Classifying and measuring development Flashcards
what is economic development?
positive economic change that makes things better
what does economic development usually mean?
people’s standard of living and quality of life will improve
what is the development gap?
the difference in standards of living between the worlds richest and poorest countries
what are the different components of quality of life?
-economic
-physical
-psychological
-social
what are some examples of the social component of quality of life?
-family/friends
-education
-health
what are some examples of the economic component of quality of life?
-income
-job security
-standard of living
what are some examples of the physical component of quality of life?
-diet/nutrition
-water supply
-environmental hazards
-climate
what are some examples of the psychological component of quality of life?
-happiness
-security
-freedom
what is quality of life?
how happy you are
what is standard of living?
how rich you are
what does per capita mean?
per person
what does HDI stand for?
Human Development Index
what are the measures used to produce the HDI?
-life expectancy at birth
-number of years of education
-GNI per head
how is HDI expressed?
it’s expressed in values 0-1, where 1 is highest
what are the different ways of classifying the world by economic development?
-GNI
-level of industrial change
what does GNI stand for?
Gross National Income
how do you calculate GNI?
- divide by the population of a country to produce per capita
- covert to US dollars
- each figure can be adjusted to each country based on income
describe the model of industrial change
LICs would have the majority of their jobs in the primary sector as farmers. NEEs would have most of their jobs in the secondary sector and HICs would have most of their jobs in the tertiary sector.
what are the different ways of classifying the world by quality of life?
-HDI
what is the link between GNI and HDI?
Areas of high income have a high HDI and areas of low income have a low HDI. This shows that the wealthier a country is- the happier it is. This could be because a high income increases GNI per head, it also increases the number of years of education as it’s easier to afford education and it also increases life expectancy as it is easier to afford healthcare- these are all used to calculate HDI. Essentially GNI and HDI are the same thing.