Download economic development indices assignment

NAME:
SECTION:
ECONOMIC DEVELOPMENT INDICES ASSIGNMENT(75 pts)
BACKGROUND: All countries are not economically equal. According to the World
Bank, countries can be divided up into four categories (see the Introduction PowerPoint
for a map of which countries are classified in which categories):
1. High Income Economies
2. Upper Middle Income Economies
3. Lower Middle Income Economies, and
4. Lower Income Economies
You might also see the use of the terms More Developed Countries (MDC’s) and Less
Developed Countries (LDC’s) to differentiate between countries and their level of
economic development (this is more politically correct). More Developed Countries are
countries like the United States. Less Developed Countries are countries like Somalia.
GOAL: In this assignment I want you to understand the difference in economic
development between countries by looking at the indices that measure economic
development.
DIRECTIONS: Re-read the part of the Introduction Powerpoint on ‘Measuring Economic
Development’. Along with the United States, choose four more countries (one from each
of the World Bank’s categories) and fill out the table below. Use the links provided on
blackboard to find the data. When you are done filling out the table, answer the questions
below.
P.S. You will need to calculate the doubling time on your own. Remember the “Rule of
70”. If you do not remember, or know, what this rule is then re-read the Introduction
presentation. The urbanization rate can be found in the table at the back of the
Introduction chapter.
Economic Development Indices Table (10 pts)
World Bank
Category
Country
Population (in
millions)
Natural
Increase Rate
(%)
Population
Doubling Time
(years)
Life
Expectancy
(years)
Infant
Mortality Rate
(number of
deaths/1000
live births)
Literacy (%
population)
GDP per
capita
Labor Force
Structure (put
in farming,
forestry, and
fishing %)
Urbanization
Rate (%)
Unemployment
Rate (%)
Population
Below Poverty
Line (%)
Electricity
Consumption
(kWh)
Oil
Consumption
(bbl/day)
High
Income
United
States
Upper
Middle
Income
Lower
Middle
Income
Lower
Income
World Bank
Category
Country
Telephones –
Mobile
Cellular
Internet
Users
Airports
(number in
general)
Railways (total
number in km)
Roadways
(total number
in km)
Waterways
(total number
in km)
High
Income
United
States
Upper
Middle
Income
Lower
Middle
Income
Lower
Income
Questions
Directions: Compare/contrast all the data in the table above and answer the following
questions. Put all of your answers in BOLD.
Population Stats (7pts)
1. What country has the:
a. highest population growth rate?
b. shortest doubling time?
c. highest infant mortality rate?
d. lowest life expectancy?
e. lowest literacy rate?
2. How does the World Bank classify this country?
3. Would you classify this country as an MDC or an LDC?
Economic Development (3pts)
4. What country is:
4a. the richest?
4b. the poorest?
4c. What development indice did you use to determine this?
5. The labor structure of a country can indicate its level of economic development.
(5pts)
a. What country has the lowest percentage of people in the farming, forestry
and fishing (agriculture) sector and what is this country’s World Bank
category?
b. What country has the highest percentage of people in the farming,
forestry, and fishing sector and what is this country’s World Bank
category?
c. Look at the labor structure category and finish the following sentence: In
general, countries that have a smaller percentage of the population
employed in the farming, forestry, and fishing sector are more/less
developed countries.
d. Look the urbanization rate and compare it to the percentage of people
employed in the farming, fishing, and forestry sector. Is there a correlation
between the urbanization rate and the percentage of people employed in
the farming, forestry and fishing sector? Why?
6. What country has the (2pt):
6a. highest percentage of people below the poverty line?
6b. lowest percentage of people below the poverty line?
7. What country has the (2pt):
6a. highest unemployment rate?
6b. lowest unemployment rate?
Consumption
8. What countries would you consider consumer countries and what countries would
you consider non-consumer countries? Justify your answer by using the indices
data in the table above (i.e. prove your point with hard numbers and facts). (4pts)
Infrastructure. Infrastructure usually includes miles of roads, railroads, and waterways
and the number of airports.
9. What countries would you consider to have good infrastructure and which
countries have poor infrastructure? Again, justify your answer by using hard
numbers from the indices data in the table above. (4pts)
Economic Classification
10. What countries would you classify as MDC’s and what countries would you
classify as LDC’s? Use the answers you gave to the questions above to justify
your answer. (4pts)
11. Develop a list of five generalizations you can make about an LDC vs. an MDC.
(For example: An LDC generally has a high population growth rate – DO NOT
USE THIS ONE!). (5pts)
12. Look at each country’s indices data again. Find two examples of an indice that
does not coincide with the World Bank category in which the country has been
classified. (For example, a low income country with a low population growth rate
would be considered an example). List the country and explain why the indice
does not match up with the World Bank category. (4pts)
13. Many people have been critical of the World Bank’s classification system because
it relies too heavily on income (in particular GDP) and does not look at the overall
health and well-being of a country’s people. The argument is that a country that
has a large income (GDP) might have a very unhealthy and unhappy population
(maybe most people are living below the poverty line and all of that wealth is
going into the hands of a few). Devise a new method of categorizing the countries
that you have chosen for this assignment. Describe each category, list the country
that would go into that category, and explain what indice(s) you used to determine
each category. Finally, justify why your categorization is better than the World
Bank’s categorization. Full points will only be given to those who do a superior
job of describing, explaining and justifying their categorization. (20pts)