Levels of Economic Levels of Economic DevelopmentDevelopment

Levels of economic development Levels of economic development are measured in goods and are measured in goods and

services available in a country.services available in a country.

InfrastructureInfrastructure

Basic support systems needed to Basic support systems needed to keep an economy going, including keep an economy going, including power, communications, power, communications, transportation, sanitation, and transportation, sanitation, and education systems.education systems.

The more sophisticated the The more sophisticated the infrastructure, the more developed infrastructure, the more developed the nation.the nation.

Measuring Economic Measuring Economic DevelopmentDevelopment

IndicatorsIndicators

Per capita incomePer capita income

The average amount of money The average amount of money earned by each person in a country.earned by each person in a country.

Gross National ProductGross National Product

GNP is the total value of all goods and GNP is the total value of all goods and services produced services produced byby a country over a a country over a year.year.

Because economies have become so Because economies have become so interconnected, the GNP may contain the interconnected, the GNP may contain the value of goods produced in another value of goods produced in another country by a company based in the home country by a company based in the home land. For example, shoes produced in land. For example, shoes produced in Thailand by an American company would Thailand by an American company would be part of the U.S. GNP.be part of the U.S. GNP.

Gross Domestic ProductGross Domestic Product

All goods and services produced All goods and services produced withinwithin a country. a country.

Developing NationsDeveloping Nations

Have a low GDP and limited Have a low GDP and limited economic developmenteconomic development

Lack an industrial baseLack an industrial base Struggle to provide residents with Struggle to provide residents with

items to meet their basic needsitems to meet their basic needs

Developed NationsDeveloped Nations

High per capita incomeHigh per capita income Varied economy – they do not Varied economy – they do not

depend on just one resource for their depend on just one resource for their economic needseconomic needs

Nation in TransitionNation in Transition

Moving from developing to Moving from developing to developeddeveloped

UN Human Development IndexUN Human Development Index (HDI)(HDI)

The HDI measures the average achievements in a The HDI measures the average achievements in a country in three basic dimensions of human country in three basic dimensions of human development:development:

A long and healthy life, as measured by life A long and healthy life, as measured by life expectancy at birth. expectancy at birth.

Knowledge, as measured by the adult literacy Knowledge, as measured by the adult literacy rate (with two-thirds weight) and the combined rate (with two-thirds weight) and the combined primary, secondary and tertiary gross enrollment primary, secondary and tertiary gross enrollment ratio (with one-third weight). ratio (with one-third weight).

A decent standard of living, as measured by GDP A decent standard of living, as measured by GDP per capita (this figure can be deceiving in per capita (this figure can be deceiving in countries where there is a large disparity countries where there is a large disparity between the rich and the poor.between the rich and the poor.

2004 report2004 reportTop thirty countriesTop thirty countries

   Norway Norway    Sweden Sweden    Australia Australia    Canada Canada    Netherlands Netherlands    Belgium Belgium    Iceland Iceland United States United States    Japan Japan    Ireland Ireland    Switzerland Switzerland    United Kingdom United Kingdom    Finland Finland    Austria Austria    Luxembourg Luxembourg

   France France    Denmark Denmark    New Zealand New Zealand    Germany Germany    Spain Spain    Italy Italy    Israel Israel    Hong Kong SAR (PRC) Hong Kong SAR (PRC)    Greece Greece Singapore Singapore    Portugal Portugal    Slovenia Slovenia South Korea South Korea Barbados Barbados    Cyprus Cyprus

Bottom 10 countriesBottom 10 countries

Democratic Republic of the Congo Democratic Republic of the Congo    Central African Republic Central African Republic    Ethiopia Ethiopia    Mozambique Mozambique    Guinea-Bissau Guinea-Bissau    Burundi Burundi    Mali Mali    Burkina Faso Burkina Faso Niger Niger    Sierra Leone Sierra Leone

Indicators for an average familyIndicators for an average family

The following statistics and The following statistics and photographs portray the average photographs portray the average family in countries throughout the family in countries throughout the world.world.

Developed, Developing or In-Developed, Developing or In-Transition?Transition?

6.5 children per family6.5 children per family Life expectancy: 45Life expectancy: 45 Infant mortality: 117 per 1000Infant mortality: 117 per 1000 Literacy: 46%Literacy: 46% 1 Radio, 0 telephones, 0 TV, 1 bike1 Radio, 0 telephones, 0 TV, 1 bike Per capita income - $290Per capita income - $290

South Africa, Germany or Mali?South Africa, Germany or Mali?

MaliMali

Life expectancy: 43Life expectancy: 43 Infant mortality: 62 per 1000Infant mortality: 62 per 1000 Literacy: 85%Literacy: 85% Average number children: 2.24Average number children: 2.24 Size of home 400 s.f.Size of home 400 s.f. 1 radio, 1 TV (broken)1 radio, 1 TV (broken) No carNo car Per capita income $2780Per capita income $2780

Developed, Developing or In-Developed, Developing or In-Transition?Transition?

South Africa, Egypt or Japan?South Africa, Egypt or Japan?

South AfricaSouth Africa

1.39 children per family 1.39 children per family Life Expectancy: 80Life Expectancy: 80 Infant mortality: 3.5 per 1000Infant mortality: 3.5 per 1000 Literacy: 99%Literacy: 99% 3 radios, 1 telephone, 1 TV, 1 3 radios, 1 telephone, 1 TV, 1

computer, 1 microwave, 1 car, 3 bikescomputer, 1 microwave, 1 car, 3 bikes Per capita income $34,510Per capita income $34,510

Developed, Developing or In-Developed, Developing or In-Transition?Transition?

China, Haiti or Japan?China, Haiti or Japan?

JapanJapan

1.7 children per family1.7 children per family Life expectancy: 72 Life expectancy: 72 Infant mortality: 24 per 1,000Infant mortality: 24 per 1,000 Literacy: 91%Literacy: 91% 2 radios, 0 TV, 0 car2 radios, 0 TV, 0 car Per capita income $1100Per capita income $1100

Developed, Developing or In-Developed, Developing or In-Transition?Transition?

Egypt, England or China?Egypt, England or China?

ChinaChina

2 children per family2 children per family Life expectancy: 77Life expectancy: 77 Infant mortality: 7 per 1000Infant mortality: 7 per 1000 Literacy: 97%Literacy: 97% 3 radios, 5 telephones, 2 TV, 1 3 radios, 5 telephones, 2 TV, 1

computer, 2 carscomputer, 2 cars Per capita income: $37,610Per capita income: $37,610

Developed, Developing or In-Developed, Developing or In-Transition?Transition?

United States, Mexico or Brazil ?United States, Mexico or Brazil ?

United StatesUnited States

3 children per family3 children per family Life expectancy: 75Life expectancy: 75 Infant mortality: 21 per 1000Infant mortality: 21 per 1000 Literacy: 91%Literacy: 91% 0 telephone, 1 TV, 2 stereos, 1 VCR, 0 telephone, 1 TV, 2 stereos, 1 VCR,

0 car0 car Per capita income $6230Per capita income $6230

Developed, Developing or In-Developed, Developing or In-Transition?Transition?

Germany, Mexico or Canada ?Germany, Mexico or Canada ?

MexicoMexico

5 children per family5 children per family Life expectancy: 54Life expectancy: 54 Infant mortality: 73 per 1000Infant mortality: 73 per 1000 Literacy 53% Literacy 53% 0 radio, 0 telephone, 0 TV, 0 car0 radio, 0 telephone, 0 TV, 0 car Per capita income: $430Per capita income: $430

Developed, Developing or In-Developed, Developing or In-Transition?Transition?

Austrailia, Haiti or Italy ?Austrailia, Haiti or Italy ?

HaitiHaiti

1.5 children per family1.5 children per family Life expectancy: 77Life expectancy: 77 Infant mortality: 4.7 per 1000Infant mortality: 4.7 per 1000 Literacy: 100%Literacy: 100% 3 radios, 1 TV, 1 VCR, 1 car3 radios, 1 TV, 1 VCR, 1 car Per capita income: $25,250Per capita income: $25,250

Developed, Developing or In-Developed, Developing or In-Transition?Transition?

Russia, Germany or Afghanistan ?Russia, Germany or Afghanistan ?

GermanyGermany