Development dynamics Flashcards
Define the GNI
Gross national income GNI is unit to measure national wealth similar to GDP but also includes wealth created outside the country, by companies however does not take into account cost of living variables, to counter this add PPP (purchasing power parity)
Define GDP
The gross domestic product added per capita (per person) is a way of measuring economic development the total value of goods and services produced within a country in a year divided by the number of people in the country.
Define Gini coefficient
The Gini coefficient measures the extent to which the distribution of income is unequal within a country and how it changes over time. A ratio between 0 and 1 . )n would mean everyone has exactly the same income and 1 a single person has all the money in a country. The lower the more equal income distribution among citizen usually seen in the European countries partially the Scandinavian region.
Define HDI
The HDI (human development index) measures a whole countries overall development including, life expectancy, education and income this system uses a fixed range of values above 0.8 developed, 0.7 emerging down to below 0.5 developing
Define CPI
The CPI (corruption perception index) grades countries form highly corrupt 0 to least corrupt 100. This is based on how much the government influences ordinary peoples lives.
Explain a population pyramid
A population pyramid or (pyramid of population) is a graph displaying the age relative to how many people of that age exist in a region or nation. Developed countries usually have a shape with a thin top an bottom with large middle and emerging with a steel incline to the top ages
Global inequality: physical environment
The land around a country an that it is made of impacts a countries ability to become economically advanced. Landlocked countries often grow at a slower rate. Climate related disease , water shortages and earthquakes, hurricane and flooding can slow and reverse development
Global inequality: colonialism
This occurred in the 17th, 18th, 19th and 20th centuries as countries form Europe expanded their territory. Exploiting economies for economic gain and a unequal trading relationship occurred. Colonial territory received little of the large profits, having their resources taken. Colonial powers still dominate the world markets.
Global inequity: politics
Large economies still dominate the worlds markets and remain open to economic grow, closed economies grow slower. Investment creates jobs but these former territories grow slower, controlled by their governments import rights and tariffs are imposed on goods. Often disputes cause economic disruption damaging the countries development
Rostow’s modernisation theory
An American economist developed a theory of how countries should develop. 1)traditional society includes rural farming, 2) pre condition for take off includes low grade technologies and intensive farming and infrastructure projects, 3) take off, paid growth of cities town and manufacture, incomes rise, living standards improve, 4) drive to maturity, economic growth extends to the whole country. 5) high mass consumption ages where the economy is self sustaining.
Franks dependency theory
A.G Frank in the 1960s proposed a more modern theory of development that colonialism was the major cause of poverty and that’s how the now rich countries developed, capitalism has benefited the rich far more than the poor and the economic core controls the economic periphery. Socialism is fairer than capitalism.
Development approaches: Top down
Top down development usually involves massive infrastructure projects carried out by the government to increase employment consequently getting consumer spending going boosting the economy. However sometimes doesn’t focus on the poorest regions eg the the three gorges dam, China
Development approaches: Bottom up
Bottom up usually focuses on the poorest people carried out by NGOs (non governmental organisation) and target selective aid to get the economy moving starting at the base tier. Eg micro credit or technology projects in the local areas.
Fair trade
Fair trade is a method created by countries rich and poor to counter the effect of income inequity, under this system small scale producers form a cooperative production organisation and cuts out the middle man/wholesaler, thus the rural; farm received the wage they deserve, giving them a better standard of living. The wage consider much higher than without fair trade in place, however accounts for less than 1% of the world trade.
Economic aid
The assistance in the form of grants or loans at below market rates, this provides vital part of the income of economies often given out in disaster or to poor nations. Most developing countries accept foreign aid because, the foreign exchange gap (countries lack resources to develop) savings gap and the technical gap.
