Developing countries usually have low levels of affluence and high unemployment rates while developed countries have developed economies which translate to high GDP per capita. Another difference is that developed countries are normally associated with advanced technology, good infrastructure and a steady government, whereas the developing countries usually suffer from diseases, natural disasters and war.
Development - the process by which the standard of living of a nation improves
Factors to consider - Natural, Economic, Social, Who Cares?
GDP - Gross Domestic Product (per capita) - Total value of all goods and services in a country divided by the total population to give the GDP per person.
- In some countries the mean value can be skewed heavily by rich people
- Counts all kinds of economic activity
- Some values may be out of date
- Illegal income is discounted
- Income doesn't mean growth
HDI - Human Development Index - measures life expectancy,income(GDP), and education(literacy rates) for every country, and uses the data to give each a score.
- It shows a wider range of data
- It gives a far view, because it looks at different aspects of life
- It can be used to measure life quality to a better standard
- It shows the three most important factors
Aid - Fairtrade
Problems: A positive trade balanced is easy to achieve if you are an MEDC which exports lots of valuable manufactured products and you import cheaper primary products from LEDC's.
Problem for LEDC's:
- MEDC's account for the largest amount of trade
- LEDC's often depend on one ortwo main exports
- The prices of primary products fluctuate
- Global changes are affecting primary products
Benifit: Social Premium (given to LEDC's to develop community)