Unit 4 · The Global Economy

Growth = ↑ real output; development = broader living standards (health, education, equity).

Composite of income (GNI/capita PPP), health (life expectancy), education.

Meet present needs without compromising future generations.

Low income ⇒ low saving ⇒ low investment ⇒ low income (vicious cycle).

Debt, primary-export dependence, weak institutions/property rights, conflict, poor human capital.

Trade (export-led vs ISI), FDI, aid, debt relief, microfinance, human capital & institutions.