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A typical family with all their possessions in the U.K., an advanced economy Sherif Khalifa () Comparative Development 3 / 35
A typical family with all their possessions in Mali, a poor country Sherif Khalifa () Comparative Development 4 / 35
Definition Gross Domestic Product GDP is a measure of a nation s income, and is the market value of all goods and services produced within a country in a given period of time. Sherif Khalifa () Comparative Development 5 / 35
World map scaled by GDP Sherif Khalifa () Comparative Development 6 / 35
World map scaled by population Sherif Khalifa () Comparative Development 7 / 35
Definition GDP per capita is a measure of living standards in a nation, and is calculated as GDP per capita = GDP Population Country A Country B GDP $1000 $100 Population 10 50 GDP per capita $100 $2 Sherif Khalifa () Comparative Development 8 / 35
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Categories Per capita income Low income $875 Lower Middle income $876 $3465 Upper Middle income $3466 $10725 High income $10726 Sherif Khalifa () Comparative Development 10 / 35
Economies are classified as low income countries, lower middle income countries, upper middle income countries, and high income countries. Developing countries are those with low, lower-middle or upper-middle income. Concentrated in SubSaharan Africa, North Africa and the Middle East, Asia, Latin America and the Caribbean, East Europe and Central Asia. Developed countries are those with high income. Concentrated in Western Europe, North America, Japan, Australia and New Zealand. Sherif Khalifa () Comparative Development 11 / 35
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Example All Rich Poor Income $1000 $900 $100 Population 100 10 90 Income per capita $10 $90 $1.1 Sherif Khalifa () Comparative Development 13 / 35
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30000 25000 20000 15000 10000 5000 0 1000 1500 1820 1870 1913 1950 1973 2001 Western Europe Western Offshoots Japan Asia Latin America Eastern Europe &USSR Africa Sherif Khalifa () Comparative Development 17 / 35
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Doubling Time = 70 Growth Rate GDP Population GDP per capita Growth rate 4% 1% 3% 70 Doubling Time 4 = 17.5 years 70 1 = 70 years 70 3 = 23.33 years Sherif Khalifa () Comparative Development 19 / 35
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Human Development Index attempts to rank all countries on a scale of 0 (lowest development) to 1 (highest development) based on goals of longevity, knowledge, and standard of living. HDI = 1 3 (income index) + 1 3 (life expectancy index) + 1 (education index) 3 Low human development 0-0.499 Medium human development 0.5-0.799 High human development 0.8-1.0 Sherif Khalifa () Comparative Development 24 / 35
Human Development Index Income per capita=$1870 Income index = [log (1870) log (100)] [log (40000) log (100)] = 0.49 Sherif Khalifa () Comparative Development 25 / 35
Human Development Index Life expectancy=63.3 years Life expectancy index = (63.3 25) (85 25) = 0.64 Sherif Khalifa () Comparative Development 26 / 35
Human Development Index Adult literacy=41% Gross enrollment=57% Education index = 2 3 (adult literacy index) + 1 (gross enrollment index) 3 = 2 3 (0.41) + 1 (0.57) = 0.46 3 Sherif Khalifa () Comparative Development 27 / 35
Human Development Index HDI = 1 3 (income index) + 1 3 (life expectancy index) + 1 (education index) 3 HDI = 1 3 (0.49) + 1 3 (0.64) + 1 (0.46) = 0.53 3 Sherif Khalifa () Comparative Development 28 / 35
Human Development Index Sherif Khalifa () Comparative Development 29 / 35
Human Development Index Sherif Khalifa () Comparative Development 30 / 35
Human Development Index Sherif Khalifa () Comparative Development 31 / 35
Human Development Index Sherif Khalifa () Comparative Development 32 / 35
Human Development Index Sherif Khalifa () Comparative Development 33 / 35
Human Development Index Sherif Khalifa () Comparative Development 34 / 35
Why does affl uence coexists with dire conditions not only across countries but also within the same country? Can traditional, low productivity, subsistence societies be transformed into modern high productivity high income nations? What can be learned from the historical record of economic progress in the now developed world? Is underdevelopment a domestically or externally induced phenomenon? To what extent are the development aspirations of poor nations helped or hindered by the economic activities of rich nations? Sherif Khalifa () Comparative Development 35 / 35