Page 11 - CAPE Caribbean Studies Study Guide Sample_Neat

Module 2 Issues in Caribbean development

operating overseas. This is the value of final goods and services owned by a Did you know?
country’s citizens, regardless of where in the world it is earned.
Responsible environmental factors
Per capita
This is another qualitative measure
Per capita, a Latin term meaning ‘per head’, is the total income earned from
of development relating to the
goods and services produced by a country in one year, divided by the total
consideration of the quality of life
population of that country in that year. It is a useful way of measuring standards
of individuals in society. It involves
of living, widely used when comparing living standards of different nations.
persons engaging in activities that do
However, this indicator does have limits: while it might help us to assess
not harm the environment, such as
economic data, like an increase in income levels, it will not reflect non-economic
recycling.
factors, e.g. access to higher quality healthcare or improved life expectancy.
Environmental protection is key to
Gini coefficient sustainable development. There are
many policies in different countries
The Gini coefficient, also known as the concentration ratio, is the standard
that are implemented to protect
measure of income inequality. The Gini coefficient lies between 0 and 1. A score
the environment: firms that pollute
of 0 indicates perfect equality in income distribution. A value of 1 indicates
the environment may have to pay
a very high level of inequality in income distribution. If the value is 1, it is
a ‘green’ tax; some countries have
possible that nearly all a country’s income or wealth goes to just one section of
pledged to reduce carbon emissions
society. The Gini coefficient is identified using the Lorenzo curve, which is used
(although this is controversial as it
for measuring the ratio of inequality against a standard of absolute equality.
may limit economic growth).
Qualitative indicators
Human Development Index
The Human Development Index is calculated by the United Nations
Development Programme (UNDP) and includes three complementary
elements: life expectancy, education and standard of living. Life expectancy
gives an insight into a country’s health care, and areas such as sanitation. The
education component gives an overview of the literacy rates in a country,
while the standard of living indicates quality of life.
Productivity
Productivity relates to the efficiency of production employed and the levels of
technology used in the productive processes. When a country’s productive forces
(that is, the technology and the people) are efficient, the country is productive.

Internet penetration
Globalisation means that many countries are expanding their digital capacity, Figure 2.1.1 Recycling helps reduce waste
and protect the environment
and internet usage indicates the quality and availability of ICT. The internet
has revolutionised business transactions with functions such as e-business,
e-government, and e-commerce now widespread. Key points

Modern technology ■ As countries develop, certain
In the context of development, the extent to which a country has adopted indicators are used to measure
modern technology can indicate improvements in the lives of its citizens, for their development.
example in health, education, communication and transportation. It can also
■ The indicators are qualitative and
indicate that a society has the tools necessary to increase its productive capacity. quantitative.
Good governance ■ Within the Caribbean, the
concepts of sustainable
Good governance can be seen as an indicator of development when it is linked development, economic and
to political stability. Governments can implement beneficial policies: these may human development are all
be monetary policies that aim to increase employment levels, reduce inflation integral to the advancement of
and improve welfare. Good governance also means that there is a high degree of the region.
accountability and transparency on the part of the government. It may also entail
protection of the environment and management of social and economic problems.
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