4.4. Characteristics of development

Question 1

Economic Development definition

Answer 1

Economic growth and improvements in heath, education, government, market conditions and freedom

Question 2

Developing Economies

Answer 2

a country with a less developed industrial base and a low Human Development Index relative to other countries.
- However, this definition is not universally agreed upon. - There is also no clear agreement on which countries fit this category

Question 3

Emerging Economies (BRICS)

Answer 3

acronym coined for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa

Question 4

Developed Economies

Answer 4

• Countries with high HDI

- An economy enjoying sustained economic growth and security

Question 5

Characteristics that determine the type of economy

Answer 5

1) Population growth rate
2) Population Structure
3) Income distribution
4) Employment Composition
5) External trade
6) Urbanisation

Question 6

Birth Rate

Answer 6

the number of live births per 1000 of population per year.

Question 7

Infant Mortality

Answer 7

the number deaths of children below the age of one per 1000 live births per year.

Question 8

Crude Death Rate

Answer 8

the number of deaths per 1000 of population per year.

- Also known as: mortality rate.

Question 9

Life Expectancy

Answer 9

average expected years of life at birth.

Question 10

Population Growth Rate

Answer 10

the rate of increase in the population.

Question 11

Population Structure

Answer 11

the distribution of various age groups of the population.

• Developed: Many old dependents. High life expectancy Narrow base, wider towards the top)
• Emerging: Narrowing base and widening middle and top.
• Developing: Many young dependents. Low life expectancy. Pyramid shape (wide base, narrow at the top)

Question 12

Income Distribution

Answer 12

how equally (or unequally) income is shared amongst the population.

• Developed: In general, a more equal distribution of income
• Developing: In general, a more unequal distribution of income.

Question 13

Economic Structure

Answer 13

the contribution of primary, secondary and tertiary sectors to an economy’s GDP.

• Developed: Tertiary sector (services) very high % of GDP. Manufacturing declining % of GDP. Primary sector very small % of GDP.
• Emerging: Manufacturing and services high % of GDP. Agriculture declining % of GDP.
• Developing: Primary sector highest % of GDP. Services increasing % of GDP. Manufacturing is a very small % of GDP.

Question 14

Employment Composition

Answer 14

the proportion of total employment in each of the different sectors of the economy (primary, secondary, tertiary).
- Developed: Tertiary sector (services) is main employer.
Manufacturing is shrinking (automation). Primary sector is a very small employer (automation).
- Emerging: Employment increasing in manufacturing and services.
- Developing Primary sector (agriculture, mining) is main employer.

Question 15

External Trade

Answer 15

the amount of international trade a country does.

• Developed: Dominate trade in services (e.g. finance). Important contributors to trade in goods
• Emerging: Rapidly increasing share of trade in goods and services.
• Developing: Low levels of trade in goods and services.

Question 16

Urbanisation

Answer 16

the proportion of a population that live in urban centres (towns and cities).

• Developed: Majority of population live in urban areas.
• Emerging: Rural to urban migration.
• Developing: Majority of population live in rural areas.