Indicators of Development

Indicators of Development

1. Why do we need indicators of development?

   • Allow us to compare countries
   • Countries can be ranked fairly to allocate aid
   • They give us an idea of what a country is like economically, socially and even environmentally
     • Healthcare
     • Sanitation
     • Education

2. The Big Mac Indicator

   • Countries are ranked on how long it would take an averagely paid worker to be able to afford a Big Mac

3. Gross Domestic Product (GDP)

   • The value of all goods and services in a country (US$ per capita)
   • Gross National Product (GNP) is similar, but takes into account the value of goods and services produced by that country overseas
   • Advantages
     • Good for comparing countries
     • Easy to calculate from government figures
   • Disadvantages
     • Does not show the distribution of wealth
     • Can be manipulated by governments that want to appear poor to get more aid
   • e.g. Ethiopia (LEDC) has a GDP of US$1000 per capita, whereas the UK (MEDC) has a GDP of US$31400 per capita

4. Infant Mortality

   • Shows the state of a countries health service, food provision and water quality
   • Advantages
     • Easy to understand
     • Focuses on a significant aspect of development
   • Disadvantages
     • Hard to get an accurate figure in LEDCs due to unregistered births
     • High IM could be due to social or political factors
       • e.g. the One Child Policy in China would cause IM to be higher
   • In Japan, IMR is 3/1000/year, whereas in Chad it is 91/1000/year

5. Birth Rate

   • High BR = LEDCs
     • More children to ensure survival of at least one child (as the IMR is high)
   • Low BR = MEDCs
     • More contraception, women working, cost of children etc.
   • Advantages
     • Clear indicator
     • Can be used to predict the future and plan accordingly (DTM)
   • Disadvantages
     • Affected by population policies (One Child Policy - China)
     • Figures in LEDCs may not be accurate
   • Ethiopia (LEDC) has a BR of 38/1000/year, whereas the UK (MEDC) has a BR of 11/1000/year

6. Death Rate

   • Clear indicator of the level of healthcare, sanitation, accommodation and food supply
   • High DR = LEDCs
   • Low DR = MEDCs
   • Advantages
     • Easy to use
     • Indicates level of healthcare
   • Disadvantages
     • Doesn't say what the cause of death was (The high DR could be due to a natural disaster not poor healthcare)
     • Difficult to get an accurate figure from LEDCs
   • Japan (MEDC) has a DR of 9 per 1000 per year, whereas Chad (LEDC) has a DR of 16 per 1000 per year

7. Key Terms

   • Infant Mortality Rate
     • Number of deaths of children under the age of 1 year expressed per 1000 live births per year
   • Birth Rate
     • Number of live births per 1000 per year
   • Death Rate
     • Number of deaths per 1000 per year
   • Gross Domestic Product (GDP)
     • The total value of goods produced and services provided in a country per person during one year

8. Other Indicators

   • Literacy Rates
   • Life Expectancy
   • % of young/elderly people
   • Vehicles per km of road
   • View full list at: http://data.worldbank.org/indicator/all