2. INDEX
● HOW ARE INEQUALITIES MEASURED?
● DEGREES OF DEVELOPMENT
● CAUSES OF DEVELOPMENT INEQUALITIES
● RECENT EVALUATION OF GLOBAL
INEQUALITIES
● HUMAN DEVELOPMENT'S ISSUES AND THEIR
SOLUTIONS
6. 1. HOW ARE INEQUALITIES
MEASURED?
● According to Wealth According to Welfare
(Traditional indicators)
GDP (PIB) GDP per capita (renta
per capita)
Contemporary indicators
HUMAN
DEVELOPMENT
INDEX (HDI)
(IDH)
MULTIDIMENSIONAL
POVERTY INDEX
(MPI) (IMP)
Indicators used by the World Bankd and the Monetary
Fund
7. 1. HOW ARE INEQUALITIES
MEASURED?
● WEALTH (The traditional indicator)
– Analysing exclusively the differences in wealth and
access to materials good (econmic analysis)
– The most widely used indices are:
● GDP (Gross Domestic Product)
● GDP per capita. It is the division between a country's GDP
by its number of inhabitants.
Calculate these GDP's per capita that belong to different countries. Could
you guess wich kind of country are?
A) GDP: 1.232 billion $ Nº of inhabitants: 46,347,576 people.
B) GDP: 6, 22 billion $ Nº of inhabitants: 14,320,000 people
8. 1. HOW ARE INEQUALITIES
MEASURED?
● WELFARE (some contemporary indicators)
– Development is understood as welfare, or the sense of
satisfaction by the vast majority.
– This concept includes other dimensions apart from
wealth, such as:
● The provision of basic needs
● Social cohesion → social equality
● Social relations and participation: freedom, rights,
political participation, safety.
● Environmental quality.
The most significant indices used to measure welfare
are:
● HUMAN DEVELOPMENT INDEX (HDI)
● MULTIDIMENSIONAL POVERTY INDEX (MPI)
9. WORLDWIDE GEOECONOMIC
AREAS
● Another rate to measure development is the HDI: Human
development index (IDH → Índice de Desarrollo Humano)
The Human Development Index (HDI) was developed by the
United Nations as a metric to assess the social and economic
development levels of countries. Three principal areas of
examination are used to rank countries: mean years of
schooling, expected years of schooling: (EDUCATION); life
expectancy at birth (HEALTH) and gross national income per
capita (STANDARD OF LIVING)
10. HDI 2016
NAME 3 COUNTRIES WITH A VERY HIGH HDI
NAME 3 COUNTRIES WITH A HIGH HDI
NAME 3 COUNTRIES WITH A MEDIUM HDI
NAME 3 COUNTRIES WITH A LOW HDI
11. MULTIDIMENSIONAL POVERTY
INDEX
This index lists the deprivations suffered by the
most disadvantaged people with their
corresponding indicators of:
- Living standards
- Education
- Health
A person is clasified as poor when he/she is
deprived of more than 33% of the indicators.
Indeed, this index measures the proportion of
indicators that they do not have Access to.
Deprivations – Carencias / Privaciones
16. 2. DEGREES OF DEVELOPMENT
● HIGH DEVELOPMENT
COUNTRIES
– High GDP per capita
– Extensive middle class
– Consolidated democratic
political systems.
– Major carbon footprint
● LOW-DEVELOPMENT
COUNTRIES
– Low GDP per capita
– Huge social differences
– Authoriatiarian political
systems are
encountered.
● Corruption
● Lack of respect of
Human Rights
● Lack of freedom.
– Minor carbon footprint
Sub-saharan Africa, Central Asia, and
some Latin American and Caribbean
countries
17. 2. DEGREES OF DEVELOPMENT
● EMERGING COUNTRIES
– Modest GDP per capita (based on)
● Export of cheap merchandise
● Abundant labour force (people in working age)
● Low salaries
– Major contrasts between classes. But their middle
class has grown.
– Recently established democratic systems.
– Increasing carbon footprint.
This group includes: BRICS, México, Argentina, The Middle East, some
Northern African countries, and the New Industrial Countries (Singapore, South
Korea, Indonesia.
18. 1) Which countries have the major GDP in industry?
2) Which countries have more obese adults? Which is the least in obesity?
3) Which country has the minor literacy rate (tasa de alfabetización)?
4) Which country has the higher life expectancy?
5) Which country has the higher infant mortality rate?
6) Try to guess the HDI of this countries (VERY HIGH; HIGH; MEDIUM; LOW)
19. 3. CAUSES OF DEVELOPMENT
INEQUALITIES
● Do you already know any cause of development?
● Could you guess any reason?
20. 3. CAUSES OF DEVELOPMENT
INEQUALITIES
NATURAL CONDITIONS
Very humid or dry climates;
more likely to happen
hurricanes, floods, eartquakes,
tsunamis, etc.
DOMESTIC CAUSES
LACK OF EXPLOITATION OF
RESOURCES. Despite having
abundant natural resources,
they don't have the capacity to
exploit them.
IMBALANCE BETWEEN
POPULATION AND
RESOURCES. High
demographic growth and
lack of resources available.
POLITICAL INSTABILITY.
Armed conflicts, corrupt
governments
21. 3. CAUSES OF DEVELOPMENT
INEQUALITIES
INTERNATIONAL CAUSES
FOREIGN DOMINATION
-In the past they were colonies
Rulling countries structured their
economies, and they became
dependant of rulers.
This situation grew, and it was maintained
after colonisation with neo-colonialism
(economic control of the previous
colonies)
In some cases this situation is currently
maintained.
FOREIGN DEBT
Unequal trading relationships
They need request International
Credit
High levels of Foreign debt
High interest payments
Less money to invest in
public services, infrastructure
27. UNEQUAL TRADE
The cost of agricultural
products or natural
resources is lower than the
cost of manufactured
products.
Most underdeveloped
countries just import
manufactured products and
export agricultural or natural
resources,
The cost of imports is
higher than the cost of
exports. They have a
negative balance of
payments
This economic situation
generates INDEBTED
COUNTRIES
Balance of payments: The difference between how much a country earns and their
payments.
They need to
ask for loans
and credits
Loans have
interests they
have to pay.
STRUCTURAL
PROBLEM FOR
UNDERDEVELOPED
COUNTRIES'
ECONOMIES
EX. 4. A - B – C – page. 233
28. 4. RECENT EVALUATION OF GLOBAL
INEQUALITIES
● Stagnation (estancamiento) in
the Developed countries
(crisis of 2008)
● High progress in emerging
countries:
– Benefited from globalisation
– Improvment in welfare
– Creation of advanced
industries
● Progress made by low
development countries
– Trading with emerging
countries using their natural
resources.
29. HUMAN DEVELOPMENT ISSUES AND
THEIR SOLUTIONS
● INCREASING ECONOMIC AID
– ODA (Official Development Assistance):
Economic contribution made by the
governments of developed countries. The
UN agreed that all donor would provide 0,7
% of their GDP. (Just 5 countries do)
– UNDP (UN Development programme). It sets
the Development Goals. (AIM--> Improve the
situation of poor countries)
– The WORLD BANK and the Intenrational
Monetary Fund, they provide credit for
development projects. In return of economic
measures.
30. ● IMPROVING HUMAN DEVELOPMENT
– Avoid employment exploitation
– Avoid child labour
– Avoid the waste of resources
– Introduce fairer global trading relations with poor
countries.
– Debt reduction for high indebted countries
– Greater investments in underdeveloped countries.
HUMAN DEVELOPMENT ISSUES AND THEIR
SOLUTIONS
31. HUMAN DEVELOPMENT ISSUES AND
THEIR SOLUTIONS
● INCREASING CITIZEN
PARTICIPATION
– In authoritarian governments
it is well-known the lack of
freedom and participation in
domestic decisions. This
leads to citizens'
dissatisfaction.
– More demonstrations,
protest, strikes, and in some
cases civil wars (Arab
spring)
ARAB SPRING VIDEO
– Solution: Reform the
institutions to achieve a
greater citizen participation
in decision making.
AS CNN
32. THE ARAB
SPRING
1) What is the Arab
Spring?
2)Why was it caused?
3)Where did it begin?
4)Where was it spread?
5)Do you think that a
new “arab spring”
could happen?
33. THINK ABOUT IT...
● Which kind of country is...?
– Most people belong to the middle class.
– Abundant natural resources
– The upper class control almost all the money
– Export manufactured products at a high price
– Export natural resources and primary products
– Low salaries and abundant labour force.
– High levels of corruption
– Major carboon footprint
– High demographic growth.
– High infant mortality rate
– Public services are being improved.
36. ECONOMIC INEQUALITIES
● What's economic inequalities?
CAUSES
Unemployment, low salaries
Lack of education and public services in general
Wealth is not fairly shared
SOLUTIONS
Policies that redistribute wealth
Provide better welfare (services,
employment, standard of living)
Granting microcredits to families
Provide aim to invest in social conditions
(children attend school f. ex)
Avoid discrimination of ethnic
minorities, inmigrants, or women.
to be a woman in Saudi Arabia
