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

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• 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

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• 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

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• 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

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• 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

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• 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

  

• The role of Aid:

  • Programme aid: funding provided for specific programmes which is dependent on the recipient adhering to specific conditions.
  • Project aid: aid which is given for a specific purpose, including support for schools and hospitals.
  • Humanitarian aid: food aid, medical relief and emergency relief aid which is often provided by nongovernmental organisations (NGOs)
  • Official development assistance: aid which is granted to economically less developed countries by governments is called.
  • Foreign aid: money, food or resources given or lent by one country to another.

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