Measures of Development Summary

Social and Economic Measures of Development

• Business decisions impact economic development.

• Opportunities for all societal groups are crucial for progress.

Key Economic Indicators

• Gross Domestic Product (GDP): Measures total dollar amount of goods/services produced within a country in a year.

• Gross National Product (GNP): Measures dollar amount produced by a country's citizens, regardless of location.

• Gross National Income (GNI): Similar to GNP; includes all money earned by citizens and businesses of a country.

Statistical Adjustments

• Currency conversion to U.S. dollars for comparisons.

• Per capita measures: Total output divided by population for individual wealth insights.

• Purchasing Power Parity (PPP): Adjusts for price variations of goods for better comparisons.

Economic Development Classifications

• Countries categorized into:

• Low-income (Developing Economies)

• Middle-income (Emerging Economies)

• High-income (Advanced Economies)

• Human Development Index (HDI): Combines economic (GNI/capita) and social (life expectancy, education) factors.

Sectoral Employment Trends

• Less developed countries have higher employment in the primary sector; more developed countries in the tertiary sector.

• Formal vs. Informal Sector: Formal sector is regulated; informal is unregulated and often includes illegal activities.

Income Distribution

• Use of Gini coefficient to measure inequality (0 = no inequality, 1 = total inequality).

• More developed countries typically have lower Gini coefficients.

Social Measures of Development

• Total fertility rate, infant mortality rate, life expectancy, and literacy rates as indicators.

• Gender Gap: Differences in privileges among genders impact development.

• Gender Inequality Index (GII): Measures loss of potential human development due to gender inequality.

Global Patterns of Development

• Economic growth varies regionally; Asia has seen substantial gains.

• Developed regions (North America, Europe) produce a disproportionate share of global GDP.

• Inequality within countries often favors core urban areas over rural regions.

Conclusion

• Both economic and social measures are essential in evaluating development, highlighting the multifaceted nature of prosperity across nations.