Chapter 9

Economic growth and development

Chapter 9

Economic growth and developmentLesson 1 (1Hr)

Unit 1: Methods of Development

Economic Development

Economic Development

Economic Development refers to an increase in the standard of living of the people in a country.

Economic Development includes aspects such as:» Health… » Education…» Infrastructure…» General living conditions…

Economic Growth is necessary for Economic Development to materialize...

Unit 1: Methods of Development

1.1 Measuring Levels of development

Developed Countries Developing Countries

More Developed Countries (MDCs)

Less Developed Countries (LDCs)

Industrialised Industrialising

Rich economies Poor economies

Examples?

Differences in level of development within Developing countries?

Unit 1: Methods of Development

UN releases its Human Development Index (last released in 2013), which measures the level of development in countries. How?It considers three main aspects of the population of individual countries:Used as a measure of development in countries. Can be used for comparitive purposes.Takes 3 main aspects of development into account:HealthEducationLiving Standard

Unit 1: Methods of Development

UN releases its Human Development Index, which measures the level of development in countries.

How?

It considers three main aspects of the population of individual countries:

Namely: 1. Health

2. Education 3. Living Standard

Unit 1: Methods of Development

Unit 1: Methods of Development

HDI close to 1 = GOOD

Very High Human Development: 0.8-1High Human Development: 0.7-0.8Medium Human Development: 0.55-0.7Low Human Development: Anything less than 0.55…….

HDI Numbers -> ExcelMap:http://hdr.undp.org/en/data/maphttp://hdi.s3.amazonaws.com/dataviz.htmlhttp://www.zolabo.com/projects/hdi/http://schiff.co.nz/interactive/hdi/

Chapter 9

Economic growth and developmentLesson 2 (30min)

Unit 1.2: Methods to improve levels of Development

Economic Development

RECAP of yesterdaya. Economic Development includes aspects such as?b. Key terms & differences between Developed and Developing Countriesc. How is the HDI compiled and what is it used for?

Economies can either:

• Develop

• Stagnate

• Regress

Let’s compare the development of 5 countries by using the HDI as a measure of development.

Refer to Excel activity

Methods to improve levels of development

• Making the most of natural resources• Development of industries• Development of human resources• Building economic partnerships• Capital formation through savings & investments

Cycle of underdevelopment:Low Savings

result in Low Investment resulting in less opportunities and Income per capita remains Low

Figure 9.3 on Page 181

Methods to improve levels of development

The New Way of Thinking…

Focus shifting towards the QUALITY of economic growth in a bid to make it more SUSTAINABLE.

Sustainable Development: Environment, social and economic resources have to be managed in such a way that it meet the needs of the current and future generations.