World DevelopmentWorld Development

Aims

To know how we can measure the development gap

To know the terminology used to identify countries of differing development

Development means the way in which a country seeks to improve economically and raise the standard of living for its inhabitants.

The Development Gap refers to the widening difference in levels of development between the world’s richest and poorest countries. This development gap can also occur within countries, for example between regions or between urban and rural areas.

The Development continuumSome people think this better reflects reality. There is a distinct graduation between countries at different levels rather than clusters in distinct groups.

LEDC/MEDC/NICRich/ poor

Developed/ Developing/ Underdeveloped

First world/ second world/ third world

North and South

How do we measure

development?

What are development indicators?

MEASURING THE MEASURING THE DEVELOPMENT GAPDEVELOPMENT GAP

Question ‘Evaluate the indicators that can be used to measure the development gap’

GNP and GDPGNP and GDP

GDP = Gross Domestic ProductGDP = Gross Domestic ProductGNP = Gross National ProductGNP = Gross National Product

• GDP is a traditional and economic measure of development. It is the total value of goods and services produced by a country during one year. GNP is similar but also includes income from overseas investment.

• GDP per capita is where the money is then divided per person in the population to give a more reliable average.

GNP per capitaGNP per capita

GDP per CapitaGDP per Capita

What are the Problems with GNP as an indicator

It hides inequalities within a country. E.g. Saudi Arabia may have a high GDP per capita but there is a vast gap between the rich and the poor within the country.

Money from power for heating is Money from power for heating is included in GNP. So cold countries may included in GNP. So cold countries may

appear wealthierappear wealthier

Subsistence Farminggenerates no cash and so is not included

The informal economy does not declare cash so it is not counted.

The $ has different purchasing power in different countries –

cost of living is different.• “ Yes it is lovely and it

only cost me 50p in our money. You can get a decent meal for a £1and the beer and spirits are dirt cheap as well. I think I’ll haggle him down a bit!”

Purchasing Power ParityPurchasing Power ParityPurchasing power parity (PPP). A method of measuring the relative purchasing power of different countries’ currencies over the same types of goods and services. Because goods and services may cost more in one country than in another, PPP allows us to make more accurate comparisons of standards of living across countries.

Social Indicators of Development

HEALTHHEALTH• Infant Mortality Rate• Life Expectancy• % of GNP spent on health• Doctors per 1000 people• Hospital beds per 1000 people• Daily calorie intakeEDUCATIONEDUCATION• % of GNP spent on education• Average number of years in full

time education• Literacy rates• Full time teachers per 1000

people

HOUSINGHOUSING• Dwelling floor space per capita• %dwelling with running water• % dwelling with electricity• % dwelling with indoor lavatory• % dwelling owner occupied• % GNP spent on housing

PROBLEMSPROBLEMS• Social development can often

lag behind economic development

• Some inappropriate indicators for LEDC’s.

Economic Indicators of DevelopmentEconomic Indicators of Development

TRANSPORTTRANSPORT

• Km railways per unit area

• Tonnes of freight per population unit per year.

• Kilometres of roads per unit area

ENERGYENERGY

• Kwh of electricity per capita

• Kwh of energy consumed per capita

• Kwh of energy reserves

• Per cent HEP developed

COMMUNICATIONSCOMMUNICATIONS• Newspaper circulation per

population unit• Telephones per population unit• Domestic mail flow per capitaTRADETRADE• Exports per capita• Imports per capita• Value of foreign trade turnover

PROBLEMSPROBLEMS• Can be outdated quickly e.g

internet.• No-one single indicator can be

reliable on its own.

COMPOSITE INDICATORSCOMPOSITE INDICATORS

Physical Quality of Life Index (PQLI)Physical Quality of Life Index (PQLI)This includes life expectancy, literacy rates and infant mortality rates. The higher the score the better quality of life.

Human Development Index (HDI)Human Development Index (HDI)This is the same as the PQLI plus school enrolment and PPP to help This is the same as the PQLI plus school enrolment and PPP to help judge standards of living.judge standards of living.

International Suffering Index (HIS)International Suffering Index (HIS)This adds daily calorie intake, access to clean water, inflation rate, access to communications, political freedom and civil rights.

These tend to be more valid at the moment as they take in to account more than one factor and a range of economic and social factors.

The digital divideThe digital divideThe digital access index (DAI) measures the gap between

countries and their ability to access and use ICT.

The Gender divideThe Gender divideThe more recent GDI (Gender Development index) shows the inequalities between men and women in terms of life

expectancy, education and income.

According to the UN here are the top ten MOST and LEAST livable countries by HDI. Can you locate them all on a

map?Most Liveable Least Liveable

Norway

Iceland

Australia

Ireland

Sweden

Canada

Japan

USA

Switzerland

Netherlands

Niger

Sierra Leone

Mali

Burkino Faso

Guinea Bissau

Central African Republic

Chad

Ethiopia

Burundi

Mozambique