Measuring Development

GDP• Gross Domestic Product• Value of total output of goods and services within a country in a year- p.276

• PER CAPITA

• MDCs - $30,000• LDCs - $3,000

Y = C+I+E+GY = GDP

C = Consumer Spending

I = Investment made by industry

E = Excess of Exports over Imports

G = Government Spending

GNP• Gross National Product• Total value of officially recorded goods and services produced by citizens and corporations.

• Broader than GDP (inside & outside territory)

GNP FormulaConsumption + Government Expenditures + Investments + Exports + Foreign Production by US Companies – Domestic Production by Foreign Companies = Gross National Product

GNI• Gross National Income• Monetary worth of a country’s production PLUS income received from investments.

• More accurate in terms of global economy.

• Japan - $31,410• USA - $41, 950• Luxembourg - $65,340• India - $3,460

Literacy Rate• % of people who can read and write (p. 292)

• Exceeds 98% in MDCs

• Lower than 60% in LDCs

Life Expectancy• Average # of years a newborn can expect to live.

• 60s in LDCs• 70s in MDCs

HDI• Human Development Index• A country’s development is

comprised of economic, social, and demographic factors!

1. GDP2. Literacy Rate3. Amt. of Education4. Life Expectancy

The Brandt Line (382,302)

The Brandt Line

The Brandt Line