HHD: AOS 4 SAC 4

Gross National Income (GNI)

Refers to total value of goods and services a country’s citizens produce, including value of income earned by citizens who may be working in an overseas country.

Gross National Income (GNI) Per Capita

Average income per person

• World Bank system classifies countries using Gross National Income Per Capita

Economic Characteristics of High-Income countries

• Low Levels of Poverty

• Higher average Incomes

• Wide Range of Industries: Healthcare, manufacturing, education etc.

• Opportunities for global trade: Access to Infrastructure and knowledge for trade.

Economic Characteristics of Low-Income countries

• Higher levels of Poverty

• Lower Average Incomes

• Limited Range of Industries: Farming and primary production etc.

• Lack of opportunities for global trade: lack infrastructure, knowledge and production capabilities.

Relative poverty and Extreme poverty

Relative Poverty: those living on less than 50% of their countries average incomes.

Extreme Poverty: those with incomes of less than US $3 per day.

Gross Domestic Product (GDP)

Value of all goods and services produced within a country in a 12 month period.

Social Characteristics of High-Income Countries #1

• Higher Levels of Gender Equality: Equal rights regarding education, employment, and community participation.

• Low Birth Rates and Population Growth: Access to family planning and contraception

• High Levels of Education: Government Funding for this

• High Levels of Employment

Social Characteristics of High-Income Countries #2

• Developed Social Security Systems: High levels of economic development/ stable political systems allows government to fund social security payments.

• Developed Health Systems: Access to basic healthcare regardless of ability to pay

• Access to technology

• Developed Legal systems: Ensure human rights upheld

Social Characteristics of Low-Income Countries #1

• Lower Levels of Gender Equality: Females spend most time collecting water, preparing meals, and tending crops than receiving education.

• Higher Birth Rates and Population Growth

• Low Levels of Education: Not have developed education systems, and have to pay for child to attend school.

• Low Levels of Employment:

Social Charcateristics of Low-Income Countries #2

• Underdeveloped Social Security Systems: Not have means to provide financial assistance.

• Underdeveloped Health Systems: lack access to suitable healthcare

• Lack of Access to Technology:

• Underdeveloped Legal Systems:

Environmental Characteristics of High-Income Countries

• Access to Safe Water and Sanitation

• Food Security: Access to quality food supply

• Adequate Housing: ventilation, heating and cooling systems, cooking facilities

• Adequate Infrastructure: Roads, sewerage, electricity, piped water.

• Higher levels of Carbon Dioxide Emissions: Greater amounts of industries = greater C02 emissions

Environmental Charcateristics of Low-Income Countries

• Lack access to Safe Water and Sanitation

• Food Insecurity: Floods/ droughts impact availability of quality food. Lack of funds = can’t afford emergency supply of food

• Inadequate Housing

• Inadequate Infrastructure

• Low levels of Carbon Dioxide Emissions

Human Development

Creating an environment in which people can develop to their full potential and lead productive, creating lives according to their needs and interests.

6 Elements critical to Human Development

• Lead long and healthy lives

• Participate in decisions that affects their lives

• Participate in the life of the community

• Access resources needed for a decent standard of living

• Acces knowledge, and expand choices and capabilities

• Lead productive, creative lives according to needs and interests.

Human Development Index (HDI)

Tool Developed by United Nations to measure and rank country’s level of social and economic development.

• No. between 0-1, closer to 1 number is the greater human development experienced

Dimensions and Indicators of Human Development Index (HDI)

Dimensions: Indicators:

• Long and healthy life > Life expectancy at birth

• Knowledge > Mean years of schooling, and Expected years of schooling

• Decent Standard of living > GNI per capita

Advantages of HDI

• Life expectancy reflects ability to lead a long and healthy life

• Takes into account more than just average incomes

• HDI is effective in analyzing progress made by countries over time.

Disadvantages of HDI

• Other aspects other than Human Development such as Gender equality and Freedom of speech is not measured.

• No survey data collected, issues facing communities such as feelings about lives is not reflected.

• Based on averages, not provide indication of inequalities existing in countries, such as cultural minorities.