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297212
Measuring Development
Description
Ways of measuring development and their advantages and disadvantages
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a2
geography
geography
a2
a-levels
Mind Map by
Gabzay
, updated more than 1 year ago
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Created by
Gabzay
over 10 years ago
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Resource summary
Measuring Development
The North-South divide
Willy Brandt, Brandt Report
Recognises general divide between a wealthy 'North' possessing 80% of the world's wealth, and a poorer 'South' with just 20%
Ignores different degrees of development within a country
Now seems simplistic because of rapid development
Single economic measures
Gross Domestic Product (GDP)
Means the value of goods and services produced in a country over a year
It is then usually divided by the total population to give a per capita (per person) value
Smooth out fluctuation in currency values by conversion known as the Atlas method
Does not show what per capita income is actually worth in terms of spending power;does not take into account the cost of living
Gross National Income (GNI)
Like GDP
Includes overseas investments
Better measure of a country's wealth than GDP
A better measure for wealthy countries who can gain wealth from shares, earning and profits from TNCs
Poorer countries are under-represented in this figure
Smooth out fluctuation in currency values by conversion known as the Atlas method
Does not show what per capita income is actually worth in terms of spending power;does not take into account the cost of living
Purchasing Power Parity (PPP)
Shows cost per capita by taking the cost of living into account
Commonly and widely used so they are comparable between countries
Do not show regional or urban-rural disparities
Narrow view of development as solely linked to wealth (western view)
Informal economy and subsistence farming cannot be accounted for in the statistics
Other factors can 'taint' figures e.g. more energy used for heating in cold country does not necessarily mean that they are wealthy
Composite indicators
Human Development Index (HDI)
Four indicators
Life expectancy
Education
Education (using the two indicators of literacy and length of schooling)
GDP per capita (using PPP$)
Shows how far people are benefiting from economic growth
More accurate
More rounded view
May not give the full picture of development because of the focus on social indicators
Does not include economic, environmental and political issues
Development means 'change', and implies that change is for the better. It usually means 'economic' change, which improves people's standards of living
The UN's four levels of income
High, upper middle, lower middle and low
Does not show differences within each division
Single social measures
Reflect the importance of human development
Show that development is a broader concept and is not just linked to money
Difficult to access
Hard to obtain reliable data for certain parts of the world e.g. North Korea
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