Development Portfolio

The world is divided into two categories of countries: developed countries and developing countries. Development is a holistic concept which generally means the increase in standards of living for the majority of the population. It is often associated with growth but they are not always equated, growth sometimes creates resources for development. Growth is the increase in output over time (i.e. the growth in the Gross Domestic Product ‘GDP’). Although for a country to develop, one would need: access to health, education, housing, jobs, and a more equal distribution of income. As it is a holistic concept, it is difficult to measure but it is mainly based on: the sustainability of growth, employment, political stability or democracy, and equality of income.

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Often, developing countries donate aid to developing countries in order to help them out financially or with materials. Recently, Dubai Cares had a joint venture with UNICEF (The United Nations Children’s Fund), its third venture so far, to initiate primary education programs in Yemen. Their main goal is to promote girls’ education and to get all Yemeni children to go to school.  This could be demonstrated in the following PPF curve:

                        Potential Output: output produced if all factors of production are fully employed

                                        Actual Output: What a country is actually producing        

                                                

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