1. Chapter 18
Economic Development

2. Economic Development Refers to how advanced an economy is.
Industrialized or More Developed Nations have advanced economies and higher standards of living
First World, highly developed, developed
Less Developed Nations have less advanced economies and lower standards of living
Third World, Underdeveloped
Countries 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 development
Considers demographic, economic, social, and political indicators.

4. Demographic Indicators
Relate to population
Life Expectancy
Average number of years an individual is expected to live.
Birth and Death Rates
How 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 countries
Infant Mortality Rate
Number of infants that die for every thousand born.

5. Demographic Indicators
More Developed Nations
Less Developed Nations
Low Birth Rate
Low Death Rate
Low Infant Mortality Rate
Long Life Expectancy
High Birth Rate
High Death Rate
High Infant Mortality Rate
Shorter Life Expectancy

6. Economic Indicators
Show 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 Nations
Less Developed Nations
High G.D.P. per capita.
Higher standard of living
More productivity because of machinery, computers, and other high-tech tools.
Low G.D.P. per capita
Concentrate on agriculture
Lack investment
Less productivity and competition

11. Social Indicators
Measure social services provided to a nation’s citizens
Literacy Rates
Percentage of people who can read and write
Percentage of people attending places of higher education.
Number of professional people (Doctors, Lawyers, etc).
Housing
Water Supply
Sanitation

12. Social Indicators More Developed Nations Less Developed Nations
High literacy rate
Greater percentage of people attending college and universities
More doctors and hospitals
Lower literacy rate
Lower percentage of people attending college and universities
Less doctors and hospitals

13. Political Indicators These indicators include: Freedoms people enjoy
Degree of democracy and voting rights
Level of human rights
Degree of government opposition
Tolerance for different points of view

15. Government Relation
There 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 Activities
A 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-Level
In 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 automobiles
Second-Level
In developing nations large numbers of people are engaged in secondary economic activities.

19. Tertiary Economic Activities
Deal with services
Third-Level
Identified by a variety of services performed by people and businesses

20. Quaternary Economic Activities
Consist of those involving information processing and management
Fourth-Level
In more developed nations the majority of workers are engaged in tertiary or quaternary economic activities.