Chapter 3 National Differences in Economic Development

GDP allows a more direct comparison of living standards in different countries than other measures.

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In Sen's view, development is an economic process that should be assessed primarily by material output measures such as GNI per capita.

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GDP is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

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Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

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If a country's economy is to sustain long-term economic growth, the business environment must be conducive to innovations and entrepreneurial activity.

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The state of Illinois was having budget difficulties, so it hired several private management consultancy firms to manage some state-owned enterprises. This is an example of privatization.

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Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation and entrepreneurial activity in developing nations.

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Most property in poor countries is owned legally by investors.

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Totalitarian states promote human freedom and human development, which facilitates economic progress.

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Since the late 1980s, there has been a strong move away from a more free market economic model and toward more centrally planned and mixed economies.

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