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2 Issues in Caribbean development
2.1 Concepts and indicators of development
Learning outcomes Development can be defined as the process by which a country uses its
resources to grow its economy and improve quality of life for its citizens and
On completion of this section you conserve and preserve its environment.
should be able to:
■ understand and explain the Concepts
concepts of development
■ identify and assess various Sustainable development
indicators of development. Sustainable development means meeting the basic needs of a society that can
■ explain the ways in which be sustained and continued for future generations. This section considers the
development is measured indicators of economic and human development.
■ distinguish between economic Economic development
growth and development.
Economic development relates to aspects affecting quality of life. Issues such
as health care, literacy rates, pollution levels and crime rates are considered.
Did you know? Human development
The United Nations World Summit Human development is concerned with improving life choices. Broadening
document of 2005 described choices provides more opportunities for improvement, partly financially, but
sustainable development as having this in turn improves people’s lifestyle. Poverty and income inequality are
three ‘pillars’: major challenges.
■ economic development Indicators
■ social development
■ environmental protection. Indicators of development are factors used to measure growth in a given
country. These can be economic or non-economic in nature.
Quantitative indicators
Gross domestic product (GDP)
Gross domestic product is the total market value of goods and services according
to factors of production (i.e. labour and property) within a country in a given
period of time. GDP indicates how well a country is doing by looking at its
productive capacity. It can be calculated in three ways:
■ The expenditure approach adds consumption (household expenditure on
goods and services), investment expenditure (money spent by the business
sector), government expenditure (money spent in the public sector) and
net exports (imports minus exports).
■ The income method adds income from all sources in the country (labour
income, rental income, interest and profits).
■ The product approach adds the value of output at primary, secondary and
tertiary levels of production.
The three approaches tend to yield the same GDP figure.
Gross national product (GNP)
Gross national product is the value of output produced by a country, including
the income derived from citizens working abroad and locally owned businesses
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