GDP (Gross Domestic Product) HDI (Human Development Index)

GDP(Gross Domestic Product)

HDI(Human Development Index)

Productivity Well Being

• 42 Developed Countries• 43 Newly Industrializing Countries• 84 Developing Countries– The poorest 42 of these are:• Highly Indebted Poor Country (HIPC)

OECD – Organization for Economic Co-operation and Development

*What is the most critical blue square in determining poverty?

Would you add or subtract anything?

Developed Country:• Strong economies and happy citizens. • Usually have governments that function well

enough to serve their people.• Live long, low infant mortality, high literacy

• Newly Industrializing Country:• Building up industry and infrastructure

• Eg. Brazil (agriculture and bio-fuels) and Indonesia (oil and minerals)

• Developing Country:• Very little infrastructure or few industries

• India, Cambodia, Vietnam, Thailand

• Lowest Developing Countries are classified as HIPC (Highly Indebted Poor Country)

• Mozambique, Uganda, Ethiopia, Zimbabwe

Eg. Uganda – 1% have access to electricity that costs about 10x more than in BC.

HIPC

GDP(Gross Domestic Product)

private consumption + gross investment + government spending + (export-

import)

HDI(Human Development Index)

GDP, Life expectancy (under 5 mortality and full life span), literacy, standard of living, child welfare

#8

HDI – Human Development Index

• PROBLEMS/ CHALLENGES OF DEVELOPMENT:• 1) Globalization• - Poor infrastructure = Poor economic growth • - Multi-National Corps often control the land• - Culture washing or Culture Exchange

Climate, Landscape, Resources, Soils, Vegetation, Water

Government Policies, Disease, Development, Culture, Communication

Women of Niger (352-353)• Life expectancy - 49 years• Literacy 14%• Average children 7.4 (cultural currency)• 65% of the pop. Lives on less than $180/year• One industry uranium and it has dropped• Donor aid withheld due to a Dictator

The Cycle of Poverty

CounterPoints: Exploring Canadian Issues

Saudi Arabia (55) and Ethiopia (157)

Off-Shore Farming

The IMF (International Monetary Fund)

&The World Bank

The IMF

The World Bank

I want to grow economically and create some infrastructure in my country…

I want to build some MEGA PROJECTS

Playing with the big boys

Jamaica

SAP (structural adjustment program)

Jamaica

Challenges:• Poverty Trap:• - LOANS to developing countries

– IMF, World Bank, – (Megaprojects – exporting minerals & agricultural products –

commodities – failing markets = more debt (see page 396)– Monoculture – ie. Cotton farming in India (refer to 100%

Cotton)

CYCLE OF DEBT:In 2005 Niger was forced to:•Raise taxes on milk, bread, water, & electricity•Social programs like education and healthcare have minimum charges

• Burden of Debt:• - resources on world market low prices due to over supply• Most resources under control of MNCs ie cocoa in West Africa

(produces 70% of world’s cocoa, sells it to four MNCs that control price, and farmer sees little return)

• Burden of debt countries try to pay off debt, spend less on social services

• Ie. Mozambique 10X more spending on debt repayment than healthcare.

• Burden of Debt cont.• Debt is exacerbated by:• - natural disasters – floods, droughts• - desertification• - civil wars (examples)• - dictators, corrupt governments (examples)• - example of Zimbabwe (show ranking as last on scale

again – flag – issues of cholera, inflation, Mugabe, etc)

Additional Issues:Children: child labour, child soldiers, sexual slavery, lack of education, U5MR, Diseases: -(diseases of poor sanitation) cholera, dysentery, typhoid-Malaria-HIV/AIDS

Possible Responses To Development Issues

Development Assistance Goals:-PM Lester Pearson led a UN commission in the 1960s which set a target of 0.7 percent of donor countries GNP (gross national product).-Countries rarely meet this goal-Canada’s contributions have dropped in past 2 decades-2008: Canada’s aid was at 0.32 of the GNP

The Millennium Development Goals(MDGs)

• Watch this video on the UN Millennium Development Goals (there are spelling mistakes in the movie but it is fairly good)

• http://www.youtube.com/watch?v=v3p2VLTowAA&feature=channel_video_title

1. International Aid

-Bilateral aid – assistance from one country to another -When Canada provides aid, much of it goes through CIDA (Canadian

International Development Agency)

- CIDA finds “partners” (universities, NGOs, and businesses) that administer aid programs, or gives $ directly to governments, or through UN groups.

- Supports upgrades in technology, train teachers, improve agriculture (Cdn gov’t supports GMOs), courses in gender equality, leadership, women’s rights

- Most of CIDA’s aid will now go to 20 “priority countries”, primarily in South America… the budget to the HIPC of Africa has significantly decreased…

Certain UN programs are created to address specific issues:

Ie. UNAIDS created to oversee programs working on issues of HIV/AIDS

- coordinates bodies such as the World Bank, the WHO, UNICEF, and UNESCO

(United Nations Educational, Scientific, and Cultural Organization)

-Multi-lateral aid - funded by a number of gov’ts -usually involves large scale projects

(ie. Dam building)

- int’l organizations such as the UN and the World Bank Eg. UNICEF, WHO (World Health Organization)

- Tied-aid – aid given to a foreign country with conditions attached

-More than 40% of Canadian bilateral & multi-lateral aid is tied aid

-Canadian gov’t has pledged that food aid is fully untied, and by 2013, CIDA’s funding would be untied.

Foreign Aid vs Military Spending-In 2008, military spending was est. US$1464 billion worldwide

-UN agencies estimate that meeting MDGs would cost US$189 billion in 2015

What If….

Canada and the United States put all of their military spending for one year into foreign aid? What do you think the results might be?

Aid from NGOs• NGO = Non-governmental organization

• Examples: KIVA, Rotary International, Free the Children, OXFAM, The Stephen Lewis Foundation, World Vision, Red Cross, Doctors Without Borders (MSF)

What would make the biggest difference?-ELIMINATE EXTREME POVERTY!-Debt reduction-Improving Women’s status-Improving living conditions/ sanitation/ infrastructure/healthcare- Education & employment opportunities

NGOs often work from “grassroots” level:

-ie. Funding for alternative income or microcredit loans-women’s weaving cooperative in Philippines-Cell phone businesses-Grameen Bank – Muhammad Yunus-Kiva.org