Global Economic Disparities: A Development Perspective
Classified in Geography
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1. What is Development?
Stark economic and social contrasts exist worldwide, leading to the classification of countries into:
- Developed Countries
- Transition Countries
- Less Developed Countries
1.1. Country Classifications
| Developed Countries | Transition Countries | Less Developed Countries | |
| Income Per Capita | High | Growing | Low |
| Consumption | High, promotes economic growth | Growing | Low |
| Economic Growth | Maintained by powerful entities | Very high. Depends on exports like manufactured goods and resources | Low, difficult to maintain |
| Infrastructure and Services | Good quality | Often deficient | Deficient, inaccessible to most |
| Human Development | High | Often low (e.g., education levels) | Low |
| Example Countries | USA, Canada, Japan | China and India | Most in Sub-Saharan Africa |
2. Measuring Development
Several indices help measure a country's development level:
2.1 Human Development Index (HDI)
Measures the overall level of development.
2.2. Human Poverty Index (HPI)
Evaluates development by measuring deficiencies in three basic aspects:
- Life Expectancy
- Adult Literacy
- Standard of Living
3. Economic Contrasts
3.1. Unequal Wealth Distribution
Gross Domestic Product (GDP) measures a country's economic output.
GDP is the value of goods and services produced in a country in a year.
GDP per capita (GDP/population) reflects the population's wealth.
Example: Comparing China's large GDP with Luxembourg's smaller GDP reveals that Luxembourg's inhabitants are wealthier than China's.
3.2. Consumption Differences
Rich societies often experience excessive consumption, while poor societies live near subsistence levels.
Food Consumption
- Developed countries: Obesity epidemic
- Less developed countries: Chronic malnutrition and lack of safe drinking water contribute to illness and death.
Disparities widen for more expensive goods and services like TVs and computers.
Energy consumption also varies significantly.
3.3. Healthcare Disparities
Millions die yearly from curable diseases in less developed countries.
Many women in Sub-Saharan Africa die from pregnancy or childbirth complications.
Most of the 42 million people with AIDS live in less developed countries.
Lack of basic hygiene, medical care, and access to medicine increases mortality, especially infant mortality.
3.4. Education Disparities
Nearly 100% literacy in developed countries.
Sub-Saharan Africa faces the opposite extreme, with millions of children out of primary school and illiteracy rates up to 80%.
3.5. Child Labor
Many children work instead of attending school.
Child labor is widespread, particularly in the Asia-Pacific and Sub-Saharan Africa regions.
3.6. Growth Rate Differences
Developed countries' growth rates are projected to remain relatively stable, while less developed countries' populations are expected to increase significantly in the coming decades.