definition of development
the improvement of quality of life of a countries population -
quality of life meaning
the level of happiness, wellbeing or contentment resulting from a way of living - can be political, environmental, social, economical or demographical aspects
main cause of the development gap
globalisation - increased development in some countries but increased the gap between rich and poor for lots
the development gap can be seen in 2 cases
between countries e.g. Luxemburg had average incomes of 105k in 2015 and South Sudan only 220
within countries - Chinas coastal cities have incomes per capita of 10k but rural areas below 2k
what do single and composite indicators mean in measuring levels of development and give 2 examples of each
single factors such as GDP and life expectancy measure one variable so they may not be comprehensive as it is not an accurate representation of development - composite is more than one variable such as HDI and GII
how do different levels of development measurements vary
in validity (how relevant) - reliability (how accurate) - comprehensiveness (do they capture entirety)
economic indicators qualify well being as what
qualify well being as real income
income per capita (economic indicators) GNI per capita
mean income of a group of people - misleading as there could be inequalities - best single indicator as higher incomes are needed to raise Qol such as education and healthcare
GNI - GDP - GNP
gross national income - gross domestic product - gross national product
GNI (economic indicators) + GNI per capita
the total income earned by a nation’s residents and businesses, from BOTH DOMESTIC AND FOREIGN SOURCES - gnp discounted for depreciation as money value is lost through wear and tear of machinery - includes TNC profits and remittances sent home
GDP (economic indicators) + GDP per capita
measures total output of goods and services produced over a year WITHIN BORDERS - per capita is gdp divided by pop
GNP (economic indicators)
measures output produced by countries factors of production WHEREVER located - (final value of the goods and services after each stage of production has taken place)
why is GNI per capita considered the best single economic indicator and its limitations
provides the most realistic picture of the average income of residents as it includes remittances and investment from abroad but excludes money made by foreigners that flows out - hides inequalities and only considers economic factors - however income can be linked with education and healthcare
what is PPP GDP per capita
purchasing power parity considers cost of living also so has become a popular way of comparing economic development between countries
advantage of a composite index rather than a single
gives a more holistic view
HDI (human development index)
includes life expectancy at birth, expected and mean years of schooling and the GNI - score of 1 is highest - Norway has 0.949 in 2015
why is the HDI holistic
shows the healthcare and education provision of a country along with the economy
advantages of HDI
holistic
few rich people cannot distort life exp and mean years of schooling as much
countries that spend lots of money on military and other political reasons have a lower ranking as it diverts money away from edu and hea
what is 1 weakness of using HDI as a measure of development
fails to measure the QUALITY of education
what does the GII (gender inequality index) measure
measures female reproductive health (combining maternal mortality rates and adolescent mortality rates, participation in the workforce (percentage of woman of working age in labour force) and empowerment to measure gender based development (political representation in parlimant and access to higher education)
how is the GII rated
0 being most equal and 1 most unequal
what is good and bad about the GII
measures both economic and social development but validity is questioned through roles of men and women and social harmony
environmental quality index
WHO air pollution levels, local so cant compare countries
air pollution is the introduction of harmful substances in the atmosphere e.g. SO2 and NOX, particulates. linked to asthma and lung cancer
how does gini coefficient measure and what does it measure
measure of inequality - measures with a score of 0 being perfectly equal with 100% of the wealth being split equally across all residents