How is development measured Development is a complex

How is development measured? • Development is a complex process and there is little agreement on how to measure it • The most common and easiest measures are Economic measures: Gross Domestic Product and Gross National Product (economic indicators) GDP & GNP

GDP Economic indicators • GDP is definitely the preferred measure of development among economists and is gaining popularity in general conversation as well. • GDP stands for Gross Domestic Product

Definition of GDP Economic indicators • GDP measures the value of all production within a nation, by whoever happens to be working there • This is usually presented as a per capita value (GDP divided by the population)

Choropleth map showing world distribution of GDP per capita…

How do some countries fair on a GDP per capita (PPP) list? • • • • Qatar: $87 600 Luxembourg: $79 400 USA : $45 800 U. K. : $35 500 Japan: $33 500 France: $32 600 South Korea $25 000 Botswana: $14 300 China: $ 5 400 Philippines: $ 3 200 India: $ 2 600 Kenya: $ 1 700 Bangladesh: $ 1 400 Burkina Faso: $ 1 200 Zimbabwe: $ 2005 data

Evaluation of GDP per capita What are the strengths and limitations of this indicator? Strengths Limitations • Broadest indicator of economic growth • Does take inflation into account (can compare data against other time periods) • Doesn’t take disparity into account • Only account for monetary value (not quality of product) • Counts work done from repairing harm • Ignores externalities (eg. Damage on environment) • Does not measure sustainability of economic growth

GNP & PPP JP Campos, Bengi Tetik, Emily Lee, Hiram Adames

GNP? Gross National Produce/Product • Measures production of all nations citizens • No matter where they are working • Higher GNP, Higher quality of living • Per Capita of a country shows average value goods & services produced by each person each year. Divided by the total population to get an average earnings person. http: //www. studentsoftheworld. info/infopays/rank/PNB 2. html

Difference Between GNP & GDP • The Difference between GNP and GDP (Gross Domestic Product) (Gross Nation Product) • GDP Focus on the domestic economic strength of a country • GNP focuses on how the nationals of a particular country are faring financially.

Choropleth map showing world distribution for GNP Per Capita

Explanation of Map • The Map is showing the world distribution of GNP per capita • as you can see, the map has a legend that shows the amount of money each country earns • The Countries that have the Darkest colors represent the highest GNP and the lightest color represent the countries with the lowest GNP • examples of High GNP on the map are: America, Australia, Japan and Western Europe Which have 15% of worlds population ( keep in mind that these are all countries that are also MEDC) • examples of low GNP on the map are : Rwanda, Burundi, Ethiopia, Tanzania, Uganda, Mozambique, Sierra Leone and Vietnam. They all have 56% of the worlds population and they are all LEDC countries

Evaluation of GNP per capita Strength's Limitations Gives an estimation of what a country makes person Can't be used to compare individuals accurately Can be used to compare how much Can't be used to compare a countries previous other countries make GDP unless a calculation is done Can be used to get an idea of standard of living Does not distinguish between the poor and rich Out of all the ways that economists Does not take into account the underground tell a countries economic health, economy this is the best Non-market transactions Can't accurately be used for knowing the standard of living Doesn't account quality of goods Disasters raise GNP Doesn't account for unpaid labor Doesn’t account for the income of embassies

Economic indicators What is the PPP adjustment? • GNP & GDP are often been criticized as being unfair measures of development, and one of the reasons why is because they don’t take into account the cost of living of the country • These measures are made more fair by using the PPP (Purchasing Power Parity) adjustment. This is a adjustment that is made to countries GNP/GDP scores to take into account the cost of living in a country making it a more fair measure of development – this is why you often see it presented as GDP (PPP) per capita for example.

Questions 1) What does GNP mean? 2) Difference between GNP and GDP? 3) What does the map show us? 4) What are some strengths and limitations? 5) Why is PPP used?

Bibliography • "Difference Between GNP and GDP. " Differencebetween, net. Web. 6 Apr. 2011. <http: //www. differencebetween. net/business/difference-betweengnp-and-gdp/#ixzz 1 Ih 6 d. Z 3 Bn>. • Limitations of GDP Statistics. Web. 5 Apr. 2011. <http: //ingrimayne. com/econ/Measuring/GNP 2. html>. • What Are the Advantages and Disadvantages of Gross Domestic Product. Wiley Publishing, 2000. Web. 5 Apr. 2011. <http: //www. cliffsnotes. com/Section/What-are-the-advantagesand-disadvantages-of-Gross-Domestic-Product-. id-305399, article. Id 97163. html>. • "What Is GNP? Definition and Meaning. " Investor. Words. com Investing Glossary. Web. 05 Apr. 2011. <http: //www. investorwords. com/2186/GNP. html>.

More Social Indicators Definitions: • Death/birth rate: the number of deaths/births 1000 of the population per year • Infant Mortality: number of infant deaths (one year of age or younger) per 1000 live births • Literacy rate: % of the population over age fifteen that can read and write

Choropleth map showing birth rate per 1000 people…. Death/birth rate: the number of deaths/births 1000 of the population per year

Choropleth map showing infant mortality (per 1000 live berths) Infant Mortality: number of infant deaths (one year of age or younger) per 1000 live births

Choropleth map showing literacy rates(% of population over 15 years of age) Literacy rate: % of the population over age fifteen that can read and write

Evaluation of social indicators (birth rate, infant mortality & literacy)…. . What are the strengths and limitations of these indicators? Strengths Limitations • Level of education • Level of economic development • Healthcare • Family planning • Population growth • Quality of life • Impact/Type of religion practiced • Other aspects of schooling • Quality of the environment surrounding infa • Other aspects of healthcare system

Questions 1) What is the difference between social and economic development? 2) How are three indicators linked? 3) Name one strength and one limitation? 4) Do all of these three factors follow the Brandt Line? 5) Which social factor is indicative of healthcare?

Social indicators GABY, JULES AND WILLIAM

DEFINITIONS • PEOPLE PER DOCTOR: • The total population divided by the number of doctors in a country. • LIFE EXPECTANCY: • The average number of years a person is expected to live in the country.

A map showing the life expectancy

Number of inhabitants per doctor

Evaluation of social indicators STRENGTHS LIMITATONS - People per doctor shows a - The data doesn't’t show what strength of percentage on how kind of doctor and how many much health care is needed. people one doctor can help. - The more doctors in one country - Depending on the country the can help cure many diseases. doctor could have a lack of education and resources - Life expectancy correlates to the compared to others due to its level of healthcare and sanitation developing state. - Life expectancy relates to the Brandt line, if you look at both - Life expectancy doesn't’t talk maps its almost the same. about the quality of life (diseases (accurate in showing the - Life expectancy only focuses on development) one aspect of development.

Questions 1) Name two strengths and two limitation of using social indicators to measure development 2) Name two factors about both maps 3) What is the definition of life expectancy 4) What is definition of people per doctor 5) How do you think these life expectancy and doctors can affect a country

What alternative measures are there? • The United Nations Development Programme introduced a more meaningful measure of development: The Human Development Index, or A composite indicator: Combines Social & Economic indicators HDI

composite indicators How does the HDI measure development? The HDI is an index calculated from three variables: • Income, – measured by GDP per capita • Knowledge, measured by adult literacy rates and the percentage of children attending school • Longevity, – measured as life expectancyat birth

composite indicators Calculating HDI values…. • For each of the three values (education, life expectancy and GDP), the world’s highest and lowest values are found. • The highest possible measure is given the value 1, and the lowest 0. • E. g. Japan’s life expectancy is the highest at 80 years, Angola's is the lowest at 37. A country with a value mid way between the two would get a score of. 5 • The three variables are averaged to give a country’s HDI Activity: Define HDI and explain how it is calculated

Calculating HDI…. Country A: Knowledge 0. 9 Income 0. 4 Longevity 0. 9 HDI = Country C: Knowledge 0. 8 Income 0. 7 Longevity 0. 9 HDI = Country B: Knowledge 0. 4 Income 0. 8 Longevity 0. 5 HDI = Country D: Knowledge 0. 7 Income 0. 6 Longevity 0. 5 HDI = Analysis: What type of countries are these? Which are the most or least developed? Any resource rich countries?

Choropleth map showing global HDI distribution

Variations in the HDI • “The best”: Countries with the highest HDIs include Canada (0. 888), Switzerland, Japan and Sweden. • Europe and Latin America both have a lot of countries in the very high HDI section • The best HDI rated counties ranges from 0. 8’s – 0. 7’s • “The worst”: Countries with the lowest include Guinea, Burkina Faso (. 305) and Afghanistan • “The under performers”: Countries scoring high on GDP but relatively low in the HDI include Saudi Arabia, Namibia and the United Arab Emirates (life expectancy is 76. 51 years, Very high GDP, 77. 9% of population age 15 and over can read and write. ) (rank 32 of the • suggesting need to transfer oil and mineral revenues into improved living standards. • HDI can made to show regional variations

Evaluation of HDI…. . What are the strengths and limitations of this indicator? Strengths Limitations focusing exclusively on national performance and ranking failure to include any ecological considerations As a result of that, rich countries effectively cannot improve their ranking in certain categories, even though there is a lot of scope for economic growth and longevity left. Economist Bryan Caplan has criticized the way HDI scores are produced; each of the three components are bounded between zero and one