1. 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

2. 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

3. 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

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

5. 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

6. Evaluation of GDP per capita
What are the strengths and limitations of this indicator? Strengths Limitations
Doesn’t take disparity into account
Only account for monetary value (not quality of product)
Counts work done from repairing harm
Ignores externalities (eg. Damage on environment)
Does not measure sustainability of economic growth
Broadest indicator of economic growth
Does take inflation into account (can compare data against other time periods)

7. JP Campos, Bengi Tetik, Emily Lee, Hiram Adames
GNP & PPP
JP Campos, Bengi Tetik, Emily Lee, Hiram Adames

8. GNP? Gross National Produce/Product
Measures production of all nations citizens
No matter where they are working
Higher GNP, Higher quality of living
Per Capita of a country shows average value goods & services produced by each person each year. Divided by the total population to get an average earnings per person.

9. Difference Between GNP & GDP
The Difference between GNP and GDP (Gross Domestic Product) (Gross Nation Product)
GDP Focus on the domestic economic strength of a country
GNP focuses on how the nationals of a particular country are faring financially.

10. Choropleth map showing world distribution for GNP Per Capita

11. Explanation of Map
The Map is showing the world distribution of GNP per capita
as you can see, the map has a legend that shows the amount of money each country earns
The Countries that have the Darkest colors represent the highest GNP and the lightest color represent the countries with the lowest GNP
examples of High GNP on the map are: America, Australia, Japan and Western Europe Which have 15% of worlds population ( keep in mind that these are all countries that are also MEDC)
examples of low GNP on the map are : Rwanda, Burundi, Ethiopia, Tanzania, Uganda, Mozambique, Sierra Leone and Vietnam. They all have 56% of the worlds population and they are all LEDC countries

12. Evaluation of GNP per capita
Strength's
Limitations
Gives an estimation of what a country makes per person
Can't be used to compare individuals accurately
Can be used to compare how much other countries make
Can't be used to compare a countries previous GDP unless a calculation is done
Can be used to get an idea of standard of living
Does not distinguish between the poor and rich
Out of all the ways that economists tell a countries economic health, this is the best
Does not take into account the underground economy
Non-market transactions
Can't accurately be used for knowing the standard of living
Doesn't account quality of goods
Disasters raise GNP
Doesn't account for unpaid labor
Doesn’t account for the income of embassies

13. 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
These measures are made more fair by using the PPP (Purchasing Power Parity) adjustment. This is a adjustment that is made to countries GNP/GDP scores to take into account the cost of living in a country making it a more fair measure of development – this is why you often see it presented as GDP (PPP) per capita for example.

15. Questions What does GNP mean? Difference between GNP and GDP?
What does the map show us?
What are some strengths and limitations?
Why is PPP used?

16. Bibliography
"Difference Between GNP and GDP." Differencebetween,net. Web. 6 Apr <
Limitations of GDP Statistics. Web. 5 Apr <
What Are the Advantages and Disadvantages of Gross Domestic Product. Wiley Publishing, Web. 5 Apr <
"What Is GNP? Definition and Meaning." InvestorWords.com - Investing Glossary. Web. 05 Apr <

17. More 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

18. Choropleth map showing birth rate per 1000 people….
Death/birth rate: the number of deaths/births 1000 of the population per year

19. Choropleth map showing infant mortality (per 1000 live berths)
Infant Mortality: number of infant deaths (one year of age or younger) per 1000 live births

20. Choropleth map showing literacy rates(% of population over 15 years of age)
Literacy rate:% of the population over age fifteen that can read and write

21. Evaluation of social indicators (birth rate, infant mortality & literacy)…..
What are the strengths and limitations of these indicators? Strengths Limitations
Level of education
Level of economic development
Healthcare
Family planning
Population growth
Quality of life
Impact/Type of religion practiced
Other aspects of schooling
Quality of the environment surrounding infants
Other aspects of healthcare system

22. Questions
What is the difference between social and economic development?
How are the three indicators linked?
Name one strength and one limitation?
Do all of these three factors follow the Brandt Line?
Which social factor is indicative of healthcare?

23. Social indicators
GABY, JULES AND WILLIAM

24. 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.

25. A map showing the life expectancy

26. Number of inhabitants per doctor

27. Evaluation of social indicators
STRENGTHS
LIMITATONS
People per doctor shows a strength of percentage on how much health care is needed.
The more doctors in one country can help cure many diseases.
Life expectancy correlates to the level of healthcare and sanitation
Life expectancy relates to the Brandt line, if you look at both maps its almost the same. (accurate in showing the development)
The data doesn't’t show what kind of doctor and how many people one doctor can help.
Depending on the country the doctor could have a lack of education and resources compared to others due to its developing state.
Life expectancy doesn't’t talk about the quality of life (diseases
Life expectancy only focuses on one aspect of development.

28. Questions
Name two strengths and two limitation of using social indicators to measure development
Name two factors about both maps
What is the definition of life expectancy
What is definition of people per doctor
How do you think these life expectancy and doctors can affect a country

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

30. How does the HDI measure development?
composite indicators
How does the HDI measure development?
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 expectancyat birth

31. 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 .5
The three variables are averaged to give a country’s HDI
Activity: Define HDI and explain how it is calculated

32. Calculating HDI….
Country A: Knowledge 0.9 Income 0.4 Longevity 0.9 HDI = Country B: Knowledge 0.4 Income 0.8 Longevity 0.5
Country C:
Knowledge 0.8
Income 0.7
Longevity
HDI =
Country D:
Knowledge 0.7
Income 0.6
Longevity
Analysis: What type of countries are these? Which are the most or least developed? Any resource rich countries?

33. Choropleth map showing global HDI distribution

34. Variations in the HDI
“The best”: Countries with the highest HDIs include Canada (0.888), Switzerland, Japan and Sweden.
Europe and Latin America both have a lot of countries in the very high HDI section
The best HDI rated counties ranges from 0.8’s – 0.7’s
“The worst”: Countries with the lowest include Guinea, Burkina Faso (.305) 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 (life expectancy is years, Very high GDP, 77.9% of population age 15 and over can read and write.) (rank 32 of the
suggesting need to transfer oil and mineral revenues into improved living standards.
HDI can made to show regional variations

35. Evaluation of HDI…..
What are the strengths and limitations of this indicator? Strengths Limitations
focusing exclusively on national performance and ranking
 failure to include any ecological considerations
Economist Bryan Caplan has criticized the way HDI scores are produced; each of the three components are bounded between zero and one
As a result of that, rich countries effectively cannot improve their ranking in certain categories, even though there is a lot of scope for economic growth and longevity left.