Development Dynamics

• Development


  The use of resources to improve the standard of living and quality of life in a country
• Development indicators


  • Gross Domestic Product per capita (GDP)
  • Human Development Index (HDI)
• GDP per capita


  • Advantages: can see a rough estimation of what everyone is earning in a country and data is available for every country with economic structure
  • Disadvantage: there may be gaps of hidden data between the rich and poor, as it's an average amount of money per person
• Human Development Index (HDI)

  • Advantages: considers health, wealth, life expectancy, education etc. and combines them into one scale, it covers a wide range of factors so is considered a more accurate measurement of development
  • Disadvantages: some data is not available for all countries and does not consider the inequalities with countries
• Reasons for global inequalities in wealth

  • A small group of people own most of the country's wealth
  • There are frequent droughts and farming is unproductive- no crops
  • Major TNC have withdrawn causing mass unemployment
  • Other countries refuse to trade because of politics
  • Few schools so children can't learn the skills that the country needs
  • Lack of investment in country's infrastructure
• Frank's dependency model


  1. Traditional society

  2. Preconditions for take-off

  3. Take off

  4. Drive to maturity

  5. High mass consumption
• Traditional society


  • Subsistence farming (only grow what they eat), slow moving economy, work very labour intensive
• Preconditions for take-off


  • Some jobs shift to manufacturing, some trading start in developing countries, some industrialisation starts
• Take off


  • Emerging countries, rapid growth, more trading with other countries, investments from TNCs in infrastructure and technology
• Drive to maturity


  • Technology used in most jobs, jobs produce consumer products, workers become more skilled
• High mass consumption


  • Tax spent on welfare, education, military or infrastructure, population imports lots of consumer goods, consumer orientated
• Bottom up projects


  • Small scale
  • Local people and NGOs plan
  • Intermediate (simple) technology like local resources
  • Maintained by the community
  • E.g. water pump funded by Water aid, community toilet blocks
• Top down projects


  • Large projects
  • Government or TNCs may fund- government may be in debt to other countries due to this project
  • Local people do not benefit- may be kicked out of their homes for the project
  • Intensive(high) tech
  • Local people not involved in planning
  • E.g. Mumbai Monorail
• India is a peninsular with deep harbours- good for trading
• India is close to the SE Asian tigers
• India is close to the Middle Eastern Market (Saudia Arabia & UAE) via Suez Canal
• Economic liberalisation (1991)


  TNCS set up in India as they reduced the taxes this encouraged foreign currency, English speaking country, deep harbours, FDI, low labour costs
• Before economic liberalisation


  The government controlled the market so consumers were told what to buy
• After economic liberalisation


  The government changed to a market economy and producers were able to produce what consumers wanted
• Free for children aged 6-14 to go to school the literacy rate increased from 64% in 2001 to 74% in 2011, provided children with skills to get better jobs
• Maharashtra is the urban core of India, home to 13 million people, Bollywood, manufacturing industry, hub for media and technology, average income is £1,011
• Bihar is the rural periphery of India, average income is £251, 25% less than Maharashtra, poor education, high birth rates, 58% households have electricity
• 13/20 of world's polluted cities are in India
• Fifth biggest cause of death is air pollution
• Less than 1/3 of sewage is treated in India
• India is the world's 3rd largest carbon dioxide emitter, coal is the main source of energy
• Deforestation in India causes loss of biodiversity, can't grow food and soil erosion
• Types of outsourcing by BT in India

  • Call centres
  • Software development
  • Company administration
• Call centres


  • Most graduates earning £3000 yearly which is 3x national average but only 20% of UKs annual salary
• Bangalore is home to dozens of major technologies
• TNCs are 'footloose' meaning that they can pull out at any time causing mass unemployment, the government to lose money and the economy to decline
• TNCs rely on high skilled workers so will locate near a university to attract graduates
• 70% of India's GDP comes from domestic consumption (products are brought and used in the country making them)
• Profits made from BT are taken to Britian causing an economic leakage (money is leaving India and not being invested)