1.1.2 Global Patterns of Economic Development Flashcards
What is development?
Development is a process of positive change where a country becomes wealthier and more technologically advanced. It refers to positive changes in people’s quality of life, such as happiness, educational opportunities, increased incomes, human rights, access to clean water and healthier living conditions.
What are the 4 strands of development?
1) Environmental - where natural environments are improved or restored.
2) Political - where governments become more stable and effective.
3) Social - where standards of living, access to health care, education, clean water, housing and leisure are improved.
4) Economic - where income, employment and industry are increased.
What is the poverty line?
The estimated minimum level of income needed to secure the necessities of life - $2.15 per day as set by the World Bank in 2022.
How does the World Bank categorise economies?
The World Bank categorises economies into income groupings per capita, in U.S. dollars:
- Low income countries (LICs) where average earnings are $1,135 or less.
- Middle income countries (MICs) - these are split into lower middle income of between $1,136 and $4,465 and upper middle income of between $4,466 and $13,845.
- High income countries (HICs) where average earnings are $13,846 or more.
Where are most HICs found?
Most HICs are found in the northern hemisphere and include countries such as Canada, Japan, Spain, UK and Japan.
What are some exceptions to the general distributions of HICs and LICs?
- There are countries such as Chile, Australia, Uruguay and New Zealand, which are classified as a high income, but are located in the southern hemisphere.
- Haiti is the only country in North America that is classified as low income.
Where are most LICs found?
Most LICs are found between the tropics and concentrated within Africa, along with some parts of Asia.
State 4 strands of social development.
1) Quality of life and social well-being.
2) Equal opportunities, access to services such as education and healthcare.
3) Life expectancy, birth control, education.
4) Diversity, traditions and heritage.
State 3 strands of economic development.
1) Employment, income and general wealth.
2) Savings, house building, house sales, consumer spending, international trade.
3) Resources, pollution controls and conservation.
State 3 indicators of political development.
1) Effective governance, stability and integrity of governing bodies.
2) Ease of trade, property rights, human rights, equality, and income guides.
3) Corruption.
What is GDP?
Gross Domestic Product (GDP) is the total value of a country’s output of goods and services produced in a given year.
Why isn’t GDP a great measure of development?
There is no way of knowing what the GDP is spent on: for example, GDP increases after an earthquake due to the rebuilding which is needed this does not mean that the country is more developed or that everyone’s quality of life has improved.
Why is GDP per capita a better measurement of development than GDP?
There can be huge differences in GDP depending on the size and population of a country. Dividing it by the population means that more meaningful comparisons can be made between countries.
What is GNI?
Gross National Income (GNI) is the total income earned by a country’s people and businesses in one year.
What is HDI?
A measurement of development that uses life expectancy, literacy rate, education level and GNI to calculate a country’s score between 0 (least developed) and 1 (most developed).