Economic Development General Flashcards

Development meaning

the positive economic, social, environmental and political progress in a country. This includes improvements in its populations’ quality of life

Development is an improvement in living standards through better use of resources.

Social indicators of development level

• Birth rate

• Death rate

• infant mortality rate

• literacy rate

• people per doctor

• access to safe water

• life expectancy

birth rate: what is it? why is it lower in HICs?

• advantages

• limitations

The number of babies born per 1000 per year. Usually higher in LICs as there is less education for women, earlier marriages and less access to contraception.

• easy to measure

but

• data is not always recorded in LICs

• religion & cultural beliefs may affect this measure

death rate: what is it? why is it higher in LICs?

• advantages

• limitations

The number of deaths per 1000 people per year

This is usually higher in LICs due to poor access to medicine and high rate of disease

• easy to measure

but

War or a pandemic may greatly affect this data HICs with aging population such as Japan may actually have a high death rate It does not say the cause of death May not always be recorded in a LIC

infant mortality rate: what is it? why is it higher in LICs?

• limitations

The number of babies that die before their first birthday per 1000 per year.

This is higher in LICs and access to safe water, food & medical care is low.

• may not always be recorded in a LIC so official data may underestimate the problem.

literacy rate: what is it?

• advantages

• limitations

The percentage of the population that can read and write (tells us about education)

• easy to calculate & measure

• best indicator of education system

but

• carrying out surveys in squatter settlements or areas with war is difficult

people per doctor: what is it?

• advantages

• limitations

The number of people who depend on a single doctor (usually a ratio)

• easy to calculate as a %

but

• does not take into account the use of mobile phones to access healthcare

• depends on the scale used (city or entire country)

access to water: what is it?

• limitations

% of the population with access to safe water

• Can quickly become outdated if water quality declines

• Official date can often underestimate the problems

• Rising cost of water can force more people to go without

life expectancy: what is it?

• limitations

The number of years a person is expected to live to worked out from the year they were born

• If infant mortality is high, it can reduce life expectancy overall.

• War or disasters can affect this data

• Does not state the cause of death

Economic indicators of development level

• GNI

• GDP

GNI: What is it?

• advantages

• limitations

Gross National Income

This is the measurement of the total value of good and services produced by a population including income from abroad

Per capita means the average per person

• Always given in dollars for every country so easy to compare

but

• Per capita means it hides the inequalities between the richest and the poorest

• Subsistence farming or the informal sector is not included

GDP: What is it?

• advantages

• limitations

Gross Domestic Product

This is the measurement of the total value of goods and services produced by a population within the country

• Always given in dollars for every country so easy to compare

• Per capita means it hides inequalities between the richest and poorest

• Subsistence farming or the information sector is not included

HDI: What is it?

• advantages

• limitations

Human Development Index

This uses GNI, life expectancy and literacy rate

All countries are given a number between 0 and 1 with 1 being more developed

• It is a composite measure meaning it includes more than one so it more reliable and representative

• Includes economic and social measures

• Easy to compare countries

but

One of these indicators can affect the overall score and so can hide improvements in the other measures

Other Limitations of Development Indicators

• The use of one indicator does not tell us the whole story about a country and can hide inequality

• People may lie about their earnings

• Data may be hard to collect due to a war or disaster

• GNI and GDP do not take into account the spending power in each country

• There may be errors in calculations

• There may not be accurate recordings in LICs

• A corrupt government may lie about some of the measures

• Data could be out of date

Economic vs Social vs Environmental Development

Economic: This is progress in economic growth through levels of industrialisation and use of technology.

Social: This is an improvement in people’s standard of living. For example, clean water and electricity.

Environment: This involves advances in the management and protection of the environment.

Variations in the level of Development: LICs, NEEs, HICs

• LICs: Poorest countries in the world. GNI per capita is low and most citizens have a low standard of living.

• NEEs; These countries are getting richer as their economy is progressing from the primary industry to the secondary industry. Greater exports leads to better wages.

• HICs: These countries are wealthy with a high GNI per capita and standards of living. These countries can spend money on services.

Demographic Transition Model basic