Comparative economic dev chapter 2 the developing

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COMPARATIVE ECONOMIC DEV Chapter 2 The developing world has made substantial economic development progress in recent yrs. However, disparities still persist - Output per worker in US (around $48k) is abt 10X higher than in india ($3.6k) and more than 100X higher than in democratic republic of Congo ($340) There are also enormous gaps in measures of welfare - Life expectancy is 79 in the US, 65 in India, and just 48 in DRC - Percent of underweight children is less than 3% in the US but 43% in india and 24% in DRC - Practically all US women are literate while just 51% are in India and 57% in DRC 2.1 Defining the developing world World Bank scheme: ranks countries on GNP/capita - LICs : low income countries ($1025 or less) - LMCs : lower-middle-income countries ($1026-4035) - UMCs : upper-middle-income countries ($4036-12475) - High-income organization from economic cooperation and development ( OECD) countries - Other high-income countries ($12476 or more) Developing countries are those with low-, lower-middle, or upper-middle income Table 2.1 classification of economies by region and income, 2013 2.2 Basic Indicators of development: real income, health and education Gross National Income (GNI)
- Total domestic and foreign output claimed by residents of a country, consisting of GDP plus income - Income produced by one year of residents Gross Domestic Product (GDP) - Produced in a certain country regardless of who it was produced by Purchasing power parity (PPP) Figure 2.2 Income per capita in selected countries, 2011 Overall, the average real (PPP) in high-income countries is more than times that in low-income countries and 5 times higher than in middle-income countries. 2.3 Holistic measures of living levels and capabilities (computing NHDI) Health; life expectancy; education Dimension index = (actual value – minimum value) / (maximum value – minimum value) The component index of NHDI are computed by taking the difference btwn the country’s acc achievement and the minimum goal post value and then dividing the result by the difference btwn the overall maximum goal post and minimum goalpost New human development index Introduced by UNDP in November 2010 Box 2.1 Computing the New HDI: Ghana What is new in the New HDI?
How does the new HDI compare with better-known (but no longer active) traditional HDI?
- If you are doing well in one component you can get rid of another The reformulation now allows for imperfect substitutability which development specialists widely consider a more plausible way to frame the tradeoffs.

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