Gross National Product (GNP) is the total value of all final goods
and services produced by a country's factors of production and sold
on the market in a given time period.
It is the total value added from domestic and foreign sources claimed
by residents of a country.
GNP per capita would simply mean national income per person
Disadvantages of using GNP:
- hides regional variations
- fails to take into account local costs of living
- does not take into account the unregistered economy
- ignores the social and environment cost of economic growth
Gross Domestic Product (GDP) is the total value of final goods and services produced within a country's borders in a year.
In other words it is GDP (Gross Domestic Product, the value of goods and services produced within a country) plus net income received by residents from non-resident sources.
GDP per capita refers to the same meaning (see top)
bad side of GDP:
- the statistics does not take into account the underground economy (not reported transactions)
- GDP is not intended to gauge material well-being, but serves as a measure of a nation's productivity, which is unrelated to the development of a country
The Human Development Index measures the average achievements in a country in three basic dimensions of human development:
Life expectancy at birth.
Adult literacy rate (with two-thirds weight)
The combined primary, secondary, and tertiary gross enrollment ratio (with one-third weight).
Physical Quality of Life Index is a scale to measure the quality of life or well-being of a country.
The value is a single number derived from basic literacy rate, infant mortality, and life expectancy at age one, all equally weighted on a 0 to 100 scale.
Purchasing Power Parity measures how well a country's people can spend (based on strength of currency) measured in USD.
MODELS
basically there are three stupid models we will be going to face tmr... and they are:
- Rowstow's model (very impt to us)
- Friedmann's model of regional development (second most impt)
- Mydral's model of cumulative causation
First up, Rowstow's model
It appears that there is such a person called Rowstow, who believes that all countries had the potential to break the cycle of poverty and to develop through five liner stages
First stage: traditional society
Subsistence economy based mainly on farming with limited technology or capital to process raw materials or develop industries and services
Second stage: Preconditions for take off
Usually with external aid. Extractive industries develop. Agriculture becomes more commercialised and mechanised. Some technological improvements and growth of infrastructure. Development of transport infrastructure encourages trade. A single industry dominates. Investment is about 5% of GDP
Third stage: take off
Manufacturing industries grow rapidly. Transport quality improves as airports, railways and roads are built. Political and social adjustments are necessary. The growth is usually limited to one or two parts of the country (growth poles) and to one or two industries (magnets). Focus on agriculture decline. Investment increases to 10 – 15% of GDP
Fourth Stage: Drive to maturity
Growth becomes self-sustaining and economic growth spreads to all parts of the country. Number and types of industries increases (multiplier effect), more complex transport system develop and manufacturing expands causing rapid urbanisation.
Fifth stage: High mass consumption (cash flow like water) =D
Rapid expansion of tertiary industries and welfare facilities. Employment in service industry grows but declines in manufacturing. Industry shifts to the production of durable consumer goods due to higher demand from people.
Now for Friedmann's model (his name reminds me of fries somehow ._.)
Just to mention some the things we shld noe but it may not even come out so i am not wasting much time on this fries man.
The model explains using the core and periphery stuff. Where he believes development is usually concentrated in a certain area (usually the capital of a country where the transport and service systems within the nation is the best) and the development in the core areas will soon be saturated and causing development to spread outwards and forming more cores and periphery.
Concept of Core and periphery:
The core regions are having a concentration of population, wealth and resources. In contrast, the periphery consists of sparsely populated areas which are less developed than the core. They tend to lack both wealth and resources, or their resources are drained by the core.
Core regions have a high potential for economic growth and innovations. They r the centres of the nations international market and large-scale industry, commercial services and high levels of technology. The core usually have a concentration of resources, professional and highly skilled workers and a well-developed infrastructure. The core absorbs resources and labour from the periphery.
Upward transition area
close to core, high immigration rates and industrial and economic growth. With natural resources, these areas benefit from high lvls of investments in industry and agriculture.
Downward transition area
Declining economies of a periphery areas. Low agriculture productivity, loss of primary resources. Declining industries, labour and resources drained frm these areas by core.
Mydral's model... (damn retarded)
The model is used to explain why some areas develop more than other areas, setting out three stages of regional development to explain the uneven spread of development within individual countries.
Stage one: early economic growth takes place where there are natural advantages. Industries will develop where there is an abundance of natural resources. The area developes more rapidly than its surroundings and gradually, the acquired advantage will reinforce the natural advantage. this forms the core. People continues to migrate from the periphery as further industries grow. Multiplier effects takes place as linked industries become established.
Stage two: Concentration of economic activities leads to the backwash effect. Downward spirals in the periphery occurs as people migrate to the core. Growth in the core is therefore sustained by the constant labour and resource supply from the periphery. Loss of labour and resources seriously reduce further industrial development in the periphery.
Stage three: Industrially expanding region of the core on the one hand, and the stagnating and declining periphery on the other. Cumulative causation is under way and creates and overall regional depression. A downward spiral in the core is established.
NOW we are gonnah go into Singapore's development notes and allow me to dig out some facts and figure on Singapore.
SRY... i just realised these notes, if u read them urself, its much easier than surfing a blog, the first two pages are impt onli... the rest is sai4 =x
Just a bit to help those confused:
Singapore's development was based on its people. As learned last year, skilled workforce, knowledge based economy, gd facilities (transport, banking services, housing etc) to attract investments and develop. Control of population (stop at 2 then became the have three or more if u can afford it) to suit the development of the nation. Now we have the very "intelligent" policy of attracting foreign talents here and letting them settle and contribute.
Infrastructure as mentioned, such as transport lar, telecommunications lar, IT infrastructure etc... all contributed to the development of Singapore.
Industrialisation, which is caused by rapid increase in population in 1960. Emphasis on low value added, low skilled, labour intensive manufacturing industries before becoming value added when face with competition. KBE was then introduced and compulsory education for children were made. Focus on tertiary or service sector was increased. Tourism became a big role in Singapore's economy in the 21st century.
Regional Global Trends: Making investments promotion visits to countries such as USA, UK, Japan and Germany to establish partnerships to invest in developing countries in Asia. Regionalisation and globalisation were a necessity to Singapore's development as we lack natural resources and workforce manpower. Thus we go by means to attract multi-national cooperations to set-up their operations in Singapore.
Remember to read the summary at the back of the notes (although everyone noes abt it)
