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38 Cards in this Set
- Front
- Back
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what is the development gap?
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the develpoment gap is the dispartity in income and quality of life between the rich and poor countries.
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3 points to remember about development:
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- two types of development:human and economic
- global development gap is widening - development gaps exist in individual countries like between rural and urban. |
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how development can be measured: Gross domestic product advantages and disadvantages |
- total value of goods and services produced by a country in a year
- shows whether a country's economy is growing or decreasing - does not show how wealth is disturbuted |
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How development is measured: Human development index, advantages and disadvantages |
- made up of life expentacny, education, gdp per capita - effective indicator of a country's development as it is much better rounded than just using GDP per capita. - hdi doesnt take into consideration factors like gender equality or distribution of wealth |
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theory that explains the development gap: Modernization theory |
- argues that the economies of developed countries move along a development pathway with 5 stages. - the 'take off' stage(where the economy is transformed in a way so steady growth is sustained) is characterised by increased investment and emergence of administrative systems which encourage development. - Pro: simple model which places the growth of the economy as the center of the development process - con: based on european economies so does not apply to all every country |
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theory that explains the development gap: Dependency theory |
-divides the world up into a economically develope core and underdeveloped periphery. The core purposely keeps the periphery in a state of underdevelopment by exploitating its raw materials and selling manufactured goods made in the core. - Pro: Recognises that the relationships between countries help to create the development gap. con: does noe fully explain the rapid economic development of the BRICs. |
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Theories that explain the development gap: Core- periphery theory |
divides the world into developed core regions and less developed periphery. The development process favors the core regions at the expense of the periphery, therefore widening the development gap. |
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theories that explain the development gap: debt theory |
- underdeveloped countries are trapped in a cycle of debt. In the past, many poor countries have accepted loans for rich countries. These have to be repaid with interest. This has lead to increased debt. |
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role of different key players on development |
world bank: provides investment for econimic and social projects to improve standards. Conditions attached to the loans hinder development and promote dependency and increased poverty. World trade orgnisation: can promote trade between and developing nations. Can encourage trade dependency and create barriers to free and fair trade agreements. NGOs: seek to improve economic and socia; development in poor countries. they concentrate on small projects that benefit the poor, however rely on funding that may not be avaialble. |
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the major players can be divided into 2 sections: |
thsoe that aim to reduce the development gap - the UN, WTO, those that aim to maintain the development gap - the TNCs and superpowers |
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the terms of trade in developing countries
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many poor nations are primary product dependent. They export primary products and import manfuactured goods. Howwever the price for primary products has fallen in related to manfucated goods, and these countries are suffering from decllining terms of trade. This means in poorer nations, living standards decrease and there is an increase in poverty. This is likely to widen the development gap and helps to sustain the superior wealth of deveveloped countries. |
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An example of global trade patterns of primary products: |
Coffee is grown mainly in tropical and subtropical areas of asia and africa. its main markets are in the high income countries of europe and australia. The coffee industry's supply chain involves growers, exporters and retailers before the product reaches the consumers. |
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north and south trade flows |
trationally global trade flows have been between the north and the south. The developing countries of the south have exported primary products such as agricultural products to the north. - more recently, developing countries have capitalized on their cheap labour and moved into manfacturing. Manufactured goods are now well known in their exports. |
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balance of trade and developing countries |
Countries will either have trade surpluses(when exports exceed imports) or trade deficits(when imports exceed exports). TRade deficits are bad news, espeically for developing countries, because they can so easily lead to a debt trap that restainsinvestment and economic growth. |
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conseuqneces of poverty for most disadvantaged countries |
economic: one in 5 of thr world's population lives on less than a dollar a day and almost half on less than two dollars a day. Social: nearly a billion people dont have access to clean water enviromental: poor countries have increased vulnerability to natutal disasters. They lack the capacity to adapt to climate change induced droughts. political: poor countries have demoocracies that function poorely. |
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three most disadvantaged groups of people due to the development gap |
- people living in remote rural areas are trapped in the cycle ofpoverty, which is rooted in the inability to produce enough food and find other resources like water. - members of low castes find it hard to access public facilities and services, such as schools. The caste system in india designates that all people in a certain caste, follow the same trade. - women in developing countries have low status jobs with lower wages than men. They are usually not allowed to particapate in politics or goverment. This means they are unable to press for gender inequality. |
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what happens when development begins to take off in poorer countries? |
- there is rapid urbanisation largely fuelled by huge volumes of rural to urban migration. This leads to growth in megacites like Dhake(bangladesh). - the widespread perception is that the key to a better future can be found in huge cities such as that. |
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what is the early stages of growth in mega-cities like? |
- the traditional poverty of rural areas is simply transferred to urban slums, usually referred to as shanty towns. - these have high levels of inequality between rich and poor. - demand for housing outstrips supply. This causes the cost of housing to rise far above the earning power of most newly arrived workers. - the slums are home to poverty and deprivation |
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factors affecting megacities |
enviroment: air pollution due to traffic, water pollution due to leaking sewers housing: new migrants don't have the money so end up in temporary settlements on unwanted land which is polluted deprivation: limited access to health and overcrowded housing |
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components of urban poverty |
- inadequate income - inadequate shelter inadequate provision of basic services |
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classifying the megacities of the developing world according to their general state of development |
- immature: informal trading, enviromental pollution eg Lagos - consolidating: growing employment in manufacturing and services, still high levels of environmental damage eg Dhaka - maturing: upgrading services, growth rate slow eg Mexico city |
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exmaples of disadvantaged groups for who the development gap has had negative consequences |
- women in sub saharan africa, rarely get to complete secondary school, usually only 2 years of basics. - lower castes: in india untouchables have poorer access to all services and schooling and are restrcited - religion: tibetans in china have few rights to practise their religion and no politicsl rights |
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positive impacts and negative impacts of development in brics as they make their way across the global development gap and out of poverty |
positive impacts - rising personal imcomes from an improved range of employment -improved education - improved international status negative impacts - increase reliance on tncs, which can dominate decision making - increase pressure on land and ecosystems because of expanding development. - increasing levels of air and water pollution |
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in general the positives and negatives of brics making their way across the global development gap and out of poverty are.. |
- positves are mostly economic and lesser extent social. -negatives are enviromental and also economic |
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theories that can be applied to reduce the development gap |
modernization theory- suggest that given time, all developing countries can follow the path of industralised ones. In time there will be a time when the gap disappears, but perhaps this is optimistic. neoliberal economic theory - focuses on globalization and growth of the global economy. Abolishing tariff barriers should encourage international trade. It argues this approach offers opportunities for all. This theory says that the first NICs like hong kong have already crossed the development gap and that it is currently being bridged by the BRICs. Marxism approach: argues it is only government action that can narrow the gap, which requires a top down appraoch by highly centralized, communist governments. This was the appraoch taken in Cuba.This approach says that the operation of free market can be devasting effects for the fragile economies of poor countries Populism approach: suggests the opposite of marxism. This isbased on the bottom up approach to development. So called "grassroots" action is an important element of bottom up planning. Post-development theory - looks to NGOs and a realistic approach. This puts the emphasis on sustainable development and small scale, local projects using intermediate technology. |
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external and internal to reducing the development gsp |
external approaches - interntional cooperation -aid - debt reduction internal approaches - political stability - food security - increased resources for healthcare and hiv |
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why is international aid nesscary ? |
Most LEDCs have been keen to accept foreign aid because of the - savings gap: where population pressures and other drains on expenditure prevent the accumulation of enough capital to invest in industry and and infrastructure. - foreign exchange gap: many LEDCs lack the hard currency to pay for imports such as oil and machinery, which are vital to development. |
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Top down aids |
the donor country transfers resources either to a multilateral aid organisation such as the UN or directly to the government of a receiving country that takes responsibility for allocating and distributing those resources. - aid can take various forms such as loans and machinery. - this type of aid is usually with "strings attached" so favors the donor country, sometimes the aid does not reach the poorest people due to corruption. Other forms of top down aid like megaprojects of the world bank can hinder development. Bottom up aid: this is the route favored by many NGOs. It is targeted at the most needy and usually takes the form of local projects. These projects are small scale, slow to reach many people and financially vulnerable. |
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bottom up aid and top down aid is... |
aimed at the symptons of poverty, not its causes. |
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views on trade and reducing the development gap |
-neo liberalism argue that trade helps the poor countries develop. - an oppisite view is that trade widens the gap - the terms of trade favour more developed countries, so global trade is inherently unfair. |
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how should trade be conducted? |
fair trade products - many supermarkets stock fair trade products now. - small scale producers group together to form a co operative with high social and environmental standards. - the fair trade system is how world trade should be organsied to tackle global poverty. -500,000 small farmers and their familes are aapart of the fair trade system now. |
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why is FDI not contributing much to narrowing the development gap? |
TNCs are the mains source of FDI and they investment for profit. The countries in which they invest benefit in small ways for exmaple and jobs and exports, however this is not the scale of benefits that the investor gets. |
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Structural adjustments programmes(SAPS) and reducing the development gap |
- conditions attached to IMF imposed structural adjustment programmes(loans) are controversial - supporters of SAPS argue that they help prepare countries to compete in the world market. -critics say that SAPs hinder development due to the speed with which countries have been forced to open up their markets to foreign imports. They were unprepared for the intense level of international competition, as a result local producers have lost market share which causes loss of income and jobs. |
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factors hindering and encouraging future development in LEDCs |
hindering development: - high food prices drawing money away from investment piorities - climate change reducing agricultural production and increasing impact of climatic hazards - medcs increasing barriers to trade to protect their own industries encouraging development: - increased levels of investment in ledcs from tncs - technology improvements in agriculture to bring food security to more people - reform of the world bank policies to fit better with the individual circumstances of LEDCs |
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actions that could reduce the development gap |
debt cancellation: many poor countries are overburdened by debtsas a result of aid loans. Wiping the slate clean would increase chances of reducing development gap tourism: many countries have the resources eg biodiversity to attract resources from developed countries. technology: the spread of ict, especially mobile phones and the internet could play a significant part in promoting bottom up developments cooperation in the south: this is based on the idea that poor nations might find appropriate low cost and sustainable solutions to their problems in other developing countries to rather than in the rich north |
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advantages and disadvantages of bottom up and top down aid |
top down advantage: major areas benefit from short term aid disadvantage: critised as inapproipate way of helping poor countries bottom up advantage: analyses the local needs and looks for solutions disadvantage: rely on public and donations from goverments for their funds |
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pros and cons of debt cancellations, tourism, coperation in the south, that could reduce the development gap |
debt cancellation: money released from debt cancellation can be used to buy capital goods from developed countries which can help increase growth. - shareholders of banks in the developed world may bear some of the brunt of debt cancellation. tourism: generates local employment and wealth - exploitation of cheap labor south cooperation: new trading links developed - large scale projects can lead to displacement of people |
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the highly indebted poor countries initiative |
- group of 38 of the least developed countries with greatest poverty and debt. - they are eligble for help from imf and world bank - loans were cancelled worth $40 billion owed to world bank,imf, and african development bank by 18 HIPc countries in 2005 |
