2 Economic Development Refers to how advanced an economy is. Industrialized or More Developed Nations have advanced economies and higher standards of livingFirst World, highly developed, developedLess Developed Nations have less advanced economies and lower standards of livingThird World, UnderdevelopedCountries in the middle of this spectrum are considered “emerging economies” or “newly industrialized nations”developing
3 Indicators of Development Human Development Index developed by the United Nations and is used to rank countries based on level of economic developmentConsiders demographic, economic, social, and political indicators.
4 Demographic Indicators Relate to populationLife ExpectancyAverage number of years an individual is expected to live.Birth and Death RatesHow many people are born and die for every thousand people in a given year.Low Birth/Death rates-developed countries-High Birth/Death rates-developing countriesInfant Mortality RateNumber of infants that die for every thousand born.
5 Demographic Indicators More Developed NationsLess Developed NationsLow Birth RateLow Death RateLow Infant Mortality RateLong Life ExpectancyHigh Birth RateHigh Death RateHigh Infant Mortality RateShorter Life Expectancy
6 Economic IndicatorsShow how well an economy is performing.
7 Gross Domestic Product (G.D.P.) The total value of all goods and services produced by a nation in a year within its borders.
8 Gross Domestic Product per capita G.D.P./number of people.Value of goods and services produced in a year in a nation by an average person.Other indicators include number of cars, phones, televisions and computers.
10 Economic Indicators Cont. More Developed NationsLess Developed NationsHigh G.D.P. per capita.Higher standard of livingMore productivity because of machinery, computers, and other high-tech tools.Low G.D.P. per capitaConcentrate on agricultureLack investmentLess productivity and competition
11 Social IndicatorsMeasure social services provided to a nation’s citizensLiteracy RatesPercentage of people who can read and writePercentage of people attending places of higher education.Number of professional people (Doctors, Lawyers, etc).HousingWater SupplySanitation
12 Social Indicators More Developed Nations Less Developed Nations High literacy rateGreater percentage of people attending college and universitiesMore doctors and hospitalsLower literacy rateLower percentage of people attending college and universitiesLess doctors and hospitals
13 Political Indicators These indicators include: Freedoms people enjoy Degree of democracy and voting rightsLevel of human rightsDegree of government oppositionTolerance for different points of view
15 Government RelationThere is NOT a direct relationship between economic development and a nation’s system of government.A nation’s economic system could help transform its political system.
16 Economic ActivitiesA nation’s level of economic development is closely tied to the types of economic activities occurring.More advanced economic development = More advanced economic activities.Four Main Groups
17 Primary Economic Activities Involve the production of foods and the extraction of natural resources.Agriculture, mining, logging, fishing, etc.First-LevelIn a less developed country most people will engage in primary activities.
18 Secondary Economic Activities Focus on manufacturing and production of goods, such as the making of textiles, furniture, and automobilesSecond-LevelIn developing nations large numbers of people are engaged in secondary economic activities.
19 Tertiary Economic Activities Deal with servicesThird-LevelIdentified by a variety of services performed by people and businesses
20 Quaternary Economic Activities Consist of those involving information processing and managementFourth-LevelIn more developed nations the majority of workers are engaged in tertiary or quaternary economic activities.