GEOG 1HB3 Lecture Notes - Lecture 7: Informal Sector, Human Development Index, Social Change
22 Nov 2017
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Document Summary
Development: wealth and prosperity i. e. average income. Proxy measures, gdp per capita or gni per capita, proxy measures which estimate where things might be are better ways of measuring the development of wealth. Gni or gdp are measures of the total value of all materials, foodstuffs, goods, services produced by a country for a particular year, used to measure and determine the development status of a country. Gni=population=per capita gni-a measure of income (not only one*!*!*!) Gni per capita measure is relatively useful and simple to calculate but it is problematic. The formal economy and not the informal economy>up to 80% of all economic activity. Gni per capita ignores the informal economy, it only takes in formal economy. Variations within a country (i. e. internal inequality) gni/gdp does not take into account the variations in wealth and economic status within a nation. Some places have higher cost of livings than other nations.
