1. Issues of Economic Development

2. I.Levels of Development a.Developed Nations i.Def: have a market economy, a high standard of living, high GDP, industrialization, widespread private ownership of property, & stable and effective gov’ts. ii.Western Europe, The US, Canada, Australia, New Zealand, Japan & South Korea. iii.Ppl live comfortable lives, TVs, cars, live in urban areas, have jobs in banks & insurance companies. Not many ppl work in agriculture but have advanced science and technology for efficient farming methods. Ppl are generally healthy & well-educated.

3. b. Transitional Economies i.Def: a country that has moved or is moving from a command to a market economy. ii.China, Russia, many Eastern European countries are considered to be transitional. iii.The ppl are on their way to improving their standard of living. Democracy and economic freedom have begun to take shape.

4. c. Less Developed Countries i.Def: has a lower GDP, less well developed industry, and a lower standard of living. ii.Many African, South American and Eastern European countries. Some slightly better off- middle-income: Brazil & Thailand. Low- income: Mozambique & Cambodia. iii.Ppl live in substandard housing, few TVs or washing machines. Lack infrastructure: basic support systems needed to keep an economy going, including power, communications, transportation, water, sanitation, & education systems.

5. II. 6 Standards of Economic Development a.Per Capita Gross Domestic Product i.GDP divided by total population. Estimates the amount of goods and services produced per person in a given year. ii.Per capita GDP for US: $53,000. Per capita GDP for Haiti: $810.

6. b. Health i.Infant Mortality Rate: number of children who die within the 1 st year of life per 1,000 live births. Helps us understand the conditions in which infants thrive: safe & sanitary birth environments, access to medical care, adequate nutrition. Mother’s access to clean drinking water & acceptable shelter and protection from disease. ii.Life Expectancy Rate: the average number of years a person can expect to live if a current mortality trends were to continue for the rest of that person’s life.

7. c. Education i.Literacy Rate: the percentage of people older than 15 who can read and write. ii.Human Development Index (HDI): combination of a nation’s real GDP per capita, life expectancy, adult literacy rate, and student enrollment figures. d. Consumption of Goods & Services i.How do ppl choose to spend their income after they have food and shelter. When ppl buy big-ticket items like: fridges, cars and washing machines it shows that a country is developing and growing.

8. e. Energy Use i.How energy is put to use, especially the amount used for commercial purposes correlates to a nation’s level of technological achievement. f. Labor Force i.What kind of jobs to most ppl have? Less agriculture and more manufacturing the better off they are.