Ways of measuring level of economic development and quality of life

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Global issues development
Ways of measuring level of economic development and quality of life
Economic development
The development cable: incorporates demographic, social, cultural, environmental
and political aspects of development around the core of economic development.
Demographic factors include personal wealth, mobility, birth/death control, life
expectancy. Social factors include social justice, equal considerations, quality of
life and satisfaction. Cultural factors include education, culture and identity.
Environmental factors include conservation, sustainability, environmental change
and political factors include democratic government and freedom of speech.
The brandt model
Rich north/poor south- largely inaccurate gives a very vague measurement of
development. Too many variations in reality for this to be valid.
Cold war classification
1st world (capitalists), 2nd world (communists) and 3rd world (poor countries)
Today development is measured through LEDC/MEDC, NIC, BRIC's Brazil, Russia,
India, China) and MINT's (Mexico, Indonesia, Nigeria, Turkey)
Every country is consistently developing and this level of development is unique to
each country so it is hard to attempt to classify development and we often
simplify this.
Other indicators of development
GDP (Gross domestic product)- private consumption+ investment+ public
spending+ exports- imports (total value of country's output of
GNP (Gross national product)- GPP+ investments+ money made abroad
Trade balance- exports- imports
Credit rating- borrowing power
National debt- money a country owes
Issues with using GPP, GNP and PPP as economic indicators
Doesn't include informal/illegal economies
Doesn't include the happiness of quality of life
Currency fluctuations
Distribution of wealth within a country isn't measured

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Global issues development
Dependence on one industry
Tax and government spending variation and potential for government
corruption- money may be available but it isn't spent were its needed
Monetary value of goods traded can fluctuate especially in agriculture
Accurate information hard to obtain (high informal economies, rural
economy, ineffective governance)
Remittances from migrant workers not included
Environmental services such as benefits from standing forests aren't
included.…read more


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