indicators of development
- GNP per capita
- literacy rate
- life expectancy
- Human Development index
what is GNP per capita
the dollar value of a country’s final output of goods and services in a year, divided by its population
it reflects the average income of a country’s citizens
what is literacy rate
percentage of population with the ability to read and write
what is human development index
the indicator of development consisting of mean years of schooling, life expectancy and GNP per capita
why is HDI a useful indicator of development?
- it takes into account a variety of factors giving an overall indication of development
- takes into account life expectancy and mean years of schooling
- produces an index of 0 to 1 so easy to carry out comparisons between countries
reasons for inequalities between countries
- climate, relief, soil fertility
- rivers, water supply
- accessibility and transport links
- length of time development has been occurring
- impacts of colonization
- presence or absence of raw materials
- presence of ports or landlocked
- government policies and stability
- trading and TNCs
- war or conflict
what are the different sectors of production
- primary
- secondary
- tertiary
- quaternary
development in LEDCs
- very high proportion of people in primary sector
- low proportion of people in tertiary sector
- low proportion of people in secondary sector
development in NICs
- high proportion of people in primary sector
- very high proportion of people in secondary sector
- high proportion of people in tertiary sector
development in MEDCs
- very low proportion of people in primary sector
- high proportion of people in secondary sector
- very high proportion of people in tertiary sector
why changes in the primary sector change with the development of the country
- mechanization of jobs reduce need for workers
- primary industries close down due to exhaustion of resources
- closure of primary industries due to import of items
why changes in the secondary sector change with the development of the country
- growth of secondary sector as technology improves
- eventual decline due to automation and cheap labor competition
- growth of secondary due to globalization and TNCs
why changes in the tertiary sector change with the development of the country
- rise in tertiary as education and skills level increase
- growth of tourism as a tertiary industry as country is more industrialized
- demand for services e.g. medical increases increasing tertiary sector employment
what is globalization
the increased links between different parts of the world, such as the availability of food and clothing from other countries and increases international population migration
positive impacts of globalization
- increase in world trade
- countries more benefitted if economic boom in another country
- spread of different cultures and languages
- MNCs can find countries with cheaper land and labour
- international migration providing more skilled workers in certain countries
- increase in tourism so more jobs created and money earnt by country
Negative impacts of globalization
- countries more affected is economic decline in another country
- cultures and languages in different countries are lost
- production and employment by MNCs lost in countries that are unable to compete with cheap land and labour prices of other countries
- world wide environmental effects like air and water pollution
- international migration causing increased emigration of skilled labour from certain countries
- tourism causes increased problems like using up limited resources of certain areas making them scarce for local people
what are TNCs
companies that manufacture in more than one country
advantages of TNCs for LEDCs where they locate
- employment
- skills development
- multiplier effect
- improvement of electricity and water supply
- improvement of transport network
- encourages development and economic growth
- new technology
- government income from taxes
disadvantages of TNCs for LEDCs where they locate
- low pay
- exploitation
- profits go abroad
- high paid jobs filled by foreigners
- air and water pollution
- depletion of resources
- traffic congestion
- competition for local industry
- can pull out at any time
