Unit 2 AOS 3 Flashcards
What is extreme poverty
-> defined by UN as a condition characterised by severe deprivation of basic human needs, i.e food, safe drinking water, sanitation facilities, health, shelter, education + info. It depends x only on income h/r also on access 2 services
What is development
= multidimensional process involving economic, social, political + institutional changes that are needed 2 improve the daily material + non material wellbeing of all ppl in society
Evidence of development
- Are poverty rates down
- Are there more job opportunities with less unemployment
- Is inequality in distribution of g/s + income less
- Are most ppl healthier, more literate, better clothed, properly nourished, + live longer
- Is there more freedom of choice + opportunity
- Is there more justice, effectiveness + transparency in gov.t + less corruption
- Is there more social inclusiveness 4 all ppl
- Is eco activity environmentally sustainable
- Are more ppl happier
What is the human development index
= established by UN that indicates change in lvl of nations L.S based on progress in range of economic + social factors such as life expectancy + literacy rates
-> range from 0 to 1 where 0 is least developed and 1 is most
What GDP as a measure of development
= traditional measure of development whereby high GDP = more consumption = less poverty = more MLS h/r x give whole picture of LS as a x NMLS considered t/f x proper measure of development
Limitations of GDP
- The problem of unrecorded subsistence production
- The problem of unequal distribution -> inequality in g/s distribution with more gap b/n wealthy + poor
- Negative externalities -> x identify + account 4 costs on society + economy
- No consideration of quality of daily lives = NMLS factors i.e life expectancy, health, literacy rates
What are the 3 classifications of countries regarding income
-> low; medium; high income countries
Different examples of human development
- Life expectancy
- infant mortality rate
- access to basic services
- access to healthcare
- risk of disease
- access to education
- literacy rates
- access to technology
- male / female equality
- gov.t spending priorities
What are the different factors limiting development
1) limited productive capacity
2) low savings + investment + the cycle of low income + poverty
3) limited education + cycle of low incomes
4) problems involving population + labour force
5) great inequality in income + wealth
6) size of the local / domestic market
7) inefficient gov.t + institutional failure
8) historical problems
9) limited foreign trade
10) rising debt + interest repayments
(more detail in notes book - use for EXAM and test revision)
What are the 2 constraints of productive capacity
- Volume of production
- productivity of labour + other resources
What are factors contributing to rapid population growth
-> tradition of lrg families
-> restricted access 2 contraceptives
-> lack of info re. birth control + family planning
-> absence of pension system t/f belief inc kids = insurance as children have income 4 family
What are the different types of government intervention
1) policies 2 lift investment levels
2) improve the provision of basic economic and social infrastructure
3) manage debt levels
4) reform gov.t + key national institutions
5) less trade barriers
6) less income inequality
7) less population density
What are policies to lift investment levels
1) gov.t must set up well run + secure banks + financial institutions 2 collect household savings to finance higher lvls of investment 2 inc prod capacity
2) ensure basic laws in place 2 protect ppl being enforced efficiently + fairly -> incentivise bus investment + expansion /+/ allows households 2 be inc safe + happier
3) international aid needs 2 be encouraged 2 improve public sector investment lvls + inc prod capacity (given loans x have harsh repercussions on community)
4) gov.t needs 2 ensure rich pay required taxes 2 help finance public investment + infrastructure projects essential 4 growth in prod capacity, jobs + income
5) gov.t incentives needed 2 encourage private investment in projects that help promote national self-sufficiency + security in food + basic community service
6) measures needed 2 help avoid wasting / misusing gov.t’s limited financial resources 2 avoid adding burden of repaying debt that currently limits gov.t capacity 2 provide necessary infrastructure i.e health + education programs required 4 development
Why is an improvement of basic economics and social infrastructure necessary
- help inc efficiency of resources, inc prod capacity, less unemployment, lift incomes, alleviate poverty + improve quality of daily life
- H/r problems here are dif 4 gov.t 2 fix b/c security of savings + less tax revenue
How to manage debt levels
-> debt levels in poor countries often high + represent well over 100% of GDP in some cases
t/f needs 2 be cut 2 manageable lvls -> wasteful “white elephant” projects adding little 2 welfare terminated, less substantial military expenditure, hold gov.t accountable 4 all spending
How is government reform useful
-> strong legal framework ensures laws protecting strong competition in domestic markets whilst protecting the environment (relative scarcity) + protect worker rights / conditions + enforce edu. 4 children
How can government tax revenue reduce inequality (of income)
-> promote development by…
- outlays 2 improve edu + health outcomes
- delivery of basic welfare payments so ppl in desperate circumstances can survive + live with some dignity
- provision of basic economic infrastructure i.e water + electricity needed 2 grow economy’s productive capacity, jobs + income
How can a government reduce the population pressures
1) gov.t try 2 persuade ppl 2 have lower families through informative advertising + education
2) gov.t needs 2 enhance family planning facilities + programs 2 provide better advice on contraceptive + health practices
3) gov.t need 2 pass legislation that better promotes + enforces gender equality -> birth rates fall b/c more ppl empowered in work + earning income t/f easing population pressures whilst promoting development
4) gov.t can use -ve tax + +ve welfare incentives 2 help reduce birth rates
