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The changing economic world: measuring development

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Apuntes de la lección

What is development?

  • Development concerns wellbeing, capabilities, living conditions and opportunities, alongside economic change. HIC means high-income country and LIC low-income country in standard income terminology. NEE is a GCSE teaching label rather than a universal statistical category.
  • The World Bank’s four income groups are low, lower-middle, upper-middle and high, using GNI per capita with annual classifications and updated thresholds. They do not map exactly onto an HIC/NEE/LIC classroom grouping. Always state the scheme and date when comparing categories.

Measuring development

  • GNI per capita divides national income by population. It is an arithmetic average, not median income, wealth assets or each resident’s actual earnings. Check currency, year and whether purchasing-power adjustments are used. Inequality can be substantial at the same national average.
  • Infant mortality rate counts deaths before age one per 1,000 live births. In an invented example, 24 deaths among 4,000 live births give 6 per 1,000. Life expectancy at birth is based on a period’s age-specific mortality pattern, not a promise about an individual. Literacy needs a stated population, age range and definition.
  • HDI summarises average achievement in health, education and living standards. Its measures are life expectancy at birth, mean adult schooling and expected schooling, and GNI per capita. It combines normalised dimension indices rather than simply adding raw years and money. A higher value reflects greater average achievement on these dimensions, not a complete measure of all development.
  • Use several indicators and examine distribution, data quality and missing dimensions such as environmental conditions, rights or security. Compare like definitions and dates; correlations among indicators do not prove one alone causes another.

Different indicators, different questions

Different indicators, different questionsMeasureInterpretationGNI per capitaAverage income; can hideinequalityInfant mortalityDeaths under one per 1,000 livebirthsLife expectancy atbirthSummary of period mortality ratesHDIComposite health, schooling andincome

Demographic Transition Model (DTM)

  • The DTM is a simplified account of changing birth and death rates. Stage 1 has high, fluctuating rates; in stage 2 mortality falls while births remain high; in stage 3 births fall; stage 4 has low rates. A common stage-5 extension has births below deaths. Stage lengths and paths differ and not every curriculum uses the same extension.
  • Birth rate minus death rate gives natural change in matching units. The exact graph uses explicitly invented examples: birth rates 40, 40, 28, 12, 9 and death rates 38, 18, 10, 10, 12 per 1,000 at the five illustrative positions. These are not empirical thresholds and horizontal stage spacing is not elapsed time. Blue represents births; red represents deaths.
  • The final example has natural decrease −3 per 1,000. Total change also includes net migration, so population can grow despite natural decrease. Do not read total population size directly from a birth/death-rate graph or use a stage label as a complete development score.

Invented DTM rate examples

Invented DTM rate examplesO1020304050123456Illustrative model stage (not years)Events per 1,000 per yearBirth rateDeath rate

Causes of uneven development

  • Uneven development reflects interacting historical, economic, political and physical conditions. Colonial institutions and extraction, infrastructure and trade patterns can have lasting but varied effects. No single historical label establishes every present outcome.
  • Reliance on a few commodities can expose receipts to volatile prices or production. Primary products are not universally low-value compared with every manufactured good. Being landlocked can increase transport and border costs, but investment and cooperation can mitigate them.
  • Hazard impacts depend on vulnerability, preparedness and recovery capacity. Conflict or corruption can damage institutions and services, but country income labels do not prove either condition. Explain a specific mechanism with appropriate evidence rather than listing deterministic stereotypes.

Explain a mechanism

Explain a mechanismConstraintPossible pathwayCommodityconcentrationPrice shock reduces exportreceiptsDamaging hazardAssets lost; funds diverted torecoveryTransport barriersHigher costs accessing customersWeak accountabilityResources diverted from services

Reducing the development gap

  • Aid, debt relief, trade arrangements, investment, tourism and financial services address different constraints. Microfinance includes savings, payments, insurance or credit; microcredit is the loan component and brings repayment risk. Fair trade aims at better producer conditions but does not guarantee all farmers higher incomes.
  • Tied aid restricts procurement to specified sources, often a donor country; this differs from all conditional aid. NGOs are organisations outside government and have diverse purposes. Appropriate technology matches local needs, skills, resources and ongoing support, rather than simply meaning cheap or old equipment.
  • Evaluate a named intervention using its place, date, goal, costs, local participation, outcomes and unintended effects. Income, health, education and environmental measures can move differently, and the gains may not be distributed equally.

Assess the intervention

Assess the interventionInterventionEvaluation questionMicrocreditCan borrowers repay withoutharm?Debt reliefHow are released resources used?Fair tradeWho can participate and gain?AppropriatetechnologyCan users maintain it locally?

Diapositivas

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Preguntas de práctica

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  1. 1.What is development?

    Easy
    • Aprogress in wellbeing and living standards
    • Bclimate change
    • Ca type of rock
    • Da river
  2. 2.What does HIC stand for?

    Easy
    • Ahigh industrial centre
    • Bhighly isolated country
    • Chot island country
    • Dhigh-income country
  3. 3.What is infant mortality?

    Easy
    • Abirths per 1000
    • Blife expectancy
    • Cdeaths before age one per 1,000 live births
    • Ddeaths of adults
  4. 4.What does period life expectancy at birth estimate?

    Easy
    • Aage of death
    • Bexpected lifespan under the period’s age-specific death rates
    • Cyears of schooling
    • Dyears at work
  5. 5.What is literacy rate?

    Easy
    • Athe share of a specified group meeting a stated reading-and-writing definition
    • Bpercentage with phones
    • Cyears in school
    • Dheight
  6. 6.What is the development gap?

    Easy
    • Athe gap between roads
    • Ba type of valley
    • Ca time gap
    • Ddifferences in living conditions and opportunities among places or groups
  7. 7.What is a primary product?

    Easy
    • Aa service
    • Ba skill
    • Ca raw material such as coffee or copper
    • Da manufactured good
  8. 8.Why is relying on primary products a problem?

    Easy
    • Athey create jobs everywhere
    • Bconcentration can expose earnings to volatile commodity prices and supply shocks
    • Cprices never change
    • Dthey are high

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