5. Growth & Development Flashcards
Development indicators (5)
Human Development Index (HDI)
Infant mortality rate
Literacy rate
GNP per capita
Life expectancy
Human Development Index (HDI)
Metric that measures a country’s average achievements in three key areas of human development:
Health: Measured by life expectancy at birth
Knowledge: Measured by mean and expected years of schooling
Standard of living: Measured by GNI per capita in PPP terms in US$
GNP per capita
Measure of the total value of goods and services produced by a country in a year, divided by the number of people living in that country
Infant mortality rate
The number of deaths of children under one year of age per 1,000 live births
Literacy rate
Percentage of a population that can read and write
Life expectancy
Average number of years a person can expect to live, based on the current mortality conditions
Economic Growth
Refers to the increase in a country’s GDP and production of goods and services but does not account for social welfare, informal economies, or environmental impacts.
Economic Development
Focuses on improving living standards, education, healthcare, and sustainability, emphasizing long-term well-being over mere economic output.
Income Inequality
Refers to the unequal distribution of earnings from work, investments, or other sources across a population, leading to disparities in living standards and access to resources.
Why does income inequality exist (5)
Education Disparities: Unequal access to quality education leads to skill gaps and lower earnings for less-educated individuals.
Technological Change: Automation and innovation often benefit high-skilled workers, widening the income gap with low-skilled workers.
Globalization: Outsourcing and trade can reduce demand for domestic low-skilled labor, leading to wage suppression.
Discrimination: Gender, racial, and ethnic biases can limit opportunities for certain groups, perpetuating income disparities.
Tax Policies: Inequitable tax systems can favor higher earners, reducing redistribution of wealth.
Income Inequality in India (7)
Concentration of Wealth: A small percentage of the population controls a large share of the country’s wealth, with the richest 10% holding more than 75% of the total wealth.
Urban-Rural Divide: Urban areas see higher income levels due to better access to jobs, education, and infrastructure, while rural areas face limited opportunities and lower wages.
Caste and Gender Disparities: Social hierarchies and discrimination often restrict access to opportunities for marginalized castes and women, exacerbating income gaps.
Education Inequality: Unequal access to quality education leads to skill gaps, limiting income potential for lower-income households.
Informal Economy: A large portion of the workforce is employed in informal, low-paying, and insecure jobs, contributing to income instability.
Technological and Sectoral Gaps: Growth in technology and service sectors disproportionately benefits skilled workers, leaving agricultural and low-skill workers behind.
Policy and Redistribution Challenges: Limited social safety nets and inefficient redistribution through taxes and subsidies hinder efforts to reduce inequality
Poverty Cycle
A poverty cycle is a series of interconnected factors that trap individuals, families, or communities in poverty. These factors often overlap, creating a vicious cycle where poverty begets poverty.
Consequences of the poverty cycle
Intergenerational Poverty: Children born into poverty face the same barriers as their parents, making it challenging to break the cycle.
Stunted Economic Growth: Societies with high poverty rates often face reduced innovation and lower overall productivity.
Increased Social Issues: Crime rates, homelessness, and poor health outcomes tend to be higher in areas with persistent poverty.
Wealth Inequality
Unequal distribution of accumulated assets like property, savings, and investments, which often reflects generational advantages and can perpetuate long-term economic disparities.
Solutions of Poverty Cycle (5)
Education: Providing access to quality education and vocational training can open doors to better employment opportunities
Healthcare Access: Ensuring affordable healthcare helps individuals maintain their productivity and well-being
Economic Empowerment: Microfinance initiatives, skill development programs, and job creation in impoverished areas can help lift people out of poverty
Social and Policy Reforms: Governments and organizations must address structural inequalities through policies promoting equity, fair wages, and equal opportunities
Community Development: Building infrastructure, improving living conditions, and creating access to resources like clean water and electricity empower communities
