Economic

Development
(Sept 20-24)
Development and Happiness
∙ Happiness is part of well-being

∙ findings: average level of happiness or satisfaction increases with a

country’s average income
Prof. Richard
Layard
7 factors that affect average national happiness

o Family relationships
o Financial situation
o Work
o Community and friends
o Health
o Personal freedom
o Personal values
How can we identify
if a country is
Rich??

ECONOMIC
PERFORMANCE
Measures of Development
is the total income
received by the country
from its residents and
businesses regardless of
whether they are located in
the country or abroad.
Is the total monetary
or market value of all
the finished goods
and services
produced within a
country’s borders in
a specific time
period.
 TO AVOID
DOUBLE
COUNTIN
G

NOTE: Income in
Intermediary Goods are
not included in the
computation of GDP and
GNI
ONLY THE
FINISHED
UNREGISTERED/NO EXACT COMPUTATION
OF THEIR INCOME / NO PROPER PRODUCTS!
DOCUMENTS
JOHN (NOW A PERMANENT JAPANESE
RESIDENT)

HE’S NOT PART OF PHILIPPINE GNI

AND GDP
BUSINESSMAN
(JAPANESE)

INCLUDE
D

EMPLOYEE
(INDIAN)

NOT
INCLUDE
D
ALL FILIPINO WORKER’S
WORKING INSIDE THE
PHILIPPINES IS PART OF
GNI AND GDP
COMPUTATION
HUMAN
DEVELOPMENT
INDEX (HDI)
Is a tool used to
measure a
country's overall
achievement in
its social and
economic
Pakistani Economist dimensions
Mahbub-Ul-Haq
in 1990
Minimum and Maximum Values for
Each Indicator
DIMENSION INDICATOR MINIMUM MAXIMUM
HEALTH LIFE EXPECTANCY 20 YEARS 85 YEARS
EDUCATION (EYS) EXPECTED YEARS OF 0 18
SCHOOLING
EDUCATION (MYS) MEAN YEAR OF 0 15
SCHOOLING
GNI (INCOME) GROSS NATIONAL $100 $75,000
INCOME
PER CAPITA (US$)
 Life Expectancy:83.6

HDI (LEI)- Singapore

83.6 - 20
= ____________ = 0.97
(85 -20)
8
(HDI) NOTE:
Education Index Range of HDI in EYS
(0-18YRS)
Expected years of schooling in Singapore = 16.4 Mean of HDI in MYS
Mean years of schooling in Singapore = 11.6 (0-15YRS)

16.4
EYS = ______ = 0.91
18.0
= 0.91 + 0.77
_______________ =
2
11.6
MY = ______ = 0.77
S 15.0
=
0.84
(HDI) NOTE: Per Capita of the
Singapore(2019) = $88,155
GNI (Income)

In (GNI pc) – In(100)

Log88155 –
II = _________________ = Log100
In (75000) – In(100) _________________
Log75000 –
Log100
2.945
= _______
2.875

=
1.024
HDI of SINGAPORE
Life Index = 0.978
Education Index = 0.84
Income Index = 1.024

= 0.948