Economic Development

Standard of Living

Social and economic well-being of the individuals in a country

Gross Domestic Product (GDP)

Main measure of total value of all goods and services produced in a given period of time

Calculation for Real GDP / GDP per capita

Human Development Index (HDI)

Combines three different measures fro each country:

• Standard of living - by average incomes

• Education - by adult literacy rate

• Lving a long healthy life - by life expectancy

Single index with a value between 0 and 1

Reasons for Low Economic Development

• Over-dependence on agriculture

• Domination on international trade by developed nations

• Lack of Capital

• Insufficient investment in education, skills and healthcare

• Low levels of investment in infrastructure

• Lack of efficient production and dstribution systems

• High population growth

• Other factors like a corrupt government or war

Absolute poverty

When people do not have access nor can afford basic food, clothing and shelter

Relative poverty

When people are poor relative to other people in the country and unable to participate fully in normal activities of the society they live in

Causes of Poverty

• Unemployment

• Low wages

• Illness

• Age

• Poor Healthcare

• Low literacy rates

• High population growth

• Poor infrastructure

• Low FDI

• High public debt

• Reliance on primary sector output

• Corruption and instability