Learning Objectives
Chapter Overview
Key skills you will develop by the end of Chapter 3: Social and Economic Development.
Define development and distinguish EDI from HDI
Explain GDP, GDP per capita and Purchasing Power Parity (PPP)
Investigate economic indicators: economy, education, health, trade, industry, stability, wildlife
Describe the HDI: three dimensions and four indicators
Evaluate Pakistan’s current position on the HDI
Explain how inflation and unemployment affect development
Evaluate the impact of technology and the role of the OECD
Geography: Social and Economic Development — Complete Notes
Full chapter Q&A with GDP, PPP, HDI, inflation, unemployment, technology and OECD: PDF format
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Part 1
What is Development?
The meaning of development and how it is measured.
Development & Welfare
1. What is meant by development? Define it.
• How can development be defined?
Development is the improvement in people’s freedom to choose and the expansion of their capabilities, so that people can meet their basic needs and live a comfortable, satisfying life. When people are economically sound, the result is social welfare.
2. What does development refer to, and what does it include?
• Development refers to the aggregate of what?
It refers to the aggregate of the satisfaction of all individuals of a society. Development includes both the social and economic welfare of the people of a region.
3. What are the two broad categories of development indicators?
• Name the two factors that affect development.
The two categories are Economic Development Indicators (EDI) and Human Development Indicators (HDI). The two factors that affect development are inflation and unemployment.
Part 2
Economic Development Indicators (GDP & PPP)
Measuring the economy: GDP, GDP per capita and Purchasing Power Parity.
GDP and PPP
4. Define GDP. What does it measure?
• What does GDP stand for?
GDP = Gross Domestic Product: the total monetary or market value of all finished goods and services produced in a country during a specific time. It is the nation’s total economic output.
5. What is GDP per capita?
• How is GDP per capita worked out?
GDP per capita is the GDP and total product taxes divided by the mid-year population of the country. An increase in real GDP shows the economy is performing well.
6. What is GDP at Purchasing Power Parity (PPP)?
• What does PPP stand for?
PPP = Purchasing Power Parity: an exchange rate that removes the price-level difference between countries, allowing a fairer comparison of economies.
7. Which were the largest economies by PPP GDP in 2022?
• According to IMF estimates, who topped PPP GDP?
By IMF 2022 estimates, the largest economies by PPP GDP were China (largest), the US (second) and India (third).
Learn the top three order: China → US → India.
Part 3
EDI: Economy, Education & Health
How income, education and health show a country’s development.
Economy, Education & Health
8. What indicates a poor economic condition of a population?
• What four things are checked for the economic condition of the population?
The percentage of population with income below basic needs, the percentage malnourished, lack of safe drinking water, and poor sanitation facilities. A developed nation provides food, shelter, clean water and sanitation.
9. How is education an indicator of development?
• Why does an educated population help a country?
The literacy rate and the mean years of schooling indicate development, because an educated and skilled population develops faster.
10. How is health used to measure development?
• What is the WHO standard for medical staff?
The number of doctors per 1,000 people and life expectancy show development. The WHO recommends at least 2.5 medical staff per 1,000 people; Pakistan had 1.12 per 1,000 in the 2019 report.
Part 4
EDI: Trade, Industry, Stability & Wildlife
The remaining economic indicators of development.
Trade, Industry, Stability & Wildlife
11. How do trade and infrastructure indicate development?
• Which infrastructure examples show development?
Quality of roads, railways and airports, better transport and open international-trade policies help nations flourish in trade.
12. How is industrialisation used to judge development?
• What does dependence on agriculture vs manufacturing show?
If an economy depends totally on agriculture, it is not well developed. More manufacturing and less agriculture is a sign of development.
13. Why do political stability and wildlife diversity matter?
• What benefits come from wildlife diversity?
Political stability and security provide a conducive environment for development. Wildlife diversity gives pollinators, pest control, food, medicines and genetic resources, but is threatened by habitat loss and illegal trade.
Part 5
Human Development Indicators (HDI)
The HDI: dimensions, indicators, and Pakistan’s position.
HDI & Pakistan
14. What is the HDI and who designed it?
• What does HDI stand for?
HDI = Human Development Index, designed by the UNDP. It measures development using income, health and education and ranks countries by their level of development.
15. What are the three dimensions and four indicators of HDI?
• List the HDI indicators.
Three dimensions: Health, Education, Living standards. Four indicators: life expectancy at birth (Health); expected years of schooling and mean years of schooling (Education); GNI per capita (Living standards).
16. What is Pakistan’s current position on the HDI?
• How many places did Pakistan fall, and why?
Pakistan fell seven places to rank 161 out of 192 (2021-22). Recent life expectancy is 66.1 years, expected schooling about 8 years, and GNI per capita $1,505. The drop was caused by climate shocks like floods.
17. From the HDI table, name the country records.
• Which country leads in life expectancy, schooling, etc.?
In the table: Japan has the highest life expectancy (83.4), Nepal the least mean schooling (3.2) and highest % increase (89.3%), China the highest population, and Norway the smallest population. Pakistan is in the low HDI group.
Part 6
Inflation, Unemployment, Technology & OECD
The factors that affect development, plus technology and the OECD.
Inflation & Unemployment
18. What is inflation and what are its two causes?
• When is inflation a sign of a struggling economy?
Inflation is a rise in the prices of goods and services that reduces purchasing power. Two causes: demand-pull (demand greater than production) and cost-push (raw-material cost rises). It signals a struggling economy when it is higher than the increase in wages.
19. What are the adverse effects of unemployment?
• Who are called unemployed?
Unemployed = people with no source of income. Effects include health issues (depression, stress), poverty and debt, crimes (burglary, robbery), erosion of skills, higher state spending and reduced GDP.
Technology & OECD
20. How does technology aid development?
• What is the Industrial Revolution timeline?
Efficient technology raises productivity and GDP and has a positive correlation with development. Timeline: Industry 1.0 (steam & water) → 2.0 (electrical, assembly lines) → 3.0 (electronics, PLC, robotics) → 4.0 (Smart Factory: ML, Big Data, IoT, cloud).
21. What is the OECD and what does it do?
• When was the OECD founded and how many members?
The OECD (Organisation for Economic Cooperation and Development), founded in 1961 with 38 members, supports policies that improve the economic and social welfare of people worldwide. It meets annually in spring.
Key Vocabulary
Important Terms
Learn these key terms for your exam.
| Term | Definition |
|---|---|
| Development | Improvement in freedom to choose and expansion of capabilities to meet basic needs and live comfortably |
| GDP | Gross Domestic Product — total value of all finished goods and services produced in a country in a given time |
| GDP per capita | GDP and total product taxes divided by the mid-year population of the country |
| PPP | Purchasing Power Parity — an exchange rate that removes the price-level difference between countries |
| HDI | Human Development Index — a UNDP tool measuring development through income, health and education |
| UNDP | United Nations Development Programme — the body that designed the HDI |
| GNI per capita | Gross National Income per person — the Living standards indicator of the HDI |
| Life expectancy at birth | The Health dimension indicator of the HDI |
| WHO | World Health Organisation — recommends at least 2.5 medical staff per 1,000 people |
| IMF | International Monetary Fund — source of the 2022 PPP GDP estimates |
| Industrialisation | A shift towards more manufacturing and less agriculture — a sign of development |
| Inflation | A rise in prices of goods and services that reduces purchasing power |
| Demand-pull inflation | Inflation caused when demand for goods exceeds the ability to produce them |
| Cost-push inflation | Inflation caused when the cost of raw material rises, raising final prices |
| Unemployed | People who do not have a source of income |
| Industry 1.0 | Mechanisation using steam and water power (around 1800) |
| Industry 4.0 | The Smart Factory — machine learning, Big Data, IoT and cloud technology (around 2000) |
| PLC | Programmable logic controllers — used in Industry 3.0 |
| OECD | Organisation for Economic Cooperation and Development — founded 1961, 38 members |
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