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Slide 1

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Development &
Global Economy Revision…read more

Slide 2

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Distinguish between growth and development and explain the
relationship between the two
Understand the details and limitations of GDP per capita and the HDI
(Human Development Index) as measures of development
Recognise the common and diverse features of developing economies as
they develop
Evaluate the effectiveness of policies to promote development, including
the role of international trade and economic integration
Discuss the relative importance of the different constraints on
development, both internal and external
Understand and explain the meaning of sustainable economic
development and analyse the social, environmental, resource and
demographic impacts of growth at different stages of development
Explain the use and limitations of indicators, such as GDP and the ISEW (Index of
Sustainable Economic Welfare), in measuring sustainable economic development
and evaluate their usefulness as indicators in policy-making contexts
Evaluate the usefulness of national and regional policies and international
agreements in promoting sustainability…read more

Slide 3

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The Relationship Between Growth
and Development
Development is:
An increase in the availability and distribution of basic life-
sustaining goods (e.g. food, shelter and health care)
An increase in standards of living (e.g. higher incomes, better
An expansion of the economic and social choices available to
Economic growth is:
Short Term: An increase in the real level of national output as
measured by the annual percentage change in real GDP
Long Term: An expansion of the productive potential of the
Economic growth does not always equal development.…read more

Slide 4

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The Relationship Between Growth
and Development
Why economic growth does not always equal
Uneven distribution of wealth ­ just increases gap
between rich and poor
High pollution from industrial output ­ environmental
damage and health problems
Capital intensive methods of production ­ no new jobs
so no increased incomes, could cause unemployment
Natural resource depletion ­ unsustainable so future
generations cannot have the same level of income…read more

Slide 5

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GDP Per Capita as a Measure of
GDP per capita is income generated from a nation'
s resources divided by its population
World Bank divides countries into four groups:
Low-income countries
Lower middle-income countries
Upper middle-income countries
High-income countries
GDP per capita comparisons are always made in
PPP, in American dollars…read more

Slide 6

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GDP Per Capita as a Measure of
Limitations of GDP per Capita as a Measure of
Assumes everyone's income is equally distributed
Ignores any pollution created from GDP
Ignores unpaid work
Ignores leisure time
Gives no value on human freedom
Ignores regional variations ­ some regions may be very
poor…read more

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