Starter Get ready to take notes (have a sheet of paper on your desk and a pen/pencil)

Characteristics of Economic Development

DevelopedDeveloping Sweden Germany Liechtenstein Ireland Canada New Zealand USA Netherlands Australia Norway Afghanistan Angola Cambodia Liberia Nepal Yemen Haiti China (industrialized)

GDP: The monetary value of all the finished goods and services produced within a country's borders in a year GDP per capita – The value of all goods and services produced in a country divided by the number of people in the population

Question Country A has a GDP of 2 trillion US dollars. Country B has a GDP of 4 trillion US dollars Country A has a GDP per capita of $70,000. Country B has a per capita GDP of $50,000. How is it possible that country B has a lower per capita GDP but a higher GDP?

Economy Developed  High GDP (Gross Domestic Product)  High GDP per capita  Limited poverty  Lots of international trade  Commercial agriculture Developing  Low GDP  Low GDP per capita  Wide spread poverty  Limited international trade  Subsistence agriculture or commercial agriculture

Countries with a per capita GDP of US$11,905 and less are defined as developing (specified by the World Bank, 2013).World Bank  Afghanistan = $  China = $6,807  US = $53,142  Luxembourg = $111,161

Infrastructure (system of roads, ports, and other facilities needed by a modern economy) Developed  Many paved highways, roads, bridges  Many airports, sea ports, hospitals, and power plants Developing  Few and/or unsafe roads, bridges, etc.

Health Developed  Clean water easily accessible  Few infectious diseases  Widely available health care  Low infant mortality rate  High life expectancy Developing  Contaminated well water  Many infectious diseases  Limited access to health care  High infant mortality rate  Low life expectancy

Education Developed  Generally free  Universal (for everyone)  Compulsory (required)  High literacy rate Developing  Fees are common  Restricted  Optional  Low literacy rate

Demographics Developed  Aging population  Slow growth (low birthrate)  Growth through immigration Developing  Young population  Explosive growth (high birthrate) Why is the birthrate higher in developing countries?  Higher infant mortality rates  Support family – subsistence farming and pensions  Family planning

Government Developed  Rule of Law (everyone punishable by the same set of rules)  Typically, democratic, but not necessary Developing  Inconsistent enforcement of laws  Chaotic or unstable government Coup