Ch 28 - The Economic and Sustainable Development 

Economic growth: an increase in the real output of an economy over time (less multidimensional)

Economic development: qualitative measure of the county’s standard of living (more multidimensional)   * involves reducing widespread poverty and reducing income inequalities and decreasing employment opportunities

Sources of economic growth in less developed countries:   * Increases in human capital (improvements in training and education)   * Increases in physical capital ( improvements in machinery will benefit productivity)   * New technologies (can induce economic growth as efficiency in manufacturing increases)   * Institutional change (encouragement of entrepreneurship)   * In the long term, economic growth is usually necessary for economic development     * an increase in the quality of life tends to require an increase in real incomes

Sustainable development: economic development that is conducted with depletion of natural resources   * Relationship between sustainability and poverty: poor people in LEDC’s have to rely more on the environment than rich countries/people     * Environment may be their source of food, fuel, sanitation, and waste disposal. However, the use of the environment results in further environmental problems

Characteristics of LEDC’s: (Less economically developed countries)   * Low levels of GDP per capita   * High levels of poverty   * Relatively large agriculture sector   * Large urban informal sector   * High birth rate

Formulas:   * Child dependency ratio: % of population under 15 / % of population 15 to 64   * Old age dependency ratio: % of population over 64 / % of population 15 to 64

Millennium Development Goals   * These are the world's targets for addressing poverty and improving the global standards of living. These goals are to…     * Eradicate extreme hunger and poverty     * Achieve universal primary education     * Promote gender equality and empower women     * Reduce child mortality     * Improve maternal health     * Combat HIV/AIDs, malaria and other diseases     * Ensure environmental sustainability     * Global partnership for development