Download Characteristics of Economic Development

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Characteristics of
Economic
Development
Developed
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Sweden
Germany
Liechtenstein
Ireland
Canada
New Zealand
USA
Netherlands
Australia
Norway
Developing
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Afghanistan
Angola
Cambodia
Liberia
Nepal
Yemen
Haiti
China (industrialized)
GDP: The monetary value of all the
finished goods and services
produced within a country's borders
in a year
GDP per capita – The value of all goods and
services produced in a country divided by
the number of people in the population
Question
Country A has a GDP of 2 trillion US
dollars. Country B has a GDP of 4 trillion
US dollars
 Country A has a GDP per capita of
$70,000. Country B has a per capita GDP
of $50,000.
 How is it possible that country B has a
lower per capita GDP but a higher GDP?
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Economy
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Developed
 High
GDP (Gross
Domestic Product)
 High GDP per capita
 Limited poverty
 Lots of international
trade
 Commercial
agriculture
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Developing
 Low
GDP
 Low GDP per capita
 Wide spread poverty
 Limited international
trade
 Subsistence
agriculture or
commercial agriculture
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Countries with a per capita GDP of
US$11,905 and less are defined as
developing (specified by the World Bank,
2013).
 Afghanistan
= $678.00
 China = $6,807
 US = $53,142
 Luxembourg = $111,161
Infrastructure
(system of roads, ports, and other
facilities needed by a modern economy)

Developed
 Many
paved highways,
roads, bridges
 Many airports, sea
ports, hospitals, and
power plants
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Developing
 Few
and/or unsafe
roads, bridges, etc.
Health

Developed
 Clean
water easily
accessible
 Few infectious
diseases
 Widely available
health care
 Low infant mortality
rate
 High life expectancy
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Developing
 Contaminated
well
water
 Many infectious
diseases
 Limited access to
health care
 High infant mortality
rate
 Low life expectancy
Education

Developed
 Generally
free
 Universal (for everyone)
 Compulsory (required)
 High literacy rate
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Developing
 Fees
are common
 Restricted
 Optional
 Low literacy rate
Demographics

Developed
 Aging
population
 Slow growth (low
birthrate)
 Growth through
immigration
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Developing
 Young
population
 Explosive growth (high
birthrate)
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Why is the birthrate
higher in developing
countries?
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Higher infant mortality
rates
Support family –
subsistence farming
and pensions
Family planning
Government

Developed
 Rule
of Law (everyone
punishable by the
same set of rules)
 Typically, democratic,
but not necessary

Developing
 Inconsistent
enforcement of laws
 Chaotic or unstable
government
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Coup