Development

• Development 


  The progress of a country as it becomes more economically and technologically advanced
• Low income countries = LIC's 


  Most people have a poor quality of life with inadequate services and few opportunities
• Newly emerging countries= NEE's

  countries experiencing rapid economic growth and development based on industrial development. Incomes are rising and most people enjoy a reasonable standard of living.
• High income countries= HICs 


  Countries that have modern industries and people enjoy a good standard of living with relatively high levels of income
• GDP - Gross domestic product 


  means the total value of a country's output of goods and services produced in a given year

  measure of economic- wealth

  effect on dev= higher

  Limitation= GDP ignores the welfare component as the goods and services produced may or may not add to the welfare of society
• GNI- gross national income 


  It calculates income instead of output. It is, therefore, the measure of the total income received by a country from the residents and businesses regardless of whether they are located in the country or overseas

  measure of economic- wealth

  effect on dev= increases

  limitations=

  1. the measure only takes into account one factor-income
  2. it is an average calculation, so a few wealthy people can distort the figures
  3. people working in the informal sector and 'stay at home' parents are not taken into account.
• GNI per head 


  this is the total income of a country's goods and services divided by the number of people

  measure of economic wealth

  effect on dev= increases

  limitations=

  1. it is an average and hides information about whether a person is either rich or poor or the quality of life within the country
• Composite 


  combines more than one development indicator
• HDI 


  is a composite index to measure development
• Why is HDI a better indicator of measuring development?


  HDI is a composite to measure development. This means social inequalities are not hidden. The indicator takes into account both social and economic indicators.
• Disadvantages of HDI


  • The index only considers 4 indicators of development and the statistics provided by some countries may be unreliable and is subjective
  • It is a general measure based on average calculations: It does not consider disparities (differences) that might exist within a country