Changing economic world

What does development mean?

Growth of a country in terms of economic growth, use of technology and human welfare.

As a country develops it means that standards of living and quality of life improve.

What are social factors affecting development?

• women not having equal rights and are unbale to work

• poor education system and low literacy rate

• diseases preventing people from working

What are economic factors affecting development?

• landlocked and can not benefit from trade by sea

• countries are in debt and spend money on paying interest off rather than investing into the country.

• global trade favours HIC’s so others don’t get as much money

What is the environmental factors affecting development?

• unpredictable climate and threat to drought

• poor soils for farming which leads to poor harvests

What is the political factors that affect development?

Political instability e.g. civil war, riots ext.

What is quality of life?

how good an individuals life is measured by factors like healthcare, access to free water, safety, security, freedom, right to vote, women’s rights and happiness.

What is GNI?

Gross national income:

the total value of goods and services produced in a country including money earned from different countries

economic indicator.

What is GNI per capita?

The goss national income divided by the countries population.

economic indicator

What is HDI?

Human development index:

gives a score between 0-1 based on three indicators

What are the benefits of GNI per capita.

• measures quality of life rather than income

• easier to collect economic data in wealthy countries

What are the limitations of GNI per capita?

• average figures for each country so doesn’t show poverty if there are lots of rich people

• One USD might be worth more in different countries

• wealth might be owned by very few individuals

• no mention of human rights or freedom

What are the benefits of HDI?

• health and education can see how economic development is helping people in a country.

• indicates differences of wealth in a country

• social measures are better indicators for quality of life

• better indications of inequalities within a country

What are the limitations of HDI?

• no measure of access to food resources, which are vital for a good quality of life

• some people may agree that different indicators are more important than others

• doesn’t show differences between communities