1. 7.1 Developed and Less Developed Countries
iGCSE Economics
7.1 Developed and Less Developed Countries

2. What is the missing key?

3. Learning Outcomes
Describe why some countries are classified as developed and others are not
Discuss the differences in standards of living within countries and between countries, both developed and developing
Describe the difference between absolute and relative poverty
Recognise and discuss policies to alleviate poverty

4. Economic Growth Vs Economic Development
What’s the difference?
Economic Growth Vs Economic Development

5. Let’s compare…. Economic Growth Economic Development A narrow concept
It is an increase in a country's real level of national output
Can be caused by improvements in quality or quantity of the factors of production
an increase in living standards, improvement in self-esteem needs and freedom from oppression as well as a greater choice. 
Economic growth is a necessary but not sufficient condition of economic development

6. Developing Vs Developed Economies
How do we judge if an economy is developed?
Developing Vs Developed Economies

7. The United Nations Say….
There is no established convention for the designation of "developed" and "developing" countries or areas in the United Nations system.

8. A Developed Country is…
"one that allows all its citizens to enjoy a free and healthy life in a safe environment.“
Kofi Annan, former Secretary General of the United Nations

9. Task…. We are going to watch a video called
‘Top Ten Developed Countries’
In groups how many can you guess correctly?
5 bonus points for identifying the country which occupies the top spot correctly!

10. Task – Be the Economy Doctor
You are doing a health check on an Economy
What are the ‘symptoms’ (or characteristics) of a developed economy?
What signs would you be able to see in a ‘healthy’ patient?

11. Ways of Measuring Development
Watch the video
‘Is HDI the best measure of development?’
Which of the measures discussed do you think is the best measure of development?
Why?
Which measurement do you think would rank the Philippines as the highest?

12. The process of development….

13. It’s time for a bit of Hans Rosling….Yay!
Hans Rosling is a Swedish medical doctor, academic, statistician and public speaker.
He is Professor of International Health at Karolinska Institute and co-founder and chairman of the Gapminder Foundation
Video – Debunking the Third World Myth

14. Stages of Economic Development
Developed economy
High level of human and economic development
Wide range of industries
Well developed road, power and communications networks
Skilled and educated workforce
High average incomes and living standards
Long average life expectancy
Rapidly industrialising economy
Expanding manufacturing and services sectors
Rapid development of modern infrastructure
Rising incomes and living standards
Improving health care, diet and life expectancy
Less-developed economy
Low level of human and economic development and diversification
Low industrial development
Lack of infrastructure
Low levels of education and skills
Low average incomes and poor living standards
Low average life expectancy

15. So why do some countries develop less than others?
What factors might inhibit the economic development of some countries?
So why do some countries develop less than others?

16. Why are some countries less developed?
Over-dependence on subsistence farming to provide jobs and incomes
International trade is dominated by developed nations who are able to control world prices for natural resources exported from less-developed economies
Lack of capital to invest in modern infrastructure to support businesses and communities
Insufficient investment in education and health care
Low skilled and poorly educated workforce
Low level of effective consumer demand
Rapid population growth
Famines, natural disasters, wars, corruption, etc.
-Why would each of these factors inhibit economic development?
- Can you think of any examples?

17. The vicious cycle of low economic development

18. So…. What policies should government’s implement in countries to encourage development?

19. Discuss Question
To what extent are the government in the Philippines being effective in aiding economic development?

20. Poverty

21. Questions…. What does the word ‘Poverty’ mean?
Does Poverty look the same in different countries?
What causes poverty?
How can we measure poverty?

22. Measures of Poverty Absolute poverty
The inability to afford basic necessities such as food, water, education, health care and shelter.
Measured by the number of people living below a certain income threshold.
Relative poverty
Having far fewer resources than others in the same society.
Measured by the extent to which a person’s or household’s income falls below the average income in the economy.

23. To what extent do you agree with Nelson Mandela?
What can be done to solve poverty?
Who’s responsibility is it to solve poverty?

24. Reducing Poverty – Government Policies
Expansionary fiscal and monetary policies to reduce unemployment
Progressive taxes to reduce income and wealth inequality after tax
Provision of welfare services and benefits for households on very low incomes
Subsidize the building of free or low-cost housing
Minimum wage laws to raise the wages of the lowest paid employees
Increase the quantity and quality of education available to improve skills and job prospects
Attract inward investment from overseas firms to provide jobs and incomes
Seek aid from overseas governments and international aid organizations

25. In what ways can foreign governments/charities help to reduce poverty?
Overseas Aid

26. Task
Each group will do some research about one of the main types of aid.
You will have 20 mins to research and prepare.
You will then give a 5 minute (max) presentation which addresses the questions asked

27. Food Aid An outline of how this type of aid works
Some recent examples of this type of foreign aid
Some criticisms of this type of aid
Your opinion on this type of aid and the circumstances in which it is suitable

28. Financial Aid An outline of how this type of aid works
Some recent examples of this type of foreign aid
Some criticisms of this type of aid
Your opinion on this type of aid and the circumstances in which it is suitable

29. Technological Aid An outline of how this type of aid works
Some recent examples of this type of foreign aid
Some criticisms of this type of aid
Your opinion on this type of aid and the circumstances in which it is suitable

30. Debt Relief An outline of how this type of aid works
Some recent examples of this type of foreign aid
Some criticisms of this type of aid
Your opinion on this type of aid and the circumstances in which it is suitable

31. Over seas Aid Financial aid Technological aid Debt relief Food aid
But food may be stolen and sold illegally;
if too much is provided it will stop people buying produce from their local farmers causing them to cease production
But many less-developed countries are poorly managed and do not have the skills they need to invest financial aid wisely; and some have governments that are corrupt and misuse overseas aid
But local people will also need training to operate new equipment and to use new farming, building and other techniques
But full or partial cancellation of public debt owed to overseas organizations may simply encourage some indebted governments to be financially irresponsible again