Section B: The changing economic world
Using GNI as a measure of development
When we refer to the level of "development" within a country we are referring to how the quality of life and standard of living compares to other places.
We need to consider what information we can use to measure development in order to best compare countries and find out which is most and least developed
Consider a range of factors which affect how good the quality of life is within a place. (can you think of categories to group these under?)
Access to good housing Human rights and quality - e.g. gender rights, Different age groups may have different views
Availability of clean water person freedom on this
Average income Level of pollution affects people's health Level of noise
Quality of education and access Access to good health care Exposure to hazards
Ability to get food Safety and crime levels Access to entertainment/ shopping etc.
Quality of infrastructure and access/ transport Quality of the architecture and landscape Average life expectancy is higher
Levels of unemployment
One way to do this is using the level of GNI in the country:
GNI Per Capita (or Per Head) - this is the gross national income per person. It measures the total value of goods and services produced by everyone in a country
in a year as well as trade with other countries. It is similar to what people will earn on average in a country in a year.
Briefly describe differences with reference to some named countries.
America, Canada, Sweden and Finland have the highest (40 -180 thousand)
Australia: 19-42 thousand
European countries like UK, France and Germany have 9 -19 thousand
China: 2-3 thousand
Russia: 3-5 thousand
Some places in central Africa and southern Asia in India - less than 530 or 530 – 1060
Antarctica - no data
Uneven distribution in different places. Countries that have higher GDP are usually HICs
such as USA, and the UK.
Clearly having a higher income should improve your quality of life.
However, what are the limitations of using this as a way to compare who developed countries are and which is best to live in?
- Many rural places have been developed into big cities and offices.
Environmental problems may be more serious than in lower income places.
- Levels of inequality in the country.
- The cost of living varies between countries
Some are more expensive to live in - so your money does not buy as much
- Taxes very between countries
In some places, the government provide more things to help people in others.
- Some countries may not have full or accurate data in this
People may work in "informal" economy which is hard to measure.
- Quality of life is more than just money
Personal developments such as human wellbeing, happiness, human rights, can hardly be measured.
,Evaluating social measures of development
We have considered how GNI may be useful to measure development levels in countries, but it has some limitations.
Measure Definition Value for UK Value for STRENGTHS of the measure LIMITATIONS of the measure to Score – 1 = poor
Ethiopia (east to show development show development measure of
Africa) development
and 5 = great
measure
Birth Rates How many babies 11.433 31.647 Reflects the education in a Links with the culture and religions 2/3
are born per 1000 country of the place which are not about
people in a poorer levels of how developed a country is.
population per year education give the
idea that families It is complicated because having
need lots of more people may be a good thing
children. for the economy.
Having lots of children may Yet, can be a problem risk in
slow the development of a having overcrowding, more poverty
country, e.g. Lack of jobs and unemployment
Also, it may be affected by other
things such as government policies.
Death rates How many people 9.5 7.5 Reflects the health care Well-developed places can have an 2
die per 1000 system ageing population with lots of old
people in a places with poor people and higher death rates. Yet
population per year medicine, hygiene can still be very developed.
and war have
higher death rates Poor places can be low death rates
and are less where there are only young
developed. population.
Infant How many babies 4.1 34.010 Reflects the health care A specific disease and illness in one 4
mortality die per 1,000 live system and basic area that affected children.
births per year requirements, e.g.
- Access to hygiene,
- clean water Once basic needs are met, the
infant mortality rate for many
countries would be low + similar –
which makes it harder to compare
the level of development.
People per How doctors are 2.8 0.0769 Reflects the health care Doctors may have better skills, 4
doctor there for every system training and resources in one place
(physicians’ 1,000 people compared to another.
density)
Literacy rate What percentage of 99% 51.77% Reflects the access to Lots of people can read and write - 3
the country is able education improve life it is a basic level of skill but may not
to read and write chances have much access to further
as adults education and skills.
Access to What percentage of 100% 42% Richer places will be able to It is a basic need. 2
safe water people have access afford clean piped water Many countries have achieved this
(improved to sanitary and safe improve health care. but are still not very developed in
drinking water that is free many other things.
water source) from bacteria and
parasites
Life The average age a 81.1 y 66.71 Suggest good health care, It is just an average and it may vary 4
expectancy person can expect clean water, sanitation, safe a lot within a country.
to live to at birth homes, good food
Some places may suffer worse
diseases or hazards yet be very
developed.
, Correlation between GNI and life expectancy
Scatter graphs and correlations
Is there a correlation between the level of GNI in countries and their life expectancy?
Country GNI US$ per Capita Life Expectancy
Japan 44,380 84
USA 63,690 79
Italy 42,290 83
UK 45,350 81
Kuwait 84,250 75
Mexico 19,340 75
Malaysi 30,650 76
a
Brazil 15,850 75
Egypt 12,100 72
India 7,680 69
Kenya 3,440 66
Burkina 1,970 61
Faso
DR 900 60
Congo
Is the relationship between GNI and Life Expectancy positive, negative or is there no relationship? Why?
Weak positive.
Is the hypothesis “As GNI increases Life Expectancy Increases” true or false?
Likely.
The Human Development Index HDI
Since no one single indicator of development can fully give us a picture of how developed a country is, organisations have developed "composite" measures of
development (several indicators are combined together to give an overall value)
One method developed by the United National is called the Human Development Index. It is summarised below: