DEVELOPMENT

Development

• Include:

Real GDP per head

Standard of living

Political freedom

Freedom of the speech

Level of education

Level of health-care….

• United Nation divides countries as:

1. High human development

2. Medium human development

3. Low human development

• World Bank divides countries as:

1. High income countries

2. Middle income countries

3. Low income countries

Measures of development

• HUMAN DEVELOPMENT INDEX (HDI)measures:1. Life expectancy2. Educational attainment3. Real GDP per head

HDI can be from 0 to 1:1. 0 – 0.50 low development2. 0.50 - 0.79 medium development3. 0.80 – 1 high development

Characteristics of Developing Economies (Less Developed

Countries)• Low income per head

Low life expectancy and high infant mortality

• Life expectancy :

Japan: 83 years Zimbabwe: 38 years

High rates of population growth

• Higher birth rate then death rate makes high dependency ratio, meaning:

too many children depend on small number of workers

Low level of education and health care

• Developing country Developed country

Poor housing and sanitation

• Developing countries developed country

High number of workers in primary sector

Narrow range of export of primary products

Glossary

• Infant mortality: number of deaths per 1.000 live birth babies in a year

• Birth rate: the number of births in a year

• Death rate: the number of deaths in a year per 1.000 population

VICIOUS CIRCLE OF POVERTY

low income

Low saving

Low investment

Low productivity

Economic development is important because of:

1. Increase in standard of living2. Reduction of poverty (improve in physical

and mental health, reduction of pollution, benefit for society)

3. Rise in educational level, more freedom, more economic and social choice, participation in politics)…

See:

• Yu Rock Mission @ Live Aid 85

• Back to the 80's - USA for Africa

• U2 BAD Live Aid 1985