MEANING AND MEASURES OF DEVELOPMENT

Transcription

1 MEANING AND MEASURES OF DEVELOPMENT PROFESSOR RODDY FOX 1

2 Outcomes of this Module Demonstrate a reasoned understanding of spatial variations at the global scale of selected development characteristics Describe and show a critical understanding of the spatial and temporal evolution of the world economy Describe and show a critical understanding of demographic change and the processes driving population increase Demonstrate an appreciation of the economic and demographic challenges the world currently faces. 2

3 Introduction Gapminder s Ignorance Survey Norway, Sweden, UK, USA, simple questions about key aspects of global development... Environment, Health, Energy, Gender, Economy, Demography and Governance. When we encounter ignorance, we want to find a cure. 3

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5 [Socrates] was accustomed to say that he did not himself know anything, and that the only way in which he was wiser than other men was that he was conscious of his own ignorance, while they were not. Guthrie, W.K.C. (1968). The Greek Philosophers from Thales to Aristotle. New York: Harper & Row. p74. Ignorance Survey: GOG102 (Rhodes University), IPPE 2014 & IPPE

6 What is Development? 6

7 A Process? 7

8 A Perception? 8

9 A Potential? 9

10 Different Measures Stanton (2007: 10) The most common measure of aggregate human well-being is now as it has been for over 50 years national income, usually expressed as per capita gross national product (GNP) or per capita gross domestic product (GDP). Criticisms of national income as a metric for social welfare have a long history and are by no means confined to economists UN s System of Statistical Tables shows how to construct national income accounts. 1990s GDP supplanted GNP as the most common measure of national income. 10

11 EXPENDITURE FORMULA FOR GDP Y = C + I + E + G Y - GDP C - CONSUMER SPENDING I - INVESTMENT MADE BY INDUSTRY E - SURPLUS/DEFICIT OF EXPORTS OVER IMPORTS G - GOVERNMENT SPENDING GDP/PER CAPITA divides GDP by total number of people 11

12 The level of per capita income attained by a group of people is often presented in a static way. It is commonly used to show development in one single index. Geographically defined (eg nation or region, urban or rural). The following tables and maps show these levels... 12

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15 GDP at Purchasing Power Parity: GDP (PPP) Top Ranked Countries in

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18 GDP Per Capita (PPP) Top Ranked Countries in 2013

19 Data from: CIA s World Factbook 19

20 Development can also be evaluated dynamically. Slim (1995: 144-5) quotes Clarke s (1991) definition of development: Development is not a commodity to be weighed or measured by GNP statistics. It is a process of change that enables people to take charge of their own destinies and realize their full potential. It requires building up in people the confidence, skills, assets and freedoms necessary to achieve this goal. 20

21 Barrow (2001: 4566) Attempts to define development reflect the current values of those making the definition, it is therefore difficult to agree one definition that is universally accepted and precise. Some see it as a learning process, others argue it is positive social transformation. Another definition that is widely accepted in the West is: an ambiguous term for a multidimensional process involving material, social and organizational change, accelerated economic growth, the reduction of absolute poverty and inequality. 21

22 Animation from: Gapminder World 22

23 Gapminder is Multidimensional and Dynamic: Health, Wealth and Time A Three Trajectories Health B C of Change Caused by Different Processes Wealth Time 23

24 GDP Per Capita (PPP) & Life Expectancy SOUTH AFRICA & SWEDEN

25 Multidimensional Indices The United Nations Development Programme s (UNDP) Human Development Index (HDI) Human Sustainable Development Index (HSDI) HDI combines Education, Health, Wealth, Time. HSDI also adds the Environment 25

26 Human Development Index 2014 Very High Very Low 26