INDICATORS OF ECONOMIC DEVELOPMENT

How do we measure it?

INDICATORS OF ECONOMIC DEVELOPMENTPost-Industrial

Agricultural Industrial Service

COMPARING GDP BY SECTOR

U.S. North Korea0%10%20%30%40%50%60%70%80%90%

100%

INDICATORS OF ECONOMIC DEVELOPMENTPost-Material/Post-Modern

Values emphasized by a society

Stages

Pre-Modern Basic Survival

Modernism (Materialism) Values of Industrialism

Materialism Rationalism and Reasoning

POST-MATERIALISM/POST-MODERNISM

Set of values that emphasize “Quality of Life” in addition to material gain.Health CareEnvironmentEducation

GROSS DOMESTIC PRODUCT PER CAPITAThe total value of goods and services produced by an economy, divided by population of the country.

GNP: Includes income earned by citizens outside of the country.

INDICATORS OF ECONOMIC DEVELOPMENTHuman Development Index

Measures overall well-being of society:

Health, education, & income.1= Very Good0= Very Bad

HUMAN DEVELOPMENT INDEX, 2011

1. NORWAY 4. UNITED STATES

187. Dem. Republic of the Congo

Life Expectancy 81 Years 78.5

Years48 Years

Years of Schooling 12.6

Years 12.4 Years

3.5 Years

GDP per Capita $47,676 $41,761 $290

HDI 0.943 0.910 0.286

http://hdr.undp.org/en/statistics/ 2. Australia 3. Netherlands

HUMAN DEVELOPMENT INDEX

Health Education Income HDI0

0.10.20.30.40.50.60.70.80.9

1

NorwayCongo

HIGH LEVEL OF ECONOMIC DEVELOPMENTPost-IndustrialPost-Modern/Post-MaterialHigh GDP per capitaHigh score (close to 1) on HDI