Economics and Social Measures of Development

Social and Economic Measures of Development

• Gender Gap: Assesses disparities in privileges between males and females within societies.
• Gender Inequality Index (GII): Comprehensive index considering reproductive health, empowerment, and labor market participation to evaluate gender inequality.
• Human Development Index (HDI): Composite index incorporating Gross National Income (GNI), life expectancy, and educational attainment (expected and average years of schooling).
• Gross National Product (GNP) / Gross National Income (GNI): Measures economic output generated by a nation’s citizens or businesses, irrespective of location.
• Gross Domestic Product (GDP) and Purchasing Power Parity (PPP): GDP reflects total value of goods produced domestically in a year; PPP standardizes comparisons of purchasing power among countries.

Women and Economic Development

• Impact of Low Birth Rates: Contributes to increased female workforce participation.
• Transnational Corporations: Create more employment opportunities for women in developing nations by opening factories and hiring women due to lower wage expectations.

Theories of Development

• Rostow's Stages of Economic Growth: Conceptual framework describing a linear progression through five stages: traditional society, preconditions for take-off, take-off, drive to maturity, and high mass consumption.
• Wallerstein's World Systems Theory: Dependency model indicating that nations are interconnected and categorized into core, semi-periphery, and periphery based on their economic roles.

Economic Sectors

• Primary Sector: Involves extraction of natural resources (e.g., agriculture, fishing).
• Secondary Sector: Concerns processing and manufacturing (e.g., factories).
• Tertiary Sector: Service-oriented activities supporting primary and secondary sectors (e.g., retail, transportation).
• Quaternary Sector: Focuses on knowledge-based activities like research and education (e.g., banking, higher education).
• Quinary Sector: Represents high-level decision-making roles, including government officials and executives (e.g., CEOs, Congress).

Key Economic Terms

• Gross National Income (GNI): Total income earned by individuals and corporations in a nation, including overseas earnings.
• Gross Domestic Product (GDP): Total monetary value of all goods and services produced within a country.
• Remittances: Money sent by immigrants back to their home country, supporting family and local economies.
• Per Capita Income: Average income per person, calculated by dividing GNI by the population.
• Purchasing Power Parity (PPP): Adjusts income measures to reflect the cost of living and inflation differences across countries.

Additional Concepts

• Gini Coefficient: Ranges from 0 to 1, measuring income inequality; higher values indicate greater disparity.
• Life Expectancy: Average number of years a person is expected to live; linked with developmental status.
• Literacy Rate: Percentage of a population that can read and write at a certain education level, typically 8th grade or higher.
• Informal Sector: Economic activities that are not monitored or taxed by governments, often significant in less developed countries.
• Microloans: Small loans aimed at facilitating economic growth for individuals or small businesses.
• Glass Ceiling: Metaphor for invisible barriers preventing women and minorities from advancing into top positions in business and government.
• Commodity Dependence: Economic reliance on export commodities; fluctuations in commodity prices can adversely affect development.

Dependencies and NGOs

• Dependency Model: Wallerstein’s concept that countries rely on each other within a global system, leading to varying levels of economic development.
• Non-Governmental Organizations (NGOs): Independent organizations focused on humanitarian and social issues, often working outside government frameworks.

This quiz explores the social and economic measures of development, including the gender gap and Gross National Income (GNI). Understand how these metrics impact societal progress and economic growth. Test your knowledge on the essential concepts and their implications for development.