Differences in economic development
Developed vs developing
- Economic development = a rise in people's well-being, not just more output.
- developed countries (Japan, Germany) — high income; developing countries — lower income.
Practice
Economic development means:
Development is broader than growth — it includes health, education and quality of life.
Why countries differ
- income — developed countries have much higher income per head.
- productivity — developed countries use more capital/skill; many developing-country farmers do subsistence farming (just for their family).
- population — developing countries often have higher birth rates and younger populations.
- debt — repaying large debts leaves less for schools/hospitals.
- trade — developed countries trade more, often higher-value goods.
- The two groups depend on each other: developing countries sell raw materials and buy machines/skills.
Practice
Subsistence farming means growing food:
Subsistence farming feeds the family and produces little surplus, keeping productivity low.
Practice
Developed and developing countries depend on each other through trade, aid and investment.
Developing countries sell raw materials and buy machines/skills; richer countries invest and trade back.
You've got it
Key idea
- development = rising well-being (health, education), not just output
- developed vs developing differ in income, productivity, population, debt, trade
- the two groups are linked — raw materials one way, machines/skills the other