IDST 1000Y Lecture Notes - Lecture 2: Carlos Slim, Big Mac Index, Extreme Poverty
15 Dec 2016
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Document Summary
Poverty and inequality in a globalizing world 17/09/2014. Gdp all that a country produces within a country. Gnp all that the people of a country produce in the world (side note: there is an equation showing how these work together on the lecture slides) It is a monetary measure of what people in the country produce. Gnp is a crude way of measuring income per person in a country. That means that a few extremes, can bring the average up. There are a few rich, but many poor. Purchasing power parity (ppp) is the idea of the purchasing power of the money in a country. Some things are cheaper in developing nations. The big mac index is an example of this- in some countries it is way cheaper in comparison. It would take developing countries 115 years to catch up to developed countries. The idea of incomes being the sole measure of the state of development is a problem.
