Transcript Economics and HDI

GNP AND GDP
GNP – “Gross National Product”
Total value of all goods and services
by a country over one year. Includes
facilities overseas owned by domestic
companies.
GDP – “Gross Domestic Product”
Total value of all goods and services
within a country’s borders over one
year. This is a good indicator of the size
of a country’s economy.
Examples (2010 est.)
USA – $14.5 trillion
Mexico – $1.0 trillion
Japan – $5.4 trillion
China - $5.8 trillion
Sudan - $0.07 trillion
PER CAPITA GDP
 GDP per 1000 people, how “wealthy” the country is.
 Roughly the amount of $$$ earned per person in a political unit
per year.
 Examples? U.S. = $47,000 Mexico = $14,000 Japan = $33,000 China = $7,500
Sudan = $2300
4 ECONOMIC
EMPLOYMENT SECTORS
1) Primary – get stuff
2) Secondary – make stuff
3) Tertiary – do stuff
4) Quaternary – think stuff
PRIMARY EMPLOYMENT SECTOR
 GET STUFF
 Gathering raw materials –
natural resources taken from
the earth
 Example: Mining, Fishing,
Farming
Secondary Employment Sector
 MAKE STUFF
 Manufacturing / Industry - Adding value to raw materials by
changing their form
 Example: Iron changed into an automobile
Tertiary Employment Sector
 DO STUFF
 Business or professional services
 Example: teachers, retail salespeople, doctors
Quaternary Employment Sector
 THINK STUFF
 Provide info, research, management,
etc. by highly trained personnel
 Engineers, researchers, scientists,
software designers
A tool developed by the United Nations to measure and rank countries' levels of
social and economic development - HDI is a summary measure of average
achievement in key dimensions of human development.
HDI
INDICATORS AND DIMENSIONS
ECONOMIC STAGES OF
DEVELOPMENT
INFRASTRUCTURE
the fundamental structures and systems serving a country, city, or
area:: transportation and communication systems, power plants, and
schools
LEAST DEVELOPED COUNTRY
 GDP: Nearly none – collapsed.
 Per Capita Income: Very Low (less than
$1000/ yr)
 Employment Sectors: “Primary” if any at all
 Infrastructure: Very little to none
 Lack of electricity
 Lack of clean water
 Lack of roads, Airports, Ports
 Quality of Life: In crisis, collapsed
infrastructure and economy.
 Examples: Afghanistan, Somalia, Haiti
DEVELOPING
COUNTRY
 GDP: Low
 Per Capita Income: Low
 Employment Sectors: Mostly
“Primary”
 Infrastructure: Relatively little
 Lack of electricity
 Lack of clean water
 Lack of roads, Airports, Ports
 Quality of Life: Low, little literacy,
nutrition, or medical care
 Examples: Burma, Jamaica, El Salvador
NEWLY INDUSTRIALIZED COUNTRY (NIC)
 GDP: Low/Medium but increasing
 Per Capita Income: Low/Medium but increasing
 Employment Sectors: “Primary” shifting to “Secondary”
to varying degrees
 Infrastructure: Increasing
 Things are being built as wealth increases
 Long process, very expensive
 Quality of Life: Still low in most places, but improving in
many ways
Examples:
India
Mexico
DEVELOPED COUNTRY
 GDP: High
 Per Capita Income: High
 Employment Sectors: Mostly
“Tertiary” and “Quaternary”
 Infrastructure: Strong
 High amount of roads, Airports, Ports
 Clean water systems
 Electricity available to all
 Quality of Life: High, with good
nutrition, medical care, education
Picture A
Picture C
WHICH PICTURE
BEST FITS EACH
ECONOMIC
LEVEL?
Picture B
Picture D
Socio-Economic Indicators
Country
More
Developed
Developing
Less
Developed
GDP per
Capita
Life
Infant
Literacy
Birth Rate
Expectancy Mortality
Rate