Economic Development and National Income: notes

Measuring income

• GDP (gross domestic product): the value of all goods and services made in a country in a year.
• Per capita income: national income divided by population.
• Economic growth: a rise in real output. Development: better living standards for people, not only more output.
• Real income: income adjusted for price changes.

Developing countries

• Common features: low income, heavy reliance on farming, high birth rates and little capital.
• Indicators: life expectancy, literacy, income per head and access to clean water.
• Causes of poverty: low savings, poor skills, debt, war and drought.
• Aid: help from other countries or bodies, as loans or grants.

Sustainable development

• Meaning: meeting today's needs without harming future generations. Examples are replanting forests and controlling pollution.