measuring development

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Information about measuring development

Published on February 4, 2009

Author: john.payne


Slide 1: MEASURING DEVELOPMENT how development is measured depends on how it is defined traditionally development was defined as economic growth this led to the 3 worlds model first world, advance or developed capitalist nations second world, advanced or developed socialist nations third world, developing, undeveloped or under-developed nations Slide 2: TRADITIONAL DEFINITION Traditionally development has been measured by looking at economic criteria this led to the distinction between rich and poor nations,developed and less developed (MEDC vs LEDC ) or after the Brandt report NORTH vs SOUTH with the existence of a Development Gap which it was the job of development to narrow or close Slide 3: The north south divide Slide 4: MODERN DEFINITIONS OF DEVELOPMENT A. a modern definition sees development as a process of change allowing basic needs to be met. improving quality of life social justice health well-being education freedom moving from easily quantitative criteria to less easily defined qualitative measures Slide 5: B. sustainable development using resources in a responsible way, without damaging the opportunity for future generations to satisfy their own needs traditional measures have no place here as economic output or energy used may not signify ‘green’ development sustainable development preserves the quality of the environment sustains traditions customs preserves resources maintains/improves levels of health and education Slide 6: TRADITIONAL MEASURES OF ECONOMIC DEVELOPMENT 1. GNP (gross national product) per capita / GDP (gross domestic product) per capita 2. purchasing power parity per capita 3. energy consumption 4. workforce engaged in agriculture / manufacturing /service sectors Slide 7: 1. GNP per capita / GDP per capita GNP is defined as the total value of a countries economic production in one year calculated per capita to eliminate differences in the populations of countries to include production of food/goods provision of services profits from overseas investments money earned in the country by foreigners and foreign businesses Slide 8: This allowed countries to be classified according to income high income countries (MEDC’s) low income countries (LEDC’s) middle income countries (including the NIC’s, the newly industrialised countries this economic growth and development was expected to trickle down to the poorer countries whose GNP would subsequently improve Slide 10: PROBLEMS WITH USING MONEY UNITS TO ASSESS DEVELOPMENT 1. Real value of a currency can change over short periods, so US dollar is used, conversion creates distortions due to inflation 2. Does not reflect the actual purchasing power of a currency within a country (costs vary country to country) 3. Much output does not enter international trade 4. Socialist countries may have different definitions of national income 5. High local costs due to cold winters or the size of a country eg. Russia lead to problems due to money spent on clothes, heating and transport 6. GNP gives no indication of how money/wealth is distributed within a country. A rising GNP may show a country is wealthier while the poorest citizens remain extremely poor Slide 11: 2. PURCHASING POWER PARITY PER CAPITA Introduced by the world bank to over come problems with GNP measures takes into account the cost of living in a country gives a truer indication of living standards and the wealth of individuals still uses US dollar highlights areas of HIGH, MIDDLE and LOW purchasing power US 41,000 dollars UK 29,000 dollars S KOREA 19,000 dollars KENYA 1,000 dollars Slide 13: 3. ENERGY CONSUMPTION per capita energy is a common economic measure of development it is a rough guide to the degree of industrialisation of a country and how far along Rostows stages of development a country has moved industrialised countries can use 10 times more energy than non industrialised countries can be kilowatt hours of electricity per capita or measured as a coal equivalent figure Slide 15: 4. WORKFORCE ENGAGED IN AGRICULTURE the percentage of the population engaged in each of the sectors of employment give an indication of levels of development this is shown in the Clarke-Fisher model LEDC’s have a large percentage employed in the primary sector, particularly farming as a country develops and industrialises the percentage employed in the secondary/manufacturing sectors will increases as will industrial output the MEDC’s will have the highest percentage employed in the service/tertiary sectors as only they can afford so many ‘non producers’ Slide 16: DEMOGRAPHIC MEASURES 1. Crude birth rate 2. Crude death rate 3. Natural increase (growth rate) 4. Infant mortality rate 5. Fertility rate 6. Life expectancy 7. % under 15 years (structure of the population) CAN BE ILLUSTRATED BY:- Demographic transition model population pyramids Slide 17:  Slide 19: Natural increase birth rate - death rate expressed as a % Slide 21: LIFE EXPECTANCY Slide 22: QUALITY OF LIFE INDICES multivariate/composite measures 1. Physical quality of life index PQLI 2. Human development index HDI 3. International human suffering index IHSI Slide 23: (1) Physical Quality of Life Index (PQLI) · Composite indicator devised by the Overseas Development Council in 1977.· Indexed from 0 to 100. (O is the worst, 100 is the best)· Based on: *Life expectancy *Infant Mortality Rate *Adult Literacy Rate· Index greater than 77 suggests that the minimum requirements for development are satisfied.· Limited, due to the small number of variables. Oil rich nations have large GNP per cap. But lower PQLI Other countries eg. China and Sri Lanka have low GNP per cap. But ‘highish’ PQLI AVERAGE OF 3 RATES TAKEN Slide 24: ANGOLA 20 INDIA 42 BRAZIL 72 CHINA 75 SINGAPORE 86 PQLI Recent PQLI data for developing nations The most developed countries will have a PQLI very close to 100 Is Singapore now developed? Slide 25: (2) Human Development Index (HDI) · Devised in 1990, when the UN Development Programme realised that income growth/ economic measures were not good indicators of development.· HDI consists of; *Real income per capita (PPP) ECONOMIC *Educational attainment, given by adult literacy rate combined with the mean number of years of schooling. SOCIAL *Life expectancy at birth. DEMOGRAPHIC Slide 26: Problems and limitations with the HDI Its creation by UN was politically motivated to focus on health and development issues the 3 indicators are good, but not ideal, what about nutrition? other better data, see second point, may not be available in many countries masks regional disparities between urban/rural, core/periphery and between ethnic or gender groups only shows relative development, a country may be developing but remain low compared to other countries Slide 27: HDI Slide 28: 3) International Human Suffering Index (IHSI) · Developed in 1987 by the Population Crisis Committee of Washington DC· Gives an indexed score, from 0 to 100. Unlike the PQLI, the lower the score, the better.· Score is based upon; *GNP per capita. *Rate of inflation *Growth of labour force *Urban population growth rate. *Infant Mortality Rate. *Daily calorie supply as a % of requirements *Access to clean drinking water. *Energy consumption per capita *Adult literacy rate *Personal freedom The 10 indicators genuinely reflect overall quality of life But scoring is a little subjective in some cases Slide 29: minimal moderate high extreme Slide 30: The Problems With Indicators of Social Development. · They do not accurately reflect the inequalities within the given set. They do not reflect income distribution. · There is still a lack of agreement on a universal system of measuring social development. Some indicators change daily, e.g. freedom of speech, right to vote, political freedom, etc.· The other problem is associated with the collection of data, for some of the following reasons; *Very few census surveys take place in LEDCs. *Registration is inadequate and unrepresentative. *Only the better educated, wealthier people can understand the registration procedures. *Refusal to fill in forms for political or personal reasons. Slide 31: · Reasons for an unreliable census; * Too costly for some LEDC’s. * Incomplete mapping. * Lack of trained staff. * Hard to record nomadic peoples. * Transport difficulties.* Male staff unable to interview women in the Middle East and Indian subcontinent, due to cultural differences.* Language (regional dialects) difficulties.* Low literacy levels.* They can be adapted to portray something entirely different for political reasons.

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