indicators of economic development how do we measure it?

INDICATORS OF ECONOMIC DEVELOPMENT

How do we measure it?

INDICATORS OF ECONOMIC DEVELOPMENT

Post-IndustrialAgricultural Industrial

Service

COMPARING GDP BY SECTOR

U.S. North Korea

Agriculture 1.2 23

Industry 19.2 43.4

Services 79.6 33.6

5%15%25%35%45%55%65%75%85%95%

INDICATORS OF ECONOMIC DEVELOPMENT

Post-Material/Post-ModernValues emphasized by a society

Stages

Pre-Modern Basic Survival

Modernism (Materialism) Values of Industrialism

Materialism Rationalism and Reasoning

POST-MATERIALISM/POST-MODERNISM

Set of values that emphasize “Quality of Life” in addition to material gain.Health CareEnvironmentEducation

GROSS DOMESTIC PRODUCT PER CAPITA

The total value of goods and services produced by an economy, divided by population of the country.

GNP: Includes income earned by citizens outside of the country.

INDICATORS OF ECONOMIC DEVELOPMENT

Human Development Index Measures overall well-being of

society: Health, education, & income.

1= Very Good0= Very Bad

HUMAN DEVELOPMENT INDEX, 2011

1. NORWAY 4. UNITED STATES

187. Dem. Republic of the Congo

Life Expectancy

81 Years 78.5 Years

48 Years

Years of Schooling

12.6 Years

12.4 Years

3.5 Years

GDP per Capita

$47,676 $41,761 $290

HDI 0.943 0.910 0.286

http://hdr.undp.org/en/statistics/ 2. Australia 3. Netherlands

HUMAN DEVELOPMENT INDEX

Health Education Income HDI0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

NorwayCongo

HIGH LEVEL OF ECONOMIC DEVELOPMENT

Post-IndustrialPost-Modern/Post-MaterialHigh GDP per capitaHigh score (close to 1) on HDI