1. http://www.bized.co.uk Copyright 2006 – Biz/ed Indicators of Economic Development

2. http://www.bized.co.uk Copyright 2006 – Biz/ed Warm-Up How do you tell how developed a country is? What are the indicators?

3. http://www.bized.co.uk Copyright 2006 – Biz/ed Population Map

4. http://www.bized.co.uk Copyright 2006 – Biz/ed Wealth Map

5. http://www.bized.co.uk Copyright 2006 – Biz/ed Growth vs. Development Economic growth may be one aspect of economic development but it is not the same Economic growth: –A measure of the value of output of goods and services within a time period Economic Development: –A measure of the welfare of humans in a society

6. http://www.bized.co.uk Copyright 2006 – Biz/ed Economic Growth Using measures of economic growth can give distorted pictures of the level of income in a country – the income distribution is not taken into account A small proportion of the population can own a large amount of the wealth in a country But this could be just around the corner! This might be a common picture……

7. http://www.bized.co.uk Copyright 2006 – Biz/ed Economic Growth Using measures of economic performance in terms of the value of income, expenditure, and output GDP – Gross Domestic Product –The value of goods and services produced within a country during a time period GNI – Gross National Income –The value of goods and services produced within a country plus net income from abroad GDP/GNI per head/per capita –GNI divided by the total population

8. http://www.bized.co.uk Copyright 2006 – Biz/ed Economic Growth High economic growth fuelled through capital spending can hide a number of underlying economic problems Shopping Mall in Saudi ArabiaDubai Skyline

9. http://www.bized.co.uk Copyright 2006 – Biz/ed National Income – Problems with using GDP/GNI Reliability of data? –How accurate is the data that is collected? Distribution of income? –How is the income distributed? –Does a small proportion of the population earn a high percentage of the income or is income more evenly spread?

10. http://www.bized.co.uk Copyright 2006 – Biz/ed National Income – Problems with using GDP/GNI Quality of life? –Can changes in economic growth measure changes in the quality of life? –Does additional earnings power bring with it additional stress, increases in working hours, increased health and family problems?

11. http://www.bized.co.uk Copyright 2006 – Biz/ed Development Development incorporates the notion of measuring human welfare It is open to interpretation and subjectivity What should it include?

12. http://www.bized.co.uk Copyright 2006 – Biz/ed Development Levels of poverty –Absolute poverty –Relative poverty Inequality

13. http://www.bized.co.uk Copyright 2006 – Biz/ed Poverty in the World

14. http://www.bized.co.uk Copyright 2006 – Biz/ed Poverty in the U.S.

15. http://www.bized.co.uk Copyright 2006 – Biz/ed How is Poverty Measured? https://www.youtube.com/watch? v=mFHctW3zQgg&feature=player_ embeddedhttps://www.youtube.com/watch? v=mFHctW3zQgg&feature=player_ embedded

16. http://www.bized.co.uk Copyright 2006 – Biz/ed What is Poverty? Poverty is a ‘relative’ term Romanian gypsies – is this man living in poverty?Or is this villager in rural China?

17. http://www.bized.co.uk Copyright 2006 – Biz/ed Development Other considerations of human welfare: –Political freedoms? –Sustenance? –Sustainable development? –Self esteem?