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First World
Highly developed, industrialised countries e.g. France, USA, UK, Italy
Second World
The communist-socialist, less industrialised states known as the Eastern Bloc (e.g. Soviet Union)
Third World
Countries defined by high poverty rates, lack of resources and unstable financial standing e.g. Egypt
Why do we no longer use the first, second and third world classification system?
Implies racism and hierarchy
MEDC
More Economically Developed Country
LEDC
Less Economically Developed Country
HIC
High Income Country
NIC
Newly Industrialised Country
LIC
Low Income Country
NEE
Newly Emerging Economy
Quality of Life
A person’s well-being in terms of health and happiness
Which development indicators relate to quality of life?
Tied in with UN universal human rights
Right to freedom
Right to marry
Right to freedom from discrimination
NOT ECONOMIC
Standard of Living
Based primarily on income and what that level of income will allow a person to buy in the way of necessities and luxury goods. Standard of living refers to the level of wealth, comfort, material goods and necessities available to a certain group of people in a certain geographical area.
GDP
The value of the finished domestic goods and services produced within a country’s borders
GNP
Measures the output of a country’s residents regardless of the location of the actual underlying economic activity. Income from overseas investments by a country’s residents counts, whereas foreign investments in the country do not.
GNI
The total amount of money earned by a nation’s people and businesses. Used to measure and track a nation’s wealth from year to year. Includes GDP and overseas income sources.
GNI per capita
The value of a country’s income, divided by the number of people in a country
Economic/Employment structure
Measures the percentage of the GDP that is created through the different sectors of the economy
Birth Rate
The number of live births per 1000 people. BR is often higher in lower income countries.
Death Rate
Number of deaths per 1000 people. High DR can indicate a less developed country.
Infant mortality rate
The number of babies who don’t survive to the age of 1 per 1000 live births
Life Expectancy
The average age that a person may live to
Literacy Rate
The percentage of adults who can read and write
Access to safe water
The percentage of people who have access to safe, clean water
Access to the internet
The percentage of people who have access to the internet
People per doctor
This measures the average number of people that could be seen by a doctor at any one time
Unemployment Rate
The share of workers in the labour force who do not currently have a job but are actively looking for work.
HDI
Human development index combines data for life expectancy, adult literacy and GDP per capita to produce one single measure that is put on a scale from 0 - 1
GDP per capita
A country’s wealth divided by its population
Limitations of only using a single development factor
Not able to judge the whole development level. You should instead use a combination of factors to offer a more holistic view of a country’s development.
How do social and economic indicators link nationally to show a country’s development?
Government money from taxes can be spent on roads, defence, education and healthcare
How do social and economic indicators link on an individual basis to show a country’s development?
Work and wages give people a disposable income that they can spend on a range of goods and services e.g. shops, restaurants, holidays and hairdressers.
How do social and economic indicators link in terms of business when determining a country’s development?
Money can be reinvested by businesses as they seek to expand and creates the multiplier effect as more businesses are then drawn into the area and the government improves infrastructure in the area to cope with this expansion.
Development Gap
The widening difference in lands of development between the world’s richest and poorest countries.
Advantages of using infant mortality rate to measure development
Measures competency of healthcare system
Disadvantages of using infant mortality rate to measure development
Infants are not a reliable demographic to base the entire population’s development from
Advantages of using birth rate to measure development
Good indicator of availability of contraceptives and social progress
Disadvantages of using birth rate to measure development
It is better to indicate the status of women rather than social development
Does not take migration into account
Advantages of using access to internet to measure development
Can show which countries are more economically advanced
Disadvantages of using access to internet to measure development
Some people (e.g. nomadic communities) may decide to be offline
Advantages of using literacy rate to measure development
Good indicator of quality of education
Good benchmark for future potential
Disadvantages of using literacy rate to measure development
There are other ways a society can progress as a whole
Does not take into account homeschooled people
Advantages of using death rate to measure development
Good indicator of healthcare system
Good indicator of average age of a population
Disadvantages of using death rate to measure development
Some deaths may not be recorded, e.g. in nomadic communities
Advantages of using people per doctor to measure development
Good indicator of funding towards higher education + healthcare systems
Disadvantages of using people per doctor to measure development
Private doctors
Doesn’t take into account spatial variation or population sparsity
Advantages of using life expectancy to measure development
How healthy the population is
Healthcare systems and support
Disadvantages of using life expectancy to measure development
Doesn’t factor in genetic reasons or disease (e.g. Covid)
Advantages of using GDP per capita to measure development
Is a good indicator of the state of the economy and provision of services
Disadvantages of using GDP per capita to measure development
Can hide inequalities as it does not show the distribution of wealth
Advantages of using unemployment rate to measure development
Gives an idea of opportunities in a country
Future progression of workforce.
Disadvantages of using unemployment rate to measure development
Doesn’t factor in wages or salaries
Advantages of using social cohesion to measure development
Indicates segregation levels and can feed into other factors
Disadvantages of using social cohesion to measure development
Doesn’t factor in sanitation or economic ability. You can be in a very happy and cohesive community while being very poor.
Single indicators of development
Measure one variable
e.g. life expectancy
Aren’t very comprehensive
Composite indicators of development
Are more representative of a society as a whole
e.g. HDI
3 indicators of HDI
life expectancy at birth
level of education (literacy rate and years spent at school)
income (adjusted for purchasing power)
Benefits of using HDI to measure development
shows people and their capabilities are as important as economic wealth
comprehensive
indicates social development
Limitations of using HDI to measure development
Wide regional divergence
Only reflects long term changes
Higher national wealth does not indicate welfare
‘per capita’ statistics hide inequalities
Economic development can depend on uncontrollable factors e.g. war
Gini coefficient
A measure of inequality. The higher the number, the higher the inequality
State two ways of measuring inequality
Gini coefficient
Indices of political corruption