The changing economic world

Define: Development

The progress of a country in terms of reaching an acceptable standard of living and quality of life.

Which organisation organises countries into LIC, NEE and HIC?

World Bank.

Which sector dominates LIC countries?

Primary sector.

Which sector dominates NEE countries?

Secondary sector.

Which sector dominates HIC countries?

Tertiary sector.

Calculate: GDP

Total value of goods/services produced within a country divided by its population.

Calculate: GNI

Country’s total income divided its population.

What are the advantages of GNI?

Converted Into US dollars, making it easier to compare the standard of living of countries across the world.

What are the disadvantages of GNI?

• It is an economic measure of development and doesn’t take social measures like quality of life into account.

• Average figures so wealthy people can skew or distort the data.

• Income of people in the informal economy or subsistence farming not included in data, making it less accurate.

Define: Birth Rate

Number of live births per 1,000 of the total population.

If a country has a higher birth rate, does this suggest a country is a more or less developed country?

Less developed.

If a country has a lower birth rate, does this suggest a country is a more or less developed country?

More developed.

What are the limitations of birth rate?

Birth rate policies can distort data, such as China’s pervious 1 child policy.

Define: Death Rate

Number of deaths per 1,000 of the population.

If a country has a higher death rate, does this suggest a country is a more or less developed country?

Less developed.

If a country has a lower death rate, does this suggest a country is a more or less developed country?

More developed.

What are the limitations of death rate?

• Poor measure of development as it may be high due to aging population, such as in Japan.

• Not all child deaths are reported in remote areas so may be higher than reported number.

Define: Infant Mortality Rate

Number of children that do nit survive to one year of age per 1,000 live births that year.

What are the limitations of infant mortality rate?

Not all child deaths are reported in remote areas so may be higher than reported number.

Define: Life Expectancy

Average number if years a person is expected to live for.

What are the limitations of life expectancy?

May be misleading in countries with high infant mortality rates.

Define: Literarcy Rate

Percentage of people with basic reading and writing skills.

What are the limitations of literacy rate?

Difficult to measure in conflict zones and squatter settlements.

What are the limitations of people per doctor?

Many now seek help or device via mobile phone rather than doctor.

What are the limitations of percentage if people with access to safe water?

People may have access but high costs mean they cannot take advantage of it.

Why is HDI a composite measure?

It uses 3 factors: life expectancy, GNI and average years of education.

If a country has a HDI that is closer to 1,is it more or less developed?

More developed.