economic development measures + obstacles

• What does economic development refer to?

  Improvements in living standards, income distribution, education, healthcare, and overall quality of life.
• Why are changes in national income not a complete indicator of development?

  They do not reflect income inequality, education, healthcare, or life expectancy.
• What limitations does GDP per capita have in measuring true development?

  It does not consider income distribution and access to essential services.
• What are some other measures of economic development besides GDP?

  • Human Development Index (HDI)
  • Economic Structure (agriculture, industry, services)
  • Indirect Indicators (healthcare access, education access, technology access)
• What does the Human Development Index (HDI) measure?

  A composite index that measures life expectancy, education, and income per capita.
• How does the economic structure differ between developing and developed countries?

  Developing countries often have a higher share of agriculture, while developed countries have a larger service sector.
• What does GDP measure?

  The total value of goods and services produced within a country’s borders.
• What does GNP include that GDP does not?

  The total value of goods and services produced by residents of a country, including those generated abroad.
• Why is Purchasing Power Parity (PPP) important?

  It adjusts for differences in the cost of living between countries for accurate income comparisons.
• What were the United Nations Millennium Development Goals (MDGs)?

  A set of eight global development goals established by the United Nations in 2000.
• What were the eight Millennium Development Goals (MDGs)?

  1. Eradicate extreme poverty and hunger.
  2. Achieve universal primary education.
  3. Promote gender equality and empower women.
  4. Reduce child mortality.
  5. Improve maternal health.
  6. Combat HIV/AIDS, malaria, and other diseases.
  7. Ensure environmental sustainability.
  8. Develop a global partnership for development.
• Why do LEDCs face difficulties in competing with MEDCs?

  Due to limited infrastructure, lower access to technology, education, healthcare, weak governance, and restrictive trade policies.
• What is one key obstacle to economic development in LEDCs?

  Over-dependence on natural resources for exports.
• How do low levels of health and education affect LEDCs?

  They result in an unskilled workforce and lower productivity.
• What impact does short life expectancy have on LEDCs?

  It reduces the productive working age population and increases dependency ratios.
• How do trade policies of MEDCs affect LEDCs?

  MEDCs impose tariffs and subsidies that make it hard for LEDCs to export goods competitively.
• What role does poor infrastructure play in the economic development of LEDCs?

  Inadequate roads, electricity, and telecommunications hinder business activity and investment.
• How do weak institutions and governance affect LEDCs?

  Corruption and ineffective legal systems lead to poor resource allocation and deter investment.
• What is the impact of public sector debt on LEDCs?

  High levels of debt mean that a significant portion of government revenues go toward debt repayments instead of development projects.
• How does rapid population growth hinder development in LEDCs?


  It can strain public services, housing, and employment.
• Human Development Index (HDI) combines indicators such as life expectancy, education, and income to measure overall human well-being.
• GDP per capita is the total value of goods and services produced by an economy divided by its population.
• Gross National Income per capita (GNIpc) is another indicator used to assess economic development.
• The Human Poverty Index (HPI) focuses specifically on poverty rates within countries.