DevelopedDeveloping Sweden Germany Liechtenstein Ireland Canada New Zealand USA Netherlands Australia Norway Afghanistan Angola Cambodia Liberia Nepal Yemen Haiti China (industrialized)
GDP: The monetary value of all the finished goods and services produced within a country's borders in a year GDP per capita – The value of all goods and services produced in a country divided by the number of people in the population
Question Country A has a GDP of 2 trillion US dollars. Country B has a GDP of 4 trillion US dollars Country A has a GDP per capita of $70,000. Country B has a per capita GDP of $50,000. How is it possible that country B has a lower per capita GDP but a higher GDP?
Economy Developed High GDP (Gross Domestic Product) High GDP per capita Limited poverty Lots of international trade Commercial agriculture Developing Low GDP Low GDP per capita Wide spread poverty Limited international trade Subsistence agriculture or commercial agriculture
Countries with a per capita GDP of US$11,905 and less are defined as developing (specified by the World Bank, 2013).World Bank Afghanistan = $678.00 China = $6,807 US = $53,142 Luxembourg = $111,161
Infrastructure (system of roads, ports, and other facilities needed by a modern economy) Developed Many paved highways, roads, bridges Many airports, sea ports, hospitals, and power plants Developing Few and/or unsafe roads, bridges, etc.
Health Developed Clean water easily accessible Few infectious diseases Widely available health care Low infant mortality rate High life expectancy Developing Contaminated well water Many infectious diseases Limited access to health care High infant mortality rate Low life expectancy
Demographics Developed Aging population Slow growth (low birthrate) Growth through immigration Developing Young population Explosive growth (high birthrate) Why is the birthrate higher in developing countries? Higher infant mortality rates Support family – subsistence farming and pensions Family planning
Government Developed Rule of Law (everyone punishable by the same set of rules) Typically, democratic, but not necessary Developing Inconsistent enforcement of laws Chaotic or unstable government Coup