DEVELOPMENT DYNAMICS

• Emerging countries


  • Indonesia
  • Thailand
  • India
• Developed countries


  • USA
  • United Kingdom
  • Australia
  • Canada
• Examples of measures of development


  • GDP - total goods and services produced by a country in a year
  • CPI
  • HDI
• GDP


  Total goods and services produced by a country in a year
• CPI


  Consumer Price Index
• HDI


  Human Development Index
• Physical Factors Causing Uneven Development


  • Landlocked (not close to the sea, less transport of goods)
  • Natural hazards (land prone to flooding, earthquakes have to keep rebuilding land)
  • Lack of natural resources (coal, gold, oil) too much may cause corruption
  • Climate (growing crops)
  • Infertile farmland bad for development low food production
  • Steep topography (bad for farming)
• Historical Factors Causing Uneven Development


  • Colonisation
  • Conflict and war
  • Neo-colonialism (poor countries can't pay back)
• Economic Factors Causing Uneven Development


  • Not adding value to their raw materials meaning they make no profit from trading
  • Poor countries in debt - as they borrowed money from rich countries to build infrastructure
• Political and Social Causes of Global Inequalities

  • Poor system of governance - dictatorship = good China rapid growth, corrupt development = slow development
  • Health issues - diseases (cholera, malaria) bad healthcare system makes it spread more
  • Brain drains - the most educated people in poor countries move out of the country
  • Poor international relations
• Consequences of Uneven Development


  • People migrate
  • Healthcare is better in developed countries. More hospitals, more doctors, life expectancy in UK 81 Malawi is 63
  • The environment - Development = industrialisation
  • Income
• Rostow's Modernisation Theory


  1. Stage 1 - traditional society - live on farms, eat crops that they grow

  2. Stage 2 - preconditions for take-off - society id developing quickly, manufacturing sector will begin to grow. Countries begin to sell manufactured goods to other countries

  3. Stage 3 - take off - urbanisation will begin, people move to cities, industrialises, wages rise and wealth increases

  4. Stage 4 - drive to maturity - countries earn more money, demand for services in tertiary sector grows. Standard of living. Grows demand better healthcare and education

  5. Stage 5 - mass consumption - mass production allows everyone to own consumer products, lots of trade
• Frank's Dependency Theory


  • High interest rates - core countries charge peripheral countries high interest rates on any borrowing. Debt for peripheral countries
  • Core countries dominate world trade
  • Poor, peripheral countries stay poor because they are dependent on the rich, core countries. This is related to colonialism and neo-colonialism
• Top-down strategies


  • Government have lots of money to invest in big building projects
  • Government can pay long time periods and know they have enough money
  • Public officials are corrupt, the money may not be spent correctly
  • Government organisations are slow
• Bottom-up strategies


  • Use the crowds and everyone's ideas
  • Local communities to support
  • Provide jobs for locals
  • Poor people who have ideas are least likely to be funded
  • Cannot plan a project with insecure funds
• Globalisation


  Increase in trade and communication between countries internationally
• Transnational Corporations (TNCs)


  Businesses that sell goods and services globally in lots of different countries
• Supply chains that go across countries, spread skills across the world
• Governments increase globalisation - European Union encourage globalisation
• Free trade agreements and removing tariffs encourages trade
• Strategies for reducing Global Inequalities


  • IGO-funded large infrastructure projects
  • NGO-led intermediate tech
  • TNCs
• IGO-funded large infrastructure projects


  • Offer funding to improve a nation's energy, sanitation, or transport infrastructure
  • Interest rate on borrowing is high
  • Government will spend lots of money repaying loans
• NGO-led intermediate tech


  • Fund the distribution of malaria nets
  • Create small economies in the areas that receive tech
  • Hard to scale intermediate tech
  • Large-scale infrastructure cannot be funded this way
• TNCs


  • Create jobs, train local people in skills that are high in demand
  • Stop local businesses from emerging - competing with TNCs is hard
• Measuring development


  • Economic measures (GDP, PPP, poverty line, inequality)
  • Social measures (access to clean water, education, healthcare)
  • Environmental measures (pollution)
• Composite indicators


  Multiple indicators combined, e.g. HDI (GDP, health, education)
• Corruption


  Corrupt governments keep money rather than spending it on people
• Poor governance


  Government not knowing how to effectively spend money and develop the country
• Happiness index


  Measures well-being, environment, mental health
• Demographic indicators


  Birth rate, death rate, fertility rate, infant mortality, life expectancy, population structure
• Population structure


  • Poorer country - triangular shape (high birth, death rates)
  • Richer country - barrel shape (lower birth, death rates)
• Types of countries


  • HIC (Europe, UK, US)
  • LIC (Malawi, Sub-Saharan Africa)
  • MIC (BRICS)
  • Newly industrialized
  • Recently industrialized
  • Emerging (India)
• North-south divide between rich and poor countries is blurring, but large gap remains
• Malawi's barriers to development


  • Physical (landlocked, rural isolation, lack of infrastructure)
  • Political/economic (poor terms of trade, colonialism, cash crops)
• Terms of trade


  Ratio of export to import prices - Malawi has very poor terms of trade
• Colonialism


  European countries took over land and resources, grew cash crops for export
• Neocolonialism


  TNCs take over land and grow cash crops, taking profits out of the country
• Neocolonialism


  TNCs have gone in and taken over land, growing cash crops and taking the profits out of the country
• However, the UK puts taxes/tariffs on goods from Malawi to make them less attractive for consumers compared to UK-produced goods, which is unfair
• Malawi doesn't get to process its tea and coffee, only sell the raw commodities, so it doesn't get to add value through manufacturing