Economic Growth and Development

Economic Development

Economic Growth

Increase in GNP with a fundamental change in the structure of society

Increase in GNP with no change to the structure of society

Factors of Production

Land

Labour

Capital

Enterprise

Human Development Index (HDI)

Measured by various factors such as:

Health

Knowledge

Income

Ireland and overseas development

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Least Developed Countries (LDCs)

Characteristics of LDCs

Poor levels of education / literacy

Low per capita income

Lack of capital / Low levels of investment

Poor living conditions / inadequate infrastructure

Small domestic market

uneven distribution of wealth

Foreign debts

Famine

High rate of population growth

Developed Countries

Ending Poverty and Hunger

Gender Equality

Environment and Climate change

Health - HIV and Aids

Education

Governance and Human Rights

Water and sanitation

Trade and economic growth

Globalisation

Causes

Saturation of domestic market

Increased consumer demands

Labour availability and skills

Decreased transport costs

Transport improvements

Improvements in ICT

Economies of Scale

Advancements in freedom of trade

Positive Impacts

Employment

Advancements in ICT

Economic Growth in Developing Countries

Improvements in fair trade

Boosts competition

Improved Government relations

Negative Impacts

Widens gap between rich and poor

Environmental Impact

Domestic Economy may suffer

Outsourcing

MNCs may impact LDCs governance and legislation negatively

Multinational Corporations

Foreign Direct Investment (FDI)

Inflows

Outflows