1. Mini Presentations: Economic & Social & Composite Indicators of Development

2. Mini Presentations: Economic & Social Indicators of development
Objective: Collaborate in groups to give a presentation on the assigned topic, use the slides provided – all group members must participate mins total, 30 mins to prepare
Structure of Presentation
Present and explain the definitions of your assigned section
Show the class the map associated with your indicator and explain the general trend observed and any anomalies present
Evaluate the indicators and explain to the class
End your presentation with 5 questions for the audience to make sure they have understood the topic you presented on

3. Groups…. GDP per capita GNP per capita
PPP adjustment & Social Indicators (people per doctor/life ex)
Social Indicators (Infant mortality, Literacy, birth rate)
HDI
Four per group

4. How is development measured?
Development is a complex process and there is little agreement on how to measure it
The most common and easiest measures
are Economic measures: Gross Domestic Product and Gross National Product (economic indicators)
GDP & GNP

5. GDP
Economic indicators
GDP is definitely the preferred measure of development among economists and is gaining popularity in general conversation as well.
GDP stands for Gross Domestic Product

6. Definition of GDP
GDP measures the value of all production within a nation, by whoever happens to be working there
This is usually presented as a per capita value (GDP divided by the population)
Economic indicators

7. Choropleth map showing world distribution of GDP per capita…

8. How do some countries fair on a GDP per capita (PPP) list?
Qatar: $87 600
Luxembourg: $79 400
USA : $45 800
U.K.: $35 500
Japan: $33 500
France: $32 600
South Korea $25 000
Botswana: $14 300
China: $
Philippines: $
India: $
Kenya: $
Bangladesh: $
Burkina Faso: $
Zimbabwe: $
2005 data

9. Evaluation of GDP per capita
What are the strengths and limitations of this indicator? Strengths Limitations
Has an economic focus
Easy to compare between countries
Data is collected regularly and widely
GDP is only an average
Doesn’t take into account
Social factors
Environmental factors

10. Definition of GNP Gross National Product
Economic indicators
Gross National Product
GNP measures the value of production of all a nations citizens, wherever they happen to be working.
(both inside and outside the country: Maybe you can remember the "N" in GNP stands for "anywhere").
This is divided by the population to produce a per capita value (GNP per capita)

11. Choropleth map showing world distribution of GDP per capita…

12. GNP figures:
Economic indicators
Regional distribution of GNP: Western Europe, North America, Japan and Australia have high GNP per capita; approx 15% of world’s population
56% of the world’s population live in areas with low GNP per capita, lowest: Rwanda, Burundi, Ethiopia, Tanzania, Uganda, Mozambique, Sierra Leone, Vietnam

13. Evaluation of GNP per capita
What are the strengths and limitations of this indicator? Strengths Limitations
It shows the economical side
It show the distinct differences
Doesn’t show any other side but economical
- Only an estimate and not an exact number

14. What is the PPP adjustment?
Economic indicators
GNP & GDP are often been criticized as being unfair measures of development, and one of the reasons why is because they don’t take into account the cost of living of the country
PPP (Purchasing Power Parity) an adjustment that is made to GNP/GDP to take into account the cost of living in a country

15. Example of cost of living differences….
How much does a Big Mac cost in the Philippines?
85 pesos = $1.96
How much does a Big Mac cost in the USA?
$2.50 -$2.99
How much does a can of Coke cost in Korea?
won = $0.3 -$0.5
How much does a can of Coke cost in India?
18-20 Rupees = $0.4-$0.5
There is a difference in the cost of living of these countries… so calculating GDP or GNP (PPP) gives a more fair measure of development because it takes into account the cost of living of the country

16. Social Indicators of development….
There are many social indicators of development, here are a few:
Literacy, Education and skills
Health
Income and economic welfare
Choice, Democracy, and participation
Technology
Infant Mortality Rate
Birth / Death Rate

17. Social Indicators Definitions:
People per doctor:– the total population divided by the number of doctors in a country
Life Expectancy: The average number of years a person is expected to live in the country

18. People per doctor

19. Choropleth map showing life expectancy….

20. Evaluation of social indicators (people per doctor & life expectancy)…..
What are the strengths and limitations of these indicators? Strengths Limitations
- It has social factors
- It helps to predict the limitation of people
- Lack of economic factors

21. Social Indicators Definitions:
Death/birth rate: the number of deaths/births 1000 of the population per year
Infant Mortality: number of infant deaths (one year of age or younger) per 1000 live births
literacy rate: % of the population over age fifteen that can read and write

22. Choropleth map showing birth rate per 1000 people….

23. Choropleth map showing infant mortality (per 1000 live berths)

24. Choropleth map showing literacy rates(% of population over 15 years of age)

25. Evaluation of social indicators (birth rate, infant mortality & literacy)…..
What are the strengths and limitations of these indicators? Strengths Limitations
Shows whether a country is developed or not
Makes it easy to compare different counties
Is not always accurate (not everyone is included)
All indicators are only an average

26. What alternative measures are there?
The United Nations Development Programme introduced a more meaningful measure of development:
The Human Development Index, or HDI
A composite indicator:
Combines Social & Economic
indicators

27. How does the HDI measure development?
composite indicators
The HDI is an index calculated from three variables:
Income,
measured by GDP per capita
Knowledge,
measured by adult literacy rates and the percentage of children attending school
Longevity,
measured as life expectancy at birth

28. Calculating HDI values….
composite indicators
For each of the three values (education, life expectancy and GDP), the world’s highest and lowest values are found.
The highest possible measure is given the value 1, and the lowest 0.
E.g. Japan’s life expectancy is the highest at 80 years, Angola's is the lowest at 37. A country with a value mid way between the two would get a score of .50
The three variables are averaged to give a country’s HDI
Activity: Define HDI and explain how it is calculated

29. Calculating HDI….
Country A: Knowledge 0.93 Income 0.45 Longevity 0.91 HDI = Country B: Knowledge 0.58 Income 0.88 Longevity 0.51
Country C:
Knowledge 0.83
Income 0.75
Longevity
HDI =
Country D:
Knowledge 0.70
Income 0.61
Longevity
Analysis: What type of countries are these? Which are the most or least developed?
Any resource rich countries?

30. Choropleth map of HDI…..

31. Variations in the HDI
“The best”: Countries with the highest HDIs include Canada, Switzerland, Japan and Sweden.
“The worst”: Countries with the lowest include Guinea, Burkina Faso and Afghanistan
“The under performers”: Countries scoring high on GDP but relatively low in the HDI include Saudi Arabia, Namibia and the United Arab Emirates, suggesting need to transfer oil and mineral revenues into improved living standards.
HDI can made to show regional variations

32. Evaluation of HDI…..
What are the strengths and limitations of this indicator? Strengths Limitations
Method to compare development
Uses global averages to determine scores
-Compares to world averages (not regional or continental)
-Ceiling/floor issue (life expectancy for Japan could improve despite it having a score of 1)
-HDI scores would remain constant if all countries develop at the same rate

33. Homework
Go to wiki site and complete notes on the definition and evaluation of the different development indicators, you can also find evaluative points on the wiki site

34. Link abbreviation with the terms
Organization of Petroleum Exporting Countries
Newly Industrializing Country
Less Economically Developed Country
Former Communist Country
Purchasing Power Parity
Gross National Product
Gross Domestic Product
Human Development Index
More Economically Developed Country
Least Less Economically Developed Country
GDP
HDI
NIC
MEDC
LLEDC
FCC
PPP
OPEC
LEDC
GNP
GNP
GDP
HDI
LEDC
MEDC
NIC
LLEDC
FCC
OPEC
PPP

35. Questions to check your understanding – GNP,GDP & HDI
What is the definition of GDP?
Explain GNP different to GDP?
What does Per Capita mean?
What type of measure of development?
Why might GNP & GDP be seen as an unfair measure of development?
What does HDI stand for?
What does this measure of development take into account?
What do the ‘underperforming’ countries on the HDI index have in common?
Which measure of development do you think is the best? Explain your answer.

36. Other Indicators of Development
MEDC
LEDC
High GNP/GDP High infant mortality
Low birth rate High % of workers in tertiary industry
High literacy levels Little access to medical care
Short life expectancy Low % of workers in tertiary industry
Low % of workers in agriculture
High % urban dwellers
Activity: Put the indicators in the columns

37. Social/Economic Indicators Card sort
In groups sort the indicators into MEDC and LEDC and give match each description with the indicator
Extension activity – create and fill in your own table – in note form and make a note
Whether the indicator is ECONOMIC or SOCIAL