Professional Documents
Culture Documents
Developin
g
Economies
Countries
Rank
Country
1
2
GDP per
capita ($)
Qatar
102 800
Liechtenstein 89 400
1
2
3
4
5
6
Luxembourg
Macau
Bermuda
Singapore
3
4
5
6
Congo
Zimbabw
e
Somalia
Burundi
Liberia
Eritrea
80
74
69
60
700
900
900
900
GDP per
capita ($)
400
500
600
600
700
800
progressive tax systems to reduce the wide gap between the rich and poor members of the
country. Higher-income groups pay a higher percentage of their incomes in tax, with the tax
proceeds being used by the government to support the lower-income groups or those
without any income.
Government transfer payments give the unemployed and disadvantage financial assistance
to meet their basic needs. Examples of transfer payments are unemployed benefit, state
pension funds for the elderly and child benefit. This helps to provide a social safety net to
ensure that every citizen has access to basic necessities.
Government provision of basic services such as health care services, education and
housing. This helps to improve access to such basic services for everyone and narrows the
gap between the rich and poor.
Monetary policies
Low interest rates can encourage borrowing and investment to increase spending in the
economy. In the long run, this can help to create more jobs and alleviate the problems of
poverty.
Low exchange rates can encourage export sales, as the price for foreign buyers is lower. As
higher export earning help to boost GDP, this can also help to create more jobs and wealth
in the economy over time.
Supply-side policies
Policies to increase the quantity and quality of education in the economy. Over time, this will
help to improve the human capital and productive capacity of the country.
Sustained economic growth, which helps to crease more income and wealth for the country.
This can then be redistributed to the deprived and underprivileged members of society.
Labour market reforms to improve the efficiency and productivity of the workforce. The
introduction of a national minimum wage, or improving a higher minimum wage rate, or
imposing a higher minimum wage rate, can improve the standards of living for low-income
households.
Development aid this is official financial assistance from governments and agencies such as the
World Bank to fund the economic development of a country, thus helping to alleviate poverty in
the long run.
Foreign aid can be a stimulus for reducing poverty, inequalities and unemployment in the
economy. Successful foreign aid programs help to increase the countrys productive capacity,
thus shifting out its production possibility curve.
according to Malthus, population growth occurs at a geometric rate: that is, it grows at a common
ratio of 2(1,2,4,8,16,32 and so forth) whereas food production only grows at an arithmetic rate
(1,2,3,4,5). If he theory materialized, this would mean that population growth would eventually
exceed food output for the population.
Less economically developed countries are developing countries with low GDP per capita, so
their standards of living are generally poor.
More economically developed countries are developed countries with high GDP per capita, so
their standards of living are generally good.
As an economy develops, there tends to be a shift away from reliance on primary and
secondary sector production towards tertiary output. In general, countries with a low level of
GDP per capita are at their early stages of economic advance, the majority of their gross
domestic product is generated from the secondary sector. Finally, in economically developed
countries with a high income per capita, the tertiary sector accounts for the largest share of
employment and of the countrys GDP.
discuss the reasons why some people are worried about world
population growth
ask Mr Rodger to explain the Demographic Transition
explain what is meant by stages of development
explain the consequences of population change for countries at
different stages of economic development
how does development influence the employment structure of
the economy
be read from a population pyramid, and this can shed light on the
extent of development and other aspects of the population. A
population pyramid also tells how many people of each age range live
in the area. There tends to be more females than males in the older
age groups, due to females' longer life expectancy.
While all countries' population pyramids differ, four general types have
been identified by the fertility and mortality rates of a country.
Stable pyramid
A population pyramid showing an unchanging pattern of fertility and
mortality.
Stationary pyramid
A population pyramid typical of countries with low fertility and low
mortality, very similar to a constrictive pyramid.
Expansive pyramid
A population pyramid that is very wide at the base, indicating high
birth and death rates.
Constrictive pyramid
A population pyramid that comes in at the bottom. The population is
generally older on average, as the country has long life expectancy, a
low death rate, but also a low birth rate. This pyramid is becoming
more common, especially when immigrants are factored out, and is a
typical pattern for a very developed country, a high level of education,
easy access to and incentive to use birth control, good health care, and
few negative environmental factors.
The changing size and structure of the population also has effects on
an economy. It has an impact on the following:
Firms the demand for, and supply of, labour will change following
long-term changes in population trends. For example, rapid
population growth should increase the future supply of labour. By
contrast, the combination of low birth rates and net emigration will
reduce the future supply of workers in the country. According to the
World Health Organization, a staggering 2 billion people will be
aged 60 years and over by 2050 more than triple the number in
2000. By the end of 2012, only Japan had more than 30 per cent of
its population aged at least 60, but some 64 countries are
expected to have reached this figure by 2050. The ageing
population of these nations, especially in the case of high-income
countries, will have profound impacts on the future supply of
labour.
Government a growing population can bring about benefits if it
means the government is able to collect more tax revenues from a
larger workforce. However, it can also mean added pressure for the
government to provide more public services, welfare benefits and
state pensions. As a result, many governments have introduced
compulsory pension savings schemes and have risen official
retirement ages. For example, France increased the retirement age
from 60 to 62 years in 2011, with plans to increase this gradually
to 68 years of age.
The economy continual population growth puts more pressure on
an economys scarce resources. This can lead to inflationary
pressures or an increase in the demand for imports if the country
cannot produce enough to meet the needs and wants of the
population. For example, land in prime locations is scarce, so a
larger population in these areas is likely to force land prices to soar.
Inflation can create problems for the economy and cause economic
growth to slow.
The natural environment an increase in the size of a population
also put strain on the environment. Non-renewable resources are
depleted in the production process and the increased level of
production also puts strain on the natural environment. For
example, pollution and traffic congestion are by-products of
overpopulated regions of the world.