8.2 ICT and economic development

Over the past two decades, ICT has played an important role in creating economic development in low- and middle-income countries. The World Bank classifies a country as low or middle income according to its gross national income (GNI) per capita (per capita means per person). However, this is only one economic indicator, and in order to understand the development of a region a range of indicators should be used.

The World Bank releases updates each year; the following categories are for 2012:

Low income US$1025 or less
Lower middle income US$1026 to $4035
Upper middle income US$4036 to $12 475
High income US$12 476 or more

Source 8.10 Gross national income (GNI) per capita in international dollars (PPP)

Geographical thought

The international dollar is the hypothetical currency used to represent
the purchasing or buying power of a US dollar.

DEVELOPING YOUR UNDERSTANDING 8.4
  1. Explain what an international dollar represents.
  2. Refer to Source 8.10 and name three low-income countries and three middle-income countries. Go to www.cambridge.edu.au/hass9weblinks and follow the link to the Global Finance magazine website (for the actual interactive map) and the UN data site.
  3. List one example for each development indicator type using the following categories:
    • social – for example, number of doctors per capita
    • historical
    • economic
    • environmental
    • political
    • technological.