GEOG 1HB3 Lecture 2: Geography 1HB3 - Measuring Economic and Social Tools
24 Aug 2016
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Measuring development: development: wealth or prosperity, I. e. average income: per capita (per person) income, proxy measures: gdp per capita or gni per capita. Gdp or gni: measures the total value of all materials, foodstuffs, goods, services produced by a country for a particular year. Gni / population = per capita gni (a unit of measurement) Example: world bank - gni per capita by country, ranked into 5 groups. Gni per capita is problematic: the formal economy and not the informal economy. Up to 80% of all economic activity in some countries: variations within a country (i. e. internal inequality, differences in cost of living. An alternative: purchasing power parity (ppp: measures how much of a common market basket of goods and services each currency can purchase locally, the difference in average income becomes less signi cant not insigni cant. Ppp lowers the relative gni in wealthy countries and raises them in poor countries: this compresses the range of incomes.
