Economic Development Chapter 18. Economic Development Refers to how advanced an economy is....
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Transcript of Economic Development Chapter 18. Economic Development Refers to how advanced an economy is....
Economic Development• Refers to how advanced an
economy is. • Industrialized or More Developed
Nations have advanced economies and higher standards of living• First World, highly developed,
developed
• Less Developed Nations have less advanced economies and lower standards of living• Third World, Underdeveloped
• Countries in the middle of this spectrum are considered “emerging economies” or “newly industrialized nations”• developing
Indicators of Development
• Human Development Index developed by the United Nations and is used to rank countries based on level of economic development
• Considers demographic, economic, social, and political indicators.
Demographic Indicators
• Relate to population• Life Expectancy
• Average number of years an individual is expected to live.• Birth and Death Rates
• How many people are born and die for every thousand people in a given year.
• Low Birth/Death rates-developed countries-• High Birth/Death rates-developing countries
• Infant Mortality Rate• Number of infants that die for every thousand born.
Demographic IndicatorsMore Developed Nations• Low Birth Rate
• Low Death Rate
• Low Infant Mortality Rate
• Long Life Expectancy
Less Developed Nations• High Birth Rate
• High Death Rate
• High Infant Mortality Rate
• Shorter Life Expectancy
Gross Domestic Product (G.D.P.)
• The total value of all goods and services produced by a nation in a year within its borders.
Gross Domestic Product per capita
• G.D.P./number of people.• Value of goods and
services produced in a year in a nation by an average person.
• Other indicators include number of cars, phones, televisions and computers.
Economic Indicators Cont.
More Developed Nations• High G.D.P. per capita.
• Higher standard of living
• More productivity because of machinery, computers, and other high-tech tools.
Less Developed Nations• Low G.D.P. per capita
• Concentrate on agriculture
• Lack investment
• Less productivity and competition
Social Indicators
• Measure social services provided to a nation’s citizens
• Literacy Rates• Percentage of people who can read
and write• Percentage of people attending
places of higher education.• Number of professional people
(Doctors, Lawyers, etc).• Housing• Water Supply• Sanitation
Social Indicators
More Developed Nations• High literacy rate
• Greater percentage of people attending college and universities
• More doctors and hospitals
Less Developed Nations• Lower literacy rate
• Lower percentage of people attending college and universities
• Less doctors and hospitals
Political Indicators
• These indicators include:• Freedoms people
enjoy• Degree of
democracy and voting rights
• Level of human rights
• Degree of government opposition
• Tolerance for different points of view
Government Relation
• There is NOT a direct relationship between economic development and a nation’s system of government.
• A nation’s economic system could help transform its political system.
Economic Activities
• A nation’s level of economic development is closely tied to the types of economic activities occurring.
• More advanced economic development = More advanced economic activities.
• Four Main Groups
Primary Economic Activities
• Involve the production of foods and the extraction of natural resources.• Agriculture, mining,
logging, fishing, etc.• First-Level• In a less developed
country most people will engage in primary activities.
Secondary Economic Activities
• Focus on manufacturing and production of goods, such as the making of textiles, furniture, and automobiles
• Second-Level• In developing nations
large numbers of people are engaged in secondary economic activities.
Tertiary Economic Activities
• Deal with services• Third-Level • Identified by a
variety of services performed by people and businesses