1. Measures of Development
Economic and Social Development Indicators

2. Measuring Development
Studying development  is about measuring how developed one country is compared to other countries, or to the same country in the past so as to view its progress.
Development measures how economically, socially, culturally or technologically advanced a country is.

3. Measuring Development
When measuring / studying a country’s development it becomes clear that some countries are at different levels of development compared to others.
Put another way, some countries are said to be more developed than other countries (which are considered less developed)

4. Measuring Development
Two major aspects of development can be measured:
Economic Development and
Human or Social Development
Why don’t we look at the cultural and technological aspects of development?

5. Economic vs Social Development
ECONOMIC DEVELOPMENT
HUMAN / SOCIAL DEVELOPMENT
This is a measure of a country’s wealth and how it is generated.
For example, agriculture is considered less economically advanced than banking.
This is a measure of the access the population has to wealth, jobs, education, nutrition, health, leisure and safety - as well as political and cultural freedom.
Material elements, such as wealth and nutrition, are described as the standard of living.
Health and leisure are often referred to as quality of life.
Economic vs Social Development

6. Measuring Development - Indicators
There are a number of different ways in which the various aspects of development can be measured.
These are known as development indicators.
A development indicator is usually a numerical measure of the various aspects of development in a country.
Since there is a huge variety of economies, cultures and peoples, a series of indicators are used to illustrate progress of a country in meeting a range of economic, social, and environmental goals.

7. Types of development indicators - 1
MEASURES OF DEVELOPMENT
Types of development indicators - 1

8. Types of Development Indicators 1
Geographers use economic indicators when they wish to assess the economic development of a country. These include:
GDP
GNP
GNI
GDP per capita
GNP per capita
GNI per capita

9. Economic Indicators
Gross Domestic Product (GDP): the total value of goods and services produced by in a country in a year by all the people living in that country.
Gross National Product (GNP): the total economic output of a country including earnings from abroad (foreign investments).
Gross National Income (GNI): the total income of a country including income and taxes earned both internationally and domestically.

10. one measure of the wealth of a country is …
…the GDP which is usually given in US dollars ($).
GDP stands for:
Gross (all the money earned)
Domestic (in just one country)
Product (added together)
Another measure is the GNP:

11. However,
These indicators are not of much use because they do not take into account that countries vary greatly in size.
Larger countries will have larger incomes than smaller countries who may actually be just as wealthy.
To eliminate this problem caused by differences in population size, we can divide the GDP / GNP / GNI values by the number of people in the country to get per capita values.

12. per capita means per head of population
GDP per capita: the total value of all the goods and services produced in a country in one year by all the people living in that country, divided by the population. It is a measure of wealth.
GNP per capita: a country's GNP divided by its population.
GNI per capita: the GNI for a country divided by the population of the country to produce the Average Gross Income per person.
This is the most widely used indicator of economic development.

13. Purchasing Power Parity (PPP)
Apart from area and population size, countries may also vary according to their cost of living.
These 3 indicators, even though they may adjusted for size, need to be adjusted for variations in the cost of living and differences in exchange rates of local currencies and the US dollar.
When these adjustments have been made, the figures are said to have been adjusted for Purchasing Power Parity (PPP).

14. Variations in area, GDP and per capita GDP
Country
Area (km²)
GDP ($US)
per capita GDP
($US)
China
9.6 million
7.9 trillion
6000
USA
9.8 million
14.4 trillion
47,500
Haiti
0.28 million
0.01 trillion
1300 UK
0.24 million
2.2 trillion
36,700
Variations in the cost of living.
The cost of living tends to increase as countries become more developed. Thus, a dollar may buy more goods in South Africa than it can in Switzerland.

15. GDP per Capita (PPP) - by country
2016

17. GNI per capita by country

18. Other aspects of economic development
Economic growth measures the annual increase in GDP, GNP, GNI, GDP per capita, GNP per capita or GNI per capita.
Inequality of wealth is the gap in income between a country's richest and poorest people. It can be measured in many ways, (e.g. the proportion of a country's wealth owned by the richest 10% of the population, compared with the proportion owned by the remaining 90%).
This can be shown using the Gini Coefficient and Lorenz Curve.

19. Economic Growth vs. Economic Development
Sometimes these concepts are thought of as the same, but they are not.
Economic Growth: This refers to the increase in the total output of goods and services by a nation over time (GDP or GNP). It is also sometimes defined as an increase in household income over time (Average Gross Income). It is purely a monetary measure of the increases in the material well being of a nation.
Economic Development: This refers to the improvement in peoples’ standard of living over time. It is measured by improvements in health, education, equality, life expectancy and so on. It incorporates income as well, but is a much broader measure than growth. Sometimes development can be shown by a movement towards the production of goods that improve peoples lives. 

22. Other aspects of economic development
Inflation measures how much the prices of goods, services and wages increase each year. High inflation (above a few percent) can be a bad thing, and suggests a government lacks control over the economy.
Unemployment is the number of people who cannot find work.
Economic structure shows the division of a country's economy between primary, secondary and tertiary industries.

23. Unemployment rate = number of unemployed people x 100
Inflation
The unemployment rate is the proportion of the labor force that is unemployed.
To calculate the rate, you need to know the number of people unemployed and the number of people in the labor force.
Unemployment rate = number of unemployed people x 100
labour force
8,800,000 unemployed x100
147,000,000 civilian labor force
= 6.0% unemployment rate. 

24. primary, secondary and tertiary
The primary sector involves extracting raw materials, rearing animals and growing crops.
The secondary sector involves improving and adding value to raw materials and turning them into something that can be used for effectively e.g. Manufacturing, construction and textiles.
The tertiary sector involves services and includes retail, tourism, education, health and banking.

25. The pie graphs show the
variations in the economic
structure of three countries at different levels of development
The line graphs show how a country’s economic structure (in this case the UK) may change as the country develops over time.

26. Other aspects of economic development
Demographics study population growth and structure. It compares birth rates to death rates, life expectancy and urban and rural ratios. Many countries with low levels of economic development have a younger, faster-growing population than countries with higher levels of economic development.
They also have more people living in the countryside than in towns.
For example, in 2014 the UK had a crude birth rate (CBR) of 12 per 1,000 and a GDP per capita of US$46,
Comparatively, Kenya had a CBR of 35 per 1,000 and a GDP per capita of US$
In 2015, 17% of the population in the UK lived in rural areas versus 74% in Kenya.