-sufficiency path to development include the following:
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Barriers limit the import of goofs from other places (using tariffs or quotas).

Fledging businesses are nursed to success by being isolated from competition with large
international corporations.

Investment is spread as uniformly as possible across all sectors of a country’s economy and in all
regions.

Incomes in the countryside keep pace with those in the city, and reducing poverty takes
precedence over encouraging a few people to become wealthy consumers.
Case Study: India For several decades after it gained independence from Britain in 1947, India was a
leading example of the self-sufficiency model. Limiting foreign companies from importing into India and
exercising strong control over companies operating in India were policies followed in this model by India.
International Trade Path International trade became more popular beginning in the late twentieth
century. The sale of raw materials, food, or manufactured products in the world market brings funds into
the country than can be used to finance development.
Rostow Model This approach is idealized in W.W. Rostow’s five-stage model, where countries fit into
one of the five following stages: traditional society; preconditions for takeoff; takeoff; drive to maturity;
age of mass consumption.
International Trade Examples Rostow’s model appears to have been followed by the four Asian
dragons (South Korea, Singapore, Taiwan, and Hong Kong) and petroleum-rich Arabian Peninsula states
(Saudi Arabia, Kuwait, Bahrain, Oman, and the United Arab Emirates).
World Trade The international trade approach has been widely adopted over the past decades, with many
of the self-sufficiency countries adopting the alternative model by the 1990s.
International Trade Triumphs Trade grew more rapidly than wealth (as measured by GDP) during the
late twentieth and early twenty-first centuries, reflecting the prominence of the international trade model
in developing countries. Longtime advocates of the self-sufficiency approach converted to international
trade during the 1990s. Even India dismantled its formidable collection of barriers to international trade.
Countries like India converted from self-sufficiency to international trade because of overwhelming
evidence at the time that international trade better promoted development. Worldwide, GNI increased
more than 4 percent annually in countries strongly oriented towards international trade compared with
less than 1 percent in countries strongly oriented toward self-sufficiency.
World Trade Organization The World Trade Organization (WTO) works to reduce barriers to
international trade in two principal ways. First, through the WTO, countries negotiate reduction or the
elimination of international trade restrictions on manufactured goods, such as government subsidies for
exports, quotas for imports, and tariffs on both imports and exports. The WTO also promotes
international trade by enforcing agreements. Critics of the WTO maintain that the decisions made behind
closed doors increase the bottom lines of large corporations at the expense of those suffering from
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poverty. Conservative critics charge that the WTO undermines the power and sovereignty of individual
countries because it can order changes in taxes and law that it deems unfair trading practices.
Financing Development Developing countries do not have access to the funds necessary to fund
development, so they obtain financial support from developed countries. Finance comes from two main
sources: direct investment by transnational corporations and loans from banks and international
organizations.
Foreign Direct Investment An investment made by a foreign company in the economy of another
country is known as foreign direct investment (FDI). Foreign direct investment grew rapidly during the
1990s, from $130 billion in 1990 and $1.5 trillion in 2000 to $16.4 trillion in 2013. In 2013, nearly onethird all FDI destined for developing countries went to China and another one-third went to Brazil,
Russia, Mexico, and Singapore. The major sources of FDI are transnational corporations that invest and
operate in countries other than which the company headquarters are located.
Loans Two U.N. agencies, the International Monetary Fund (IMF) and the World Bank, provide loans
developing countries for development. The IMF and World Bank were conceived at a 1944 United
Nations Monetary and Financial Conference to promote economic development and stability after the
devastation of World War II and to avoid a repetition of the disastrous economic policies contributing to
the Great Depression in the 1930s. Developing countries borrow money to build new infrastructure, such
as hydroelectric dams, electric transmission lines, flood-protection systems, water supplies, roads, and
hotels. The theory is that new infrastructure will make conditions more favorable for domestic and foreign
businesses to open or expand. Some countries have been unable to repay the interest on their loans, let
alone the principal. Debt actually exceeds annual income in a number of countries.
Development Challenges During Hard Times The effects of the 2008 economic downturn are still felt
today, and have made it difficult for many countries to make progress in development. Countries in
Southern Europe have been particularly affected.
Stimulus of Austerity? Stimulus and austerity strategies as a solution for fighting economic downturns
have deeply divided political leaders and independent analysts. Advocates of stimulus contend that during
a downturn, governments should spend more money than they collect in taxes. Governments should
stimulate the economy by putting people to work building bridges and other needed infrastructure
projects. Advocates of austerity contend that government should sharply reduce taxes so that people and
businesses can revive the economy by spending their tax savings. Governments should also sharply
reduce spending on public programs in order to keep the debt from growing and hampering the economy
in the future.
Structural Adjustment Programs If a country has taken out loans and is unable to pay them off, the
IMF, World Bank, and economically healthy developed countries will often compel these countries to
adopt austerity programs in exchange for debt forgiveness. Austerity is imposed through ha policy
framework paper (PFP) that outlines a structural adjustment program. A structural adjustment program
contains economic “reforms” or “adjustments,” such as economic goals, strategies for achieving the
objectives, and external financing requirements. These strategies may include spending only what a
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government can afford, or directing benefits to the poor, among others. Detractors of structural
adjustment programs claim that poverty worsens under these programs, by placing priority on reducing
government spending and inflation. These changes could result in cuts in health, education, and social
services that help the poor or higher unemployment rates.
Europe’s Sovereign Debt Crisis Economic hardships have caused doubts to emerge regarding Europe’s
capacity to continue supporting the international trade development path. While many European countries
expected a more robust economy upon adoption of the euro as a common currency in 1999, the economic
downturn of the early twenty-first century revealed that weaker economies in the union would have to be
kept afloat by wealthier member nations. This relationship is most evident between Germany and Greece.
Development for Microfinance An alternative source of loans for would-be business owners in
developing countries is microfinance. Microfinance is the provision of a small loan to individuals and
small businesses that are unable to get a loan from commercial banks. The Grameen Bank, established in
Bangladesh in 1977, is a prominent example of microfinance. The Grameen Bank specializes in making
loans to women, who make up three-quarters of the borrowers. These women are often mothers and the
sole wage earners in the home.
Key Issue 4: Why Are Countries Making Progress in Development?
Fair trade has been proposed as an alternative to the international trade model of development that
promotes sustainability. Fair trade is international trade that provides greater equity to workers, small
businesses, and consumers. Fair trade products are made and traded according to standards that protect
workers and small businesses in developing countries.
Fair Trade Standards The fair trade movement concentrates primarily on exports from developing
countries to developed countries. Sustainability is promoted by offering better trading and working
conditions for producers and workers in developing countries. Fair trade organizations, supported by
consumers, raise awareness of deficiencies in conventional international production and trade and the role
of fair trader in improving economic, social, and environmental conditions for producers and workers.
Three sets of standards distinguish fair trade. One set applies to producers, a second set to workers on
farms and in factories, and a third set to consumers.
Fair Trade for Producers Fair trade is a set of business practices designed to promote a number of
economic, social, and environmental goals. These include:

Raising the incomes of small-scale farmers and artisans by eliminating some of the
intermediaries.

Distributing the profits and risks associated with production and sale of goods more fairly among
producers, distributors, retailers, and financiers.

Increasing the entrepreneurial and management skills of the producers.

Promoting safe and sustainable farming methods as well as working conditions, such as by
prohibiting the use of dangerous pesticides and herbicides and by promoting the production of
certified organic crops.
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Fair Trade for Workers Fair trade regarding workers’ rights requires the following:

Workers must be paid fair wages – at least enough to cover food, shelter, education, health care,
and other basic needs.

Workers must be permitted to organize a union and to have the right to collective bargaining.

Workers must be protected by high environmental and safety standards.
Fair Trade for Consumers Most fair trader products are food. Fair trade products reach consumers
primarily through cooperatively owned groceries. A cooperative store is a member-owned, membergoverned business that operates for the benefit of its members according to common principles agreed
upon by the international cooperative community. The consumer-owned cooperative movement
originated in the nineteenth century, as a result of poor working conditions and inequalities during the
Industrial Revolution.
Measuring Progress Since the U.N. began measuring HDI in 1980, both developed and developing
regions have made progress in the HDI, as well as the variable contributing to the HDI. Progress varies
among the three variables contributing to the HDI, though.
Indicators of Progress The gap in HDI between developed and developing countries has narrowed since
1980, although HDI has increased more rapidly in developing regions than in developed ones. GNI per
capita has increased much more rapidly in developed countries than in developing countries since 1980.
Since 1980, mean years of education has increased by around the same number in developed and
developing countries. Life expectancy has increased by around the same number of years in developed
and developing countries in the same time period.
Sustainable Development Goals To reduce disparities between developed and developing countries, the
193 members of the U.N. adopted 17 Sustainable Development Goals in 2015. All U.N. members agreed
to achieve these goals by 2030. The Sustainable Development Goals replaced eight Millennium
Development Goals adopted in 2002 with the goal of achieving them by 2015.
Introducing the Chapter
Development captures the imagination of many students in a way that some other topics in economic
geography do not. The great puzzle of why so many states continue to be poor despite many honest
efforts to improve the lives of their people remains to be solved.
The chapter starts with a discussion of where less developed and more developed countries are distributed
and the indicators of development. Some students may protest that many of the indicators are more or less
connected with wealth, and that people may be poor and uneducated but still happy. Ask whether
happiness can be measured between cultures and countries. Someone may volunteer Bhutan, which
references the “gross national happiness” of its citizens.
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Icebreaker: Vacation
Start a discussion with the class about “where would you like to go on vacation.” Decide on a popular
less-developed destination and discuss what it is that makes it an attractive destination. Create a list of
those amenities, which are likely to include an agreeable climate, scenery, and low prices for food and
lodging. Now ask the class to consider the following questions:

Are the people who live in this place year-round fortunate to live at such a desirable destination?

What do the local people depend on for income? Does tourism play a role?

What do the people in this country, who do not live in a tourist area, do for work?

Can any of these people, who wish to, come to our country on a vacation? Why not? Is that fair?
Challenges to Comprehension
Students may ask whether there are any countries that are “medium developed” instead of simply “less”
and “more.” Instead of answering this question directly, consider asking your students to look at the HDI
and make up their own minds. Note that some development agencies do reference low, medium, and high
levels of development. Also, suggest that if there were three categories, they might be named something
else, such as “more developed”, “less developed”, and “more less developed.” Of course, the status of
Russia raises the question of whether a country can become less developed (Russia’s HDI is the same as
Latin America).
Former Soviet Countries
The Human Development Index (HDI) for Russia and Latin America are equal. Thus, students want to
know, how can one be considered less developed and the other more developed?
The best answer is probably that Russia has seen its level of development drop from a higher level,
whereas Latin America’s HDI has been increasing.
The main statistic of distinction between these regions is that Russia is in the late stage 4 of the
demographic transition, with declining populations, while Latin America as a region is in stage 3, with
population growth still creating issues for urban areas, job growth, the economy, and the environment.
Assignments
Review/ Reflection Questions

If you were to create an index of development, what indicators would you use, and why? How
would you weigh each indicator? Could your index be used around the world, or would it be
mostly relevant to our society?
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
The HDI is used to measure development at a whole-country level. Is it adequate to measure
development within a country? Why or why not? (Another way of thinking about this: Are there
minority groups that may be “glossed over” by the HDI?)

The GDI is used as a way of ranking development scores to compare the development of women
compared to men in society. However, looking at the Gender Development Index rankings might
imply that those countries at the top of the list have gender equality. Discuss whether this is the
case or not.

Discuss whether our economy requires other countries to remain underdeveloped. That is, could
we maintain our standard of living if the rest of the world had the same level of development, and
thus presumably the same wages and costs of living? What does this mean for the future?
Assignments: Two Dollars per Day
An estimated 2.8 billion of the world’s population subsists on less than U.S. $2 per day.
Research and write a four-to-five page descriptive essay (approximately 1200 words) describing in detail
what your life on this income ($700 per year) would be like. Make sure to include:

What do you do for work? Describe your daily routine.

What happens when you become sick or injured?

What are your most pressing concerns?

What are the hopes for the future for yourself and your family?
Thinking Geographically
10.1: The United Nations held the Human Development Data Visualization Competition in 2015.
Participants were encouraged to create innovative ways to depict HDI data. The winter was the “Human
Development Tree” created by Jurjen Verhagen, from the Netherlands (Figure 10-53). To view the
“Human Development Tree” and the other eight finalists, enter Human Development Data Visualization
Competition in your search engine, or go to hdrdata.tumblr.com. Which visualization do you think is the
most effective? Is the winning visualization effective? Why?
I like the “Human Development Index Change and Regime” and the winner, “Human Development
Tree.” I think the winner is the most effective, as it is the visually least-busy, while still effectively
communicating information to the audience.
10.2: Based on the world maps included in Key Issue 2, which two of the nine world regions appear to
have the highest levels of inequality? Do these two regions have high or low HDIs?
Sub-Saharan Africa and South Asia appear to have the highest level of inequality. They also have low HDIs.
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10.3: What factors might account for the high levels of inequality and the distinctive HDIs in these two
regions?
Gender inequality may play a major role in the high levels of inequality and the distinctive HDIs in these
two regions.
10.4: In Figure 10-54, what might be the reaction of the rickshaw driver to sharing the road with the
BMW? What might be the reaction of the BMW driver to sharing the road with the rickshaw?
I would imagine that the rickshaw driver would resent the driver of the BMW, as the driver of the BMW
clearly has more wealth than the rickshaw driver. It could be considered disposable wealth as well, as
BMWs operate just as well as a cheaper vehicle. The BMW driver may view the rickshaw driver as an
annoyance, as they may be taking up space on the road.
10.5: The Trans-Kalahari Corridor consists of several new roads and rail lines connecting Namibia with
Botswana and South Africa. In what condition does the road appear?
The road appears to be in very good condition. It looks as if it could be brand new.
10.6: What important elements of development can be seen in Figure 10-55, in addition to the road? Why
would it be important for Namibia to have connections with South Africa?
The only other element of development I can view is the semi-truck driving along the road. Namibia’s
connection with South Africa would be beneficial to both countries, as increased mutual trade could
engender positive economic growth for both. Aid may be able to be transported to Namibia from the more
prosperous South Africa along these roadways, as well.
10.7: As a very poor country, Namibia lack the resources to build this infrastructure, so how do you think
it got built?
Foreign direct investment probably played a major role in the construction of this highway.
10.8: The U.N. lets you change the numbers used to calculate the HDI to see the impact on a country’s
level of development. Go to hdr.undp.org/ and search for the Calculating the Indices using Excel tool.
Select the HDI worksheet. Country A is an example of a high developing country. The U.N.’s cutoff for a
developed country is 0.80. Change one or more of the four data columns until you get an HDI above
0.80.10.9: Which of the four columns needs to change the most in order for Country A to be reclassified
from developing to developed? Which of the four columns needs to change the most to reclassify Country
D as developed?
Life expectancy is the column that needs to be changed the most for both countries to be reclassified as
developed.
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Pause and Reflect Questions
10.1.1: Which developing regions appear to have relatively high diversity in the HDIs of individual
countries?
Latin America and East Asia appear to have the most diversity in the HDIs of individual countries.
10.1.2: Figure 9-3 shows the percentage of workers engaged in agriculture. Does a country with a high
percentage of agricultural workers, as shown in Figure 9-3, typically have a high HDI or low HDI?
Countries with a high percentage of agricultural workers typically have a low HDI.
10.1.3: The United States has a lower pupil/teacher ratio than Canada. Does that mean that the
pupil/teacher ratio in the United States is more favorable or less favorable than in Canada?
The pupil/teacher ratio in the United States is more favorable than in Canada, where it is higher.
10.1.4: In addition to cell phones, what other electronic devices might diffuse rapidly to developing
countries because of low cost of equipment and lack of need for costly infrastructure?
Radios are likely to diffuse rapid to developing countries, if they haven’t already. Radios may play a
valuable role in relaying information to isolated areas (especially shortwave radios).
10.2.1: In the United States, the HDI is .914 and the IHDI is .755. In Canada, the HDI is .902 and the
IHDI is .833. Which country has greater inequality?
Lower IHDI scores indicate higher inequality, so the United States has greater inequality compared to
Canada.
10.2.2: The GII is .262 in the United States and .136 in Canada. Which country has greater gender
inequality?
The United States has higher gender inequality, as a higher GII score indicates higher gender inequality.
10.2.3: What is the gender ratio on the governing body of your local community?
Our city council is 100 percent male.
10.2.4: What combination of development features might be making several countries in Latin America
and Asia be considered semi-periphery instead of periphery?
Relationships between Latin America and North America, and Asia with Japan and Australia and New
Zealand, may have impacted their classification as semi-periphery instead of periphery.
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10.2.5: In summary, how close is the relationship between development and gender inequality?
There is an inverse relationship between development and gender inequality, as can be seen in Figure 10-29.
10.3.1: Many countries that have adopted the international trade model are relatively small states (see
Chapter 8). Why might a nation’s size be a factor in the early adoption of the international trade path?
A small nation might not have access to the diversity of natural resources a large nation would, meaning
that they would be compelled to trade with other countries to meet local demand for goods.
10.3.2: Top WTO officials meet every two years in a so-called ministerial conference. Where was the
most recent conference held? Use the Internet to search for “WTO ministerial conference” to see if there
were protests at the conference.
The most recent WTO ministerial conference was in Nairobi, Kenya in 2015. There were protests at the
event.
10.3.3: Why might Apple, Microsoft, and Alphabet rank as three of the world’s largest transnational
corporations?
These companies might rank as three of the world’s largest transnational corporations because they have
among the highest revenues of any corporation, and operate in many nations across the world.
10.3.4: Do the terms of a structural adjustment program seem harsh for a country or fair? Why?
They seem harsh to me. To expect a developing country to progress towards greater development under
the onerous terms usually associated with structural adjustment programs is quite ridiculous. These
programs often hurt the most vulnerable in a population the most. Loan forgiveness, with not stipulations,
should be implemented for countries that are financially disadvantaged.
10.4.1: Are you aware of the availability of fair trade products in your community? Is there a co-op in
your community?
I am aware of the availability of fair trade products in my community. I can only find free trade coffee in
my community. There is not a co-op in my community.
10.4.2: Which Sustainable Development Goals appear to be making the most limited progress? Why
might that be the case?
Number 13, urging action to be taken against climate change, seems to have made the most limited
progress. A worldwide consensus laying out concrete, legally-binding assurances for every nation to cut
carbon emissions must be achieved for any true progress to be made on the issue.
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Explore
In some years, Niger has the lowest HDI of any country.
Fly to Arlit, Niger.
1. Nearly the entire landscape is a desert. For a city to exist in the desert, it needs water. Where is Arlit’s
water being stored?
It appears as if Arlit’s water is being stored in a series of cisterns.
Zoom in to around 3,000 feet eye alt.
2. What is the material of the roads and open space? Do you see any grass?
The roads and open space are all desert. I don’t see any grass.
3. Set imagery date to 2004. What differences do you see in 2004 and 2014? In which direction has the
town grown most rapidly?
The town has grown a lot, as can be seen by the increasing urbanization in the area. The town has grown
most rapidly in the northerly direction.
Zoom out to around 45,000 feet eye alt.
Niger is one of the world’s leading sources of uranium. The reason for Arlit’s existence is the uranium
mine at the top of the image.
Click Roads, center the image on the uranium mine, and zoom in to 32,000 feet eye alt.
4. How might the uranium mine affect Arlit’s level of development in transportation, income,
employment, and environmental quality?
The uranium mine probably led to greater development of roads and the international airport, along with
higher incomes and higher rates of employment in comparison to other areas in Niger. However,
I imagine that the environment surrounding Arlit has degraded as a result of the uranium mining activity.
GeoVideo Questions
1. What has been the relationship between market forces and government policy throughout China’s
recent rapid economic growth?
Government policy has attempted to control market forces, engendering rapid economic growth.
Millions of rural Chinese have sought a better life in the coastal cities of the country, causing
massive population shifts.
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2. Describe the role of the city of Wenzhou in China’s “new Industrial Revolution.”
In an effort to control migration patterns from rural to urban areas (mainly for job demands), the
Chinese government has promoted the growth of cities such as Wenzhou as hubs to accommodate
economic growth and job demands. Twenty years ago Wenzhou was a backwater area – today, it
is a bustling economic center.
3. According to the video, what two problems must China solve to ensure continued economic
growth and social stability?
China must meet the demands of its poorer citizens for a better life, making sure that job
opportunities are open to those who wish to obtain more wealth for themselves and their families.
The government must also balance this need for jobs with human rights, ensuring that the chaos
of Russian communism isn’t repeated in China.
Resources
United Nations Development Program
Online at www.undp.org/, the U.N. Development Program’s site contains reams of information about
development, including the annually themed Human Development Report.
Transparency International
Some critiques of development charge that corruption in government plays a role in hindering
development. Students can explore this through the reporting of Transparency International
(www.transparency.org), a corruption monitoring and reporting organization operating around the world.
Life and Debt
The 2001 film by Stephanie Black presents the case against the IMF’s structural adjustment policies in
Jamaica. The theme of the film echoes the introductory paragraphs of the chapter, contrasting the tourist
experience with the lives of everyday Jamaicans in poverty.
Extremely popular with students, it features interviews with then deputy director of the IMF and the
former prime minister of Jamaica. The film serves as an excellent connection to Chapter 9 because it
raises the issue of farm subsidies in the developed world.
Bhutan: The Last Place
There is a 2002 Frontline World documentary on the arrival of satellite TV to Bhutan, a mountain
kingdom which did not have a television until 1999.
Orville Schell comments of the Bhutanese conception of “gross national happiness” and the effects of TV
in his essay at http://www.pbs.org/frontlineworld/stories/bhutan/
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United States Agency for International Development (USAID)
This is a clearinghouse of information on U.S. international development, including current projects,
reports, and the agency’s policy priorities and standards. It is online at www.usaid.gov/.
Connections between Chapters
Back to Chapters 2 and 9
Instead of relying on the tenuous connection to Chapter 8, refer to Chapter 2. While many will have
forgotten by now, ask what connection there is between countries in stage 2 of the demographic transition
and their level of development . . . some lights should go on! A natural transition from Chapter 9 is
suggested by the discussion in Key Issue 1 of measuring the division of labor by economic sector. This
idea that the percentage of a country’s labor force in each sector of the economy can serve as an indicator
of development, prepares students to learn about each sector. The tremendous difference between the least
developed countries and developed countries in agriculture is particularly relevant.
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