development Flashcards
(61 cards)
what is development
the progressive process which aims to achieve economic growth and as a result, create a conducive environment for individuals to enjoy a decent standard of living and quality of life
what is considered high income countries
countries that have high wealth and income, have a highly developed economy and whose people enjoy a high standard of living and quality of life
what is considered low income countries
countries that have low wealth and income, with a less developed economy, and whose people enjoy a low standard of living and quality of life
economic growth
- the increase in a country’s wealth over time
- usually measured in pecentages
- widely seen as a good indicator of the health of a country’s economy and effiecient and affordable public and private transport
standard of living
refers to the goods and services available to people in the environment they live in
examples of goods and services
- access to electricity
- clean water supply
- good healthcare services and facilities
- effiecient and affordable public and private transport
quality of life
- well being of people
- dependent on factors such as political and religious freedom, environmental health and happiness, which are difficult to measure
what is considered extreme poverty
people who live with less than USD$1.25 per day
types of development indicators
- economic
- social
- composite
- others
examples of economic indicators
- GNI/capita
- GDP/capita
GNI
gross national income
what is GNI used for
used to assess a country’s wealth
how is GNI calculated
total value of goods and services produced by a country in a year + income received from overseas sources - payments to overseas recipients
describe GNI
total amount of money earned by a nations people and businesses
why is per capita income often used
to take into account different populations of countries
why is the GNI adjusted
to reflect the purchasing power of the population
how is the GNI adjusted
using the Purchasing Power Perity rate caluclated by OECD
OECD
organisation for economic co-operation and development
categories the world bank uses based on countries per capita income levels
- low income economies/countries
- lower-middle income economies
- upper-middle income economies
- hugh income economies/countries
GNI per capita for low income countries/economies
$1,085 or less
GNI per capita for low-upper income countries/economies
$1,085 - $4,255
GNI per capita for upper-middle income countries/economies
$4,255 - $13,205
GNI per capita for upper income countries/economies
> $13,205
what is GNI useful for
- comparing the wealth of countries
- identification of countries that require aid
- showing the state of a country’s economy and provision of services