dynamic development Flashcards
what is economic development
A measure of a country’s wealth and how it is generated, (for example,
agriculture is considered less economically advanced then banking).
what is human development
A measure of the access the population has to wealth, jobs, education,
nutrition, health, leisure and safety - as well as political and cultural freedom.
standard of living
important elements, such as wealth and nutrition
what is quality of life
Elements which help enhance our life e.g. Health and leisure
what is GDP
Gross Domestic Product.
The total value of the goods and services produced in a country in a
year
whats is GNP
Gross National Product
includes GDP and money made overseas by citizens of the country
whats is HDI
Human Development Index –a calculation including GDP, life expectancy and adult literacy rate.
Trade
• Trade: is the exchange of goods and services between one country and another.
Goods bought into a country
IMPORT
goods sold into another country
EXPORTS
Trade balance
: the difference between the amount of money a country spends on imports and the
amount it earns from exports.
TNC (Trans National Corporation)
A company that operates in more than one country.
TNC (Trans National Corporation)
A company that operates in more than one country.
WHAT IS DEVELOPMENT AND COUNTRY CLASSIFIED
Development is about measuring how developed one country is compared to other countries or to the same country in the past.
Development measures how economically, socially, culturally or technologically advanced
a country is.
The two MOST IMPORTANT ways of measuring development are ECONOMIC development and HUMAN development.
HOW CAN WE CLASSIFY COUNTRIES IN TERMS OF LEVEL OF DEVELOPMENT?
a visual depiction of the North-South divide between their economies, based
on GDP per capita, proposed by Willy Brandt in the 1980s.
BRANDT LINE: GOOD AND BADS
Strengths:
- Clear and easy to understand
Weaknesses:
- Too simplistic- does not take into account the
fact that some countries are neither rich nor
poor.
- Out of date- does not take into account
countries, which have developed since 1981
i.e. Saudi Arabia
what is better way to divide countries into? (accurate)
(ACs): well developed financial markets, diversified economic structure with rapidly growing service sector
(EDCS): do not share all the characteristics required to be an AC but are not eligible for Poverty Reduction and Growth Trust funding
(LIDCs): countries eligible for Poverty Reduction and Growth Trust funding from the IMF
Global distribution of ACs
eg: UK, USA, FRANCE, CANADA, AUSTRLIA
ACS are wealthiest country in the world which means GNI per capita is high, this suggest citizens have high standard of living.
their economy is based on tertiary and quaternary industry (eg services)
ACs have lots of money to spend on improving EDUCATION, TRANSPORT AND HEALTHCARE, so people tend to be WELL EDUCATED and have HIGH LIFE EXPECTANCY.
GLOBAL DISTRIBUITION OF EDCs
china, brazil, russia, india
EDs are generally GETTING RICHER as their ECONOMY is moving from being based on PRIMARY INDUSTRY (mining) to SECONDARY INDUSTRY (manufacturing), and EXPORTS of manufactured goods are generally HIGH.
EXPORTS and INCREASING WAGES means that there’s money to spend on DEVELOPMENT so healthcare, education, and transport are IMPROVING.
this means that STANDARD OF LIVING for many citizens is also IMPROVING.
GLOBAL DISTRIBUITION LIDCs
somalia, nepal, mali
LIDC are POOREST country in the world this is because GNI per capita IS VERY LOW and most citizens have a low standard living.
their ECONOMY is often based on primary industry such as (agriculture) so they DONT EXPORT many goods.
LIDCs don’t have MUCH MONEY to spend on DEVELOPMENT (schools, healthcare, education so their development stays low)
how can we measure development?
ECONOMY:
Economic Measures: these are to do with money and include gross domestic product (GDP), gross national income (GNI), and various monetary measures of poverty and standard of living