Economic world - general Flashcards
What is quality of life?
This is the individual’s perception of their position in life in context of the culture and value systems in which they live and in relation to their goals
What is development?
This is a description of how far a country has grown economically and technologically and the quality of life people have.
Give one way of classifying countries economically.
Low income country (LIC) - countries that have a GN per capita of $1045 or less according to the World Bank. These include poorer countries that depend on primary jobs like farming and mining.
High income countries (HIC) - a country that has a GNI per capita of $12 735 or above. They are more dependent on service and high technology jobs.
Newly Emerging Economies (NEEs) - a country with an intermediate level of income. GNI between $1046 and $12735. They are more dependent on manufacturing industries.
What are the two types of measures that can be used to figure out a country’s development?
- Social - relating to the development of the people and the place
- Economic - relating to the finances and wealth of the place
Definition of GNI (gross National income)
Total income earned by citizens and residents and includes money received from sources outside a country - its a measure of the country’s wealth
GNI per head
the GNI divided by the population of that country. It is also normally given in US$ and is sometimes called GNI per capita.
GDP
A part of GNI - this is the total value of goods and services a country produces within a year.
Birth rate
The number of live births per thousand of the population every year
What do we often find with the birth rates in HICs and LICs?
LICs tend to have higher birth rates and HICs tend to have lower birth rates. This is because of the high replacement rates to compensate for high infant mortality, poorer access to family planning and contraception, and a tradition for large family size to supplement a larger workforce.
Death rate
The number of deaths per 1000 of the population.
How useful is the death rate measure of development? What would be better to look at than death rate?
Not very useful as they are starting to fall due to imported medicines and technology in many poorer countries. It would be better to look at the cause of death, as HICs would have more wealth and age-related illnesses.
Infant mortality rate
The number of babies who die under 1 years old, per thousands of babies born.
People per doctor
how many people there are for every doctor in a country or place. Good measurement of the availability of training and recruitment of doctors and the knock on effect on the well being of people.
Literacy rate
What percentage of the country is able to read and write as adults.
Access to safe water
what percentage of people have access to safe and sanitary water that is free from bacteria and parasites. It is a social measure.
Life expectancy
the average age that a person can expect to live to
How is life expectancy useful?
It gives and overall indicator of how good food security, water quality, shelter and medical care are in a country.
Human development index (HDI)
This is a number that is calculated using life expectancy, education level and income per head. Every country has a HDI value between 0 (least developed) and 1 (most developed). This is by far the best development indicator to be used on its own
__________ indicators can be ___________ when used on their own. Why?
Individual; misleading; because as a country develops, some aspects develop before others, so it might seem that a country is more developed than it actually is.
What is the global development gap?
The difference in development between more and less developed countries is called the global development gap.
Limitations of GNI per capita?
- if there is a significant gap between the earning of the rich and the poor, the income of the more wealthy will skew the GNI.
- people may not tell the truth about their earnings
- large scale migration and conflict or natural disasters make it difficult to accurately record population and earnings in one place.
Limitations of birth rate?
Birth rates can be changed by government policies, this doesn’t always mean that a country is developed.
Limitations of death rate?
Not very useful as they are starting to fall due to imported medicines and technology in many poorer countries. It would be better to look at the cause of death, as HICs would have more wealth and age-related illnesses.
Limitations of HDI?
- does not consider measurements of the natural environment, which is also important for the long term sustainable development
- it also omits measures of human rights (e.g: gender equality)