Starter

Get ready to take notes (have a sheet of paper on your desk and a pen/pencil)

Characteristics of Economic Development

Developed Developing

Sweden Germany Liechtenstein Ireland Canada New Zealand USA Netherlands Australia Norway

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?

Economy

Developed High GDP (Gross

Domestic Product) High GDP per capita Limited poverty Lots of international

trade Commercial

agriculture

Developing Low GDP Low GDP per capita Wide spread poverty Limited international

trade Subsistence

agriculture or commercial agriculture

Countries with a per capita GDP of US$11,905 and less are defined as developing (specified by the World Bank, 2013). Afghanistan = $678.00China = $6,807US = $53,142Luxembourg = $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

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

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

Developing Fees are common Restricted Optional Low literacy rate

Demographics

Developed Aging population Slow growth (low

birthrate) Growth through

immigration

Developing Young population Explosive growth (high

birthrate) Why is the birthrate

higher in developing countries?

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 Coup