Economic Development Overview

Economic Development

  • Definition: Process by which a nation enhances the economic, political, and social well-being of its people.
  • Measured by: Human Development Index (HDI).
  • Key Goals: Improvement in standard of living, job availability, and increasing incomes.
  • Inequality Issues: Importance of ensuring benefits reach all; disparities in healthcare and education can limit opportunities.

Economic Growth

  • Definition: Increase in a nation's ability to produce goods and services.
  • Causes in Developing Countries:
  • Discovery of natural resources (oil, minerals).
  • Infrastructure improvements (factories, roads).
  • Technological advancements for better productivity.
  • Workforce education and upskilling.
  • Regulatory frameworks for business operations.

Key Terms

  • Child Mortality Rate: Likelihood of child dying between birth and age 5 (per 1000 live births).
  • Income per Capita: Average income earned per person in a nation.
  • Commercial Activities: Involves buying and selling goods.

Case Study: Ethiopia

  • Population: ~109 million, 2nd highest in Africa.
  • Economic Status: Rapid growth, but low income per capita ($857).
  • Humanitarian Needs: 9.5 million needing aid, 8 million lacking access to food.
  • Poverty Reduction Efforts: Increased job creation, preschool education, and international aid support leading to reduced child mortality rates.
  • Access to Basic Needs: Drinking water access improved from 13% to 52%, sanitation from 2% to 24% over 20 years.

Case Study: Qatar

  • Historical Context: Rapid growth since independence in 1970s.
  • Evolution: Transition from fishing to oil-rich commercial nation.
  • Current Status: HDI rank of 45th in 2020; HDI score of 0.84 (medium-high).

Final Note

  • Research Task: Investigate economic growth and development in your chosen country over the last 100 years, focusing on HDI changes and contributing factors.