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Ecomomics evelopment 10th y p todaro and smith chapter 02

Chapter 2
Comparative
Economic
Development

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Country Classifications
World Bank ranks countries on GNI per capita



Low Income Countries (LIC)



Low Middle Income Countries (LMC)




Upper Middle Income Countries (UMC)



High Income Countries (HIC)



Organization for Economic Cooperation and Development (OECD)

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Classification of Economies by Region
and Income in 2007

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Classification of Economies by Region and
Income, 2007
(Latin America and the Caribbean)

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(Sub-Saharan Africa)

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Classification of Economies by Region and
Income, 2007

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Nations of the World, Classified by
GNI Per Capita

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Measuring Development


Gross National Income (GNI)



Gross Domestic Product (GDP)



Purchasing Power Parity (PPI): method instead of exchange rates as conversion factors

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Income Per Capita in Selected
Countries

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Comparison of Per Capita GNI, 2005

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Basic Indicators of Development
• Health Conditions
• Life Expectancy
• Education Achievements
• Human Development Index (HDI): a composite
measure of living standards
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Commonality and Diversity:
Some Basic Indicators

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Human Development Disparities

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Human Development Disparities

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Human Development Index:
23 Countries, 2004

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Human Development Index:
23 Countries, 2004

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Human Development Index Variations:
Similar Incomes, 2004

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Common Characteristics of LDCs:

1. Lower levels of living and productivity

2. Lower levels of human capital investment (health-care, education, skills)

3. Higher levels of income inequality and poverty

4. Higher population growth rates

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Shares of Global Income, 2005

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Most and Least Populated Countries
and Their Per Capita Income, 2005

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Child Mortality Rates, 1990 and 2005

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Primary School Enrollment and
Pupil-Teacher Ratio

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Correlation between Child Mortality
and Mother’s Education

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People Living in Poverty, 1981-2002

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Common Characteristics of LDCs:

5. Greater social fractionalization
6. Larger rural population, but
rapid rural-urban migration
7. Lower levels of industrialization and
manufactured exports
8. Adverse geography and resource endowment
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Urban Population in LDCs

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