Single indicators solidarity measures that may be used to access development – Financial measures 1. GDP & GNI per capita GDP per capita total of all economic activity in a country – regardless of who owns the productive assets, divided by the number of people in the population (e.g income of foreign companies producing within a country would be included in the national income of that country but activity of its own companies producing outside the country would not) GNI per capita total income that is earned by a country’s – FOP regardless of where the asset is located divided by the number of people in the population. (e.g income of foreign countries producing within a country would not be included in the national income of the country but the activities of its own companies producing outside of the country would) If there is large amounts of FDI then GDP figures will be higher than GNI since they will include profits that may well have been repatriated. Thus, GNI figures tend to be used to measure the status of developing countries 2. GDP per capita & GDP per capita at PPP (purchasing parity) G&S don’t cost the same amount in diff countries and thus purchasing power of a person’s income will be diff in diff countries Therefore the PPP exchange rate is used as it attempts to equate the purchasing power of currencies in diff countries by comparing the prices of identical G&S in diff countries Health measures Life expectancy by birth Average number of years that a person may be expected to live from the time that they are born. Factors: level of health care & health care services; provision of clean water supplies & sanitation; provision of nationwide education; supplies of food; diets & lifestyles; levels of poverty; level of conflict. Infant mortality rate Measure of the number of deaths of babies under the age of 1 year per thousand live births in a given year Education measures literacy rate Measure of the proportion of the adult population, aged 15 or over, which is literate expressed as a percentage of the whole adult population for a country at a specific point of time Influenced by the above factors + distribution of income within the country Net enrolment ratio in primary education Measure of the ratio of the number of children of primary school age who are enrolled in primary school, to the total number of children who are of primary school age in the country Composite measures HDI Life expectancy at birth - Long and healthy life
Single indicators – solidarity measures that may be used to access development Financial measures 1. GDP & GNI per capita GDP per capita – total of all economic activity in a country regardless of who owns the productive assets, divided by the number of people in the population (e.g income of foreign companies producing within a country would be included in the national income of that country but activity of its own companies producing outside the country would not) GNI per capita – total income that is earned by a country’s FOP regardless of where the asset is located divided by the number of people in the population. (e.g income of foreign countries producing within a country would not be included in the national income of the country but the activities of its own companies producing outside of the country would) If there is large amounts of FDI then GDP figures will be higher than GNI since they will include profits that may well have been repatriated. Thus, GNI figures tend to be used to measure the status of developing countries 2. GDP per capita & GDP per capita at PPP (purchasing parity) G&S don’t cost the same amount in diff countries and thus purchasing power of a person’s income will be diff in diff countries Therefore the PPP exchange rate is used as it attempts to equate the purchasing power of currencies in diff countries by comparing the prices of identical G&S in diff countries Health measures Life expectancy by birth Average number of years that a person may be expected to live from the time that they are born. Factors: level of health care & health care services; provision of clean water supplies & sanitation; provision of nationwide education; supplies of food; diets & lifestyles; levels of poverty; level of conflict. Infant mortality rate Measure of the number of deaths of babies under the age of 1 year per thousand live births in a given year Education measures literacy rate Measure of the proportion of the adult population, aged 15 or over, which is literate expressed as a percentage of the whole adult population for a country at a specific point of time Influenced by the above factors + distribution of income within the country Net enrolment ratio in primary education Measure of the ratio of the number of children of primary school age who are enrolled in primary school, to the total number of children who are of primary school age in the country Composite measures HDI Life expectancy at birth - Long and healthy life
development-economics.docx