The development gap and how it can be measured

World Development Aims To know how we can measure the development gap To know the terminology used to identify countries of differing development

Development Development means the way in which a country seeks to improve economically and raise the standard of living for its inhabitants. The Development Gap refers to the widening difference in levels of development between the world’s richest and poorest countries. This development gap can also occur within countries, for example between regions or between urban and rural areas. The Development continuum Some people think this better reflects reality. There is a distinct graduation between countries at different levels rather than clusters in distinct groups.

What words are used to describe development levels? LEDC/MEDC/NIC Rich/ poor Developed/ Developing/ Underdeveloped First world/ second world/ third world North and South

How do we measure development? What are development indicators?

MEASURING THE DEVELOPMENT GAP Question ‘Evaluate the indicators that can be used to measure the development gap’

GNP and GDP
GDP = Gross Domestic Product
GNP = Gross National Product
GDP is a traditional and economic measure of development. It is the total value of goods and services produced by a country during one year. GNP is similar but also includes income from overseas investment.
GDP per capita is where the money is then divided per person in the population to give a more reliable average.

GNP per capita GDP per Capita

What are the Problems with GNP as an indicator It hides inequalities within a country. E.g. Saudi Arabia may have a high GDP per capita but there is a vast gap between the rich and the poor within the country.

Money from power for heating is included in GNP. So cold countries may appear wealthier

Subsistence Farming generates no cash and so is not included

The informal economy does not declare cash so it is not counted.

The $ has different purchasing power in different countries – cost of living is different.
“ Yes it is lovely and it only cost me 50p in our money. You can get a decent meal for a £1and the beer and spirits are dirt cheap as well. I think I’ll haggle him down a bit!”

Purchasing Power Parity
Purchasing power parity (PPP). A method of measuring the relative purchasing power of different countries’ currencies over the same types of goods and services. Because goods and services may cost more in one country than in another, PPP allows us to make more accurate comparisons of standards of living across countries.

Social Indicators of Development
HEALTH
Infant Mortality Rate
Life Expectancy
% of GNP spent on health
Doctors per 1000 people
Hospital beds per 1000 people
Daily calorie intake
EDUCATION
% of GNP spent on education
Average number of years in full time education
Literacy rates
Full time teachers per 1000 people
HOUSING
Dwelling floor space per capita
%dwelling with running water
% dwelling with electricity
% dwelling with indoor lavatory
% dwelling owner occupied
% GNP spent on housing
PROBLEMS
Social development can often lag behind economic development
Some inappropriate indicators for LEDC’s.

Economic Indicators of Development
TRANSPORT
Km railways per unit area
Tonnes of freight per population unit per year.
Kilometres of roads per unit area
ENERGY
Kwh of electricity per capita
Kwh of energy consumed per capita
Kwh of energy reserves
Per cent HEP developed
COMMUNICATIONS
Newspaper circulation per population unit
Telephones per population unit
Domestic mail flow per capita
TRADE
Exports per capita
Imports per capita
Value of foreign trade turnover
PROBLEMS
Can be outdated quickly e.g internet.
No-one single indicator can be reliable on its own.

COMPOSITE INDICATORS Physical Quality of Life Index (PQLI) This includes life expectancy, literacy rates and infant mortality rates. The higher the score the better quality of life. Human Development Index (HDI) This is the same as the PQLI plus school enrolment and PPP to help judge standards of living. International Suffering Index (HIS) This adds daily calorie intake, access to clean water, inflation rate, access to communications, political freedom and civil rights. These tend to be more valid at the moment as they take in to account more than one factor and a range of economic and social factors.

The digital divide The digital access index (DAI) measures the gap between countries and their ability to access and use ICT.

The Gender divide The more recent GDI (Gender Development index) shows the inequalities between men and women in terms of life expectancy, education and income.

Most and least liveable countries According to the UN here are the top ten MOST and LEAST livable countries by HDI. Can you locate them all on a map? Niger Sierra Leone Mali Burkino Faso Guinea Bissau Central African Republic Chad Ethiopia Burundi Mozambique Norway Iceland Australia Ireland Sweden Canada Japan USA Switzerland Netherlands Least Liveable Most Liveable

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The development gap and how it can be measured

by jodiecmills on Feb 18, 2011

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The development gap and how it can be measured — Presentation Transcript