Structures and
Characteristics of
Developing Countries:
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RD
3
Thea
Guill
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Yna
presenters:
Chiong, Alethea M.
Custodio, Guilliano S.
Tan, Daryl Yna Angelie T.
TOPICS FOR TODAY’S DISCUSSION:
● Holistic Measure of Living Levels: Human Development
Index (HDI)
● Low Levels of Productivity & Living
● High Rates of Population Growth and Dependency
Burdens
● Dominance, Dependence, and Vulnerability in
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International Depence
COMMON
CHARACTERISTICS
OF DEVELOPING
NATIONS
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These countries are considered states that have
strong and independent economies, are technologicaladvanced, have high income and GDP, have a high
life expectancy, and have good quality education.
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These countries have low and middle-income,
and they cannot fully accommodate people to
their needs like health care, education, and
jobs. They also have a low GDP resulting in
people ceasing or losing their jobs, meaning
they are economically struggling.
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What is HDI?
What does it measure?
● According to UNDP (2022), the Human
● The Human Development Index (HDI) is a summary measure
Development Index (HDI), introduced in
1990, was created to emphasize that
people and their capabilities should be
the ultimate criteria for assessing the
development of a country, not economic
growth alone.
of average achievement in key dimensions of human
development: a long and healthy life, being knowledgeable,
and having a decent standard of living (UNDP, 2022).
● Todaro and Smith (2020) defined Human
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Development Index (HDI) as an index
measuring
national
socioeconomic
development,
based
on
combining
measures of education, health, and
adjusted real income per capita.
Source: United Nations Development Program
Traditional HDI
Current HDI
•
Initiated in 1990
•
Initiated in 2010
•
Uses arithmetic mean
•
Uses geometric mean
HOW TO CALCULATE THE CURRENT OR NEW HDI?
 First step: calculate the three “Dimension Indices”
 Second step: aggregate the resulting indices to produce the overall
New Human Development Index (NHDI)
Formula:
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The Case of Costa Rica in 2014
Health Dimension
Given:
Minimum Value = 80 yrs.
Maximum Value = 85 yrs.
Actual Value = 79.93 yrs.
Education Dimension
Given:
 For average years of schooling:
Minimum value = 0
Maximum value = 15 yrs.
Actual value = 8.37 yrs.
 For the expected number of years of schooling for a school-age child:
Solution:
Life Expectancy Index
= (79.93 - 20) / (85 - 20)
= 0.922
Minimum value = 0
Maximum value = 18 years
Actual value = 13.5 years
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Solution:
 For average years of schooling for adults:
= (8.37 - 0) / (15 - 0) = 0.558
 For the expected number of years in schooling for a school-age child:
= (13.5 - 0) / (18.0 - 0) = 0.750
Education Index = [0.558 + 0.750] / 2 = 0.654
Income Dimension
Given:
Minimum value = $100 per capita
Maximum value = $75,000 per capita
Actual value = $13,011.7
Solution:
Income Index = [ln(13,011.7) - ln(100)] / [ln(75,000) - ln(100)]
= 0.735
Human Development Index (HDI)
Solution:
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By utilizing the three indicators and the calculation on
the 2018 data shown above, the HDI categorized the
countries into four groups:
• Low human development - 0.0 to 0.549
• Medium human development - 0.550 to 0.699
• High human development - 0.700 to 0.799
• Very high human development - 0.80 to 1.0
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LOW LEVELS OF PRODUCTIVITY AND LIVING
Low levels of productivity may impact
unmotivated workers and production which can
adversely affect the business or organization
that may delay or lack to sustainability of
achieving their goals
It may also affect the individual’s living cost or
efficiency, since low levels of productivity may
lead to shortage of resources or goods for their
needs. Worst case, may result in difficulty in
their daily survival.
There are multiple causes to such low levels of
productivity that can place an impact on the
living of an individual.
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•
•
•
•
•
Poor management
Lack of employees
Bad relationship between workers
Overwhelming works (not properly
divided tasks)
Weak Organizational structure
HIGH RATES OF POPULATION GROWTH
AND DEPENDENCY BURDENS
According to the United Nations (2022), in the year 2022 the population of
the world went beyond the expected size reaching almost 8 billion people,
and projecting the population to reach 11 billion in the year of 2100.
DEFINITION
High rates of population growth mean that it is a rapid increase in population in terms
of birth and decreasing death rates that also affect the resources needed and relied
on by the community within the area.
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Most of the sudden rates of population growth are present in developing countries
which can cause circumstances in the aspect of economics–this can also affect the
resources or needs of the people they depend on.
Currently, the country that faces high rates of population growth is the world’s poorest
country, which is Sub-Saharan Africa.
CONSEQUENCES OF
POPULATION GROWTH
Climate Change
Food Security
Biodiversity Loss &
Overexploitation of
Resource
CAUSES
Increase Fertility Rates
Increase Life Expectancy
Migration
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DOMINANCE, DEPENDENCE,
AND VULNERABILITY IN
INTERNATIONAL
DEPENDENCE
International dependence is defined
as a country like developing ones
who rely upon strong countries who
can control and contribute to their
economic, political, and social
development.
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DEPENDENCY BURDENS
If there is a high ratio of dependency meaning there is a difficulty for working-age people
supporting ages below 15 and above 64. Higher dependency becomes a problem
because not all people will be accommodated or given services to their needs. On the
contrary, having a low dependency ratio gives a sign for people in their working-age to
have a more sufficient number of people that they can support within the population.
Accordingly, their (developing countries) role is to provide raw materials and cheap
labor, to provide products that are sold thrice in the market helping to its low economic
growth.
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It allows more integration towards the developed and developing countries that can also
benefit by both parties to contributions that are provided by two parties.
DOMINANCE, DEPENDENCE, AND VULNERABILITY
Dominance
Dependence
Vulnerability
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External Dependence and Unequal International Relations
Todaro and Smith (2020) discussed that:
• Developing nations have become less influential and organized in
international affairs, which can have unfavorable effects on their ability
to develop.
•
Except for China and to a lesser extent India, most developing
countries have weaker bargaining positions in comparison to
developed ones in international economic interactions.
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External Dependence and Unequal International Relations
•
Developing countries frequently expressed significant concern over a
variety of cultural dependence, including news and entertainment as well
as business practices, the way of life, and social norms.
•
Developing countries are also reliant on the developed world to preserve
the environment which is essential for sustainable development.
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External Dependence and Unequal International Relations
•
Compared to presently developed nations, several developing countries had much more difficult
starting points for economic development when they started their era of modern economic growth.
• For at least some later-developing nations, eight differences have occasionally presented serious
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challenges:
• Lower physical and human resource endowments;
• Lower per capita incomes and levels of GDP concerning the rest of the world;
• Climatic features and more recently climate change;
• Population size, distribution, and growth rates;
• Historical role of international migration;
• International trade benefits;
• Basic indigenous scientific and technological research and development capabilities; and
• Efficacy of domestic institutions
THANK
FOR LISTENING
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QUESTION &
ANSWER
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REFERENCES:
Iberdrola. (n.d.). The changing world population and its impact on the future of the planet. Iberdrola.
https://www.iberdrola.com/sustainability/world-population-evolution
Kothari, M. (2023, May 19). 7 Proven Causes of Low Productivity Levels | Quixy. Quixy. https://quixy.com/blog/causes-of-lowproductivity-levels/
Nations, U. (2022). Population. United Nations. https://www.un.org/en/globalissues/population#:~:text=More%20than%20half%20of%20global
Todaro, M., & Smith, S. (2020). Economic Development (13th Edition). Pearson .
UNDP. (2022). Human Development Index. United Nations Development Programme; United Nations. https://hdr.undp.org/datacenter/human-development-index#/indicies/HDI
Wilmoth, J., Menozzi, C., & Bassarsky, L. (2022). Why population growth matters for sustainable development POLICY BRIEF NO 130 Key
messages.https://www.un.org/development/desa/pd/sites/www.un.org.development.desa.pd/files/undesa_pd_2022_poli
cy_brief_population_growth.pdf
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