Spatial Distribution of Spatial Distribution of WealthWealth

Measuring the Wealth of CountriesMeasuring the Wealth of Countries

GNP- Gross National ProductGNP- Gross National Product Countries GDP (income earned from all Countries GDP (income earned from all

domestic goods and services) plus the domestic goods and services) plus the income earned on foreign investmentsincome earned on foreign investments

GNP = GDP + net income on foreign GNP = GDP + net income on foreign investmentsinvestments

Usually divided by population to give Usually divided by population to give GNP per capitaGNP per capita

Used to classify countries based on Used to classify countries based on standard of livingstandard of living LLDC = GNP per capita less than $765LLDC = GNP per capita less than $765 LDC = GNP per capita b/w $766 and LDC = GNP per capita b/w $766 and

$9385$9385 MDC = GNP per capita more than $9386MDC = GNP per capita more than $9386

Measuring the Health of CountriesMeasuring the Health of Countries

Measuring standard of living with GNP Measuring standard of living with GNP per capita can be misleading b/c …per capita can be misleading b/c … It ignores terrible pockets of poverty that It ignores terrible pockets of poverty that

exist in some MDC’s, and the pockets of exist in some MDC’s, and the pockets of wealth that exist in some LDC’swealth that exist in some LDC’s

Money is not the sole factor of a countries Money is not the sole factor of a countries well beingwell being

Taking these things into account Taking these things into account standard of living is now measured by standard of living is now measured by the United Nations Human Development the United Nations Human Development IndexIndex

Human development index takes into Human development index takes into account:account: Longevity (life expectancy)Longevity (life expectancy) Knowledge (literacy rates, education Knowledge (literacy rates, education

attained)attained) Income (GDP per capita)Income (GDP per capita)

AssignmentAssignment Go to Go to www.un.orgwww.un.org 1. What does UN stand for?1. What does UN stand for? Click on About the UN Basic facts about the Click on About the UN Basic facts about the

UN The OrganizationUN The Organization 2. What is the UN’s purpose?2. What is the UN’s purpose? 3. What kind of budget do they have for a 3. What kind of budget do they have for a

year?year? What are some of the family of organizations What are some of the family of organizations

they have? Click on this link Look under the they have? Click on this link Look under the titles starting with United Nations (you should titles starting with United Nations (you should recognize some)recognize some)

Read through the links on the left Read through the links on the left hand side of the page to see how the hand side of the page to see how the UN supports different issues in the UN supports different issues in the world (eg. Human Rights link)world (eg. Human Rights link)

When finished the UN questions…When finished the UN questions…

Go to Go to http://hdr.undp.org/hdr2006/statisticshttp://hdr.undp.org/hdr2006/statistics

This is the web site for the Human This is the web site for the Human Development Index report 2006Development Index report 2006

You will find the rankings of countries You will find the rankings of countries on the right hand side of the page. on the right hand side of the page. Choose a country and click on itChoose a country and click on it

Answer the following questions:Answer the following questions:

1. What does HDI not include in it’s 1. What does HDI not include in it’s measure?measure?

2. Are all three measures ranked the 2. Are all three measures ranked the same? (GDP, Life expectancy and same? (GDP, Life expectancy and economic sectors)economic sectors)

3. Look at figure 1, why is it not fair 3. Look at figure 1, why is it not fair to only measure a countries standard to only measure a countries standard of living based on GDP?of living based on GDP?

North- South DivideNorth- South Divide Economic differences between North and Economic differences between North and

South countries have evolved because:South countries have evolved because: The first industrial revolution first began in The first industrial revolution first began in

Great Britain and gradual spread to other Great Britain and gradual spread to other countries. This spread was very uneven in countries. This spread was very uneven in the southern hemisphere because they the southern hemisphere because they lacked the infrastructure of good lacked the infrastructure of good transportation and communication systems transportation and communication systems to capitalize on new technologiesto capitalize on new technologies

Many of these countries were already Many of these countries were already colonies of European countries who colonies of European countries who exploited their natural resourcesexploited their natural resources

LDC countries have not made it to LDC countries have not made it to Rostow’s “take off” stageRostow’s “take off” stage

Until they are able to concentrate on Until they are able to concentrate on manufacturing and services instead manufacturing and services instead of resource extraction they will not of resource extraction they will not be able to growbe able to grow