Measuring economic development


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Measuring Economic Development

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Measuring economic development

  1. 1. Measuring Economic Development Chapter 1 Economic Elective
  2. 2. GNP Gross National Product The measure of a country’s wealth – the value of goods and services produced in a country plus those produced by native companies located abroad. GDP Gross Domestic Product The value of all goods and services produced (by locally owned and foreign owned businesses) in a country. HDI Human Development Index Measure of people’s life expectancy, education and income. TERMS YOU NEED TO UNDERSTAND
  3. 3. LDC Least Developed Country Formerly known as a Third World country – a country is that is poorer than other countries, e.g. Ethiopia. NIC Newly Industrialised Country A country experiencing rapid economic development, e.g. Brazil. HIPC Highly Indebted Poor Country Countries with the highest levels of poverty in the world, e.g. Ethiopia. TERMS YOU NEED TO UNDERSTAND
  4. 4. World Patterns in Economic Development Type of Region Examples 1 Developed Region Europe, North America, Japan, Australia. 2 Quickly Developing Countries South East Asian countries: China, India, South and Central America: Brazil, Mexico North African countries: Egypt 3 Least Developed Countries Many African countries: Zambia, Ethiopia Some countries in Asia: Bangladesh
  5. 5. Developed Regions • High levels of industrial activity • Well developed healthcare systems • Educated population • Equality between men and women • Child mortality is low • Well developed infrastructure (hospitals, schools, etc).
  6. 6. Quickly Developing Countries • Industrialised rapidly over the last 20 years • Most jobs are in manufacturing and services • Wages are low – this attracts MNCs looking for cheap labour • Healthcare and literacy levels are improving
  7. 7. Least Developed Countries • Poorest in the world. • Life Expectancy low. • Millions live in poverty. • Disease is common. • Government is absent or corrupt. • Many girls receive no education. • Most jobs are low income primary industry jobs.
  8. 8. Least Developed Countries
  9. 9. Measures of Economic Development 1 Gross National Product 2 Human Development Index
  10. 10. Indicator Advantages Disadvantages GNP  Easy to see ranked position of a country in a list.  Gives a quick view of level of development.  Easy to calculate from government statistics.  Average figure – hides the inequality of wealth.  Presence of MNCs can give a high GNP covering up poor performance by local companies.  Doesn’t account for black market. HDI  Includes several social and economic conditions in a country.  A more complete view of development.  Inequality can still exist in a country with a high score.  Cannot easily measure changes in long term indicators such as life expectancy.
  11. 11. Homework All students: Revise and understand new terms page 8 Higher Level 1. 2011 Q 9A (HDI) 2. 2010 Q 8A (HDI) 3. 2008 Q 8A (HDI) 4. 2007 Q 7A (GDP) 5. 2006 Q 7A (GDP) Ordinary Level • Page 18 Questions 11 & 12.