Measuring Development key terms Flashcards
Economic development
Measuring development by focusing on economic growth and the wealth of nations.
GDP
‘Gross Domestic Product’
It measures the economic output of a country by calculating the sum value of all the goods and services produced for money in the economy.
GDP per capita
GDP divided by population. This is one of the most common ways of measuring the level of economic development that a country has reached. A high GDP per capita indicates a productive economy where wealth will hopefully filter down to improve standards of life.
Criticism:
- It does not account for the distribution of wealth within a country, and the measure can obscure internal inequalities (wealth could be concentrated in the hands of an elite). Does not count house work, carers etc.
GNP
‘Gross National Product’
It is calculated in the same way as GDP, except the measure includes wealth generated by a population out of activities overseas; thus considering international trade and factories based in other countries.
GINI index
A measure of income inequality within a given society with higher values (maximum of 100) indicate more inequality. This is a useful indicator to use alongside GDP per capita as it gives an insight into how the wealth produced in a country is actually shared.
Human development (social development)
It is argued that development should focus on social rather than economic measures of development. Some commonly used measures include;
- Education; the percentage of school age children attending school and literacy rate.
- Health; child and infant mortality rates in general; maternity mortality rates; the number of doctors and hospitals in relaton to population
- Democracy; whether there are free and fair elections, in which everyone can vote; whether opposition parties are allowed to organise.
- Gender equality; differences between male and females in education, health, politics and other measures.
Composite measures of development
A measure of development that combines diferent statistical indicators (e.g the human development index)
Human Development (HDI)
A composite measure of development calculated by the United Nations by combining statistics on life expectancy, education and wealth. The advantage of this approach is that it does not reduce development to a single factor, so it offers a more rounded insight.
United Nations
An international political organisation set up after World War 2 to promote peace, human rights and development.
Sustainable Development
Development which meets the needs of the present without compromising the ability to future generations to meet their needs. A useful quote to remember is ‘anyone who believes in indefinite growth on a physically finite planet, is either mad or an economist’ (Kenneth Boulding).
Prosperity
Often used as a term synonymous with wealth in our society. However Tim Jackson argues that we should define prosperity as ‘consisting in our ability to flourish human beings - within the ecological limits of a finite planet’.
Ecological footprint
It represents the amount of biologically productive land and sea area necessary to supply the resources a human population consumes, and to assimilate associated waste.
Global Hectares
Ecological footprints are measured in global hectares ( a hectare= 10,000 square metres)
Precautionary Principle
The theory (associated with environmentalism) that holds that when human health and the environment are significantly at risk and when the potential damage is irreversible we cannot afford to wait for perfect scientific certainty is better to adopt a cautious approach.
Buddhist Economics
A form of neo-populism particulary associated with the work of Ernst Schumacher. It is critical of the environmental and social costs of western consumerism. for Schumacher the key to well-being is not consumption but meaningful work that allowed human beings to be creative.
