3.7 Widening Development Gap Flashcards
3.7a Measures of development
Development
Development is the improvement of quality of life (level of happiness, wellbeing or contentment, resulting from a way of living) of a country’s population. Quality of life includes social, economic, cultural, political, demographic and environmental aspects.
3.7a Measures of development
Economic measures: income per capita
Income per capita is the mean income of a group of people.
It can be misleading where there is high income inequality, since very high incomes pull up the average.
It may be the best single indicator of development since higher income is often needed to raise aspects of quality of life.
3.7a Measures of development
Economic measures: economic sector balance
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3.7a Measures of development
Economic measures: other measures
GDP (Gross Domestic Product) measures the total output of goods and services produced in a country over a year
GDP per capita is calculated by dividing GDP by total population of country
GNP (Gross National Product) measures output produced by country’s factors of production wherever located
GNI (Gross National Income) is the GNP discounted for depreciation (lost value through machinery wear and tear) which includes TNC profits and remittances sent home
PPP (Purchasing Power Parity)takes into account the cost of living within countries
3.7a Measures of development
single and composite indices
Single indices measure one variable. They’re easy to use and understand, but may not give an accurate representation of development (e.g. life expectancy, GDP per capita)
Composite indices combine more than one variable into a single measure( e.g. HDI, GII)
Both single and composite indices vary in validity (how relevant?), reliability (how accurate?), and comprehensiveness (do they capture entirety?)
3.7a Measures of development
Social measures: Human Development Index
HDI is the combination of life expectancy at birth, GDP per capita (using PPP) and education (literacy, years in education) expressed on a scale between 0 (lowest) and 1 (highest).
This is a composite measure of social development
Developed by the UN
HDI combines economic development (GNI per capita (PPP)) ad social development
The HDI score of countries varies due to political agendas that prioritise spending, for example large military budget which reduces the investment in essential services.
HDI data tends to lag behind economic data since many countries do not have sophisticated agencies for accurate calculation.
3.7a Measures of development
Social measures: Gender Inequality Index
GNI combines the reproductive health of women, empowerment and their education and employment to measure gender-based development.
This is a composite measure of social development
Developed by the UN
Gender inequality is evident even in highly developed countries
Gender inequality is harder to shift in many rural societies
3.7a Measures of development
Social measures: Environmental Quality (air pollution indices)
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As development increases, air quality deteriorates caused by industrial procceses, energy production and road transport.
most developed countries have improved their air quality by controlling vehicle emissions and by transferring manufacturing overseas
international comparisons are difficult because of differences in the methods of measuring air quality
3.7b Trends in widening inequality
Gini Coefficient
Gini Index measures the increasing inequality of income distribution within countries, giving an index value between 0 and 100%
This can be shown using a Lorenz Curve
A low index value indicates a more equal distribution; 0 represents perfect equality. On a Lorenz curve this is shown as a strait light.
A high index value indicates unequal distribution; 100 corresponds to perfect inequality (where one person has all the income), shown by a curve far from the straight line
3.7b Trends in widening inequality
global winners
Developed countries have proven very good at maintaining their wealth, despite the rise of emerging countries like China
The rising middle class of factory and call centre workers in Asia, whose incomes have risen as they have gained outsources and offshore jobs.
People who work for TNCs in developed countries who have a high income and reasonable job security.
3.7b Trends in widening inequality
global losers
Workers in sweatshop factories in emerging countries; they suffer exploitation (but may still be better off than in the rural areas they migrated from)
3.7b Trends in widening inequality
local winners
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3.7b Trends in widening inequality
local losers
Isolated, rural populations in Asia and Sub-Saharan Africa where subsistence farming still dominates and global connections are thin.
Workers (especially male ones) in old industrial cities in the developed world who have generally lost jobs.
3.7b Trends in widening inequality
key facts
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3.7c Economic development and environmental management
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