A longer average life expectancy, for example, is one of the results of economic development. Change ), You are commenting using your Google account. Greater freedom enables people to choose their own destiny.”, “Obstacles to freedom, and hence to development, include poverty, lack of economic opportunities, corruption, poor governance, lack of education and lack of health.”. Economic development is a process that improves a country’s economy and social welfare over time. Since the 1990s the expressions MEDC and LEDC have become more widespread, (more economically developed country and less economically developed country respectively). For every mile of road and railway track in Unfairland, Fairland has 6 miles and 11 miles respectively. If we just look at GDP per capital, Unfairland appears to be a richer country. Economic development is a process that improves a country's economy and social welfare over time. This is a very useful development indicator in some ways because it can tell us which countries have a high or low income. In physical geography, we are often looking at features such as landforms that have developed over many hundreds of thousands, or even millions, of years; however, in human geography, the time scale is much shorter. Economic development also refers to the process by which the overall health, well-being, and academic level the general population improves. Economic development is the process by which emerging economies become advanced economies. Economic development takes into account the following information: Economic growth is a crucial condition for development. Put simply; economic development is all about improving living standards. Economic development is the process by which emerging economies become advanced economies. Although the terms economic development and economic growth cover similar concepts, they are not the same. Therefore this measure takes all of the money paid into a country and divides it by the number of people in the total population. Economic growth is all about expanding GDP, i.e., making the size of the economy bigger. Access to healthcare. Change ), You are commenting using your Facebook account. In other words, the process by which countries with low living standards become nations with high living standards. Let’s suppose there are two countries, Fairland and Unfairland. Even more recent changes such as the impact of digital technology on banking and trade are still dispersing across the world economy. Again this is quite simple but at least it recognizes that development is more of a sliding scale than the finish line in itself. This takes into account the number of doctors per thousand people, access to affordable medicine, etc. What is economic development? Per capita means per person. Water. Economic Development. Therefore, as far as economic development is concerned, Fairland is way ahead of Unfairland. Definition and examples. If we take out the richest person in each country, GDP per capita is: In Fairland, 99% of the population is literate, while in Unfairland it is 60%. Literacy rates, i.e., what percentage of the population can read. Apart from their living standards, it also looks at the freedom they have to enjoy those living standards. However, we do not know whether it is more economically developed. However, just growth is not enough because it cannot guarantee development. Amartya Kumar Sen, an Indian economist and philosopher, who received the Nobel Memorial Prize in Economic Sciences, once said: “Economic development is about creating freedom for people and removing obstacles to greater freedom. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. An excellent example of this would be access to safe water; in the UK and other high-income countries we can turn the tap in our homes and the water that is delivered is safe to drink. In Unfairland, on the other hand, only half the population has access to affordable health care. Unfairland’s and Fairland’s GDP per capita are $40,000 and $21,000 respectively. These countries are fictitious extremes. To assess the economic development of a country, geographers use economic indicators including:. GNI stands for gross national income, this means all the money paid INTO a country by other countries in exchange for goods and services (including monies such as pensions and taxes). It is no longer considered appropriate to use the terms “First World” and “Third World” for instance, not due to ideas about political correctness but because our understanding of development has evolved and we can now appreciate that development is not a race that can be won. Improved productivity, higher literacy rates, and better public education, are also consequences. The Brandt Line became a popular way to divide the world into the “Rich North” and the “Poor South” in the 1980s, but is now considered far too simplistic and even outdated as many of those countries in the “Poor South” are experiencing rapid economic growth (such as Nigeria, Colombia or India for example). This chapter reviews and critiques conventional ideas about the relationship of economics to geography and the implications for growth and development.