Indicators of development
Development can be measured using a range of indicators:
- Birth rate — developed countries usually have lower birth rates.
- Death rate — developed countries usually have lower death rates.
- Literacy rate — developed countries usually have higher literacy rates.
- GDP per capita — the total value of goods and services in a country divided by its population; developed countries usually have a higher GDP per capita.
- HDI (Human Development Index) — a composite index that uses healthcare, education and economic indicators to calculate development (combines GDP per capita, life expectancy and educational attainment).
- People per doctor — the ratio of population to the number of doctors.
- GNI / GNP per capita — the average amount of money earned by a person in a country.
Employment sectors
| Sector | Description |
|---|---|
| Primary | The extraction of raw materials from natural sources |
| Secondary | The conversion of raw materials into final goods, e.g. manufacturing |
| Tertiary | Providing a service |
| Quaternary | The sectors of development and research |
- MEDCs usually have smaller primary sectors and greater tertiary and quaternary sectors.
- LEDCs have large primary sectors.
The more developed a country, the smaller its primary sector, and the greater its tertiary sector.
LEDCs usually remain small, as MEDCs buy raw materials from LEDCs at low prices. Some developing countries receive relatively low prices for raw materials while importing expensive manufactured goods, making development more difficult.
Inequalities within a country
Potential inequalities in a country:
- Income inequalities
- Race inequalities
- Gender inequalities
- Religious inequalities
- Education inequalities
TNCs (transnational companies)
- TNCs are companies that operate in multiple countries.
Globalisation — the connection between people and places economically, socially and environmentally.
Globalisation occurs because of:
- Improvements in transport
- Technological improvements
- Freedom of trade and encouraged international business activity
- Labour availability and skills (in LEDCs; cheap labour)
Advantages and disadvantages of globalisation
| Positives | Negatives |
|---|---|
| Money invested in LEDCs by TNCs provides jobs and skills | MEDCs benefit more than LEDCs |
| Helps keep prices low | TNCs may put local businesses out of work |
| Access to new culture | Unfair labour: low wages |
| Loss of individuality in culture | |
| If TNCs close, locals are made redundant |
TNC case study — McDonald's
Impacts of McDonald's as a result of globalisation:
Socially
- Through donations they have made 400 rooms available to families for every night of the year.
- Sharing of western diets into other countries.
Environmentally
- 75% of company-owned McDonald's recycles their cardboard; this figure aims to be 100% by next year.
- Used cooking oil is often recycled to be used as bio-fuel for McDonald's delivery.
Economically
- Spent 460 million pounds in 2007; 17,000 farmers paid and 6,000 food suppliers.
- From 2010–2011 McDonald's increased their profit by 1 billion dollars (9 billion to 10 billion).
- They employ 1.7 million people.