2.1A Development

• Development is a broad idea linking to peoples quality of life

  Economic development- involves money and wealth

  Social development- factors such as good health care

  Political Development- freedom of speech
• Measuring development

  GDP per capita- Gross domestic produce per person

  • total value of goods and services produced within a year divided by the number of people in the country
  • measures economic development

  (GNI per capita more commonly used)
• Measuring development

  GNI per capita- Gross national income per person

  • more commonly used than GDP as a measure of national wealth
  • similar to GDP but includes wealth created outside the country by companies including debt
  • However raw GNI doesn't take into account the way cost of living varies as: 1 US dollar buys more in India than the US
• HDI considers aspects of social and economic development but not enviromental. Measures LEG

  L- life expectancy

  E- education

  G- GDP
• GNI coefficient

  • measures the extent to which the distribution of income is unequal within a country and how it changes overtime
  • values are between 0 and 1

  0-everyone in the country has exactly the same income

  1-one person had all the income

  • the lower the number the more equal income as seen in most European countries
• Corruptions perception index

  • quality of government and the impact on lives of ordinary people

  0 -highly corrupt

  100 -very clean

  Least corrupt in 2014 UK ranked at 14th

  Most corrupt in 2014 India ranked 85th