This document discusses indicators used to measure economic development in developing countries. It compares GDP per capita, life expectancy, literacy rates, and measures of poverty in Ghana, Zambia, and the UK. While GDP per capita is the most widely used indicator, it has limitations and does not tell the full story of a country's development. Other indicators like health and education outcomes can vary widely between countries with similar GDP. Absolute poverty refers to inability to meet basic needs, while relative poverty compares income differences between populations. No single indicator encompasses overall development.
This document analyzes income inequality in South Africa. It begins with an introduction discussing economic inequality and its negative social impacts. Section 2 then provides a global outlook on rising income inequality trends across regions. Key causes of inequality discussed in Section 3 include wealth concentration, labor market disparities, taxes, education, and globalization. Section 5 analyzes the specific drivers of inequality in South Africa, including its apartheid legacy and contemporary trends. The document concludes by discussing policies aimed at addressing income inequality.
The document discusses income inequality and GDP growth in several countries by examining their Gini coefficients. It finds that India and Mexico have relatively high Gini coefficients, indicating high income inequality, while Denmark and countries with low Gini coefficients tend to have greater GDP growth. The US has high wealth inequality though also has one of the largest economies. Singapore has the highest income inequality among developed OECD countries. Government transfers are effective at reducing inequality in most countries.
劉遵義 Income inequality under economic globalisation(final) 20150414Andy Kuo
The document discusses income inequality under economic globalization. It examines how globalization and technological changes have contributed to rising income inequality within and between countries. While globalization has helped lift many people out of poverty, it has also been a factor in increasing national income disparities and declining wages in some developed countries. The Gini coefficient is presented as a common measure of income inequality, with higher values indicating greater inequality.
The document discusses development indicators and the relationship between a country's income and factors like percentage of population working in agriculture. It provides tables showing GDP and development indicators like infant mortality for different countries. It also lists characteristics of more and less economically developed countries and asks which is the odd one out in several sets of development indicators.
It gives a complete idea of various ways to reduce the gap between the rich and poor people in India and finding the ways of such an inequality in income
The document discusses several factors contributing to high bank spreads in Brazil, including defaults, administrative costs, required reserves, taxes and fees, and unexplained reasons related to profits. It notes that while the cost of raising funds for banks has decreased, spreads have fallen more slowly. The global crisis presents an opportunity to further reduce spreads by lowering required reserves and credit taxes. Establishing a centralized client credit registry could help increase competition and information sharing among banks, leading to lower spreads over time.
The Brazilian Economy is one of the oldest publications for expert economic analysis of both the Brazilian and international economies. Through this publication, FGV’s Brazilian Institute of Economics and Finance (FGV/IBRE) compares different periods of the economy, assessing both macroeconomic considerations and scenarios related to finance, administration, marketing, management, insurance, statistics, and price indices.
For more information, and Brazilian economic index results, visit: http://bit.ly/1EA1Loz
This document analyzes income inequality in South Africa. It begins with an introduction discussing economic inequality and its negative social impacts. Section 2 then provides a global outlook on rising income inequality trends across regions. Key causes of inequality discussed in Section 3 include wealth concentration, labor market disparities, taxes, education, and globalization. Section 5 analyzes the specific drivers of inequality in South Africa, including its apartheid legacy and contemporary trends. The document concludes by discussing policies aimed at addressing income inequality.
The document discusses income inequality and GDP growth in several countries by examining their Gini coefficients. It finds that India and Mexico have relatively high Gini coefficients, indicating high income inequality, while Denmark and countries with low Gini coefficients tend to have greater GDP growth. The US has high wealth inequality though also has one of the largest economies. Singapore has the highest income inequality among developed OECD countries. Government transfers are effective at reducing inequality in most countries.
劉遵義 Income inequality under economic globalisation(final) 20150414Andy Kuo
The document discusses income inequality under economic globalization. It examines how globalization and technological changes have contributed to rising income inequality within and between countries. While globalization has helped lift many people out of poverty, it has also been a factor in increasing national income disparities and declining wages in some developed countries. The Gini coefficient is presented as a common measure of income inequality, with higher values indicating greater inequality.
The document discusses development indicators and the relationship between a country's income and factors like percentage of population working in agriculture. It provides tables showing GDP and development indicators like infant mortality for different countries. It also lists characteristics of more and less economically developed countries and asks which is the odd one out in several sets of development indicators.
It gives a complete idea of various ways to reduce the gap between the rich and poor people in India and finding the ways of such an inequality in income
The document discusses several factors contributing to high bank spreads in Brazil, including defaults, administrative costs, required reserves, taxes and fees, and unexplained reasons related to profits. It notes that while the cost of raising funds for banks has decreased, spreads have fallen more slowly. The global crisis presents an opportunity to further reduce spreads by lowering required reserves and credit taxes. Establishing a centralized client credit registry could help increase competition and information sharing among banks, leading to lower spreads over time.
The Brazilian Economy is one of the oldest publications for expert economic analysis of both the Brazilian and international economies. Through this publication, FGV’s Brazilian Institute of Economics and Finance (FGV/IBRE) compares different periods of the economy, assessing both macroeconomic considerations and scenarios related to finance, administration, marketing, management, insurance, statistics, and price indices.
For more information, and Brazilian economic index results, visit: http://bit.ly/1EA1Loz
This document discusses social trends in Latin America, particularly regarding economic growth, poverty reduction, and inequality. Some key points:
- Latin America has experienced over a decade of sustained economic growth, reducing poverty by 51 million people and inequality in most countries.
- However, it's unclear if further social gains can be achieved solely through economic growth, as labor market gains have concentrated in male-dominated service sectors rather than manufacturing.
- Two trends have helped reduce poverty and inequality: rising labor incomes, and social programs like conditional cash transfers. But pockets of poverty remain among excluded groups like youth and women.
- Microtrends like high rates of "idle youth" who neither work nor study, and low
Economic growth alone does not determine a country's progress, as measured solely by GDP. A country's distribution of wealth, levels of inequality, and human development factors must also be considered. Progress is achieved through balanced economic growth that improves citizens' living standards, health, education, freedoms and well-being. Countries with high GDP but low scores on social progress indexes cannot truly be considered developed.
Economic inequality is an important social issue with implications for equity, crime rates, and life satisfaction. Data shows the gap between rich and poor has grown significantly rather than diminished over time. The three richest individuals now possess more wealth than the poorest 48 nations combined. High inequality is linked to worse social outcomes like higher rates of health and social problems. It can also undermine economic growth and political stability if inequality causes social unrest. Reducing inequality through policies that boost opportunities for all members of society may help create fairer and more cohesive communities.
Wdr 1984 'step to reduce fertility' confirms that the un and the who are im...PublicLeaks
This document is the 1984 World Development Report published by the World Bank. It provides an overview of the global economic outlook and analyzes the links between population change and development. The report finds that population growth does not necessarily cause poverty but can make development more difficult, especially in countries with high fertility. It reviews factors influencing fertility and experiences of countries that have reduced birth rates. The report concludes that public policies supporting education, health and family planning can slow population growth in a way consistent with individual freedom and economic progress.
Khalid Abu Ismail - ESCWA
Racha Ramadan - Cairo University
ERF 24th Annual Conference
The New Normal in the Global Economy: Challenges & Prospects for MENA
July 8-10, 2018
Cairo, Egypt
Income inequality has increased in both rural and urban areas of India according to the Gini coefficient. The Gini coefficient for rural India increased by 13% and for urban India by 15%, indicating rising disparities in income, expenditure, and savings patterns between rich and poor. Higher-income states and larger cities have significantly higher average incomes compared to their population shares. Factors contributing to rising income inequality in India include unequal distribution of assets, differences in growth rates across states and sectors, and lack of adequate work opportunities for those without assets.
This document summarizes a research study on the impact of microfinance banks on the standard of living of hairdressers in Oshodi-Isolo local government area of Lagos State, Nigeria. The study aims to examine how microfinance banks have impacted hairdressers' businesses and their ability to acquire assets and save. It involved surveying 120 hairdressers registered with the local government. The results found a significant relationship between microfinance efforts and the hairdressers' standard of living, indicating that microfinance has helped reduce poverty somewhat among this group. The study recommends that government ensure microfinance loans are easily obtainable with reasonable repayment schedules.
one hedge fund manager can pocketed $ 1,3 bio (2014)!
This reminded me of a famous Wall Street joke – about a visitor to New York who admired the gorgeous yachts of the richest bankers and brokers. After gazing long and thoughtfully at these beautiful boats, the visitor asked wryly: “Where are the customers’ yachts?” Of course, the customers could not afford yachts, even though they dutifully followed the advice of their bankers and brokers.
The document discusses measuring levels of development between countries and within countries. It lists common indicators used to measure development, such as GDP per capita, GNP, HDI, infant mortality rates, population per doctor, food consumption, and adult literacy. The document also lists the top ten most livable and least livable countries according to the UN's HDI, with the least livable being in Africa and the most livable in Northern Europe and other developed nations.
This document discusses the increasing reliance of farm households, especially young and beginning farmers, on off-farm income. It notes that off-farm income now accounts for over 75% of total farm household income on average. For young and beginning farmers, off-farm income plays an even greater role by providing a stable income source to help manage risks from fluctuating farm profits and enable them to obtain financing to start their operations. The document examines trends showing rising off-farm labor participation rates among young farmers and analyzes how off-farm income serves as both an income source and risk management tool for farm households.
Unit 3 contested_planet_bridging_the_development_gapALawson1234
The document discusses bridging the development gap between rich and poor countries. It explores the causes of the gap, including unequal distribution of wealth globally and different measures of development. The consequences of the gap include poverty, poor health outcomes, urban slums, and ethnic inequalities. Strategies to bridge the gap involve both top-down approaches like large infrastructure projects led by governments and companies, and bottom-up grassroots projects led by local communities and NGOs. Aid and foreign direct investment are also discussed as ways to fund development.
The document discusses income inequality, which is the gap between rich and poor in terms of wealth and income distribution. It provides data on income inequality ratios between the richest and poorest 10% of populations in various countries. Income inequality varies between societies, economic systems, and over time. There are various ways to measure economic inequality numerically, including Lorenz curves and Gini coefficients. The document then discusses some of the key causes of income inequality like changes in labor markets, globalization, technology, and tax policies. It also discusses some of the impacts and trade-offs of income inequality.
Bridging the development gap file organiserjodiecmills
The document discusses the development gap between developed and developing economies. It covers three main topics: the causes of the development gap which can be explained by economic theories and the roles of global organizations, the social, economic, and environmental consequences of the gap for developing countries and urban poor, and approaches to reducing the gap through theories of development as well as aid, trade, and economic growth though there is debate around these strategies.
HUMANITY DIVIDED: Confronting inequality in Developing CountriesUNDP Eurasia
This document summarizes key points from a UNDP report on inequality in developing countries. It finds that income inequality increased in some regions but decreased in others between the early 1990s and late 2000s. Technical change, financial globalization, and domestic policies have driven income inequality. While some countries saw inequality rise with above average growth, others maintained or reduced inequality with high growth. The redistributive impact of taxes and transfers reduced inequality by up to 30% in some low- and middle-income countries. Inequality in health and nutrition outcomes also correlates with income inequality between wealth quintiles. A comprehensive policy framework is needed to adequately address inequality.
The Least Developed Countries Report 2011 puts forward a policy framework for enhancing the development impact of South–South cooperation, and proposes ways to leverage South–South financial cooperation for development in the LDCs.
This document discusses various measures used to analyze income inequality and poverty. It defines income inequality as the unequal distribution of income across members of an economy. The Lorenz curve is introduced as a graphical representation of income distribution. Measures of poverty discussed include the headcount index, poverty gap, poverty gap index, and Foster-Greer-Thorbecke index. These measures provide ways to quantify levels of poverty and income inequality within and between populations.
Daniel Silke provides a menu of keynote presentations covering topics related to South African politics and economics, the broader African continent, and global trends. The keynotes are concise and provide overviews on issues such as South Africa's political and economic challenges, assessments of countries on the African continent, and analyses of disruptions in the global political economy from events like Brexit and the election of Donald Trump. The summaries are meant to give clients a high-level understanding of the content and issues covered in each presentation.
The Brazilian Economy is one of the oldest publications for expert economic analysis of both the Brazilian and international economies. Through this publication, FGV’s Brazilian Institute of Economics and Finance (FGV/IBRE) compares different periods of the economy, assessing both macroeconomic considerations and scenarios related to finance, administration, marketing, management, insurance, statistics, and price indices.
For more information, and Brazilian economic index results, visit: http://bit.ly/1EA1Loz
After a promising start to a decade in 2012-11 with achievement like GDP growth of 8.4% but in 2011-12 GDP growth decelerated sharply to a nine year low of 6.5%. since, then Indian economy is facing a downward trends due to various reasons.
A brief report is prepared by us in layman's language showing how Indian economy is moving and what are it's impact.
Economic Indicators of Wyoming\'s Economic Health: Part IDoug Leonard
A short article investigating indicators related to the economic health of Wyoming. The analysis used employment data in addition to turnover statistics at the individual level.
The document discusses indicators of development and sustainability. It introduces indicators and their use in measuring development objectives and progress. Key criteria for good indicators are outlined, including their relevance, ability to summarize information, precision, and reliability. Sustainable development is defined as balancing near-term and future interests, including a safe environment for future generations. Twelve development priorities for Aruba are listed covering areas like education, culture, economy, environment and governance. The activity asks students to form groups, choose one development priority, and formulate two indicators to measure progress toward that objective.
This document discusses social trends in Latin America, particularly regarding economic growth, poverty reduction, and inequality. Some key points:
- Latin America has experienced over a decade of sustained economic growth, reducing poverty by 51 million people and inequality in most countries.
- However, it's unclear if further social gains can be achieved solely through economic growth, as labor market gains have concentrated in male-dominated service sectors rather than manufacturing.
- Two trends have helped reduce poverty and inequality: rising labor incomes, and social programs like conditional cash transfers. But pockets of poverty remain among excluded groups like youth and women.
- Microtrends like high rates of "idle youth" who neither work nor study, and low
Economic growth alone does not determine a country's progress, as measured solely by GDP. A country's distribution of wealth, levels of inequality, and human development factors must also be considered. Progress is achieved through balanced economic growth that improves citizens' living standards, health, education, freedoms and well-being. Countries with high GDP but low scores on social progress indexes cannot truly be considered developed.
Economic inequality is an important social issue with implications for equity, crime rates, and life satisfaction. Data shows the gap between rich and poor has grown significantly rather than diminished over time. The three richest individuals now possess more wealth than the poorest 48 nations combined. High inequality is linked to worse social outcomes like higher rates of health and social problems. It can also undermine economic growth and political stability if inequality causes social unrest. Reducing inequality through policies that boost opportunities for all members of society may help create fairer and more cohesive communities.
Wdr 1984 'step to reduce fertility' confirms that the un and the who are im...PublicLeaks
This document is the 1984 World Development Report published by the World Bank. It provides an overview of the global economic outlook and analyzes the links between population change and development. The report finds that population growth does not necessarily cause poverty but can make development more difficult, especially in countries with high fertility. It reviews factors influencing fertility and experiences of countries that have reduced birth rates. The report concludes that public policies supporting education, health and family planning can slow population growth in a way consistent with individual freedom and economic progress.
Khalid Abu Ismail - ESCWA
Racha Ramadan - Cairo University
ERF 24th Annual Conference
The New Normal in the Global Economy: Challenges & Prospects for MENA
July 8-10, 2018
Cairo, Egypt
Income inequality has increased in both rural and urban areas of India according to the Gini coefficient. The Gini coefficient for rural India increased by 13% and for urban India by 15%, indicating rising disparities in income, expenditure, and savings patterns between rich and poor. Higher-income states and larger cities have significantly higher average incomes compared to their population shares. Factors contributing to rising income inequality in India include unequal distribution of assets, differences in growth rates across states and sectors, and lack of adequate work opportunities for those without assets.
This document summarizes a research study on the impact of microfinance banks on the standard of living of hairdressers in Oshodi-Isolo local government area of Lagos State, Nigeria. The study aims to examine how microfinance banks have impacted hairdressers' businesses and their ability to acquire assets and save. It involved surveying 120 hairdressers registered with the local government. The results found a significant relationship between microfinance efforts and the hairdressers' standard of living, indicating that microfinance has helped reduce poverty somewhat among this group. The study recommends that government ensure microfinance loans are easily obtainable with reasonable repayment schedules.
one hedge fund manager can pocketed $ 1,3 bio (2014)!
This reminded me of a famous Wall Street joke – about a visitor to New York who admired the gorgeous yachts of the richest bankers and brokers. After gazing long and thoughtfully at these beautiful boats, the visitor asked wryly: “Where are the customers’ yachts?” Of course, the customers could not afford yachts, even though they dutifully followed the advice of their bankers and brokers.
The document discusses measuring levels of development between countries and within countries. It lists common indicators used to measure development, such as GDP per capita, GNP, HDI, infant mortality rates, population per doctor, food consumption, and adult literacy. The document also lists the top ten most livable and least livable countries according to the UN's HDI, with the least livable being in Africa and the most livable in Northern Europe and other developed nations.
This document discusses the increasing reliance of farm households, especially young and beginning farmers, on off-farm income. It notes that off-farm income now accounts for over 75% of total farm household income on average. For young and beginning farmers, off-farm income plays an even greater role by providing a stable income source to help manage risks from fluctuating farm profits and enable them to obtain financing to start their operations. The document examines trends showing rising off-farm labor participation rates among young farmers and analyzes how off-farm income serves as both an income source and risk management tool for farm households.
Unit 3 contested_planet_bridging_the_development_gapALawson1234
The document discusses bridging the development gap between rich and poor countries. It explores the causes of the gap, including unequal distribution of wealth globally and different measures of development. The consequences of the gap include poverty, poor health outcomes, urban slums, and ethnic inequalities. Strategies to bridge the gap involve both top-down approaches like large infrastructure projects led by governments and companies, and bottom-up grassroots projects led by local communities and NGOs. Aid and foreign direct investment are also discussed as ways to fund development.
The document discusses income inequality, which is the gap between rich and poor in terms of wealth and income distribution. It provides data on income inequality ratios between the richest and poorest 10% of populations in various countries. Income inequality varies between societies, economic systems, and over time. There are various ways to measure economic inequality numerically, including Lorenz curves and Gini coefficients. The document then discusses some of the key causes of income inequality like changes in labor markets, globalization, technology, and tax policies. It also discusses some of the impacts and trade-offs of income inequality.
Bridging the development gap file organiserjodiecmills
The document discusses the development gap between developed and developing economies. It covers three main topics: the causes of the development gap which can be explained by economic theories and the roles of global organizations, the social, economic, and environmental consequences of the gap for developing countries and urban poor, and approaches to reducing the gap through theories of development as well as aid, trade, and economic growth though there is debate around these strategies.
HUMANITY DIVIDED: Confronting inequality in Developing CountriesUNDP Eurasia
This document summarizes key points from a UNDP report on inequality in developing countries. It finds that income inequality increased in some regions but decreased in others between the early 1990s and late 2000s. Technical change, financial globalization, and domestic policies have driven income inequality. While some countries saw inequality rise with above average growth, others maintained or reduced inequality with high growth. The redistributive impact of taxes and transfers reduced inequality by up to 30% in some low- and middle-income countries. Inequality in health and nutrition outcomes also correlates with income inequality between wealth quintiles. A comprehensive policy framework is needed to adequately address inequality.
The Least Developed Countries Report 2011 puts forward a policy framework for enhancing the development impact of South–South cooperation, and proposes ways to leverage South–South financial cooperation for development in the LDCs.
This document discusses various measures used to analyze income inequality and poverty. It defines income inequality as the unequal distribution of income across members of an economy. The Lorenz curve is introduced as a graphical representation of income distribution. Measures of poverty discussed include the headcount index, poverty gap, poverty gap index, and Foster-Greer-Thorbecke index. These measures provide ways to quantify levels of poverty and income inequality within and between populations.
Daniel Silke provides a menu of keynote presentations covering topics related to South African politics and economics, the broader African continent, and global trends. The keynotes are concise and provide overviews on issues such as South Africa's political and economic challenges, assessments of countries on the African continent, and analyses of disruptions in the global political economy from events like Brexit and the election of Donald Trump. The summaries are meant to give clients a high-level understanding of the content and issues covered in each presentation.
The Brazilian Economy is one of the oldest publications for expert economic analysis of both the Brazilian and international economies. Through this publication, FGV’s Brazilian Institute of Economics and Finance (FGV/IBRE) compares different periods of the economy, assessing both macroeconomic considerations and scenarios related to finance, administration, marketing, management, insurance, statistics, and price indices.
For more information, and Brazilian economic index results, visit: http://bit.ly/1EA1Loz
After a promising start to a decade in 2012-11 with achievement like GDP growth of 8.4% but in 2011-12 GDP growth decelerated sharply to a nine year low of 6.5%. since, then Indian economy is facing a downward trends due to various reasons.
A brief report is prepared by us in layman's language showing how Indian economy is moving and what are it's impact.
Economic Indicators of Wyoming\'s Economic Health: Part IDoug Leonard
A short article investigating indicators related to the economic health of Wyoming. The analysis used employment data in addition to turnover statistics at the individual level.
The document discusses indicators of development and sustainability. It introduces indicators and their use in measuring development objectives and progress. Key criteria for good indicators are outlined, including their relevance, ability to summarize information, precision, and reliability. Sustainable development is defined as balancing near-term and future interests, including a safe environment for future generations. Twelve development priorities for Aruba are listed covering areas like education, culture, economy, environment and governance. The activity asks students to form groups, choose one development priority, and formulate two indicators to measure progress toward that objective.
This document provides an overview of key economic indicators in India including the Index of Industrial Production (IIP) and Wholesale Price Index (WPI). It discusses the history and structure of the IIP, noting it measures industrial production compared to a base year. It also explains the WPI measures wholesale price movements weekly across primary articles, fuel, and manufactured goods. The document highlights how these indicators can provide insights into business environment trends and impact stock markets and economic sectors.
Economic and Social Indicators of DevelopmentRich Elle
This document discusses economic and social development and indicators. It defines sustainable development as meeting present needs without compromising future generations' ability to meet their own needs. Economic development aims to promote growth through improving factors like health, education and policies. Social development refers to societal changes and progress. The document outlines the physical, vital and mental stages of development that societies progress through. It also discusses definitions, theories, and measures of economic and social development.
Traditionally, development was defined and measured through economic indicators like GNP per capita. However, modern definitions see development as improving quality of life through meeting basic needs, social justice, health, education, and freedom. Quality of life is now often measured through indices that consider factors like life expectancy, education, and income. These measures provide a more holistic view of development than purely economic metrics but still have limitations in capturing inequality and changes over time.
This document discusses various measures used to assess economic development. It defines Gross National Product (GNP) as the value of goods and services produced in a country plus those produced abroad. Gross Domestic Product (GDP) is defined as the value of all goods and services produced locally or by foreign companies within a country. The Human Development Index (HDI) measures life expectancy, education levels, and income to assess overall human development. The document also outlines characteristics of developed, newly industrialized, and least developed countries.
The development gap and how it can be measuredjodiecmills
There are several ways to measure development levels and the gap between developed and developing countries:
1) GDP and GNP per capita are traditional economic measures but don't capture inequalities within countries.
2) Social indicators like health, education, and housing provide a more holistic view of development.
3) Composite indices that combine economic and social factors, such as the Human Development Index, provide a comprehensive overview of development levels.
4) Other indices measure specific issues like the digital divide, gender inequality, and livability between countries. No single measure can fully capture a country's development status.
The document provides information on the characteristics of developing nations. It discusses some key obstacles to development, such as reliance on subsistence agriculture and lack of political stability. It also lists some common characteristics of developing countries, including low levels of productivity, imperfect world markets, low living standards, and high population growth. The document then examines ways to measure a nation's level of development, such as through quantitative indicators like GDP per capita and qualitative indicators like the Happiness Index. It introduces the Human Development Index as a composite measure of development.
ECONOMIC DEVELOPMENT 4.0: Wisdom Networks crowdcreate economic developmentWisdom.To
Economic Development 4.0 is how the world works on the web!. It integrates a critical mass of Web 3.0 social, industrial and political networks. Web 3.0 networks offer the community unprecedented access, innovation, investment, transparency, information distribution (Web 1.0), community participation (Web 2.0), improved collaboration (Web 3.0) and aggregation of the Wisdom of Crowds and effort for better outcomes.
This document discusses various demographic indicators and compares statistics between first, second, and third world countries. It defines indicators like fertility rate, mortality rate, population growth rate, migration rate, and discusses metrics for countries like Canada, China, and Pakistan. Fertility rates are declining in developed nations due to economic factors influencing family size. Mortality rates are falling globally due to improved healthcare. Population growth is highest in the third world due to sustained high fertility and declining mortality. Migration is influenced by various push-pull factors. Overall life expectancy and health outcomes are better in the first world compared to other nations.
Economic Conditions in Developing Countries An economics lec.docxjack60216
Economic Conditions in Developing Countries
An economics lecture by Professor Dave Abler of Penn State University retrieved from:
http://450.aers.psu.edu/economic_conditions.cfm
This lecture provides a broad overview of economic conditions in developing countries.
Specific topics covered include:
Daily life in developing countries
Some terminology to get us started
Economic growth vs. economic development
Selected socioeconomic statistics
Common socioeconomic characteristics of developing countries
Key socioeconomic differences among developing countries
Daily Life in Developing Countries
The differences between day-to-day life in developing countries and the U.S. are huge and
can be very difficult for us to comprehend. Virtually everything – what people own, what
they do for a living, what they do in their leisure time, what they expect out of life for
themselves and their children, the way they think about themselves and others, the things
they take for granted, and more – differs dramatically.
According to the World Bank, nearly 1 billion people live below the international poverty line
of $1.08 in consumption expenditures per person per day in 1993 purchasing power parity
(PPP) adjusted U.S. dollars. (Purchasing power parity is defined below.) That's about $1.53
per person per day in today's dollars. Another 1.5 billion are only a little better off, living on
less than $2.15 per day in 1993 PPP adjusted U.S. dollars. These are commonly referred to
as the "$1-a-day" and "$2-a-day" poverty lines.
So what would it be like living on $1.53 per day? An article from USA Today may be helpful
in putting things into perspective.
Get rid of your car and all of your furniture and appliances except one chair and one
table – no TV, stereo, refrigerator, dishwasher, clothes washer, dryer, or even
lamps.
Get rid of all your clothing except your oldest, most beaten-up shirt and pair of
jeans. If you're the head of the family, you can keep one pair of shoes. If not, get rid
of them too.
Remove the food from the kitchen. You can keep one small bag of flour, some sugar
and salt, and a few potatoes, onions, cabbages or dry beans. You'll cook with
firewood or dried cow dung.
Shut off the water, gas and electricity. While you're at it, dismantle the bathroom.
Your new bathroom will be the local stream or pond. You'll get your drinking water
from there too.
Move out of the house and into the toolshed. Your neighborhood will be a small
village or shantytown.
http://450.aers.psu.edu/economic_conditions.cfm
Don't waste any time on newspapers, books and magazines. They'll be meaningless
to you because you'll give up literacy.
Hold $10 in case of emergency – no bank account, pension plan or insurance
policies.
Cultivate three acres as a tenant farmer. If the weather's good, you can expect $300
to $500 per year in cash crops. You'll pay one third ...
1. The document discusses the development gap between rich and poor countries as measured by income, poverty, health, education, and urbanization. It shows that while some countries have steadily grown and closed the gap, others have fallen further behind.
2. Historical examples of catch-up include Germany and Japan who rapidly industrialized in the late 19th century and grew to match incomes of early industrializers like the UK and US. However, some formerly wealthy countries like China, Argentina, and the Ottoman Empire experienced economic decline over the 20th century.
3. The UN's Millennium Development Goals set targets to reduce poverty, improve health and education by 2015, with mixed progress reported across different developing regions. Understanding
There is significant global inequality in the distribution of resources, with over 1 billion people living in absolute poverty according to UN criteria in 1999. Developing countries face numerous economic challenges including lack of access to safe water, sanitation, and primary education for many children. While there is wide diversity among developing countries, common problems include underdevelopment, unequal terms of international trade, structural economic issues, and debt burdens.
The document discusses the key characteristics of developing economies. It begins by defining developing countries based on per capita income levels and then outlines 10 common features: 1) lower living standards and productivity, 2) lower human capital, 3) higher inequality and poverty, 4) higher population growth, 5) greater social divisions, 6) larger rural populations but rapid urbanization, 7) lower industrialization, 8) adverse geography, 9) underdeveloped markets, and 10) lingering colonial impacts. The document then examines several of these features in more depth, including levels of human capital, living standards, inequality, population trends, and social divisions.
Rostow's stages of economic growth model outlines 5 stages of development: 1) traditional society, 2) preconditions for take-off, 3) take-off, 4) drive to maturity, and 5) age of high mass consumption. The take-off stage involves investment increasing to over 10% of GDP, triggering sustained economic growth. During drive to maturity, new industries replace old ones and agriculture declines as countries industrialize. In the final stage, per capita incomes rise enough for widespread consumer goods consumption. The document discusses these stages and their application to understanding rural development.
The document discusses key differences between developed and developing countries across several categories:
- Developed countries have older populations while developing countries have younger populations, creating different challenges for each.
- Developed economies are dominated by services while developing rely more on agriculture and industry.
- Health indicators like life expectancy are higher in developed nations due to better healthcare and nutrition.
Act Local Please respond to the following in 2-3 paragraphsBased .docxbobbywlane695641
"Act Local" Please respond to the following: in 2-3 paragraphsBased on the two articles below, address the following:
What fundamental actions are at least two leaders of developing countries taking to improve the living standards of their people in terms of their economies, their political systems and their environments? Please give good response, DUE 6-11-15
· Development Shouldn’t Give Democracy the Cold Shoulder
· May 2013
· One of the strongest global trends today is the empowerment of citizens and their desire for dignity and freedom. As governments prepare for what should replace the Millennium Development Goals, they should take this into account. But don't hold your breath. Two recent surveys conducted by the United Nations to inform the discussion of the post-2015 agenda provide a striking demonstration of the widening gap between citizens and their governments.
·
· One of these is the U.N.-sponsored online survey known as My world. So far more than half a million citizens in 194 countries have voted in the survey, and the results show that "honest and responsive government" consistently ranks among the top three developmental priorities cited by respondents as desirable for their own countries. In the other survey undertaken among U.N. member state governments by the U.N. Secretary-General for the Open Working Group on Sustainable Development, "good governance" ranks bizarrely as only 25th out of 32 priorities listed. The disparity between the surveys' initial results are illustrative of a wider trend where citizens see democratic governance as a major priority, while governments don't. Keeping this in mind, there are two main reasons why the High-Level Panel report should make certain that it includes democracy in its recommendations for the new development framework.
·
· First, nothing matters more for development than national politics. As pointed out by Daron Acemoglu and James Robinson in their book Failed States, anyone who doubts the importance of national institutions and national policies need only look at the history of the two Koreas, which had the same economic starting point seven decades ago. Today, South Korea has a booming economy, high levels of education, and a life expectancy of 79 years, according to the World Health Organization. In North Korea, life expectancy is 64 years and the economy has stagnated under dictatorship. Open, democratic, and competitive politics with institutions that place constraints on power are far more likely to uphold the rule of law, protect property rights, and provide an inclusive market economy that limits corruption and provides opportunity for all.
·
· Second, this critical importance of national politics is only enhanced by the fact that trade, investment, and remittances are rapidly dwarfing traditional aid as vehicles for economic development. The world is waving goodbye to the old "donor-recipient" paradigm, in which the western world provides aid to support developi.
This document summarizes findings from a World Bank report on poverty reduction in South Asia. It finds that while poorer countries and regions have seen greater absolute reductions in poverty, they have not seen proportional reductions that allow them to catch up to richer countries and regions. Specifically for South Asia:
- More than 70% of the poor in South Asia live in lagging regions (states with below average income) rather than leading regions.
- Lagging regions have experienced slower economic growth and poverty reduction compared to leading regions, and have not seen proportionally greater reductions that would allow them to close the gap.
- While fiscal decentralization aims to redistribute resources to poorer regions, the degree to which this actually promotes equity varies between countries
Traditionally, development was defined and measured through economic indicators like GNP per capita. However, modern definitions see development as improving quality of life through meeting basic needs, social justice, health, education, and freedom. Quality of life is now commonly measured through indices like the Physical Quality of Life Index, Human Development Index, and International Human Suffering Index which use a broader range of social and economic factors. However, accurately measuring development remains challenging due to limitations in data collection and inequality within countries.
Traditionally, development was defined and measured through economic indicators like GNP per capita. However, modern definitions see development as improving quality of life through meeting basic needs, social justice, health, education, and freedom. Quality of life is now commonly measured through indices like the Physical Quality of Life Index, Human Development Index, and International Human Suffering Index which use a broader range of social and economic factors. However, accurately measuring development remains challenging due to limitations in data collection and inequality within countries.
The document discusses various concepts related to development and underdevelopment including definitions, indicators, and indexes. It provides definitions for key terms like development, underdevelopment, and sustainable development. It outlines several economic and non-economic indicators used to measure development, including GDP, life expectancy, literacy rates, HDI, and GDI. It notes both advantages and disadvantages of different indicators. Composite indexes like the HPI and PQLI that incorporate multiple variables are discussed as attempts to provide a more comprehensive view of development.
This document discusses rural finance in the Indian economy. It aims to analyze the challenges and benefits of credit flow in rural areas and study the role of rural finance. It completed this task by reviewing literature on Indian agriculture and non-farm sectors, as well as the role of various financial institutions. The report is intended as a study and does not make predictions about future rural sector trends. It is based on various references cited in the bibliography.
The document discusses localization and globalization from business and economic perspectives. It argues that while globalization has helped reduce poverty in countries like China, there are still imbalances between countries' economic development through globalization. Local governments should adopt business models of localization/glocalization to maximize national development and address disparities caused by globalization. Global companies prioritize localization when entering new markets to generate profit, and local governments could similarly adjust globalization activities through domestic trade policies.
IFPRI Policy Seminar presentation on Inclusive Growth and Policy Relevance for Asia and the Pacific by Asian Development Bank VP Dr. Ursula Schaefer-Preuss. Remarks delivered at IFPRI on 28 September 2010.
#TimeToCare (India Supplement) | Oxfam IndiaOxfam India
With growing inequality, it has become pertinent to address the ever-growing gap between the rich and the poor. Over the last decade, academics, policymakers and multilateral institutions have been striving to draw attention to the growing importance of the subject of shared prosperity. https://www.oxfamindia.org/workingpaper/timetocare-india-supplement
This document discusses poverty in India and its economy. It provides background on poverty, including definitions and causes such as lack of access to education, healthcare, and employment opportunities. It then discusses India's mixed economy, highlighting the government's historical involvement in economic planning and key sectors. While growth has been steady, it has not been enough to significantly improve incomes for most Indians. The document outlines recent economic reforms in India opening the private sector and reducing trade barriers and government controls. It also notes disparities in investment and growth between Indian states.
Notes Global Poverty Presentation 15 May 08Jim Donahue
The document discusses how some countries have transitioned from poverty to wealth and provides examples. It defines poverty and wealth based on GNI per capita and shows that most of the world's population lives in developing countries with incomes under $10,000 per capita. Examples are given of countries in Europe and Asia that experienced rapid economic growth, including Greece, Ireland, Spain, Japan, and the Asian Tigers. The document suggests emerging markets may follow similar paths to prosperity through economic development.
Inequality matters: BRICS inequalities fact sheetOxfam Brasil
This fact sheet outlines key dimensions of socio-economic inequality in the BRICS countries, highlighting trends and themes that can inform debates around developing a common framework for public policies.
The Effects of International Trade on Poverty and DevelopmentHaley Wadel
This document discusses the effects of international trade on poverty and development. It examines how trade can help stimulate economic growth in developing countries by providing access to larger markets and new technologies, but notes that trade alone is not sufficient for sustained growth and poverty reduction. Other factors like education, infrastructure, governance and institutions also contribute significantly. While trade liberalization aims to boost growth and reduce poverty, it can sometimes increase inequality if not accompanied by policies to support disadvantaged groups through challenges like job losses or food price increases. Successful trade reforms combine open markets with assistance programs to help people negatively impacted.
This document discusses different ways to measure the development gap between wealthy and poor countries. It begins by introducing the "Brandt line" from 1981, which showed that the global North possessed 80% of the world's wealth while the South had only 20%. However, this simple division is outdated as some countries have developed faster than others. The document then examines common economic indicators like GDP and GNI, as well as the Human Development Index (HDI), which provides a more holistic picture of health, education, and living standards. While measures provide useful comparisons, development has been uneven globally, and some regions like Sub-Saharan Africa still lag far behind in growth.
Similar to Indicators Of Economic Development (20)
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
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Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
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Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
1. Development Economics Web Guide, Unit 5B 4
Indicators of development Compare and contrast GDP per Understand the limitations of
in developing countries in capita and other measures of national income statistics as
sub-Saharan Africa, Asia economic and social development, indicators of development.
and Latin America e.g. life expectancy, literacy rates, Explain the inter-relationships
the proportion of population between these indicators.
Absolute and relative employed in agriculture. Understand
poverty. the distinction between these terms.
Differences between Compare how the record of Understand how there are
developing countries. economic development differs in differences in countries both
sub-Saharan Africa, Asia and Latin between and within the three
America and explain reasons for continents and a consideration
these differences. of these differences.
Indicators of Economic Development
Introduction
The specification refers to two categories of country, ‘developed’ and ‘developing’. A
variety of economic and social indicators can be used to classify countries in this way.
However, some of these are more reliable than others.
Further classifications are possible between countries within the ‘developing’
category – for example, strong differences by region emerge: Africa, South Asia, East
Asia and Latin America have rather different sets of characteristics. However, it is
also true that countries within each of these regions differ widely.
Some Important Indicators
A very wide variety of indicators can be used to characterise the difference between
developed and developing countries. Only a small selection is considered here. The
data reported below comes from the United Nations Human Development Report for
2001.
1 GDP per capita
GDP per capita is the total value of (final i.e. not intermediate) goods and services
produced within a country divided by the total population. The bar chart below shows
the extraordinary difference between countries in terms of GDP per head. It also
illustrates the relative difference between countries categorised as ‘developing’:
Ghana had $1881 per capita in 1999, Zambia only $756. It is worth pausing to
consider the figures for Zambia: on average, people there live on no more than about
$2 a day. As a measure of development this seems to be the most important indicator:
if people want to be in a position to buy commodities and enjoy high standards of
health and education then they will need the income to match.
Issue 1 – May 2003
Authorised by Peter Goff
2. Development Economics Web Guide, Unit 5B 5
GDP per capita, PPP US $, 1999
25000
20000
15000
10000
5000
0
UK Ghana Zambia
There are some issues concerning the reliability of this indicator. One problem is
measuring GDP in countries where much economic activity is unofficial. The data
itself may be collected by governments who use different and more or less efficient
methods of measurement. The measurement of inflation is also problematic: if
inflation is under-estimated then real output will be over-estimated. Government
officials may have an incentive to over-value output (particularly the unsold output of
nationalised industries). Another major problem is the high level of subsistence
farming in developing countries: non-marketed output may never get measured.
To enable cross-country comparisons the data needs to be standardised to a particular
currency. Using current exchange rates is unlikely to be appropriate for this – they are
only based on traded goods and are greatly affected by speculative capital flows. The
alternative, finding a purchasing power parity (PPP) rate with which to do the
conversion, is non trivial in a world where goods and services differ so widely
between countries.
There are some other problems. First, it may be more informative to see patterns of
GDP per capita growth over time, rather than just a snapshot of a particular year.
Second, there is no sense in which this indicator can tell the whole story of a
country’s economic or social situation – for example, there can be widely varying
standards of health and education for countries with similar levels of GDP per head.
The distribution of GDP may also vary, in some countries being much more uneven
than in others. Third, increasing GDP per capita may bring with it costs as well as
benefits, particularly if it is brought about in a non-sustainable way: the level of
negative externalities needs to be considered.
The rate of growth of GDP is also crucial. Over the last ten years real GDP per head
in the UK has grown by 2.1% per year. Over the same period, the figure for Ghana
was 1.6% and for Zambia minus 2.4%.
Issue 1 – May 2003
Authorised by Peter Goff
3. Development Economics Web Guide, Unit 5B 6
2. Life Expectancy
In 1999, Ghana had a life expectancy at birth of 56.6 years, contrasting with Zambia’s
41.0 years and the UK’s 77.7 years. A variety of factors may contribute to these
differences – the stability of food supplies, the extent to which an area is contested by
war, and the incidence of disease are all important.
It is therefore possible for countries with similar levels of GDP per head to have very
different life expectancies: for example, Vietnam currently has an almost identical
income per head to Ghana, but a considerably higher life expectancy of 67.8 years.
According to World Bank figures, over the past 40 years, life expectancy at birth in
developing countries as a whole increased by 20 years. The figures above suggest that
this was not evenly distributed. In many countries in sub-Saharan Africa life
expectancy is now falling due to the AIDS epidemic.
3. Literacy Rates
The UN Development Report defines adult literacy rates as the percentage of those
aged 15 and above who are able to read and write a short, simple, statement on their
everyday life. This is a very narrow definition of literacy.
Interestingly, on this measure Zambia has a literacy rate of 77.2%, compared to
Ghana’s 70.3%, and better than that of Saudi Arabia which has fourteen times higher
GDP per head. However, and once again, a single indicator cannot tell the whole story
– an important part of development economics consists in trying to understand the
origins of such differences.
More extensive definitions of literacy are available, for example ‘functional literacy’
based on the International Adult Literacy Survey. This survey tests people’s ability to
understand printed text, to interpret documents adequately and perform basic
arithmetic. One problem with such indicators is the care needed to ensure that the
survey is appropriate to the local culture – you cannot ask people to interpret texts that
refer to areas outside of their experience. ‘Literacy’ is likely to be considerably
determined within a culture rather than across cultures. The wider the definition of
literacy the greater this problem will be.
Another problem is the distribution of literacy: a number of countries have a
considerable gender divide, denying women access to the same levels of education as
men.
Issue 1 – May 2003
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4. Development Economics Web Guide, Unit 5B 7
4 Measures of Poverty
It is important to understand the difference between absolute and relative poverty.
Absolute poverty refers to the inability to acquire goods necessary to satisfy basic
needs e.g. the means to obtain the minimum level of nutrition necessary to sustain an
active life. Basic needs also tend to include clothing and shelter. Put simply, absolute
poverty is having ‘just enough to survive’ but no more. However, it is well worth
considering whether what counts as ‘absolute’ poverty is, to some extent, relative to
the culture concerned: the concept is by no means uncontroversial.
Relative poverty refers to the differential of income and wealth between people or
countries. That is, it involves some comparison across economies.
One indicator of absolute poverty is the percentage of the population receiving less
than the equivalent of $1 a day income. This stood at 38.8% for Ghana and 63.7% for
Zambia in 1999. For most developed countries there is no absolute poverty according
to this measure because of social security benefits. The World Bank estimates that
1.2bn people live off less than $1 a day, with a further 1.6bn existing on less than $2 a
day.
The figures for absolute poverty have to be treated with some caution for reasons
similar to those discussed for GDP per capita. The concept is itself rather loose, and a
$x a day measure is somewhat arbitrary: especially as local costs of living vary
enormously and there are wide variations across countries of, for example, climate.
There is also something of a preconceived idea involved in defining poverty in terms
of income levels – it may be that for some people there are other more pressing
objectives e.g. having shoes to wear or establishing a separation of living quarters for
people and animals. These other objectives may be improving even when income is
falling. Many commentators therefore prefer to see ‘poverty’ as a multidimensional
concept. This is important because the way poverty is conceptualised will influence
the policy measures adopted to deal with it. For example, a definition based
exclusively on income will tend to see growth in GDP per head as the only solution to
poverty.
Other dimensions of absolute poverty might include access to ‘essential’ drugs
(Ghana 44%, Zambia 66%, UK 100%) and the proportion of the population using
regulated water supplies (only 64% in both Ghana and Zambia).
To shed light on relative poverty it is possible to compare GDP per capita between
countries or to look at income distributions within a particular country. The
inequalities of income in developing countries can be very pronounced. In 1999 the
richest 10% of the population in the UK had a 27.3% share of income. For Ghana the
figure was 29.5%, for Zambia it was as high as 41%.
Note that relative poverty is an issue even at a local scale of description. For example,
within households there can be widely varying distributions of resources e.g. on the
basis of age or gender.
Issue 1 – May 2003
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5. Development Economics Web Guide, Unit 5B 8
5 Demographic Indicators
The table below contrasts Ghana and Zambia through a variety of further possible
demographic (to do with population) indicators of development:
Indicator UK Ghana Zambia
Annual
Population 0.1% 2.1% 2.3%
Growth Rate
Urban Population
– percentage of 89.4% 37.9% 39.5%
total
Percentage of the
Population Under 19.1% 41.4% 46.5%
the age of 15
Infant Mortality
Rate per 1,000
live births, 1999 6 (18) 63 (111) 112 (109)
figures,
(1970 figures in
brackets)
6 Disease Indicators
Disease is endemic in many developing countries due to low levels of health care,
expensive drugs, contaminated water supplies, and poor health education. The figures
in the table below speak for themselves.
Indicator UK Ghana Zambia
% of adult
population with 0.11% 3.6% 19.95%
HIV/AIDS
Malaria cases
(per 100,000 0 11,941 37,458
people)
Tuberculosis cases
(per 100,000 10 53 482
people)
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6. Development Economics Web Guide, Unit 5B 9
Aggregate Indices of Development
To minimise the problems with individual indicators discussed above it is possible to
combine a selection of indicators to form an index of development. Several of these
are published by various organisations. The UN Development Report, for example,
ranks countries by their “Human development index” which includes the major
indices of life expectancy, adult literacy, and GDP per capita. This then creates a
league table of development with the UK, at 14th, ranked as a country with “high
human development”, Ghana at 119th classified as having “medium human
development” and Zambia, at 143rd in the category “low human development”.
As with any index, weights have to be used to construct the overall figure. These are
to some extent arbitrary. However, it is interesting to see that some countries e.g.
Pakistan, have relatively high GDP per capita but are much lower than this might
suggest in the overall development index. This may suggest failures of government
policy.
Africa, Asia, Latin America
Development indicators suggest pronounced regional differences. The countries of
Latin America tend to be high up in the category “medium human development”.
The countries of Asia also tend to be in the medium development classification, but
lower down the ranking than countries in Latin America.
The category of “low human development” is almost entirely made up of countries
from sub-Saharan Africa.
GDP per capita, 1999 US $
8000
7000
6000
5000
$ 4000
3000
2000
1000
0
Latin East Asia South Asia Sub-Saharan
America Africa
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7. Development Economics Web Guide, Unit 5B 10
However, growth within these regions has been by no means uniform:
· Chile and Uruguay have grown so fast in the past few decades that they are
now in the UN’s “high human development” group. Meanwhile, GDP in many
Latin American countries was falling in the 1980s – as it is again during the
current debt crisis.
· Countries in East Asia, including most recently China, have grown far more
rapidly than those in South Asia e.g. India. Thus, according to the World
Bank, the number of people living in absolute poverty (less than $1 a day) fell
by 139.2 million in East Asia and the Pacific between 1987 and 1998 whilst in
South Asia the number increased by 47.6 million.
However, the economic performance of countries in sub-Saharan Africa was not only
poor but much less diverse – it appears to be very difficult for the very poorest
countries to escape their poverty. According to the World Bank “sub-Saharan Africa
as a region saw no increase in its per-capita incomes between 1965 and 1999, even
with some improvement in the 1990s.”
Inter-Relationships Between Indicators
An important question is the extent to which the indicators outlined above are inter-
related. This is a complex issue and only a few points are made here.
There is a strong positive correlation between GDP per capita and life expectancy.
However the graph below shows that this is non-linear – for the obvious reason that a
small increase in wealth can enable basic standards of health and education to be
established and thus dramatically improved increases in life span, whereas
expenditure on advanced medical care in developed countries only brings marginal
increases in longevity.
Issue 1 – May 2003
Authorised by Peter Goff
8. Development Economics Web Guide, Unit 5B 11
Low and Medium Development Countries
80
75
70
Life expectancy, years
65
60
55
50
45 South Africa
40
Zimbabwe
35
30
0 5000 10000 15000
GDP per capita, $ 1999 PPP
In the aggregate the correlation between these variables is striking. However, a
number of countries seem to be separate from the overall pattern, from Zimbabwe,
through Angola and Namibia to South Africa marked on the graph.
The dramatic difference that levels of GDP per capita seem to be able to make to life
expectancy in most countries is shown on the following scatter diagram for the
poorest group:
Countries of Low Human Development
65
60
Life expectancy, years
55
50
45
40
35
30
0 1000 2000 3000 4000
GDP per capita, 1999 PPP $
Issue 1 – May 2003
Authorised by Peter Goff
9. Development Economics Web Guide, Unit 5B 12
The relationship between GDP per head and adult literacy, whilst positively
correlated when all countries are included, is much less clear for the poorest countries.
The graph below shows the relation between Adult literacy and GDP per capita for
countries of low human development:
Countries of Low Human Development
90
80
70
Adult Literacy
60
50
40
30
20
10
0
0 1000 2000 3000 4000
GDP per capital, $ 1999 PPP
This data is, in fact, slightly negatively correlated suggesting that in no sense are
education programmes a sufficient condition for development.
Resources for Pupils
www.worldbank.org/data/countrydata/countrydata.html
A very useful set of key economic indicators, some presented in graphical form, for
each country.
www.worldbank.org/poverty
Includes data and further links on poverty.
Suggested Activity
Scroll down the page on the first link above to “Countries at a glance”. Print out the
‘at a glance’ pages for Brazil, Argentina, Ghana, Zambia, India and China. You
should use these – or others of your choice - as case study countries. If you you’re
your own choice make sure that you include countries from each of the three main
regions mentioned in the specification: Latin America, Sub-Saharan Africa, and Asia.
Also be sure to include two countries from each region so as to be able to draw out the
Issue 1 – May 2003
Authorised by Peter Goff
10. Development Economics Web Guide, Unit 5B 13
differences within the region. You will need information on specific countries to help
answer the ‘Questions for Discussion’ at the end of each section.
Using the World Bank resource listed above, prepare for a class presentation a
comparison of either Brazil and Argentina (Latin America) or Ghana and Zambia
(Sub-Saharan Africa) or India and China (Asia). You should also try to get hold a
recent issue of the United Nations Development Report to retrieve the Human
Development Indices (HDI) for your chosen countries.
Begin to collect newspaper reports and articles from The Economist about the selected
countries.
Questions for Discussion
1 After the class presentations, draw up a list of differences between Latin
America, Sub-Saharan Africa and Asia.
2 Is ‘Asia’ too large an area to be treated as a single region?
3 Is the concept of ‘literacy’ of any interest in a discussion of economic
development?
4 Examine the factors which might explain differences in infant mortality
rates between developing countries.
5 How clear cut is the concept of ‘poverty’? Does it matter?
6 What factors might explain why some countries are rising and some
countries falling in rank orders of human development?
7 “‘GDP per head’ is a very poor indicator of development.” Discuss.
8 Why is there so much discussion about what to call developing countries?
9 What is the significance of a negative figure for a GDP minus HDI
ranking?
10 Examine the implications of the statement (page 10) that “a small increase
in wealth can enable basic standards of health and education to be
established.”
Issue 1 – May 2003
Authorised by Peter Goff