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Measuring economuc development - Coggle Diagram
Measuring economuc development
single indicators
Financial measure
GDP per capita
The total of all economic activity in a country, regardless of who owns the productive assets, divided by the number of populations
GNI per capita
The total income that is earned by a country's factors of production, regardless of where the assets are located. divided by the number in the population
If a developing country has large amount of FDI,
GDP >GNI since thy will include profits that may have been repatriated
If a developed country has large amount of FDI,
GDP < GNI
GDP per capita figures & GD{ per capita figures at purchasing power parity (PPP)
Goods and services don't cost the same amount in different countries
The purchasing power of a person's income is different in different countries
To avoid this problem, economist calculate PPP exchange rate
Attempt to equate the purchasing power of currencies in different countries.
Calculated by comparing the prices of identical goods and services in different countries
Health measures
Life expectancy at birth
The average number of years that a person may expect to live from the time they are born
Seperated into male and female
High live expectancy
Good level of helath care and helath services in the country
Provision of clean water supplies nad adequate sanitation
Provision of nationwide education
Reasonable supplies of food
Healthy diets and lifestyles
Low levels of poverty
Lack of conflict such as civil war or war
Infant mortality rate
Measure of the number of deaths of babies under the age of 1 year per thousand live births in a given year
Exclude babies that are born dead
Education measures
Adult literacy rate
Measure of the proportion of the adult population, 15 or over which is literate, expressed as a percentage of the whole population for a country at a specific point
Factors
Level of education opportunities available in the country
Relative wealth of the country
Distribution of income within the country
Poverty levels
Net enrolment ratio in primary education
Measure of the ratio of the number of children of primary school age who are enrolled in primary school, to the number of children who are in of primary school age
Composite measures
Combine a number of single indicators with weighting, to give a single, combined figure
HDI
Three basic goals that can be measured
Long and helathy life
Life expectancy at birth on the assumption that people who live longer benefited from good health
Improved education
Adult literacy rate combined with a measure of primary, secondary, tertiary school enrolment
Decent standard of living
GDP per capita, converted at PPP US$
Other indicators
Gender related development index (GDI)
same as HDI but include inequalities between in these indicators for men and women
Inequality between men and women: GDI < HDI
Gender empowerment measure (GEM)
Measures the extent to which women are able to actively participate in economic and political life
looks at the number and percentage of women in leadership, managerial, parliamentary positions, technical and prodfesional jobs
examines their participation in the labour force and their shares of national income
High value indicates a higher level of empowerment for women
Low GEM value in relation to GDI value: the access to basic needs, educations and health is not translated into greater opportunities and participation for women
Human poverty index (HPI)
Measures the level of deprivation and poverty experienced in a country.
Looks at the proportion of people who are deprived of the opportunity to reach a basic level in each area
A composite index & looks at indicators that are comparable with the indicators in the HDI
Observes how evenly the benefits of development are spread within a country
HPI value is expressed as a percentage
Higher percentage: Greater level of deprivation , higher level of poverty
Genuine progress indicator (GPI)
Measures whether a country's growth has actually led to an improvement in the welfare of people
Deducts cost rather than add them to GDP
Environmental cost (pollution)
Social cost (crime, personal security, loss of leisure time)
Commuting cost
Cost of automobile accidents