An introduction to development and GDP

1. We live in houses like this……..

2. Whilst many people live in houses like this…….

3. We have no problem finding fresh water to drink and
water the grass with!

4. Whilst other people can hardly find enough water to
drink…

5. We have more food than we can eat……..

6. But did you know that……….

7. In 2001, 1.1 billion people lived on less $1 (CHF0.84) a day and 2.7
billion lived on less than $2 (CHF1.68) a day.
How much do you think you live on?
Could you live on $1,$2, $10?

8. The Rich Developed North and the Poor Less
Developed South
Is it simply a question of who has the most
money? Why is the north rich?

9. How wealthy is your country?
The average income of a person in the world is
$12,000
In Qatar, the average income is
$104,300
In the Democratic Republic of Congo, the average
income is
$400

10. How do we work out how
wealthy a country is?
GDP - Gross Domestic Product
The total amount of money a country makes from
all of the goods and services it produces.
Goods = Things we buy and sell
Services = jobs people are paid to do

11. GDP = Good + Services

12. But there is a problem
China’s population = 1,343,239,923 people
(Over 1.3 billion people)
Switzerland’s population = 7,925,517
(Less than 8 million people)
Which country is going to
Which country is going to
produce the most goods
produce the most goods
and services?
and services?

13. GDP
China’s GDP = $11,440,000,000,000
(that’s $11.44 trillion dollars)
Switzerland’s GDP = $344,200,000,000
(only $344.2 billion)
That is a huge difference!

14. But that doesn’t mean that
China is the wealthiest country
GDP/Capita =
Gross Domestic Product
population
The money has
The money has
to go a long way
to go a long way

15. GDP/Capita
Is a much better way of showing how
wealthy a country is.
All the money a country makes
All the money a country makes
÷÷
The number of people in the
The number of people in the
country.
country.