The changing economic world

• Gross national income


  Total value of goods and services produced by a country in a year, including income from overseas.

  Measure of wealth

  As a country develops it gets higher
• GNI per head


  The GNI divided by the population of a country, sometimes called GNI per capita

  Measure of wealth

  As a country develops it gets higher
• Birth rate


  Number of live births per thousand of the population per year

  Measure of education

  As a country develops it gets lower
• Death rate


  Number of deaths per thousand of the population per year

  Measure of health

  As a country develops it gets lower
• Infant mortality rate


  The number of babies who die before they are 1 year old, per thousand babies born

  Measure of health

  As a country develops it gets lower
• People per doctor


  The average number of people for each doctor

  Measure of health

  As a country develops it gets lower
• Literacy rate


  The percentage of adults who can read and write

  Measure of education

  As a country develops it gets higher
• Access to safe water


  The percentage of people who can get clean drinking water

  Measure of health

  As a country develops it gets higher
• Life expectancy


  The average age a person can expect to live to

  Measure of health

  As a country develops it gets higher
• GNI per head can be misleading when used on its own because it is an average- variations within a country don't show up
• Social indicators can also be misleading if they are used on their own because as a country develops some aspects develop before others. So it might seem like a country is more developed than it actually is
• Development is the progress in economic growth, use of technology and improving welfare that a country has made. When a country develops it gets better for the people living there- their quality of life improves
• HICs- high GNI per head

  LICs- very low GNI per head

  NEEs- getting richer as economy moves from primary industry to secondary industry
• HDI:

  • Calculated using income, life expectancy and education level
  • Every country has a GNI value between 0 and 1
  • Tells you about the country's economic development and the quality of life
• Physical factors affecting development:

  • Poor climate- farming
  • Poor farming land- steep, no soil
  • Few raw materials- no exports, infrastructure
  • Natural disasters- expensive, QOL
• Economic factors affecting development:

  • Poor trade links
  • Lots of debt
  • Economy based on primary products
• Historical factors affecting development:

  • Colonisation
  • Conflict
• Consequences of uneven development

  • Wealth- impacts standard of living
  • Health- life expectancy, infant mortality, disease
  • International migration- move to escape conflict or improve quality of life
• Strategies to reduce the development gap:

  • Investment
  • Aid
  • Fair trade
  • Intermediate technology
  • Microfinance loans
  • Industrial development
  • Debt relief
  • Tourism
• Tunisia:

  • Tourism has increased income, now one of the wealthiest countries in Africa
  • Income quadrupled in the 1970s, diet and health improved causing life expectancy to improve
  • Literacy rate have improved
  • In 2013 tourism bought 6.2 million people to Tunisia
  • Since 1960 life expectancy has grown from 42 to 75