Measure of Development Flashcards
(50 cards)
what is economic growth
increasing the size of GDP
what is economic development
the overall improvement in a country’s economic health, including growth in income, employment, and living standards, often driven by investments, policies
what is national income data and some examples of it
measure of economic development such as real gdp per capita or real gni per capita
adv of using GDP/GNI PER CAPITA
better indication of living standards
and compare figures between countries
helps us make use of the purchasing power parity eg ($1 can buy more in a less developed country than developed one)
disadv of using GNI/GDP per capita
doesnt tell u quality of life factors
ignores economic welfare brought by the hidden economy (economic activity not recorded by gov statistics)
What is the GPI (Genuine progress indicator)
indicator that tries to give us fuller effects of growth than GDP uses GDP but also takes into account negative effects of growth
adv of GPI
help policies aimed at increasing overall welfare
disadv of GPI
difficult to put a value on the cost of things like pollution so figures can be seen as subjective
what is the HDI
Human development index which attempts to describves ppls welfare abd a countries economic development through various factors
what factors do the HDI look at
Education
Health
Standard of living
How is education measured
years of schooling
How is health measured
Life expectancy
How is Standard of living measured
real GNI per capita adjusted for PPP
Evaluate HDI
used to rank countries from most to least developed (from 0-1) which 1 being the most devlped and 0 beiing least developed
However countries can acheive similar HDI in different ways eg country can high education but low life expectancy and vice versa
causes of inequality
wage and tax levels
property ownership and inheritance laws
unemployement levels
level of gov benefits
education levels
what does infrastructure mean
basic facilities and services needed for the country and its economy to function
examples of infrastructure
roads
schools
water supplies
energy supplies
why does poor infrastructure make it hard for economies to grow
eg
- poor infrastructure links= difficult to move goods in and out of the economy
- if energy supplies are unreliable firms and factories wont be able to operate efficiently
- if telephone services are scarce hard time coordinating their operations
- difficult to attract foreign direct investment
what happens if the countrys population is growing faster than its economy
fall in GNI per capita, puts pressure on education system since more children.
Household poverty can keep children out of school can lead to low education standards which in turn leads to low productivity as t hey have less human capital making it difficult to attract FDI
how can disease affect countrys economy
result in lower productivity if ppl are unable to work can put strain on countrys health care system
Strategies to help countrys develop
aid and debt relief
structural change
policies favouring either an interventionist approach or a market-orientated approach
what does aid mean
transfer of resources from one country to anotherdi
different types of aid
bilateral
multilateral
tied `
what is bilateral aid
when donor country sends aid directly to recipient country
