The great reversal d healthy life is a basic

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Unformatted text preview: lowdown hild mortality and slowing me poverty and inequality. —the great reversal d healthy life is a basic indicapabilities. Inequalities in this ost fundamental bearing on able mortality—the excess risk of dying before a specified age in comparison with a population group in another country. With the high-income country average as a point of comparison, over half of mortality in developing countries is avoidable. Adults ages 15–59 Education Growth vs. Development ì༎  Economic Growth: Refers to a rise in real na1onal income per capita. The benefit being that this is a rela1vely objec1ve measure of economic capacity. It is easy to measure and easy to compare across countries. ì༎  Economic Development: Unlike economic growth, there is liCle consensus on how to define economic development. Typically, economic development is referred to as improvements in basic health and educa1on. Other indicators may include movement away from agriculture to manufacturing and services, improvement in the environment, economic equality, or increases in poli1cal freedom. These indicators are obviously much more difficult to measure. ì༎ Economic Growth National Income ì༎  Gross Domes4c Product (GDP): The total value of finished goods and services that are produced within a country’s borders during a given year. ì༎  Gross Na4onal Product (GNP): The total value of finished goods and services that are produced by the members of a society within a given year. Measuring GDP: What is Left Out? ì༎  GDP only measures those goods and services that are sold in the formal market. Therefore it ignores all goods and services that are transacted in an informal seKng. ì༎  In developing countries, a large por1on of transac1ons are conducted in informal seKngs (unpaid family labor, black market, etc.). ì༎  In fact Colombia’s labor force is comprised of nearly 50% unpaid family labor. Measuring GDP: What is Left Out? ì༎  In poor countries much of what is produced by farm labor is consumed by the producing family and therefore never enters the GDP figure. ì༎  Poor countries are dispropor1onately misrepresented by GDP figures. ì༎  As economies grow, more transac1ons occur in the market (which are then counted in GDP), this may overstate economic growth. Exchange- Rate Conversion Problems ì༎  Because countries use different currencies, their...
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