Topic 5 of 6 · Form 4
Economic development
Measures: real GDP per head and the Human Development Index (HDI – life expectancy, education and income); comparing living standards.
Notes for this topic 1 file, in order
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Living standards
Measures: real GDP per head and the Human Development Index (HDI – life expectancy, education and income); comparing living standards.
Poverty
Absolute and relative poverty; causes (unemployment, low wages, illness, age, conflict); policies to reduce poverty (economic growth, education, social protection, minimum wages, progressive taxation, aid).
Population
Factors affecting population growth (birth rate, death rate, net migration); optimum population; effects of changes in population size and structure (ageing, dependency ratio); population pyramids.
Worked example: Birth rate 32 per 1 000; death rate 8 per 1 000; net migration −2 per 1 000. Find the population growth rate.
(32 − 8 − 2) ÷ 1 000 = 22 per 1 000 = 2.2%
Differences in development
Reasons for differences between countries: productivity, education, health, infrastructure, investment, institutions, dependence on primary products and debt.
Check yourself
- Name the three components of the HDI.
- Distinguish between absolute and relative poverty.
- Give one consequence of an ageing population.
Show answers
- Life expectancy, education (years of schooling) and income per head.
- Absolute poverty is lacking basic needs; relative poverty is being poor compared with others in the same society.
- Higher dependency ratio and greater spending on pensions and health care.
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