Tutoring Session - Patterns of Development and Change (GGY 156)
Tutoring Session - Patterns of Development and Change (GGY 156)
Tutoring Session - Patterns of Development and Change (GGY 156)
• Total market value of all final • Adds to GDP the total foreign income
goods and services produced earned by citizens
annually within the borders of • For comparative purposes we:
a country ⚬ Convert each country’s currency
to a common measure ($)
⚬ Divide by the number of people
to get GNI per capita
⚬ Apply a PPP correction – to
account for price differences
• Doesn’t consider influence of
informal economy
• A method of measuring the relative purchasing
power (value) of different countries’ currencies
over the same type of goods and services.
• Because goods and services may cost more in
one country than in another, PPP allows us to
make more accurate comparisons of standards
of living across countries.
• Allows one to estimate what the exchange rate
between two currencies would have to be in
order for the exchange to be at par with the
purchasing power of the two countries'
currencies.
• GDP is only an index so it hides actual disparity
between people within the country.
• GDP does not take environmental cost into
account.
• GDP/GNI does not take social well being of the
country’s citizens into account.
• Goods and services that pass through the formal
market is well represented but the informal
market goods are not captured.
• Goods and services that pass through the illegal
market are also not captured.
MDGs SDGs
Landlessness
Technology
Energy consumption per Percentage of workforce
capita engaged in agriculture
Education
Health
Aggregate Measures
Role of Women
Public Services
• Literate educated labour force necessary for
effective transfer of technology from developed to
developing regions
⚬ Teaching facilities
⚬ Availability of teachers
■ Rich countries same number of potential
pupils have 20 – 25 times more teachers
than poor countries
⚬ Poverty – denies funds sufficient for teachers,
classrooms, books, etc.
• Access to medical facilities and personnel
• Has profound implications for the health
and well‐ being of populations
• In developing world too few trained
professionals to serve needs of expanding
populations e.g Tanzania 50,000pp per
physician, whereas Cuba – 170 pp per
physician,
• Congregate in urban areas
• Rural clinics few in number and great
distances apart
• Brain drain
• 3 of 8 MDGs deal with child mortality,
maternal health and eradication of diseases
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