WHAT FACTORS INFLUENCE THE ECONOMIC DEVELOPMENT OF

COUNTRIES?

OBJ: TO DETERMINE THE HOW WEALTH, HEALTH & EDUCATION

CONTRIBUTE TO A NATION’S ECONOMIC STATUS

DEVELOPMENT REGIONS

HDI – HUMAN DEVELOPMENT INDEX IS USED TO MEASURE THE DEVELOPMENT OF EVERY COUNTRY

• WEALTH, HEALTH & EDUCATION• 9 REGIONS: 2 DEVELOPED• 7 DEVELOPING

• OBSERVATIONS?• WHY DO YOU THINK?

• INCOME: GNI- GROSS NATIONAL INCOME IS THE VALUE OF THE OUTPUT OF GOODS & SERVICES PRODUCED IN A COUNTRY IN A YEAR INCLUDING MONEY LEAVING & ENTERING

• PPP – PURCHASING POWER PARITY IS THE ADJUSTMENT TO GNI TO ACCOUNT FOR DIFFERENCES AMONG CONTRIES IN THE COST OF GOODS

• GNI PER CAPITA: DIVIDE GNI BY TOTAL POPULATION TO DETERMINE INDIVIDUAL’S CONTRIBUTION

• VARIATIONS WITHIN A REGION & COUNTRY

MORE ON $$$$• ECONOMIC STRUCTURE:• PRIMARY, SECONDARY &

TERTIARY SECTORS• DEVELOPED & DEVELOPING

COUNTRIES VARY IN TERMS OF TYPES OF JOBS THAT CONTRIBUTE TO GNI

• EXAMPLES?• PRODUCTIVITY: VALUE OF A

PARTICULAR PRODUCT COMPARED TO THE AMOUNT OF LABOR NEEDED TO MAKE IT & MEASURED BY VALUE ADDED PER CAPITA: V.A. IN MFG IS GROSS VALUE OF A PRODUCT MINUS THE COSTS OF RAW MATS & ENERGY

• DEVELOPED COUNTRIES PRODUCE MORE W/ LESS BECAUSE….?

• INEQUALITY ADJUSTED HDI: MODIFIES HDI TO ACCOUNT FOR INEQUALITY WITHIN A COUNTRY

• LOWEST SCORES SUB-SAHARAN AFRICA & SOUTH ASIA

• CONSUMER GOODS: CELL PHONES, CARS, COMPUTERS – HOW DO THESE CONTRIBUTE TO ECO GROWTH OF A COUNTRY?

HEALTH: LIVE LONG & PROSPER • NUTRITION & MEDICAL SERVICES

• LIFE EXPECTANCY AT BIRTH IMPORTANT

• VARIATIONS W/I REGIONS

• DEPENDENCY RATIO• # OF HOSPITALS,

HEALTH CARE PROVIDERS, ACCESS TO INSURANCE

• DOES THE COUNTRY VALUE HEALTH, USE GNI FOR IMPROVED HEALTH?

• HOW DO COUNTRIES BALANCE CULTURAL PRACTICES & BELIEFS & PROTECT POPULATION?

• AIDS? EBOLA & BURIAL PROCEDURES? VACCINATIONS?

• QUANTITY OF SCHOOLING: YEARS & EXPECTED YEARS• THE LONGER YOU STAY IN SCHOOL THE BETTER OFF YOU

ARE• QUALITY OF SCHOOLING• PUPIL/TEACHER RATIO: FEWER KIDS PER TEACHER =

BETTER LEARNING• LITERACY RATE: IS THE PERCENTAGE OF A COUNTRYS

PEOPLE WHO CAN READ & WRITE.

VARIATIONS OF DEVELOPMENT

• VARIATIONS HIGH IN SW ASIA & N. AFRICA & CENTRAL ASIA – WHY?

• WHAT’S THE GREATEST ASSET THESE REGIONS HAVE?

• BRAZIL, CHINA & MEXICO: SOME OF LARGEST & MOST POPULOUS

• ALL MIDDLE OF THE HDI SCALE

• URBAN, COASTAL, LOCATION