Going Boldly
Going Boldly
1. Gross Domestic Product - (GDP) per capita, which is the total value of goods
and services produced in a country divided by the total population.
What Is GDP? | How Does GDP Measure The Health Of An Economy?
GDP
Indicators of development
2. Gross National Income - (GNI) per capita, which is the total value of goods
and services produced in a country plus income from foreign investments
divided by the total population.
● The most commonly used measure of a ● GNP/GNI is the total income that is earned by
countryʼs national income. a country’s factors of production regardless of
● Defined a total of economic activity in a where the assets are located.
● Example: Nike’s profits would now count for US
country, regardless of who own the not China’s since a US company actually owns
productive assets. the assets.
● Example: Nike (US-MNC) working in China ● GNI = GDP + income earned from assets
counts for Chinaʼs GDP, NOT US. abroad - income paid foreing assets operating
● GDP has to do with the physical location, domestically (Volkswagen or non US company)
where it's actually made! ●
● Trapped within geographical area!
● China is a domestic house, economic
activity goes in Chinaʼs gross domestic
product.
Why US GNP is higher than GDP? (Discuss)
Why US GNP is higher than GDP? (MNC companies)
ANSWER:
The GNP of the United States is $250 billion higher than its GDP
due to the high number of production activities by U.S. citizens in
overseas countries like MNC companies like Amazon or Apple.
There are problems, however, in using just one economic indicator. GNI per
capita only measures the wealth of a country and does not take into account
how the money is spent and the quality of life of the majority of people.
These figures are averages which can be skewed by a few very rich people
holding the majority of wealth. They do not consider geographical differences
between urban and rural areas and between poor shanty towns and richer
inner city areas within the same country.
PROBLEMS
Money received from abroad such as foreign investment and economic development
aid. GNI per capita only shows economic development and says nothing about
whether people in a country have a good standard of living . It is an average and may
hide differences in wealth within a country.
SOCIAL INDICATORS
2. Number of babies born per 1000 women per year (Birth rate)
3. Number of babies born per 1000 who die before the age of one
(Infant mortality rate)
SOCIAL INDICATORS
● In 1990 the United Nations argued that income growth alone did not give
a true picture of development and that both social and economic
indicators should be examined.
● The Human Development Index (HDI) was devised. It considers three
aspects of development: real income per capita, adult literacy and life
expectancy.
● Each year the Human Development Report is published by the UN
in which the HDI is used to rank the level of development of each
country. In the report countries are categorized by their stage of
development in four groups: very high, high, medium and low.
● For example, urban residents buy more alarm systems for their
homes and cars, self-defense classes, and stress medication.
Some economists refer to these products as "bads" rather than
"goods".
Suppose you live in a rural area. If you move into the city,
you can change to a job that pays you $1000 more per
year. Suppose urban life causes you to spend $1000 per
year on things you did not need living in a rural
environment.
● Yet, having higher per capita real GDP might not mean
people have a better quality of life if the air, water, and
other resources are more polluted.
4. GDP does not consider how leisure contributes to the quality of life.
1. Itʼs Cheap!
● Because of the technologically advanced world, India argues that the cost of the
latest launch was not huge by international standards.
● With an expected life span of 10 years, the operating cost per year is narrowed
down further - to a level that India's space industry claims is "very cheap".
Poverty First, Moon Next?
● The United States, France and Russia hold nearly 75% of the
nearly $6bn (£4.6bn) satellite launch industry - one that is
increasingly lucrative (profitable and money-making).
Poverty First, Moon Next?
● In a multibillion dollar industry, India has just a share of just above 0.5% -
while China has 3% of the market, according to the Satellite Industry Association.
● In the past India was unable to lure customers for their satellite launches due to
its launch vehicle constraints, making the nation heavily dependent on France
for its launches.The rocket will reduce the Indian Space Research Organisation's
(Isro) reliance on European vehicles to launch heavy satellites.
● With the latest launch, India has sent a strong message to the international
community that a low-cost alternative is available.
● It recently successfully launched 104 satellites of varying sizes in one go, enhancing
its credibility.
● Analysts say with its lower costs, India could become a hub for the growing satellite
launch industry.
● India has so far relied on other countries to send heavy satellites into space, which
is expensive and a drain on Isro's budget.
● The rocket is as heavy as five Jumbo jets. And the weight matters because
communication satellites are quite heavy.
● Experts say the rocket gives India more flexibility in launching different kinds of
satellites.
Poverty First, Moon Next?
4.)Encouraging others
● Millions in India still don't have access to clean drinking water, uninterrupted power
supply, toilet facilities, road and rail connectivity among others.
● But successive governments have argued that spending on science and technology leads
to all-round social development.
● India hopes it will encourage developing nations to use them for their launches rather
than the Western nations.
The rocket launched by India is said to be the weight of 200 fully grown elephants
INDIA’S BRAIN DRAIN?
● Outward migration or emigration by the highly-skilled and highly-qualified, to
migrate in search of better opportunities and quality of life.
● Brain drain is defined as the migration of health personnel in search of the
better standard of living and quality of life, access to advanced technology
and more stable political conditions in different places worldwide.
The scale of destruction caused by the 2004 Indian Ocean tsunami pushed the
international community to develop the concept of ʻend-to-end, people-centered
earlyʼ warning systems. Its goal is to ensure that no one is left behind when disasters
strike. This video highlights the four key elements.
Elements of End-to-End, People-Centered Early Warning