Economic Development
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Transcript of Economic Development
Economic Development
- Industrialization and Economic Development -
Economics
Economics is the study of :
1. production of goods and services.
2. distribution of goods and services.
3. consumption (purchasing) of goods and services.
Economic Geographers study how people make a
living.
Economic Globalization
Interdependence of national economies through movement of goods, service, technology and capital ($$$).
Much of the world's economic activity is now transnational.
How is the economic development of a country measured? See next slides …
How is the economic development of a country measured? (1/4 )
Key Terms Per Capita Income: Per person income.
Gross National Product (GNP): Total production of goods and services by a country within a year.
Gross Domestic Product (GDP): Total production of goods and services within a country during in a year
Range of World GNP
World Average…………………….$4920 Developed Countries…………...$19,310 Developing Countries……………$1,120 Lowest GNP………….$80. Mozambique Highest GNP……..$41,210 Luxembourg
Mozambique $80 USA
$26,980
Luxembourg $41,210
World Average $4920
Developing Average $1,120
Developed Average $19,310
How Is The Economic Development of a country Measured? (2/4)
Demographic (characteristics of a human population) Signs of Development
Developing Countries
– high birth rates (5%)– high infant mortality (150+)– high fertility (7.4)– high pop under 15 (50%)– low pop over 65 (1%)– short life expectancy (43 yrs.)
Developed Countries
– low birth rates (1%)– low infant mortality (.4%)– low fertility (1.1)– low pop under 15 (15%)– high pop over 65 (18%)– long life expectancy (80 yrs)
Social Signs of Development
Use of consumer goods: phones, TV’s, computers Distribution of wealth & services
– health care availability number of physicians per capita
– education availability Literacy
Let’s look at the following slides …
How is the economic development of a country measured? (3/4)
How Is The Economic Development of a country Measured? (4/4)
Structure of the Economy
Economic activities are divided into categories of increasing complexity– Primary Sector– Secondary Sector– Tertiary Sector– Quaternary Sector
Primary
Secondary
Tertiary
Quaternary
Economic Sectors: Structure of the Economy
Primary Industry: extraction of resources from the earth.– Generally, through agriculture, mining, fishing
and forestry.– EX:
farming, lumber, harvest.
Economic SectorsStructure of the Economy
Secondary Industry - processing and manufacturing of resources
manufacturing
Economic SectorsStructure of the Economy
Tertiary Industry - distribution of goods and services. Employs most people in the labor force in developed countries.
Ex: trucking, banking, retail store outlets, groceries
Economic SectorsStructure of the Economy
Quaternary Industry - processing and dissemination of information
The “Information Economy”, services related to information and research.
education, research & development, cyber space
Measures of Development
Consumer Goods (examples?)Fertility Rate
Infant Mortality Rate
Fertility and Infant Mortality Rate
Developing countries have higher fertility rates than developed countries.
Developed countries have lower infant mortality rates than the developing countries.
Economic Theories
Classical Liberalism
Neo-Liberalism
Dependency Theory
Globalization
Classical Liberalism
An economic system functions best when there is no interference by government.
“Laissez-faire” (hands off, leave things alone!)
Neo-Liberalism
– Private enterprise
– Liberalized trade
– Open markets
– Maximized role of private sector to determine political and economic priorities of the state.
Dependency Theory
Resources flow from a poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.
What about Globalization Theory???