Development and Resources (6) Flashcards
what does development mean?
improving a country or improving the lives of people in a country
what’s a HIC
High Income Country
what’s a LIC
Low Income Country
where on the globe are HICs generally located?
in the NORTHERN HEMISPHERE
where on the globe are LICs generally located?
in the SOUTHERN HEMISPHERE
what are the exceptions of the generic locations for HICs and LICs?
Australia and New Zealand (located in southern hemisphere but are HICs)
what’s the Brandt Line?
an imaginary division that’s provided a rough way of dividing all the countries into ‘rich north’ and ‘poor south’
what about the Brandt Line should we be mindful of?
- the idea is becoming out of date as certain parts of the world are making more progress than others
- many countries have great variations of wealth WITHIN them (every country’s unique). Adding labels hide differences between countries
- it’s too generalised as an indicator to label rich and poor, countries on the poor south have become more developed since 1980s leading some to think the line is no longer useful
- some countries considered to be ‘developing’ have experienced rapid growth; these are NICs [NEWLY INDUSTRIALISED COUNTRIES] e.g. China, Brazil, Mexico
ways of measuring economic development
usually by how much it’s economy earns each year by considering
- GDP
- GNI
- Poverty line
what’s poverty line?
% of people in the population who earn less than a certain amount a day
what’s GDP
Gross Domestic Product
- total value of economy each year
- measures total value of goods and services produced by a country in a year
what’s GNI
Gross National Income (per person)
- like the average wage
GNP?
Gross National Product
- measures total economic output of a country
GNP PER CAPITA = GNP divided by its population
what does per capita mean?
per person
economic growth
annual increase in GDP + GNP per capita
inequality of wealth
gap between a country’s richest and poorest people
inflation
measures how much he price of goods, services, wages increase each year
HIGH INFLATION can be bad - suggests government lacks control over economy
unemployment
number of people who cannot find work
economic structure
shows division of a countrys economy between PRIMARY, SECONDARY and TERTIARY industries
limitations of GNI
it’s an average of the whole country, so, the extremes of wealth and poverty are missed
what has the World Bank done to combat the limitations
- convert figures into another indicator called Purchasing Power Parity (PPP)
- this allows us to see what people can buy in their country with money at local prices
- E.G. Malawi PPP = $780 which is over 3 times higher than the GNI
- this is because prices are 3x cheaper
what indicators other than economic do we use to measure development?
- social
- health
- education
SOCIAL indicators
- life expectancy
- birth rate
- adult literacy
- infant mortality
HEALTH indicators
- life expectancy
- child mortality
- maternal health
- disease indicators (proportion of population that has infectious diseases)