Economic Development: What and Where?

AP Human Geography - Damon - March 2017

What Is Economic Development?

A. Improvement over time in:–Economic well-being–Technology & production–Social well-being

B. A ranking of a country or region’s standard of living

Categorizations Used

A. Developed & DevelopingB. More Developed Countries (MDCs) &

Less Developed Countries (LDCs)C. Core, Periphery & Semi-PeripheryD. Global North - Global SouthE. 1st World & 3rd World (2nd World?)F. Emerging Economies

–BRICS, NICs, etc.

Developed and Developing

Regional Trends? Outliers? Outdated?

Core, Periphery and Semi-Periphery

Global North - Global South“The Brandt Line”

1st, 2nd and 3rd World Countries

Newly Industrializing Countries (NICs)

Hans Rosling:“Stop Calling Them Developing

Countries”

The term “developing countries" might have made sense once. Today it's impossible to make a clear distinction

between "developing" and "developed" countries. https://www.youtube.com/watch?v=jbkSRLYSojo

How Can We Measure Economic Development?

United Nations Human Development Index (HDI)

One statistic that combines life expectancy, years of schooling & income

2016 U.N. HDI

Regional Trends? Outliers?

2016 U.N. HDI Top Ten

2016 U.N. HDI Bottom 10

How Can We Measure the Value of Economic Production?

• Gross National Product (GNP): value of goods and services produced by a country in a year

• Gross Domestic Product (GDP): value of goods and services produced in a country in a year

• Gross National Income (GNI): value of goods and services produced in a country in a year plus net income from other sources

A Statistic That Is Expressed Per Capita Means?

Per Person

GDP per Capita1500 1900

1990 2015

What Changes? Why? How?

Shortcomings of GNP, GDP and GNI

• Only measure the formal economy– Do not include subsistence, informal and

illegal (black market) activities• Do not measure true costs of

production (externalities)– Examples: environmental effects, health

effects, working conditions, etc.

Example: Illegal Activities That Are Not Calculated in GDP

Example: Externalities

Example: Externalities

As China develops economically, a wealthier population purchases more cigarettes, which helps the economy in the short run, but will result in increased health care costs in the

future.

Example: Externalities

2013 Garment Factory Collapse 1000+ Died

Additional Key Measure of Economic Development:

Labor Force Structure Percent Employed in Primary, Secondary, Tertiary Sectors

Compare Highest and Lowest 2016 GDP per capita Countries

Highest = Qatar

GDP per capita: $132,870

GDP composition by sector

Agriculture 0.1%Industry 51.1%Services 48.8%

Lowest = Somalia

GDP per capita: $400

GDP composition by sector

Agriculture 60.2%Industry 7.4%Services 32.5%

Why Might Qatar Not Be The Best Country To Compare To?

Compare 2nd Highest and Lowest 2016 GDP per capita Countries

2nd Highest = Luxembourg

GDP per capita: $99,506

GDP composition by sector

Agriculture 0.2%Industry 11.1%Services 88.7%

Lowest = Somalia

GDP per capita: $400

GDP composition by sector

Agriculture 60.2%Industry 7.4%Services 32.5%

Percent of Labor Force Engaged in Agriculture

Other Statistics We Can Use

and many more …

Scale Is Important!GDP per capita varies by region in India & Brazil & all other countries