1. 1 Measuring Economic Development
Different economic regions
The terms ‘GNP’ and ‘HDI’
How GNP and HDI are used to measure economic
development

2. Chapter 1: Measuring Economic Development
Economic activities and wealth are unevenly distributed:
Concentrated in the most developed countries of the North
The South remains under-developed
One quarter of people live in the North and possess four-fifths of the wealth
Three-quarters of people live in the South and possess one-fifth of the wealth

3. Chapter 1: Measuring Economic Development
Classify countries:
Most developed countries (MDCs)
Least developed countries (LDCs)
Newly industrialised countries (NICs)

4. Chapter 1: Measuring Economic Development
MDCs:
High levels of industrial activity
Most people employed in manufacturing and services
Average income is high
High standard of living
Life expectancy and literacy rates are high

5. Chapter 1: Measuring Economic Development
LDCs:
Rely heavily on agriculture
Low levels of economic development
Standard of living is low
Many people live in extreme poverty
Low life expectancy and literacy rates

6. Chapter 1: Measuring Economic Development
NICs:
Economic activity has increased rapidly
Reliance on agriculture has decreased
Increase in manufacturing and services
Income remains low
The standard of living has improved

7. Chapter 1: Measuring Economic Development
Gross National Product (GNP):
Measures wealth
Measures value of goods and services in a particular year
Can be inaccurate: data collection difficult, crude figures, informal economy

8. Chapter 1: Measuring Economic Development
The Human Development Index (HDI):
Published annually by the United Nations (UN)
Measures well-being and quality of life
Criteria: life expectancy, mean and expected years of schooling, income measured in PPP
Scores each country between 0.0 and 1.0
MDCs generally score 0.8 or higher
LDCs usually score less than 0.5

9. Chapter 1: Measuring Economic Development
Ireland’s HDI score
1980–2010: Ireland’s HDI increased 0.7 per cent annually
2010: Ireland came fifth out of 129 countries
Increase due to rapid economic growth, higher income levels and life expectancy rate

10. Chapter 1: Measuring Economic Development
Taiwan:
Early twentieth century: Taiwan was under-developed and relied heavily on agriculture
Improvements in infrastructure, policy to produce imported goods, land reform and foreign aid
From 1960s on: rapid industrialisation and economic growth
Early 1960s: Taiwan’s GNP was $170
2010: Taiwan’s GNP per capita (PPP) had risen to $35,227
2010: Taiwan achieved a HDI score of and ranked eighteenth out of 129 countries
Economic growth: improvements in quality of life, income, education and health