development indicator

• What are the four economic indicators discussed?

  1. Gross National Income (GNI)
  2. Gross Domestic Product (GDP)
  3. Purchasing Power Parity (PPP)
  4. Economic Sector Balance (ESB)
• What does GNI measure?

  Value of goods, earnings, and services
• How is GNI per capita calculated?

  GNI divided by the population
• Why is GNI per capita important?

  It reflects wealth distribution among citizens
• What does GDP measure?

  Value of domestic goods and services
• How is GDP typically measured?

  In U.S. dollars
• What does PPP stand for?

  Purchasing Power Parity
• What does PPP relate to?

  Average earnings to local prices
• What does ESB measure?

  Contribution of each sector to wealth
• What percentage of Malawi's economy comes from primary production?

  30%
• What does a high ESB in primary production indicate?

  The country is likely quite poor
• Why are single indicators not always reliable?

  They don't account for wealth distribution
• What are social indicators also known as?

  • Composite indicators
  • They combine multiple factors for better measurement
• What does HDI stand for?

  Human Development Index
• What three factors does HDI consider?

  Life expectancy, education, GDP per capita
• What does a high HDI indicate?

  Better development and opportunities
• What does the GII measure?

  Gender Inequality Index
• What three areas does GII focus on?

  Reproductive health, political participation, education
• How does economic development affect environmental quality?

  It generally decreases with increased development
• What happens to environmental quality as countries become high-income?

  Environmental quality tends to improve
• What does the Gini index measure?

  Income inequality within a country
• What does a Gini index of 0 indicate?

  Perfect equality in income distribution
• What does a Gini index of 1 indicate?

  Perfect inequality in income distribution
• How has globalization affected the development gap?

  It has increased the gap between rich and poor
• What is the relationship between globalization and the development gap?

  • Globalization has increased overall wealth
  • However, the richest countries have become richer
  • The gap between rich and poor has widened
• Why is it important to use multiple indicators to measure development?

  To get a comprehensive view of development