DO NOW

What are the sustainable development goals?

Is the world on target to achieve the goals that it has set itself?
 • Distinguish between economic growth and
development
• Explain the relationship between economic growth
and economic development
Lesson • Define sustainable development
Objective • Current Sustainable Development Goals
Section 4.7 • Relationship between sustainability and poverty
• Common Charactersitistics of developing country
• Examples of diversity between developing countries.
  Development - measures improvements in
individual freedom, reducing poverty as well
as the provision of public services –
education, health care and the maintenance
Terminologie of law and order. Economic development is
s measured by the HDI (human development
index).

 Sustainable development goals - 17 life-

changing goals, outlined by the UN in 2015.
These global goals, also known as the
Sustainable Development Goals (SDGs),
include ending extreme poverty, giving people
better healthcare, and achieving equality for
What is Economic Growth does not lead to Economic Development, the
economy should look at the well-being of the people, hence considering
Economic the following:
- People’s Freedom
Developmen - Reducing Poverty
t - People fed and sheltered
- Provision of education and health
- Maintenance of law and order
- Guarantee of civil liberties
- Opportunity of civic participation

Does Economic Growth lead to Economic Development?

 1. Natural Factors: anything that will increase the
quantity/quality of factors of production will lead to an
increase in potential growth. (hard to increase the quatitiy of
land, so it can increase the quality)

2. Human Capital Forces: quantity increased by promoting

population growth or encouraging immigrants, but this is a
long-term plan.
Sources of Most of the countries focus on improving the quality of human
capital by improving health care, improving education for children
Economic and vocational training, and re-training of the unemployed. Also
Growth providing fresh water and sanitization can improve of health and
the quality of human capital.

3. Physical capital and technological factors: Physical

capital: factory buildings, machinery, shops, and offices. Social
capital: schools, roads, hospitals and houses.

Quantity: affected by level of savings, domestic investment,

government involvement and foreign investment.

Quality: affected by higher education, R&D and access to foreign

technology an expertise.
 Capital Widening: extra capital is used with an increased amount
of labor, but the ratio of capital per worker does not change.
Production will increase, but productivity does not change.

Capital Deepening: increase of the amount of capital for each

worker. This often means that there is improvement of
technology. Leading to labor productivity and increased
Sources of production.

Economic Physical Capital enabling extraction or improved extraction of

Growth primary products, such as oil drilling and mining, is important for
economic development as increase in factors of production.

4. Institutional Factors For development need a strong

banking system, legal system, good education system,
reasonable infrastructure, political stability and good international
relations. (these are also for economic development)
 Development that meets the needs of the present
without compromising the ability of the future
generations to meet their own needs.

Sustainable Uneconomic Growth: when an increase in

production comes at the expense of resources and
Developmen well-being that is worth more than the items made
t
The climate crisis will affect the developing
countries more:
- Access to safe water
- Tropical diseases may spread further north
- Droughts and flooding will rise
- Food production in the tropics and sub-tropics
will be hard to produce. However easier in
middle and high latitudes
- Millions of people will be affected by rising sea
levels. .
UN
Sustainable
Developmen
t Goals for
2030
More specific goals p431
 MDGs main achievements:

- More than 1 billion have been lifted out of extreme poverty.

SDG - Child mortality dropped by more than half.
-
replaced the -
Several out-of-school children have dropped by more than half
HIV/AIDS infections fell by almost 40%
MDG
Millenium Development
Goals from 2000 – 2012
Relationship Read p431-432
between
Sustainabilit
y and
Poverty? HL
 1. A low standard of living is characterized by low income,
inequality, poor health and poor education by the
majority of education.

Developing 2. Low level of productivity (output per person) (low

Countries education and low health)

common 3. High rates of population growth and dependency ratios.

Crude Population: rate of the annual number of live
characteristi births per 1000 of the population. High crude rates in
cs developing countries tend to be a high dependency ratio.
A high number of the working population that has to
support the young population.

Children Dependency Ratio: percentage of those under

productive dependent on those productive.
% of Population under 15 / % of population 15 to 64
(high in developing countries)

Old Age Dependency Ratio: percentage of those under

non-productive dependent on those productive.
% of population over 65/ % of population 15 – 65
(low in developing countries)
 4. High and rising levels of unemployment and
underemployment

5. Substantial dependence on agricultural production and

Developing primary product exports.
Countries 6. Imperfect market and limited information
common
7. Dominance, dependence, and vulnerability in
characteristi international relations for trade, technology, investment,
cs and aid.

All the above hinders economic growth and thus

development
How much 1. They have different resource endowments, they have poor
diversity is physical and human endowments. .

there among 2. They have different historical backgrounds. They are different
socially, politically and economically.
developing 3. There are different geographic and demographic factors.
countries? 4. There are differences in ethnic and religious breakdown.
5. There are different structures of industry.
6. There are differences in per capita income levels.
7. Differences in political structure. (democracies, monarchies,
military rule…)
 Question 1:
 (a) Explain how dependence on primary sector production may be a barrier
to economic growth. [10]
 (b) Using real-world examples, evaluate the view that market-based policies may be
ineffective in promoting the economic development of the world’s
poorest countries. (15)

Question 2:

Exit Ticket  (a) Explain how education programs and health programs can promote economic
development. [10]
 (b) Using real-world examples, discuss the view that the weak institutional
framework in many economically least developed countries (ELDCs) represents the
most significant barrier to economic growth. (15)