Development Flashcards
(44 cards)
What is development?
The progress that a country makes to improve the quality of life for it population and make a country more independent
Not smooth and continuous -> can fluctuate and will over time
Define quality of life
A group of subjective evaluation of life -> ex: happiness
All components are linked -> ex: health and environment is dependent on income, which affects happiness
What are some different things that could effect quality of life?
Physical
Water supply, housing, power and heat, climate, diet, nutrition
Social
Family and friends, education, health
Psychological
Happiness, security, freedom
Economic
Income, job, standard of living
What can further development in a country?
Investment in:
Agriculture
Food supply/health
Power supplies for rural area
Access to education for females
Literacy rates
What can hinder development in a country?
War or conflict
Disease
Disasters
Economic recession
What is the cycle of wealth?
Key development indicators
Economic development:
economic wealth (more people work and earn more)-> disposable income + governmental taxes -> other+ governmental taxes from disposable income -> increased business profits -> profits + taxes=investment -> development -> repeat
What are some measure of national income?
GDP/ capita
GNP/capita
PPP
GNI
What is GDP/ capita?
Total value of goods and services produced within a country in a year divided bu population
Dividing by population -> accurate comparisons
But doesn’t show variation
Can’t know how it is spent
What is GNP/capita?
The value of the products and services produced by citizens both domestically and internationally (no income of foreign residents)
Used when comparing the population (the people of the country??)
Doesn’t take into account cost of living
What is PPP?
Measures how much you would need to spend in one country to get the same goods and services as in another country
Used to even discrepancy in GNP
What is GNI?
Value of a country’s economic production and income of received from abroad
What do measure of national incomes fail to show?
The wealth distribution/gap
Government investment into the people
Where the investment is going
And levels of development vary locally, nationally and internationally -> fails to show that
What is HDI?
Created by UN in 1990
Measures disparities between countries using 5 indicator:
Life expectancy at birth
Average years of school (adult 25 years)
Expected years of school
GNI/capita
How does HDI score and group countries?
4 groups:
Very high human development (VHHD)
High human development (HHD)
Medium human development (MHD)
Low human development (LHD)
Scored on a scale from 0-1
Higher score -> higher development + quality of life
Highest: Norway (0.957), Lowest: Niger (0.394)
What is the GINI coefficient index?
Used to analyse the distribution of wealth and identify countries where wealth distribution is most unequal (fill in gaps messed by GNP and HDI)
How is the GINI coefficient index measured?
On a scale 0-1 or as a percentage
High score -> unequal
Low score -> equal
Average -> 0.24-0.63
Highest inequality -> South Africa, Central Africa, Namibia, Zambia, Suriname
Lowest inequality -> Czech Republic, Croatia
What does transparency international measure?
Political corruption (highly impacts development and welfare-> money isn’t invested into the people and instead those in power take it)
Transparency international
Scores 180 on public sector corruption
Scored out of 100
High -> less corruption (ex: 85+ Denmark New Zealand, Finland, Singapore)
Low -> more corruption (ex; 15- Somalia, Syria, South Sudan)
What are the 4 stages of development (according to the UN)?
Least developed countries
Developing countries
Newly industrialized countries
Developed countries
What is a development gap?
Difference in levels of development between most and least developed countries
What factors could lead to a development gap?
Geography:
Landlocked countries
Small countries
Extreme climates
Extreme landscapes
Natural resources:
No security of supply
Very important, but reliance on imports could be a problem
Water, forest, fossil fuels, soil, rocks, minerals, animals, etc
Demography:
Population structure of the country (birth rates and death rates)
Migration
Technology:
Increase water food and energy security
Mechanisation of farming
Improved land surveying
Efficiency
Social:
Education
Healthcare
Equality
Government policies:
Stability and effectiveness of government
Democratically elected -> generally more development
Government economic policies -> open economy, more development
What is the cumulative causation theory?
Explanation for differences of development within a country
Growth in core regions (new large businesses) -> more jobs -> attract workers (increased population) and investment (increased in core areas due to demand) -> average income increases + increased taxes + investment -> outer regions lose workers and investment -> gap grows between the two -> growth spread to the outer regions due to demand in raw materials
What are the 3 stages of regional inequality?
Pre-industrial age -> regional difference are at lowest
Period of rapid economic growth -> increasing regional differences
Regional economic convergence -> where wealth from the core spread
What are causes of regional inequality?
Residence:
Urban areas -> greater investment
Ethnicity:
Discrimination towards ethnic groups
Lower income that dominant groups
Reduces opportunites to certain groups
Employment:
Formal employment -> usually higher income and benefits
Informal employment -> usually lower income and benefits
Education:
Higher level of education -> higher paying jobs
Land ownership:
Inequalities in land ownership -> linked to inequalities in income
What is economic activity?
production, purchase or selling of goods and services