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Human Geography Chapter 10: Development
Terms in this set (43)
A process of improvement in the conditions of people through diffusion of knowledge and technology. The three dimensions are a decent standard of living, access to knowledge, and good health and welfare.
MDC (Developed Country)
A country that has progressed relatively far along a continuum of development. North America and Europe are considered two regions in this category.
LDC (Developing Country)
A country that is at a relatively early stage in the process of development. Latin America, East Asia, South Asia, Southeast Asia, Central Asia, Southwest Asia & North Africa, and sub-Saharan Africa are considered seven regions in this category.
HDI (Human Development Index)
An indicator constructed by the UN to measure the level of development for a country through a combination of income, education, and life expectancy.
GNI (Gross National Income)
The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country. A way in which the UN measures the standard of living in countries. Dividing this by the total population measures the contribution made by the average individual toward generating a country's wealth in a year.
PPP (Purchasing Power Parity)
The amount of money needed in one country to purchase the same goods and services in another country.
GDP (Gross Domestic Product)
The value of the total output of goods and services produced in a country in a year, not accounting for money that leaves and enters the country.
The portion of the economy concerned with the direct extraction of materials from Earth, generally through agriculture and sometimes by mining, fishing, and forestry.
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
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, such as retailing, banking, law, education, and government.
The value of a particular product compared to the amount of labor needed to make it. 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. On the other hand, in developing countries this relies more on human and animal power.
Access to Knowledge
A dimension of the HDI. The UN considers years of schooling to be the most critical measure of the ability of an individual to gain this access needed for development. The UN combines two measures of years of schooling:
-Years of schooling for today's adults.
-Expected years of schooling for today's youth.
Improved education is a goal for many developing countries, but they lack the funds. On top of this, most books, newspapers, and magazines are published in developed countries, forcing students to read these in a language not their own.
The number of enrolled students divided by the number of teachers. The fewer pupils a teacher has, the more likely that each student will receive effective instruction.
The percentage of a country's people who can read and write.
Health & Welfare
A dimension of the HDI. A goal of development is to provide the nutrition and medical services needed for people to lead long and healthy lives. People are healthier in developed countries than in developing ones. When people in developed countries get sick, these countries possess the resources to care for them. Developed countries use part of their wealth to protect people who, for various reasons, are unable to work. In these countries, some public assistance is offered to those who are sick, elderly, poor, disabled, orphaned, veterans of wars, widows, unemployed, or single parents.
Goods including motor vehicles, telephones, and computers. This generates part of the wealth in developed countries. Products that promote better transportation and communications 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.
IHDI (Inequality-Adjusted Human Development Index)
A modification of the HDI to account for inequality. Under perfect equality, this and the HDI are the same. If this is lower than the HDI, the country has some inequality. The highest inequality is in sub-Saharan Africa and South Asia. Sometimes, inequality exists within regions of countries, both developed and developing. Brazil and Turkey are examples. Inequality can also be found among neighborhoods within the largest cities of developing countries, the wealthy living in modern apartments while the poor live in shacks, for example. The US's gap between the rich and the poor has increased despite a reduction in regional inequality.
A theory developed by US social scientists Immanuel Wallerstein that in an increasingly unified world economy developed countries form an inner core area whereas developing countries are found on the periphery and semi-periphery. Countries in Africa, Asia, and Latin America contain 3/4 of the world's population and nearly all of its population growth, but find themselves on the outer edge of the global economy. Most countries in the core lie in the North Hemisphere, except for Australia.
GII (Gender Inequality Index)
An indicator constructed by the UN to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market. Sub-Saharan Africa, South Asia, and Southwest Asia are the developing regions with the highest levels of gender inequality. Gender inequality has declined since the 1990s in 134 out of the 138 recorded countries, the greatest improvement being in Southwest Asia and North Africa.
GDI (Gender Development Index)
An indicator constructed by the UN to measure the gender gap in the level of achievement in terms of income, education, and life expectancy. The overall score in the world is 0.941, meaning the average HDI for all females in the world is 94.1 percent of the average HDI for all males.
In the context of gender inequality, refers to the ability of women to achieve improvements in their own status-that is, to achieve economic and political power. A dimension of GII measured by two indicators: The percentage of seats held by women in the national legislature and the percentage of women who have completed some secondary school (high school).
Female Labor Force Participation Rate
The percentage of women holding full-time jobs outside the home. Women are more likely than women in developing countries to hold full-time jobs outside the home.
Adolescent Fertility Rate
The number of births per 1,000 women ages 15 to 19. Part of the reproductive health dimensions of GII. Poor reproductive health is a major contributor to gender inequality in many countries. In the United States, this is twice as high as in most European countries as well as Canada. Researchers attribute the high rate of teenage pregnancy in the US to lack of economic opportunities for many young women, especially African Americans and Hispanics.
Maternal Mortality Rate
The number of women who die giving birth per 100,000 births. The highest rates are in sub-Saharan Africa. This rate has declined worldwide by one-half since the 1990s, but the US rate has actually increased since 1990.
One of the paths developing countries can take in promoting development. Using this model, countries encourage domestic production of goods, discourage foreign ownership of businesses and resources, and protect their businesses from international competition. This model was popular for most of the 1900's. Key elements include:
-Import limits from other places.
-Insulation from competition with large international corporations.
-Equal investment across all sectors of a country's economy and in all regions.
-Equal income to those in both the countryside and the city.
Some of its shortcomings are inefficient industries, a lack of competition, corruption by the abuse of power by bureaucrats, and selling on the black market. India cleverly used this model for a little while through requiring licenses from foreign companies, limiting their imports, taxing imported goods, and using nonconvertible currency.
One of the paths developing countries can take in promoting development. Using this model, countries open themselves to foreign investment and international markets. This model became more popular in the late 1900's. According to W. W. Rostow's model, each country is in one of five stages of development:
1. Traditional society that has not yet started a process of development.
2. Preconditions for takeoff initiated by an elite group.
3. Takeoff through a rapid growth in a limited number of economic activities.
4. Drive to maturity by diffusion of modern technology.
5. Age of mass consumption through a shift to production of consumer goods.
Some of its observed benefits were the success of other countries, resource riches, and a sense of international competitiveness.
WTO (World Trade Organization)
An organization established in 1995 by countries representing 97% of world trade. It works to reduce barriers to international trade through the reduction of restrictions and enforcing agreements. It has been bashed by liberals for being antidemocratic because decisions made behind closed doors promote the interests of large corporations rather than poor people. Conservatives criticize it for compromising the power and sovereignty of individual countries because it can order changes in taxes and laws that it considers unfair trading practices.
A way in which the WTO works to reduce barriers to international trade. Through the organization, countries negotiate reduction or elimination of international trade restrictions on manufactured goods. Also reduced or eliminated are restrictions on the international movement of money by banks, corporations, and wealthy individuals.
A way in which the WTO works to reduce barriers to international trade. The WTO promotes international trade by enforcing agreements. One country can bring to the WTO an accusation that another country has violated a WTO agreement. The WTO is authorized to rule on the validity of the charge and order remedies. The WTO also tries to protect intellectual property in the age of the Internet. An individual or a corporation can also bring charges to the WTO that someone in another country has violated a copyright or patent, and the WTO can order illegal actions to stop.
South Korea, Singapore, Taiwan, and Hong Kong. A group of countries that adopted the international trade path. Under British rule, they were large cities surrounded by very small amounts of rural land and had virtually no natural resources. Lacking many natural resources, these countries promoted development by concentrating on producing a handful of manufactured goods, especially clothing and electronics. Low labor costs enabled these countries to sell products inexpensively in developed countries.
Saudi Arabia, Kuwait, Bahrain, Oman, and the United Arab Emirates. These countries transitioned from poor to rich because of a spike in petroleum prices. The revenue allowed them to finance large-scale projects, such as housing, highways, hospitals, airports, universities, and telecommunications networks. Their steel, aluminum, and petrochemical factories competed on world markets with the help of government subsidies. The landscape of these countries has been further changed by the diffusion of consumer goods, such as motor vehicles and electronics. Supermarkets in these countries are stocked with food imported from Europe and North America.
FDI (Foreign Direct Investment)
Investment made by a foreign company in the economy of another country. It has grown rapidly from $172 billion in 2002 to $646 billion in 2016. However, only 1/3 went to developing countries and 2/3 to developed countries. The share was not distributed evenly among developing countries.
IMF (International Monetary Fund)
An organization that provides loans to countries experiencing balance-of-payments problems that threaten expansion of international trade. Its assistance is designed to help a country rebuild international reserves, stabilize currency exchange rates, and pay for imports without the imposition of harsh trade restrictions or capital controls that could hamper the growth of world trade. Funding is based on each member country's relative size in the world economy.
An organization consisting of two branches, the International Bank for Reconstruction and Development and the International Development Association. Both branches lend financial support to developing countries in need. For developing countries in Africa, however, it considers half of the projects it has funded to be failures. Common reasons include the following:
-Projects don't function as intended because of faulty engineering.
-Recipient nations squander or spend aid on armaments, or the aid is stolen through graft and corruption.
-New infrastructure does not attract other investment.
Some countries have been unable to repay the interest on their loans, let alone the principal, leading to debt.
IBRD (International Bank for Reconstruction and Development)
The branch of the World Bank that provides loans to countries to reform public administration and legal institutions, develop and strengthen financial institutions, and implement transportation and social service projects. It lends money raised from sales of bonds to private investors.
IDA (International Development Association)
The branch of the World Bank that provides support to poor countries considered too risky to qualify for IBRD loans. It lends money from government contributions.
A provision of small loans and financial services to individuals and small businesses in developing countries that are unable to obtain loans from commercial banks.
A bank that specializes in making loans to women and an example of microfinance. Women have borrowed money to buy cows, make perfume, bind books, and sell matches, mirrors, and bananas. For founding the bank, Muhammad Yunus was awarded the Nobel Peace Prize in 2006. The average loan is about $60.
A proposed strategy for fighting economic downturns. It argues that 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. Once the economy recovers, they say, people and businesses will be in a position to pay more taxes and pay off the debt.
A proposed strategy for fighting economic downturns. It argues that government should sharply reduce taxes so that people and businesses can revive the economy by spending their tax savings. Spending on government programs should be sharply cut as well in order to keep the debt from swelling and hampering the economy in the future.
Structural Adjustment Program
Economic policies imposed on less developed countries by international agencies to create conditions that encourage international trade. A way through which austerity is imposed. Reforms required of a developing country include:
-Spending only what it can afford.
-Directing benefits to the poor, not just the elite.
-Diverting investment from military spending to health and education spending.
-Investing scarce resources where they will have the most impact.
-Encouraging a more productive private sector.
-Reforming the government, including making the civil service more efficient, increasing accountability in fiscal management, implementing more predictable rules and regulations, and disseminating more information to the public.
Critics argue that poverty worsens under these programs, allegedly punishing Earth's poorest people for crimes they did not commit. Consequences of these programs include:
-Cuts in health, education, and social services that benefit the poor.
-Loss of jobs in state enterprises and civil service.
-Less support for those most in need, such as poor pregnant women, nursing mothers, young children, and elderly people.
Sustainable Development Goals
Seventeen goals adopted by the UN in 2015 to reduce disparities between developed and developing countries by 2030. It replaced the eight Millennium Development Goals adopted in 2002 to do the same by 2015.
A variation of international trade that provides greater equity to workers, small businesses, and consumers, focusing primarily on products exported from developing countries to developed countries. Three sets of standards each apply to producers, workers on farms and factories, and consumers (especially those living in developed countries).
With this model, producers are projected to receive 1/3 of the share from the sale of the goods they produce compared to the usual <1%.
Workers are to be paid fare wages, allowed to organize unions and to have the right to collective bargaining, and are to be protected by high environmental and safety standards.
Products bought under this model allow consumers to connect more directly with the products' producers.
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