Development and its Indicators Flashcards
Define
Development
The progressive process of a countrry aimed at achieving economic growth, resulting in a conducive environment for individuals to enjoy a decent standard of living and quality of life
Define
Economic growth
The level of wealth that the people in the country have achieved
Define
Standard of living
Goods and services available to people in the environment they live in
Define
Quality of life
The well-being of the people
What are the areas that the indicators of development are found in?
EDS
1. Economic
2. Demographic
3. Social
What are the economic indicators of development?
- Income per capita
- Employment structure
What are the demographic indicators of development?
- Life expectancy
- Infant mortality rate
- Urban population
What are the social indicators of development?
- Access to water and sanitation
- Adult literacy rate
What is the difference between gross national product and gross domestic product?
GNP: Total value of goods and services produced by the citizens of the country, including contributions by citizens working and investing outside the country
GDP: Total value of goods and services produced by the citizens and non-citizens in a country in a given year, excluding contributions by citizens working and investing outside the country
What are the pros of using income per capita as an indicator?
- Can identify industrial levels. More developed–> Higher GDP/capita. Less developed–> Lower GDP/capita
- Easy to calculate
- Standard unit of measurement
What are the cons of using income per capita as an indicator?
- It is an average figure Does not show the extremes (affected by majority and leaves out outliers)
- Does not consider differences in cost of living
- Does not register informal economic activities
- Does not consider social and environmental costs (air pollution etc.) as a result of economic growth
What are the different industries?
Primary: extract natural resources from earth
Secondary: convert natural resources into useful products
Tertiary: provide services
Quaternary: Reseach
How does employment structure change in LEDCs and MEDCs?
LEDCs: Greater percentage of primary industries
1. Low capital requirements
2. Abundance of natural resources
3. Low level of education needed
Smaller percentage of secondary and tertiary industries
1. High cost of establishing them
2. Need for skilled workers
What are the pros in using employment structure as an indicator?
- Can identify industrial levels. Amount of income earned by the country can be seen through the proportion of industries
- Level of wealth of country. Countries with wealth are able to create more tertiary and secondary industries
- Level of wealth of people. Trained and knowledgeable citizens (sec and tertiary workers) will get a higher salary
What are the cons in using employment structure as an indicator?
- No information on number of people, amount of revenue generated–> can be misleading
- Narrow indicator–> no consideration of social, health and environmental development of country