Global Patterns and Classification of Economic Development

Question 1

What is Development?

Answer 1

-Refers to the standard of living and quality of life of its human inhabitants. Development is a process of change that affects people’s lives. Ex. improvement in the quality of life.
-Development can be measured in many different ways, which are categorized as “human” and “economic” development. (And economic classification - extension)

Question 2

What are Human Factors?

Answer 2

Life expectancy
Infant Mortality Rate
Poverty
Access to basic services (healthcare, education, technology)
Literacy Rate
Male/Female Equality
Risk of Disease

Question 3

What are Economic Factors?

Answer 3

-Gross Domestic Product (GDP) - total value of goods and services produced by a country in a year (within the country).
-Gross National Income (GNI) - GDP + income from abroad. This net income from abroad includes dividends, interest and profit. includes the value of all goods and services produced by nationals – whether in the country or not.
-Inequality of wealth - gap in income between a country’s rich and poor (gender too)
-Inflation - rate of change in prices of goods, services and wages in a given time .
-Unemployment - number of people who cannot find work
-Economic structure - division of a country’s economy between primary, secondary and tertiary industries.

Question 4

What are Economic Classifications?

Answer 4

-Way of measuring world development
-World can be divided into rich and poor
The Brandt Line - way of showing how the world was geographically split into relatively richer and poorer nations.
1st, 2nd, and 3rd World
MEDCs/LEDCs (more economically developed countries/less)
-HICs (high income countries) - most developed/high standard of living
-MICs (middle income countries) - countries with mid range per capita income
-LICs (low income countries) - countries with lower per capita income