Deck 26 - Measuring globalisation and development Flashcards
What does an indicator mean?
What does an index mean?
What does the KOF index measure?
GLOBALISATION -
Each year the Swiss Economic Institute produces an annual Index of Globalisation. The KOF index for each of the 196 countries by calculating the following interactions:
Economic globalisation – cross border interactions and levels of FDI
Social globalisation – cross border contacts (telephone calls, letters and tourists), measures the presence of McDonald’s and IKEA as indicators
Political globalisation – the number of foreign embassies, the country’s membership of different organisations and its participation in UN peacekeeping activities.
What are positives of using the KOF index?
-Allows for comparisons to be made (for one country over time and between countries)
-Considers 3 different aspects to globalisation- not just the obvious economic aspect
-Measured over a long time period since 1970
-Uses data that is readily available (such as numbers of McDonalds)
What are the negatives of using the KOF index?
-Smaller countries seem to be over represented at the top of the rankings suggesting bias in how final values are calculated.
-Eurocentric
-Outdated - Measures physical mail which is on the decline due to e-mail and measures trade in books and newspapers which is also on the decline due to the internet and e-books.
-Some countries choose to be neutral and do not participate in UN peacekeeping missions
What does the AT Kearney Index measure?
GLOBALISATION
This index identifies four main indicators from which to calculate its index:
-Political engagement – a country’s participation in international treaties and organisations as well as peacekeeping operations.
-Technological connectivity – the number of internet users, hosts and servers.
-Personal contact – through telephone calls, travel, remittance payments
-Economic integration – the volumes of trade and FDI.
What are the positives of A T Kearney?
-allows for comparisons over time and between countries
-more indicators than the KOF index and is more up to date
- Takes a more holistic approach focusing on the social in the weighting and aggregating stage of the index
What are the negatives of A T Kearney?
-Only measures globalisation if 64 countries
-Only set up in the early 2000’s does not account for cultural globalisation
the most important indicators are subjective
- Variations within the country not considered.
What does development mean?
Development is any improvement in the standard of living of people in a specific country. Countries aim to continually develop in order to improve the standard of living and its quality of life of its human inhabitants.
What is the difference between composite and simple?
Simple – use one set of data
Composite - use several sets of data
What are the two composite social measures of development?
HDI - Includes GDP at PPP, education (mean years and expected years) and life expectancy.
GII - Three dimensions: reproductive health, empowerment and the labour market.
What are simple social measures of development?
-Life expectancy
-Number of years in education
-Adult literacy rate
What are economic measures of development?
GNI, GDP, Economic Sector Balance, PPP, Income per captia.
What does the development gap mean?
The Development Gap refers to the widening difference in levels of development between the world’s richest and poorest countries.
