dynamic development

• ACs:

  these countries have well developed financial markets, high degrees of financial intermediation, diversified economic structures and a rapidly growing service sector
• EDCs

  these countries do not share the economic development characteristics of advanced countries and are not eligible for poverty reduction and growth trust from the IMF
• LIDCs

  these coutnries are eligible for the poverty reduction and growth trust from the IMF
• distribution:

  ACs - USA, UK, Singapore - mainly in west America

  EDCs - china, Mexico, brazil - mainly in Asia and south America

  LIDCs - etheopia, uganda, mail - mainly in Africa
• absolute and relative poverty:

  occurs in LIDCs where they don't have resources like clothes and food
• relative poverty:

  occurs in ACs when people cannot afford what most of society in their country has, such as not being able to turn on their central heating
• human development index: (HDI)

  a composite measure of development. it combines life expectancy, education, and income per capita to give a score from 0 to 1 (1 being the highest)
• economic measures:

  • GPD - shows the standard of living but doesn't take into account the number of people in the country
  • GPD per capita - shows the standard of living and how economically advanced the country is but money goes further in some countries
  • GNI per capita - shows the standard of living and how economically advanced the country is but money goes further in some countries
• social measures of development:

  • birth rate - shows contraception and education available but not how well babies are cared for
  • death rate - shows number of doctors and equipment but not why they die or when
  • life expectancy - shows standard of living, not who has longer or shorter lives - e.g. rich vs poor
  • infant mortality rate - shows how well they are cared for but not different areas with low and high rates
  • literacy rate - shows access to education but not quality
  • doctors per 1000 - shows access to good education and quality of healthcare but not access to good medicine and resources
• physical factors affecting development:

  • natural resources - access to safe water for health, minerals and metals for trade, energy and manufacturing (bauxite)
  • natural hazards - risk of earthquakes, volcanic eruptions, tropical storms, floods etc - limits development
  • climate - reliability of rainfall influences agriculture and can create risks (monsoons, and droughts), some climates will attract tourism (tropical beaches)
  • location and terrain - attractive aesthetic scenery will attract tourists and income, steep mountains, rocky terrain is more difficult to build on and limit farming
• human factors affecting development:

  • technology - more tech = less labour intensive = more efficient and well made
  • healthcare - better healthcare = less disease = more access of vaccine = lower death rate (e.g UK MMR vaccine)
  • politics - global links / international groups (UN) = more international trade = better protection
• debt: (factors that make it hard for countries to break out of poverty)

  many LIDCs face huge national debts because of borrowing money from other nations and international organisations to help with infrastructure or recover from disaster

  • borrowing comes at a cost and interest rates are high
  • same nations can't afford to repay their loans
  • nepal had to spend $210 million on debt payment in 2015
  • unfair loans or a legacy of colonialism
  • debt can cause a spiral of decline
• political unrest - factors making it hard to break out of poverty

  unstable and undemocratic governments can lead to a chaos and confusion especially how to spend the government funds

  • corruption may be a problem
  • Somalia - civil war and instability
• trade - factors making it hard to break out of poverty

  trade is often unfair, rich countries and TNCs take higher profit than LIDCs - e.g. clothing industry - EDCs and LIDCs that provide material and labour gets less

  • nations become dependent on TNCs and their investment so local industries will not flourish and workers may be exploited
  • nations need income which involves exporting goods and services to be sold and importing goods that are needed
  • the balance of trade needs to be positive - more exports than imports
  • stable nations trade more easily
• health - factors making it hard to break out of poverty

  • lack of safe drinking water and food = health problems = people can't work = no access to better food and health care = spiral of decline
  • LIDCs have a lot of disease (malaria)
  • Afghanistan - only 13% have accessible clean drinking water
• Ethiopia's economic development:

  • economic - since 2001 the USA government has provided help and aid to Ethiopia which has helped the farmers with their efficiency by providing them with better agricultural equipment and increasing productivity
  • population/society - in 1984 - 85 there was a drought that caused famine as groups couldn't grow, and due to the high birth rate the famine was worsened and 1 million died
• Ethiopia's economic development:

  • technology - the government have used the growth and transformation plan since 2012 which enables formers to learn new skills such as mixing crop types with beans to increase soil fertility and increase productivity
  • politics - the derg government tried to divide the land more equally between people to make it fair and took control of the farmers. this caused the red terror (1977-78) where 50,000 were killed and many people migrated which decreased productivity.
• Rostows model:

  • stage 1 - subsistance economy based on small-scale agriculture with little infrastructure
  • stage 2-commercial agriculture, increased wealth and investment
  • stage 3 - secondary manufacturing dominates, increased infrastructure and government expenditure
  • stage 4 - increasing self-sufficient, diverse economy, rapid urbanisation, tertiary services dominant
  • stage 5 - services dominate, increased personnel wealth leading to consumerism
• MDG goals

  in 2000 world leaders met at the UN to discuss how nations could work together to reduce extreme poverty and 8 MDGs were devised with a deadline at the end of 2015

  • MDG 1 - poverty and hunger
  • MDG 2 - primary education
  • MDG 3 - gender equality
  • MDG 4 - child mortality
  • MDG 5 - maternal health
  • MDG 6 - combat diseases

  1 and 6 are best to use in exam
• MDG achievement in ethiopia

  • poverty and hunger : poverty has dropped to 29% from 49% in 2000, but 40% of children are malnourished and 28% of the population are lacking essential nutrients
  • maternal health : maternal mortality dropped 23% due to better before and after care, 55% of women now recieve access to contraception, fewer forced pregnancies and average age of mothers is increasing
• primary education

  good - 96% of children now enrol in primary education (50% in 1990)

  bad - literacy rate is low at 36% showing quality of provision is not effective, more males than females in school very few females in secondary school
• gender equality - MDG3

  good - education gap is closing now, 93% of girls in primary education - (43% in 2000)

  bad - unemployment is higher for women and women are still in traditional roles
• child mortality - MDG4

  good - infant mortality reduced from 97/1000 to 45/1000 since 1990, 65% of children receive their vaccinations

  bad - malaria still accounts for 20% of deaths diarrhoea another 20%, rural and urban divide (rural areas lag behind)
• combat diseases - MDG6

  good - HIV and aids pandemic has stabilized and new cases have declined, malaria was the leading cause of death but now 100% of the population can access a malaria net, 89% of the population live within 10km of a doctor

  bad - every doctor is shared by 3333 people
• how ethiopias trade influences development:

  ethiopia trade deficit - in ethiopia imports are greater than exports - 11 billion to 3 billion. this means a large amount of debt so they will have less money to spend on things like education and healthcare as the debt will be a priority to pay off
• ethiopia's international trade:

  • ethiopia's dependence on coffee has decreased by 18% between 2011 and 2014, exports such as petrol and gold have increased
  • if a country relies on few commodities for economic development, it will create problems, if there is a drought and they rely on coffee it cannot be grown so no exports, slows down production, Ethiopia sells low-value goods which can decrease in value each year
  • Ethiopia's economy is growing fastest (10% each year) but is still not enough to catch up with the rest of the world so the gap between rich and poor is growing
• Ethiopia's international trade:

  coffee: good land to grow coffee on (rain and hot )

  • good - ideal conditions for it to grow (altitude), farmers form cooperatives to make washed coffee which is high value
  • bad - poor subsistence farmers cannot join cooperatives and only sell unwashed coffee which has a much lower value than washed
• Ethiopia's international trade:

  cut flowers - AQ roses -

  good

  • local women provided jobs and free healthcare
  • improves MGD3 (gender equality)
  • advantage for the government as it gives them more tax and money to spend on healthcare and education

  bad

  • government leases land to AQ roses and took it from original subsistence farmers who were not giving the government enough money so now they can't get income to support their families
  • pollution from factories can create water issues
• TNCs - a business which operates all over the world usually with their headquarters in an advanced country (ACs) and their manufacturing branches in EDCs and LIDCs
• Sher Ethiopia : advantage:

  • increased income for workers may mean they have more money to spend on healthcare and education - more money for local markets (multiplayer effect).
  • literacy improvements
  • workers may bet trained by TNCs that hire them ( Sher schools for 6,500 children of the employees) and gender and equality training
  • 13,000 employees in 3 farms
  • Sher hospital - free healthcare for employees which treats 100,000 patients per year
• Sher Ethiopia : disadvantages

  • ecosystem damage - poor records of looking after the environment (but drip irrigation is used in greenhouses to save water and waster water is recycled using reeds and then reused. 4 million cubic metres of rainwater collected each year)
  • luring farmers away from farming which leads to food shortages
  • increasing income inequality - paying higher wages to middlemen while keeping average "sweatshop" wages down (but employees do get a permanent contract)
  • average wage = $50 per month, below world bank poverty line
• aid - farm Africa goat scheme: bottom-up - Trigray

  women are given 3 goats - sustainable scene as it grows by itself

  • advantages - women provided with skills about how to look after the goats and earn money by selling excess goat milk. this raises women's status in society (MDG3)
  • advantage - the staple food of children is maize which is not nutritious so the goat milk creates a healthier diet. the money made from selling goats and goat milk is used to send children to school and makes them more education and creates opportunities for them in the longterm.
  • short-term MDG3 and longterm MDG1
• how Ethiopia's environemnt context affects its development:

  west highlands:

  • climate - long, rainy season from May to October with average of 1200 to 2000mm of rain yearly and an average temperature of 25 - 34 degrees. this is good for crops such as cotton, coffee, and grains to grow well in the wet ground and mild temperature
  • landscape - up to 4500m steep and rocky slopes will hinder development as it makes it difficult to farm with machinery
• how Ethiopia's environment context affects its development:

  central areas:

  • climate - 2 rainy seasons, one dry, unreliable rainfall of 400 to 800mm yearly, 25 to 40 degrees. this hinder development as the unreliable rain prevents crops from growing
  • landscape - it is steep and rocky so can't use machinery for farming
• how Ethiopia's environment context affects its development:

  eastern lowlands :

  • climate - two rainy seasons (june to September) and two dry seasons (December to februrary) but unreliable. average 0 - 300mm of rain yearly, temperature always 30 to 40 degrees. this hinders development as dry and hot lowlands are limited to grassland for live-stock to graze so it can support little amount of farming. - normadic farming
  • landscape - this area is very low lying because the animals eat all the grass, there is overgrazing which leads to soil erosion so the desert expants - gets bigger (ogaden desert)
• top-down schemes

  • started by the government
  • economic development aims to trickle down to all regions
  • countries borrow huge sums of money to undertake the programme
  • government and international organisations (world bank) make decisions will little involvement of local people
  • mostly concerned about development as a whole
  • financial help and technical assistance
  • often involves major infrastructure
• bottom-up schemes:

  • involves local peple at a local scale
  • people centred - helping people to help themselves
  • benefits people at the local scale
  • often organised by NGOs
  • financial help and technical assistance
  • led by local communities benefiting locals at local scale
• debt relief:

  • in 2006 the World Bank wrote off the debt of 19 of the poorest countries - Ethiopia was one of them
  • in 1995 debt was 155% of GPD whereas by 2015 debt was 21% of GPD
  • Ethiopia gained as it could focus on education and healthcare
  • the world bank is a vital source of financial and technical assistance to developing countries around the world
  • ||they picked countries that were in so much poverty that they would not have been able to recover without help
• Top-down scheme - Ethiopia - Gibe 111 dam

  advantages:

  The Ethiopian gov allocated land to Malaysian / Indian companies to set up farms growing oil and cereals. plantation provide 150,000 jobs = income to locals = multiplayer effect.

  Benefits the gov as they gain money from leasing - money invested in schools and hospitals.

  The dam will create 1870MW of renewable energy and supply half of electricity. environment protected as energy is clean and renewable.

  The electricity to power factories so country develops, move up Rostows model

  excess electricity sold and improves economy Ethiopia's
• Top-down scheme - Ethiopia - Gibe 111 dam

  Gibe 111 is a 2 billion dam built in southern Ethiopia on the Omo river - it will produce electricity and store water for irrigation.