Scribd
Upload
6 views8 pages

Economic Development

The document discusses factors that influence standard of living such as HDI, GDP, and GNI. It also covers types of economic activities and poverty, including causes like inequality, conflict, and lack of education. Sustainable development and Asia's tiger economies are also mentioned.

Uploaded by

shrabosti17
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
6 views8 pages

Economic Development

The document discusses factors that influence standard of living such as HDI, GDP, and GNI. It also covers types of economic activities and poverty, including causes like inequality, conflict, and lack of education. Sustainable development and Asia's tiger economies are also mentioned.

Uploaded by

shrabosti17
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 8

❖Standard of living - A degree of wealth and material

comfort,Factors of standard of living :


● HDI-The Human Development Index (HDI) measures each country's
social and economic development by focusing on the following four
factors/Indicators:
1)GNI per capita
2)Life expectancy
3)Average years of schooling
4)Total years of schooling
● GDP - Total market value of the goods and services produced by a
country's economy during a specified period of time.
● GNI - A measurement of a country’s income it includes all the income
earned by a country’s resident, businesses and earning from foreign
sources .
● SLI(Satisfaction with life index)
● HPI(Happy planet index) and etc

❖ Economic Activities -
● Primary- Collection,Extraction from nature( e.g -collecting mud,
Farming)
● Secondary - Modifying , Manufacturing (e.g-Making buildings,Producing
rice)
● Tertiary - Service,Repair(Repairing broken chimney)
● Quaternary - Specialized knowledge(Computer programming)

Poverty is an economic state where people are experiencing scarcity


or lack of certain commodities that are required for the lives of
human beings.8% of the world population lives in extreme poverty.
Types of Poverty:
● Absolute Poverty - Scarcity of basic things,tend to struggle to
live and experience death from preventable diseases they are
poor no matter where.
● Relative Poverty- You are poor in one place but if you go to
another place you are not e.g in the City you can be considered
as poor cause you are not able to afford entertainment staff and
things in high range but in a village you can .
● Situational poverty- Temporary poverty e.g Job loss, Natural
disaster and etc
● Generational Poverty - Poverty passed by generation
● Rural Poverty- In rural areas population below 50,000 less
opportunities so people work in the agricultural sector and tend
to live in poverty.
● Urban Poverty - Population over 50,000 as so many populated
limited facilities.

Causes and Solution to Poverty


➔ Inequality and Marginalization- People are not treated equally,
people without a voice or representation will be left out within
their communities and to escape poverty everyone should have
their chance and have a say in the Decision making process .
Marginalization discriminating people from their
gender,caste,race give less opportunities to them leading to
eventually poverty. Solution: Equity - Everyone should get what
they actually deserve and fair Chance.
➔ Conflict- War in the country destroying infrastructure and
destroying people’s source of income, Destroying social
networks and the middle class can come down to below the
poverty line . e.g Syria war . Solution: Government should not
go into a war and maintain peace. After the war the government
should give the demerit cost people have lost to reduce poverty.
➔ Hunger /Malnutrition - People don't have enough energy to
work leading to poverty . Solution:Government gives Adequate
healthcare basic social protection and services to keep citizens
healthy,

➔ Poor Health Care system - Countries having poor health care


system weak people die from treatable diseases and paying for
the medicine and fees and easily bring people down from poor
to extreme poor. Solution:affordable treatment options at better
healthcare.
➔ Lack of Education - Not enough money to get educated so don't
get good jobs, people don't educate girls which leads to life in
poverty ,Solution:Increase public / government school,educate
girls.
➔ Climate Change - People like farmers rely on climate for good
harvest if climate is not suitable they live in poverty . Solution
:Resilience(Prevention measure to withhold the bad things of
poverty so that it doesn't strike ) against climate change
,Government commitment to climate justice,Concerns maintain
overall climate response.
China India

— Authoritarian Govt. — Democratic government

— Price Control — Grid lock

— Early Economic Liberalization 1970 — Late Economic Liberalization 1991

Economic Liberalization :
– Opening up Borders
– Allowing foreign trade
— relaxed easy trade
— Promotes globalization
— openness.
Negative Impacts:
- More import than export
– Differing ideologies
Sustainable Development

● Encouraging a pace that won’t put country into debt

● Developing appropriate technologies; dependent upon skill, wealth,


and needs of locals

● Utilization of natural resources without harming the environment


and focusing on using renewable materials and energies.

Asia’s Tiger Economy


● What are they ?
Regions that have held high economic growth rate post WWII
● Asia’s Tigers:

* Singapore

* Indonesia

* Malaysia

* Thailand
* South Korea

* China

● How did they come about ?

* Regional Peace after WWII

* Globalization: advancements in air travel and


telecommunication

*Invested heavily in industrialization

*Built major industrial estates

*Offered tax incentives to foreign investors

* Implementing compulsory education for young population

● Create a high demand for their exports


○ Textiles
○ Plastics
○ Personal technology

Purchasing power parity (PPP) - allows for economists to compare


economic productivity and standards of living between countries.

Gini index -The Gini index (or coefficient) is a synthetic indicator that captures the
level of inequality for a given variable and population.
Foreign aids are services or aids through which a country help another and
its citizen

Foreighn aid can be :

Fiscal

Military - Military aid is aid which is used to assist a country or its people in
its defense efforts, or to assist a poor country in maintaining control over its
own territory.

Humanitarian - Humanitarian aid is designed to save lives and alleviate


suffering during and in the immediate aftermath of emergencies.

5 types of foreign aid

Tied Aid - Tied aid is a type of foreign aid that must be invested in a
country that is providing support or in a group of chosen countries.

Bilateral Aid - Bilateral aid occurs when one government directly transfers
money or other assets to a recipient country.

Multilateral Aid - Multilateral aid is assistance provided by governments to


international organizations like the United. Nations, World Bank, and
International Monetary Fund (IMF).

Military Aid - Military aid is aid which is used to assist a country or its
people in its defense efforts, or to assist a poor country in maintaining
control over its own territory.
Project Aid - Aid given for a specific purpose; e.g. building materials for a
new school(in a small scale)

➔ Foreign aids even though are sent to help and aid other
countries through problems conditional in when aids like loan
from a country world bank and IMF are sent something is
expected from the country in return e.g world bank and IMF
are companies owned by america and these banks won't lend
loans to countries not economically liberalized.
➔ Democratization also can be detrimental as the decision of loan
passing would take a longer time.

You might also like