Development

Trade • The activity of buying and selling, or exchanging, goods and/or services
between people or countries.
 Industry

• The companies and activities involved

in the process of producing goods for
sale, especially in a factory or special
area.
Import
To buy or bring in products from another country.
Export
To send goods to another country for sale.
 Investment
• The act of putting money or effort
into something to make a profit or
achieve a result.
 Income
Money that is earned from doing work
or received from investments.
 • Money that is earned in trade or business after
Profit paying the costs of producing and selling goods
and services.
 Wealth
A large amount of money, property, or
valuable possessions that a person or a
country owns.
Loans

• An amount of money that is borrowed,

often from a bank, and has to be paid
back, usually together with an extra
amount of money that you have to pay
as a charge for borrowing (interest).
 • The system of trade and industry by which the wealth of a country is made
and used.
Economy • The system of making money and producing and distributing goods and
services within a country or region.
Development
• The process of growing or changing and becoming more advanced.
• Development is also the organized increase of a country’s industry and wealth.
 Economic • The process in which an economy grows or
changes and becomes more advanced, especially
Development when both economic and social conditions are
improved.
How is money spread around
the world?
• The World Bank is an international organization
which provides loans, advice and research to
countries to support economic development.
How is money spread around the world?

• The World Bank uses one

main indicator to measure
development, Gross National
Income (GNI) per capita.
Gross • This is the dollar value of a country’s final
income in a year, divided by its
population.

National • Tables A and B (page 124) show the top

10 and bottom 10 countries in the world

Income
using this indicator to measure
development.
• Map C shows a choropleth map of the

(GNI) per world of GNI per capita. It can be used to

compare development at a global scale.

capita.
Other Ways To Measure Development
Human Development
Index (HDI)
In 1990, the HDI was created to
better measure development.

HDI combines three elements:

• Living standards: the GNI per capita
• Health: the life expectancy or average age
which people live to
• Education: the average number of years of
schooling children receive.
 Human Development
Index (HDI)

The HDI has a value between 0 and 10. the

higher the number the greater the level of
development.
Map B shows the global pattern of HDI.
 Some development experts believe that development should consider the impact
of human activities on nature, or its ecological footprints, shown in Map C.
Environmental
This is a measurement of how many natural resources a country consumes and
Impact how many planets would be required to support the world if every country
consumed that amount.