Emerging & Developing Economies I & II Flashcards
Forms of undevelopent
- Lack of ICT
- Low heathcare
- Poor diets
- Sanity challenges
- School
- Water sanitation
Indicators of development
% with access to clean water
% people with mobile phones
% with Internet
% energy consumed per capita
% working in agriculture
How is growth measured
Increase in real GDP
How is growth an inaccurate measure
A increase in average sector
Not increase in welfare
3 measures of development
HDI - Human development index
IHDI - Inequality adjusted human development index
MPI- Multidimisenional poverty index
multidimensional poverty index
10 smaller indicators of development
Heath- child mortality
- life expectancy
Weaknessess of both IHDI and HDI
both look at 3 sectors to determine what is important
What does the MPI show
% in poverty
also the average intensity of those who are in poverty
High MPI
means that there is high poverty and low development
3 main factors of development
HDI
IHDI
MPI
Key 3 things leading to poverty and low productivity
- Low productivity
- High costs
- low investment
10 key constrains on growth and development
Education
Infrastucture
Heath
Population Growth
Savings gap
Dead Capital
Corruption
Landlocked countries
Infant industries
Primary product dependancy
HDI components
GDP/Cpaita
Education (years in)
Life expectancy
What is gross national income
GDP + Income from abroad (such as remittances)
How is HDI calculated
Each of the 3 factors of productional calculated as an index number
HDI eq
Cube root of the three factors times together
HDI levels
0-0.49: low development
0.5-0.69: Medium level of development
0.7-0.79: High development
0.8-1: very high
2 pros and 2 cons of HDI
+
Reliable as it takes 3 factors hence making it a composite indicator
Good for comparison by providing a ranking
-
Emits other factors
Ignores distribution
What does the gini coefficient
measures income inequality
An equal county will have a low mini coefficient
IHDI
HDI adjusted for inequality
with perfect equality IHDI = HDI
HDI doesn’t already account for inequality
This reflects the distribution of development
Israel has HDI of 0.9
Israel’s has a an IHDI = 0.78
Data from 2020
The lost generation
Madagascar
When colonial teachers were replaced by madagascan speaking teachers who provided a really poor quality of education. The generation who recived this are called the lost generation
Impact of poor education
low productivity
contraction in LRAS
low skill jobs
tax rev falls
Why should education be improved
Increased productivity
Exension in LRAS
Low skill jobs change to higher skill job
tax rev increases
Challanges of increasing education
In the short run incomes will be lower as children are at school
people become poorer
consumption decreases