2.2 economic development

Question 1

whats poverty

Answer 1

income is below the level that would allow someone to enjoy some agreed minimum standard of living

Question 2

whats economic development (ed)

Answer 2

the process of improving peoples economic well-being and quality of life. real per capita incomes increase

Question 3

link between eg and ed

Answer 3

we expect eg to enable more ed (higher real gdp means more can be spent on healthcare and education) but the link isnt guaranteed. proceeds of eg may be retained by only some. eg is a necessary but not sufficient condition for ed

Question 4

what are the economic sectors

Answer 4

primary secondary tertiary and quaternary

Question 5

whats the primary sector

Answer 5

production uses natural resources eg agriculture

Question 6

whats the secondary sector

Answer 6

the production of manufactured goods

Question 7

whats the tertiary sector

Answer 7

the production of services

Question 8

whats the quaternary sector

Answer 8

providing information and ict

Question 9

explain the problem of dependence on the p sector

Answer 9

less developed countries (ldcs) have more dependence on extracting and exporting primary commodities (p sector) and these economies are vulnerable to volatile global prices. dependence on the p sector can be a barrier to eg and ed. agriculture has lower productivity than other sectors - tends to be linked with low income per capita

Question 10

define sustainable development

Answer 10

development that meets the needs of the present without compromising the ability of future generations to meet their own needs. ed conducted without the depletion of natural resources

Question 11

how do we measure ed

Answer 11

gni per capita, human development index (hdi)

Question 12

problems w gni to measure ed

Answer 12

informal sector not accounted for, income distribution, social indicators not included like health and happiness, exchange rate problems

Question 13

whats the hdi

Answer 13

a composite indicator of the level of a country’s development, varying between 0 and 1. closer to 1. the higher the human development

Question 14

what does the hdi consider

Answer 14

1. resources
2. knowledge of how to make good use of these resources
3. a reasonable life span in which to make use of these resources

Question 15

how to measure the 3 components of hdi

Answer 15

1. (resources) gni per capita in US$ at ppp (purchasing power parity - used to reflect average income)
2. (knowledge) indicators of education eg years of schooling
3. (good life expectancy) life expectancy at birth

Question 16

pros of hdi

Answer 16

good accuracy because all 3 parts have to be measured, finds areas that need attention, can help with allocation of funds, can solve the limitations of using eg because it accounts for social indicators, reliable as it looks beyond just ed to measure a country’s development

Question 17

cons of hdi

Answer 17

theres not a society wide standard index to measure education so its subjective, mostly focuses on long-term changes so responds less to short term changes, measures are arbitrary

Question 18

what are other indicators of development

Answer 18

inequality adjusted hdi (ihdi) and gender inequality measures

Question 19

explain the ihdi

Answer 19

adjusts the hdi to try and estimate the extent to which the potential human development is lower bcos of inequalities

Question 20

explain gender inequality measures

Answer 20

calculates hdi separately for men and women. focuses on the key gender issues of health empowerment and the labour force

Question 21

name the functions of the environment

Answer 21

providing resources, providing amenities for households, and absorbing waste