Economic Development

Economic Development

1. Indicators

   • Economic
     • GDP
       • Gross Domestic Product - the total value of goods and services produced by a country in a year
     • GDP per capita
       • GDP divided by the population
   • Social
     • Birth and death rate
     • Infant mortality rate
     • People per doctor
     • Literacy rate
     • Access to safe water
     • Life expectancy
     • PQLI
       • Physical Quality-of-Life Index
     • Calorie intake
   • Other
     • HDI
       • Human Development Index - life epxectancy, adult literacy and % children in eudcation and GDp per person
   • Disadvantages
     • Affected by exchange rates
     • Aren't any measures for social indicators like human rights
     • They're averages
       • They don't show variation within a country

2. Factors affecting development

   • Environmental
     • Poor climate
     • Poor farming land
     • Limited water supplies
     • Lots of natural hazards
     • Few raw materials
   • Economic
     • Poor trade links
     • Lots of debt
     • Economy based on primary products
   • Social
     • Drinking water
     • Women in society
     • Child education

3. Aid

   • Money or resources given from one country to another
     • Gives: donor
     • Receives: recipient
   • Bilateral aid
     • directly to the recipient
     • can be tied
   • Multilateral aid
     • given through an international organisation
   • Short-term
     • Helps recipient countries cope with emergencies
     • immediate impact
     • Disadvantages
       • doesn't change state of development
       • slow reaction then it might not get where it needs to be
       • may not reach those who need it
   • Long-term
     • helps recipient countries to develop
       • improve clean water supplies
         • build wells
         • build dams
     • construct schools
     • recipients become less dependent on foreign aid
     • can be a while before benefits take effect
       • improves literacy rates
   • 'Phantom' aid
     • where donations are exaggerated, help isn't needed or donors benefit more than the recipient.
     • Often 'tied'
       • recipient countires are forced to buy goods and services from donor countries 
     • equipment can break down without help
     • donor countries can break promises
     • little spent on improving skills
     • replaces investment
       • this means that countries become dependent on aid
     • profits can go back to donor country not recipient
     • loans have to be payed back

4. Industry

   • 4 sectors
     • Primary
       • colecting raw materials
         • farming
         • fishing
         • mining
       • environmental
         • reduces biodiversity
         • burning fossil fuels
         • depletes water sources
         • soil erosion
         • water pollution
         • oil leaks
         • global warming
     • Secondary
       • manufacturing
         • making cars
         • making textiles
         • making steel
       • environmental
         • land, air and water pollution
         • habitat destruction
         • large amounts of energy
           • adds to global warming
     • Tertiary
       • providing a service
         • financial services
         • retail
         • emergency services
       • environmental
         • uses a lot of energy
           • adds to global warming
     • Quaternary
       • high technology
         • scientific research
         • product development
         • electronics
       • enivronmental
         • uses a lot of energy
           • adds to global warming
   • 3 stages
     • Pre-industrialised
       • mainly agriculture
       • simple technology
     • Industrialised
       • increase in use of technology
       • people move to cities
     • Post-industrial
       • manufacturing industries move abroad