Classifications of Economic Development
- Development is defined as:
The progress of a country as it becomes more economically and technologically advanced
- It refers to positive changes in people’s quality of life, such as happiness, educational opportunities, increased incomes, human rights, access to clean water and healthier living conditions
- These different components are not independent of each other but linked: For example health and environment are dependent on income and they in turn may impact happiness:
- Physical: Water supply, housing, power and heat, climate, diet and nutrition etc
- Social: Family and friends, education, health etc.
- Psychological: Happiness, security, freedom etc.
- Economic: Income, job security, standard of living, mobility etc
- Development does not happen in a smooth, continuous process.
- It can be slowed, halted and even reversed through:
- War/conflict
- Disease
- Disasters
- Economic recession
- Development can occur through:
- Investment in agriculture (tractors, fertilisers etc.) improves food supplies, which in turn, improves the health of people
- Improvements in supplies of power to rural areas
- Improvements in access to education for females and overall literacy rates
- Levels of development vary on a local, national and international scale
- There are differences between areas of the same city, the same country and between countries
- Germany is more developed than Mexico, but Egypt is less developed than Mexico
- At an international level the development of a country can be categorised into one of three groups:
- Low Income countries (LICs): Most people have a poor quality of life with inadequate services and few opportunities
- Newly Emerging Economies (NEEs): Countries experiencing rapid economic growth and development based on industrial development. Incomes are rising and most people enjoy a reasonable standard of living
- High Income Countries (HICs): Countries that have modern industries and people enjoy a good standard of living with relatively high levels of income
- The differences between less and more development is known as the development gap