Economic Development

Step 1:

Democratic Republic of Kongo: There is a lot of progress to be made in this country. It has experienced 20 years of brutal conflict, and is dealing with poverty, disease, and a corrupt government. All of these factors contribute to a hinderance of growth within the country.

Brazil: Education has improved over the last 4 years. This was measured by school attendance.

Indonesia: The country has experienced urbanization, democratization, and living standards are rising in rural and urban areas. Women have greater opportunities in all aspects of life. There are more job types in Indonesia than previously, and people are finding it easier to find a job.

Kenya: Farmers are getting irrigation systems. Schools are being built to improve education within the country. Residents have more disposable income which allows them to educate their children. People have greater opportunities to attend college.

Step 2:

Latvia: 48

Russian Federation: 57

Niger: 187

Latvia has the highest HDI ranking amongst Russia and Niger and itself. The life expectancy in Latvia is 74. For Russia it is 69, and for Niger it is 59. There appears to be a correlation between life expectancy and HDI rank. GDP per capita in USD for Latvia is 23,337. For Russia it is 25,248, and for Niger it is 1,052 USD. The population of Latvia is 2,041,111, Russia 142,467,651, and Niger 18,534,802.

Step 3:

Chosen indicators: life expectancy, child mortality, income per person, food supply, and primary completion of school % total.

Primary completion of school % total (~1970-2005): Niger from 10% to 40%, Russia 90% to 90%, Latvia 70% to 90%.

Life expectancy (years) (1800-2000): Niger from 30 to 55, Russia 30 to 73, Latvia 30 to 75.

Child mortality (0-5 year-olds dying per 1,000 born) (1800-2000): Niger 433 to 96. Russia 419 to 9.6. Latvia 405 to 7.9.

Income per person (1800-2000): Niger from 446 to 804. Latvia from 751 to 11,790. Russia from 1430 to 13,900.

Food supply (kilocalories/per person & day) (1992-2005): Niger from 1,925 to 2,245. Latvia from 3,272 to 3,054. Russia from 2,926 to 3,226.

Step 4: 

Step 5:

Russia's biggest obstacle is reducing CO2 emissions. It, by far, has the greatest amount of CO2 emissions per person. Overall, the amount has been increasing throughout the years. Russia could overcome this obstacle by investing in renewable energy sources.

Niger's child mortality rate and life expectancy is the lowest among the three countries. Niger could overcome this obstacle by improving nutrition and healthcare.

Latvia's population has been decreasing over the last couple of years. This may reduce the amount of people in the workforce and therefore reduce output. Latvia could overcome this obstacle by making its country a more attractive place to live in. A big reason why people move out is for college or higher wages in other countries. Investing in improving college education and increasing wages in Latvia may address this issue.

Reflection Questions:

What are the weaknesses and strengths of the Human Development Index (HDI) as an indicator of progress in comparison to GDP/GNP per capita? (Total 5 marks)

The HDI comprises of factors such as: GDP per capita, percentage of people receiving education in a certain age group, and life expectancy. It is used to measure economic development. HDI has the following strengths. It is widely used by most countries, and therefore it is possible to compare economic development between countries. It reveals general global trends, and can indicate improvements in the country's infrastructure when factors such as life expectancy improve. Despite its advantages, it does have disadvantages. Data from developing countries might be inaccurate and difficult to confirm. HDI does not address the availability of education between social classes. Wealthy students may be able to pursue extensive education; however, less wealthy individuals may not even be able to attend grade school.

As for GDP per capita, it has a number of advantages. First of all, GDP per capita indicates how much income individuals have. Greater GDP per capita might indicate better living standards. However, GDP per capita does not address inequality. There may be many individuals with a low GDP per capita, while a few individuals have an abnormally large GDP per capita. This could create the illusion of most people having reasonable income. GDP per capita also doesn't include household items, bartering, volunteer work, or black market activities. GDP per capita is more financial. The country of interest may be progressing in other regards, such as improving education; however, GDP per capita will not show this progress. Therefore, the HDI is a better measurement of progress, because it accounts for a wider range of variables that overall lead to a better understanding of a country's conditions. 

Explain two reasons why increased investment in education is essential for development in developing economies. (Total 4 marks) 

Increased investment in education is essential for development in developing countries, because in developing countries there are many individuals who cannot receive a primary education to due financial constraints. Increased investment in education will most likely increase school attendance. This will lead to more people getting educated, and in the long run will allow for a more diverse workforce to emerge. More people will be able to have careers in engineering, medicine, or law. The country will then be able to switch from manufacturing introductory or secondary products to perhaps tertiary. This will stabilize their exports by having a greater variety of goods and services to offer, so that when there are fluctuations in the market, the country does not suffer too severely.

What evidence would indicate to an economist that a country is experiencing economic development as well as economic growth? (10 marks) 

The following indicators could provide evidence of the country experiencing economic development: increase in food supply per person, increase in the literacy rate, improved health, increase in life expectancy, increase in income per capita, or improvement of environmental standards. There are of course other indicators, but if an economist found these indicators to be increasing, they could hypothesize that the country is experiencing economic development. The factors should not, however, be examined separately, because while one indicator may be improving, the rest could be getting worse.

As for economic growth, the following indicators could provide evidence of the country experiencing economic growth: infrastructure improvements, such as better roads, improved housing; an improvement in GDP would indicate that the country is producing more goods/services; or a decrease in the unemployment level. While there are other indicators, an improvement in these indicators could hint at economic growth. Of course, they must not be studied separately, while one may improve, another may get worse.

Evaluate the strategies (based on your findings in gapminder) that may be used to achieve economic development. Refer to real world examples in your answer. (15 marks)

A good indicator of economic development is life expectancy. In 1990 the life expectancy in Niger was 47 years. The overall access to water was 35% that year. In 2010, however, we see that life expectancy rose to 61 years while the overall access to water was 49%. As access to water improved, life expectancy improved. In 1995 the life expectancy in Niger was 50 years, and 3.4% of GDP was spent on healthcare. In 2010, however, life expectancy is 61 years and 5.2% of GDP is spent on healthcare. Once again, as healthcare gets greater investment, life expectancy improves. There are many other ways that economic development could be achieved in Niger. As a greater percentage of the population is completing primary education, life expectancy has been increasing. We see that various factors contribute to economic development within Niger. As a result, they, possibly, have lead to an improvement in life expectancy.