Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• Almost all MDCs north of 30°N latitude; almost all LDCs south
(north-south split)
• More Developed Regions
– Anglo-America (HDI = 0.94)
• U.S. & Canada
• Over 90% speak English and are Christian (excluding “no religion”)
• Some cultural diversity – tension, discrimination; Quebec, indigenous
peoples, history of slavery & segregation, many immigrants
• Major source of manufacturing natural resources & minerals
• Leading consumers of manufactured goods
• Last 30 years – loss of manufacturing jobs to Japan, Western Europe,
China, Latin America, & other LDCs
• Leading producer of financial, management, & high tech services
• Leading producer of entertainment, media, sports, recreation
• Most important exporter of food – few farmers, lots of farmland, heavily
mechanized & efficient agriculture
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• More Developed Regions
– Western Europe (HDI = 0.93)
• Cultural unity with mostly Indo-European languages & Christianity
• Diversity with wide range of languages, different religious practices,
ethnicities; source of conflict (wars, genocide)
• More unified since end of WWII (EU)
• Diversity increased by migration of Muslims & Hindus from LDCs
• NIR at or below 0; immigration is responsible for pop. Growth
• Highest HDI in core (Germany, NE France, N. Italy, Switzerland, S.
Scandinavia, SE U.K., Belgium, Netherlands, Luxembourg)
• Lower in periphery (S. Italy, Portugal, Spain, Greece)
• Must import food, energy, & minerals (once relied on colonies)
• Provide insurance, banking, luxury cars (BMW, Mercedes, etc.)
• EU – removal of economic barriers, richest market in world
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• More Developed Regions
– Eastern Europe (HDI = 0.80)
• Only region where HDI has declined since 1990 (legacy of
Communism)
• About equal with Latin America since 2000
• East of 15°E longitude – under USSR influence until early 1990s
• Albania, E. Germany, Hungary, Czechoslovakia, Bulgaria, Poland,
Romania, Yugoslavia, former Soviet republics in Europe
• Rapid development under Communism in 1950s & 60s
• Gosplan (planning commission) – developed 5 year plans in USSR that
focused on:
– heavy industry (steel, iron, weapons, oil) & mining, electric power,
transportation
– dispersal of industry (move to Asian portion to give safety & redistribute
wealth)
– Locate near raw materials not markets (efficient to produce heavy industry
but lack of consumer demand in Siberia)
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• More Developed Regions
– Eastern Europe (HDI = 0.80)
• Communism ended due to desire for freedom & because
central economic planning proved disastrous
– Annual targets met but long-term investments/upgrades ignored
– Inefficient agriculture (had to import)
– Factories often did not implement orders (long-distance &
unmonitored)
– Some targets unrealistic; others were ignored to ensure job security
– Heavy pollution & little environmental standards
• Neglected consumer products (autos, fridges, clothing) – but
people saw them on TV, movies, radio (better life in West)
• Housing shortages, poor living conditions
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• More Developed Regions
– Eastern Europe (HDI = 0.80)
• Border countries to Western Europe have grown more
rapidly economically (Czech, Hungary, Poland, Slovakia,
Slovenia)
• Russia’s HDI is lower than Libya & Malaysia (as of 2005);
declining HDI in former Soviet states – high death rates,
lower production, possibly falsified statistics under
Communism
• Closed inefficient businesses; increased unemployment,
price for goods increased with removal of gov’t subsidies
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• More Developed Regions
– Japan (HDI = 0.94)
• Anglo-America & Western Europe are more alike & viewed together
by much of the world (“the West”; history of global dominance)
• Japan is a 3rd center, with a very different culture
• Very few resources, but a very large population
– High physiological densities & intensively farmed lands
– Consume little meat (other than fish) & little grain (other than rice); must
import most of food
– A leading steel producer; must import all coal & iron ore
– Large # of people willing to work for lower wages
– Sell products at lower prices in foreign markets
– Also produce high quality, high value products (electronics, cameras, autos)
– Concentrated on education & training for skilled labor force
– Spend 2x on what U.S. companies spend on research & development
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• More Developed Regions
– South Pacific (HDI = 0.87)
• Australia & New Zealand & several small islands/island
groups
• Small population & remote – not as important to global
economy
• Becoming increasingly connected to Japan & other Asian
countries
• Australia & NZ (former British colonies) have high HDIs and
export food to U.K.
• Smaller islands are less developed
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• Less Developed Regions
– Latin America (HDI = 0.80)
• Mostly Romance languages (Spanish & Portuguese) & Roman Catholic
• Diversity with indigenous people pop. & history of slaves brought
from Africa
• Very Urbanized compared to other LDCs
• Mexico City, Sao Paulo, Buenos Aires in top 10 largest cities in world
• Concentrated near Atlantic coast – export to Europe during colonial
era, mountains & rain forests limited access to interior
• Higher HDI along coast from Argentina to Brazil & in Mexico (Mexico
very close to U.S.); higher in Chile also (many exports)
• Lower HDI in Caribbean, Central America, & interior South America
• Biggest hindrance to development – inequitable income distribution
(a few wealthy families & many very poor); many tenant farmers (cash
crops such as coffee, tea, fruit – but not for local consumption)
• Encouraged redistribution of land & wealth but do not wish to
alienate wealthy landowners; many poor were given low quality land
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• Less Developed Regions
– East Asia (HDI = 0.76)
• China – 2nd largest single economy behind U.S.; 1/3 of world’s economic growth;
fastest growing GDP per capita in the world; world’s most populous country
• China’s economy was wealthiest until 1500s; economy has fallen behind by
foreign invasions, imperialism, & civil wars
• 1949 (Communism) – focused on rural areas (2/3 of pop.); gov’t took over land
(communes) & controlled production; food grown for local consumption (not
export); recent changes to allow for land ownership
• Dramatic increase in manufacturing – largest workforce & largest market for
consumer goods
• Lower wages than MDCs (produce for local use & export)
• Partner with major companies like Wal-Mart (prices & wages worldwide kept
low)
• Regional inequality – higher GDP near coasts (Beijing to Shanghai has ¼ of pop. &
½ of GDP & ¾ of foreign investment)
• Problems: weak middle management, low quality control, primitive banking,
inadequate legal protection, pollution, rapid development strains resources
• Largest consumer of copper, steel, cement & 2nd largest of oil behind U.S.
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• Less Developed Regions
– Middle East (HDI = 0.68)
• Southwest Asia & North Africa; dominated by desert, Arabic, & Islam
• Most products must be imported (particularly food)
• Large % of petroleum reserves – only region that enjoys a trade
surplus (imports > exports); other regions buy oil from Middle East
• Some countries lack significant oil reserves (Egypt, Syria, Jordan,
Israel, Lebanon); most oil is found near Persian Gulf
• Oil has led to conflict: 1990 – Iraq invaded Kuwait (large reserves) &
accused Kuwait of not sharing wealth & not providing good living
conditions for Arab guest workers; Iraq’s largest oil fields also lie
under Kuwait
• Major challenge – to promote development while maintaining Islamic
traditions
– Role of women in business is restricted
– Low literacy rate of women
– Prevent financial/lending practices that are incompatible with Islam
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• Less Developed Regions
– Middle East (HDI = 0.68)
• ADHI (Alternative Human Development Index)
– UN developed to calculate HDI when adjusted for social inequality
(ethnicities, religious, social class, gender, etc.)
– 3 reasons for low HDI in Middle East:
» Lack of political freedom
» Low education & literacy rates
» Lack of opportunities for women
• Internal conflicts – Iraq, Iraq vs. Iran, Shi’ite vs. Sunni, Syria, Kurds,
Israel, Palestine, Lebanon, Libya, Tunisia, Egypt
• Most Arab & Muslim states refuse to recognize Israel
• Many spend money for war rebuilding & military than economic
development
• Terrorism – most do not hate it, most do not endorse it either
• Most did not support U.S. invasion of Iraq in 2003 & do not support
the “War on Terror”
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• Less Developed Regions
– Southeast Asia (HDI = 0.58)
• Indonesia – 2/3 of pop. on Java
• Vietnam, Thailand, Philippines
• Internal conflicts, wars, colonialism by
Japan/Netherlands/Portuguese/U.S./U.K./France
• Tropical climate - soil & climate not good for most grains (low nutrients,
excessive water)
• Mountains, volcanoes, rainforests, typhoons, tsunamis all challenge
economic development
• Medicines & tech led to pop. Growth
• Most crops based in manufacturing – palm oil, coconut oil, rubber trees,
kabok (fiber used in insulation), abaca (used for rope fibers)
• Major food & export crop is rice (Indonesia, Malaysia, Thailand, Vietnam)
• Rapid development in Thailand, Singapore, Malaysia, & Philippines
(textiles/clothing – due to low cost labor)
• Economic growth has slowed recently – unwise investing, lack of
watchdog groups, reforms are in process but expensive & time consuming
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• Less Developed Regions
– South Asia (HDI = 0.58)
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India, Bangladesh, Pakistan, Sri Lanka, Nepal, Bhutan
Region with 2nd highest pop. & 2nd lowest per capita GDP
High NIR, high pop. Density
Climate – monsoon rains May-August (varies year to year)
India – jute (rope, twine, burlap), peanuts, sugarcane, tea, uranium,
bauxite (aluminum), coal, manganese, iron, chromite, rice, wheat,
cotton
India has many minerals but a low mineral to pop. Ratio
Green Revolution (since 1960s) – dramatic increase in agricultural
production with genetically engineered seeds, improved farming
practices, more chemicals & machines
India – 4th largest total GDP behind U.S., China, Japan; but low per
capita
Manufacturing growth but not as fast as China
Service sector growth with help desks – credit card, airline, tech, etc.
Key Issue #2: Where Are More & Less
Developed Countries Distributed?
• Less Developed Regions
– Sub-Saharan Africa (HDI = 0.51)
• Lower pop. density than other LDCs
• Major source of minerals:
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South Africa – chromium, gold, diamonds, manganese, platinum
Botswana & DRC – diamonds
Guinea – bauxite; DRC & Zambia – cobalt
Gabon – manganese; Nigeria – petroleum
Niger – uranium
• Main problem – inability of land to provide food/resources for the
rapidly growing pop. (deserts & tropical climates; highest NIR;
overworked land (desertification))
• Least favorable development prospects:
– Highest % in poverty
– Poor health & education
– Weakening economic conditions (avg. African consumes less than 25 yrs ago)
• Legacy of colonial era – goods produced for export not local use,
border disputes, ethnic conflict, landlocked states
Key Issue #3: Where Does
Development Vary by Gender?
• Using total figures masks gender inequality
• UN states that gender equality exists in every country to some extent
• GDI (Gender-related Development Index) – compares women with
both sexes combined
• GEM (Gender Empowerment Measure) – measure ability of women to
participate in economic & political decision making
• GDI (measures standard of living of women vs. men)
– Similar to HDI (1 economic, 2 social, 1 demographic)
– Penalizes large disparities between men & women (Ex. Iran & Mexico
have even % of kids enrolled in school but GDI is much higher in Mexico
because girls are more likely to be enrolled in school)
– Total equality = 1.0 (no countries)
– Highest in 2005 – Norway (0.96)
– Often higher in Western Europe & North America
– Lowest in Sub-Saharan Africa
– Often low in Middle East
Key Issue #3: Where Does Development Vary by
Gender?
• GDI
– Economic Indicator of Gender Differences (Average Income)
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Average Income – lower in every country for females
U.S. in 2010 - $42,800 (male) vs. 34,700 (female)
Women make 2/3 male income in MDCs (avg. gap of $12,000)
Higher % difference in LDCs
– Social Indicators (Education & Literacy)
• LDCs – women less likely to attend schools (especially high school and
beyond)
• MDCs – 99 girls to 100 boys; LDCs 60 girls to 100 boys
• Very low in Sub-Saharan Africa & Middle East (fewer than 1/3 of girls
attend school)
• Universally required school attendance in MDCs
• Latin America & Asia have equal attendance by gender, but lower overall
attendance
• Literacy – MDCs (near equal & very high); Latin America & Asia (near equal,
but not as high); Sub-Saharan Africa (low for both, but lower for female)
• Low education & literacy limits ability of women to participate
economically & politically in some parts of the world
Key Issue #3: Where Does Development
Vary by Gender?
• GDI
– Demographic Indicator (Life Expectancy)
• MDCs – life expectancy is several years longer for females (6 years in U.S.)
• LDCs – only 1 -2 years longer for females
• Lower in LDCs due to hazards of childbearing (poor medical conditions)
– Overall, the status of women is improving around the world
• Gender Empowerment (GEM)
– Measures ability of women to participate in improving quality of life
– In every country (MDC or LDC), fewer women hold positions of
power
– GEM calculated using income & professional jobs (economic power)
and managerial jobs & elected jobs (political power)
– Complete equality = 1.0 (no countries at perfect GEM)
– Highest in N. America, Northern Europe, & South Pacific
– Lowest in Africa & Asia
– Difficult to determine accurately due to limited data in LDCs
Key Issue #3: Where Does Development Vary by
Gender?
• Gender Empowerment (GEM)
– Economic Indicators (Professional Jobs & Income)
• Cultural barriers restrict empowerment of women in professional &
technical jobs
• ½ or more of professional/tech workers in N. America & Northern Europe
are women
• Less than ½ in LDCs (where data is available)
• Share of income is lower in every country (gender wage gap)
– Political Indicators (Managerial Jobs & Elected Jobs)
• 1/3 of managerial jobs held by women in N. America, Northern Europe, &
South Pacific
• Less than ¼ in LDCs where data available
• Elected positions – no female majority in any country; highest in Northern
Europe (about 1/3)
• About 1 in 5 elected officials are women in other MDCs (15% in U.S. House
& Senate)
• Less than 1 in 10 elected officials are women in LDCs
• Every country has a lower GEM than GDI – women hold a greater share of
resources compared to their power to allocate resources