1. or How shiny is your toilet?
Economic Development or
How shiny is your toilet?

2. Indicators of Economic Development
Urban or Rural- Developed nations are generally more urban.
Gross Domestic Product (GDP) value of goods & services produced- developed nations have a high GDP.
Level of the educational achievement- developed nations have highly educated populations.

3. Indicators of Economic Development
Infrastructure- the framework of technical structures that support a society.
Communication networks, water supply, waste disposal, power grids, transportation, etc.
Developed countries have very technologically advanced infrastructure.

4. Indicators of Economic Development
Economic activities- Most people in developed nations work in secondary & tertiary levels.
Industrialization- the transition from an agricultural society to one based on manufacturing & trade.

5. Indicators of Economic Development
Subsistence Farming
Growing only enough food for one’s own family or village.
Animals & people provide most of the labor; more hands = less work
small plots & diverse crops
70% of world agricultural production is subsistence farming.

6. Indicators of Economic Development
Commercial Farming
Crops & livestock are raised to be sold.
Farmers use modern techniques & equipment to be more productive; huge plots & single crops.
<10% of the population in industrialized countries

7. Levels of Economic Development
Developed
Modern industrialized countries with well developed infrastructure & technology.
Japan, Germany, U.S., Australia

8. Levels of Economic Development
Developing
Countries moving toward more complete infrastructure development & industrialization.
Some elements are present but not all.
Mexico, China, Malaysia, India

9. Levels of Economic Development
Underdeveloped
Countries that lack industries & modern technology; infrastructure not well developed; dependent on developed countries for manufactured goods.
Haiti, Niger, Afghanistan, Papua New Guinea

10. Differences between developing & developed nations
Developed nations have better access to natural & capital resources.
Developed nations have more investment in technology & have created a better infrastructure.
Developed nations have more skilled labor.
Developed nations have a higher level of economic development & diversity.
Developed nations have a higher standard of living & a higher quality of life.

11. Measures of Development
Per Capita GDP/GNP- the value of all the goods & services a country produces divided by its population.
Human Development Index (HDI)- measures economic & human well-being by combining life expectancy, literacy, & per capita GDP, etc. into one number.