Global Disparities in

Development Indicators

)
By: Thendo Mafame
 Learning Objective
• To understand global variations in economic development and quality of life.

Success Criteria
• To understand that there are different ways of classifying parts of the world
according to their level of economic development and quality of life.
• To understand different economic and social measures of development.
• To understand the limitations of economic and social measures.
Objectives
• What are the indicators or measures of development? How can we
compare the level of development among different countries or
regions?
Defining Development Indicators
DEFINITION OF DEVELOPMENT (MULTIDIMENSIONAL):

• Development is a complex concept that encompasses more than just

economic growth.

• It involves improvements in various aspects of human well-being, including

economic, social, and environmental dimensions.

• These dimensions together provide a comprehensive understanding of

development.
Defining Development Indicators

INTRODUCTION TO DEVELOPMENT INDICATORS:

• Development indicators are quantitative or qualitative measurements used to

assess the progress or level of development in a country or region.

• They help us gauge the standard of living, quality of life, and overall
development status.
Defining Development Indicators
LIMITATIONS OF ECONOMIC INDICATORS:

• While economic indicators like GDP and GNI are essential, they have
limitations because they focus primarily on monetary aspects.

• They may not capture inequalities, environmental sustainability, or social

well-being.

• Hence, using a range of indicators is crucial for a holistic view of development.

Types of Development Indicators (Economic)

GDP (GROSS DOMESTIC PRODUCT):

• GDP measures the total monetary value of all goods and services produced
within a country's borders in a specific time period.

• It's a key economic indicator but doesn't account for income distribution or
non-market activities.
Types of Development Indicators (Economic)

GNI (GROSS NATIONAL INCOME):

• GNI includes not only the GDP but also income earned from abroad minus
income paid to foreign residents.

• It provides a broader view of a country's income but still lacks a

comprehensive development perspective.
Types of Development Indicators (Economic)

HDI (HUMAN DEVELOPMENT INDEX):

• The HDI combines indicators of life expectancy, education (literacy and school
enrollment), and per capita income.

• It offers a more comprehensive view of development, emphasizing health and

education alongside economic factors.
Types of Development Indicators (Social)

EDUCATION INDICATORS (LITERACY RATE, ENROLLMENT RATIOS):

• These indicators reflect access to and the quality of education, which is a

critical component of human development.
Types of Development Indicators (Social)

HEALTH INDICATORS (LIFE EXPECTANCY, CHILD MORTALITY RATE):

• These indicators measure the overall health and well-being of a population,

highlighting access to healthcare and living conditions.
Types of Development Indicators
(Environmental)

SUSTAINABILITY AND DEGRADATION:

• These indicators assess a nation's environmental practices, including resource

consumption, pollution, and conservation efforts, which are increasingly
important in the context of sustainable development.
 Classification
How can we classify parts of the world according to their level of economic
development and quality of life?
Countries can be classified
as:
• More Economically
Developed Countries
(MEDCs). These tend to
be found in the north
and are richer.
• Less Economically
Developed Countries
(LEDCs). These are
poorer and are found in
the south.
Problem
This map only measures wealth, so is not a very good measure of
development.
 Classification
A better way to classify countries will not just show wealth, but also how quickly countries are
developing.
• Higher Income Countries (HICs). These
have a high GNI per head and a high
quality of life.
• Low Income Countries (LICs). These have
a low GNI per head and a low quality of
life.
• Newly Emerging Economies (NEEs): These
are rapidly getting richer. Their economy
is moving from primary industry to
secondary industry.
Task
Can you match the country, with the correct stage on the DTM?

Problem
This map still has problems because it is just measuring wealth. For example,
Russia’s GNI per head is quite high. However, the country’s wealth is not spread
evenly among its population and many people are very poor.
Create your own map
 Classification
An even better way to classify countries will also show social measures of
development.

The Human Development

Index (HDI) combines
information on health,
education and wealth. It was
created by the United Nations
to measure social and
economic progress.

1= perfect

0 = bad
 How Can We Measure Development?
Economic Indicators Social Indicators
• Gross National Income (GNI) • birth rate
• GNI per head • death rate
• Gross Domestic product (GDP) • Infant Mortality Rate (IMR)
• people per doctor
• literacy rate
• access to safe water
• life expectancy

Task
Use the triangular dominoes to match up the key terms with their correct
meanings.

Problem
You must not look at just one indicator of development, because it can be
misleading.
 Data Sources and
Methodologies to Measure
Development
Data Sources and Methodologies to
Measure Development

DATA SOURCES (UN, WORLD BANK):

• Development data is often collected and disseminated by international

organizations like the United Nations (UN) and the World Bank.

• These organizations use standardized methodologies and extensive global

networks to gather and verify data.
Data Sources and Methodologies to
Measure Development

CHALLENGES IN DATA COLLECTION:

• Collecting accurate and reliable data in different countries can be challenging

due to factors like political instability, data reporting biases, and the absence
of standardized measurement methods.

• These challenges can affect the accuracy of development indicators.

Approaches to Measuring
Development
Gross Domestic Product
What’s a Gross
Domestic Product? Broccoli? I was gonna say
“Preparation H.”

GDP
This is the most important measure of economic
activity.
1. Gross Domestic Product (GDP)

• GDP is the measure most often used to gauge the performance of a

country‘s economy

o Levels of GDP are used in international comparisons

o Rate of change in GDP is what we usually refer to as „economic growth“

o Recessions are usually defined as a fall in GDP

1. Gross Domestic Product (GDP)

• A measure of the total market value of final goods and services newly
produced within a country‘s borders over a period of time (usually
one year)
1. Gross Domestic Product (GDP)

MARKET VALUE

o For most components of GDP, we can simply refer to the market prices of
goods and services to determine their contribution to GDP.
1. Gross Domestic Product (GDP)

FINAL GOODS AND SERVICES

o A good that is ready for use, needing no further processing.

o In contrast, an intermediate good is a good that will undergo further

processing.

o Excluding intermediate goods and services avoids double counting.

Final goods and services
ü a good that is ready for use, needing no further
processing
ü Excluding intermediate goods and services avoids GDP = €4
double counting

€4
€3
€2
€1

wheat flour bread sandwich

Chapter 5
27
1. Gross Domestic Product (GDP)
OVER A PERIOD OF TIME
• GDP measures production during a specific time period, normally a year or a
quarter of a year.

NEWLY PRODUCED
• Only new goods and services are counted.

WITHIN A COUNTRY‘S BORDERS

• The goods and services are produced within the physical borders of the
country.
Measuring Gross Domestic Product
Value of Production = Value of Spending = Value of Income

PRODUCTION APPROACH
• Sums up the Rands value of all final goods and services produced in each
national accounting sector.

SPENDING APPROACH
• Who buys the final goods and services that have been produced.

INCOME APPROACH
• totals compensation received by everyone involved in production
29
Three Approaches of Measuring GDP
Production Expenditure Income

Market value Consumption Labor Income

of final
goods and = =
services
Investment
Government
spending Capital Income
Net exports

30
 South
African GDP
 South
African GDP
 South
African GDP
 South
African GDP
2. Human Development Index
• HDI – A socio-economic measure, it focus on three variables of
human welfare-

(i) life expectancy (health),

(ii) adult literacy( education) and

(iii) real GDP per capital(standard of living)

 2. Human
Development
Index
Literacy Rate
Literacy Rate

• Check B, R, I, C, and SA – anything unusual

• Which regions are high? Weird exceptions?
• Which regions are low? Weird exceptions?
• Why do the former Soviet countries, which is semi-periphery, have a
high literacy rate
Years in School
Years in School

• Check B, R, I, C, and SA – anything unusual?

• Which regions are high? Weird exceptions?
• Which regions are low? Weird exceptions?
 Global inequalities
• The map shows the locations of
LEDCs and MEDCs.

• Most of the southern hemisphere is

less developed, while countries in
the northern hemisphere are more
developed.

Using this simple classification you couldn’t tell which countries were
developing quickly and which weren't really developing at all.
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Quality of life isn't the same as standard of
living
* As a country develops the quality of life and standard of living of people that
live there improves.

* Someone's standard of living is their material wealth.

* Quality of life includes standard of living and other things that aren't easy to
measure e.g. how safe they are or how nice their environment is.
* In general the higher a persons standard of living the higher their quality of life
. But just because they have a high standard of living doesn’t mean they have a
good quality of life.

* Different people in different parts of the world have different ideas about what
an acceptable quality of life.
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 Factors Contributing to
Measurement Disparities
Factors Contributing to Measurement
Disparities

STRUCTURAL FACTORS (HISTORICAL, COLONIAL LEGACIES):

• Historical factors, such as colonialism, can have lasting effects on a nation's

development.

• Explain how historical injustices or advantages continue to influence

disparities today.
Factors Contributing to Measurement
Disparities

SOCIOECONOMIC FACTORS (INEQUALITY, ACCESS):

• Socioeconomic factors like income inequality, access to education, healthcare,

and employment opportunities play a significant role in creating and
perpetuating disparities.

• Discuss how these factors interact and reinforce each other.

Factors Contributing to Measurement
Disparities

POLITICAL FACTORS (GOVERNANCE, STABILITY):

• Political stability, effective governance, and policies that promote

development are critical factors.

• Explore how variations in governance quality and political stability can impact
development outcomes.
 Causes of Uneven Development
Can you list some reasons why some countries are more developed
than others?

Photo courtesy of John Hill (@commons.wikimedia.org) - Photo courtesy of Max Wolfe (@commons.wikimedia.org) - Photo courtesy of Walter Lim (@commons.wikimedia.org) -
granted under creative commons licence – attribution granted under creative commons licence – attribution granted under creative commons licence – attribution

Photo courtesy of Walter Crane (@commons.wikimedia.org)

- granted under creative commons licence – attribution
 Causes of Uneven Development
Use the card sort to organise the ideas into these three categories:
Physical causes Economic causes Historical causes

Photo courtesy of John Hill (@commons.wikimedia.org) - Photo courtesy of Max Wolfe (@commons.wikimedia.org) - Photo courtesy of Walter Lim (@commons.wikimedia.org) -
granted under creative commons licence – attribution granted under creative commons licence – attribution granted under creative commons licence – attribution

Photo courtesy of Walter Crane (@commons.wikimedia.org)

- granted under creative commons licence – attribution
Consequences of Uneven Development
The main consequences of uneven
development are:
• Migration
• Wealth
• Health
Migration occurs if nearby countries have a
much greater wealth, e.g. every year, over
130,000 Mexicans legally migrate to the
USA (and thousands more enter illegally) in
search of a better quality of life.

Task
Use an atlas or the internet to show that different countries have wealth and
health inequalities. Use the activity sheet to record your answers
Strategies to Reduce Disparities

VARIOUS STRATEGIES AND APPROACHES:

• Explore different strategies, such as foreign aid, trade policies, capacity

building, and social programs, that can help reduce disparities.

• Discuss their effectiveness and potential challenges.

Strategies to Reduce Disparities

ROLE OF INTERNATIONAL ORGANIZATIONS AND GOVERNMENTS:

• Highlight the role of international organizations like the UN and governments

in implementing and coordinating development initiatives.

• Discuss how cooperation at the global level is essential to addressing

disparities.