What is economic development in the context of Cambridge IGCSE Economics?

In the Cambridge IGCSE Economics curriculum, economic development refers to the process by which a nation improves the economic, political, and social well-being of its people. It involves increases in living standards, reduction in poverty, and enhancement of economic opportunities and quality of life.

How does economic development differ from economic growth?

Economic development is a broader concept than economic growth. While economic growth refers to an increase in a country's output or GDP, economic development encompasses improvements in living standards, reduction of poverty, and enhancement of health and education. Economic development focuses on qualitative improvements in the economy and society.

What are some indicators of economic development?

Indicators of economic development include GDP per capita, literacy rates, life expectancy, and access to healthcare and education. These indicators help assess the overall well-being and quality of life in a country, beyond just economic output.

Why is economic development important for a country?

Economic development is crucial because it leads to improved living standards, reduced poverty, and better access to education and healthcare. It also promotes social stability and can lead to more equitable distribution of wealth, which is essential for sustainable growth and development.

What role do governments play in promoting economic development?

Governments play a vital role in promoting economic development by implementing policies that encourage investment, improve infrastructure, and provide education and healthcare services. They also create a stable political environment and legal framework that supports economic activities and protects property rights.

Economic Development | Cambridge IGCSE Economics

Summary and Exam Tips for Economic Development

Economic Development is a subtopic of Economic Development, which falls under the subject Economics in the Cambridge IGCSE curriculum. This unit explores various aspects of economic development, including indicators of living standards, poverty, and population dynamics. Key indicators such as GDP per capita and the Human Development Index (HDI) are used to measure living standards, each with its own merits and limitations. GDP per capita provides a snapshot of average income but fails to account for income distribution and non-economic factors like health and education. HDI, on the other hand, offers a broader perspective by incorporating income, education, and healthcare, though it may overlook internal disparities and environmental factors.

The unit also delves into poverty, distinguishing between absolute and relative poverty, and examines the causes and policies to alleviate poverty. Factors affecting population growth and the implications of demographic changes are discussed, highlighting differences in birth and death rates, migration, and age distribution. Understanding these elements is crucial for analyzing the differences in economic development between countries.

Exam Tips

Understand Key Indicators: Focus on the differences between GDP per capita and HDI. Know their advantages and limitations in measuring living standards.
Poverty Concepts: Be clear on the definitions of absolute and relative poverty. Understand the causes and policies aimed at poverty alleviation.
Population Dynamics: Familiarize yourself with factors affecting population growth, such as birth and death rates, and migration patterns. Know how these affect economic development.
Comparative Analysis: Practice comparing living standards and income distribution within and between countries, using real-world examples.
Engage with Examples: Use case studies or examples to illustrate how different countries manage economic development challenges. This can help in understanding theoretical concepts in a practical context.

Economic Development

Exam Tips and Study Notes for Economic Development