Karteikarten
Bridging the Development Gap
Karten in diesem Stapel (55)
- 1Indicators of Development (12)Life expectancy at birth
GNI per capita
Adult literacy rates
Infant mortality /1000
No. of people per doctor
Crude birth rate /1000
Dependency ratio
Freedom of speech
Av. years of schooling
Daily calorie intake
Purchasing power Parity
Total fertility rate - 2The Development ContinuumThe difference between countries' development
- 3Rostow: Theories of Development - The 5 stages1. Traditional Society (basic subsistence agri, craft industry, stangant/static society)
2. Preconditions for takeoff (Export mining and cash crops, new social/ political elite)
3. The takeoff (beginning of manufacturing industries, social, political & institutional changes favour dynamic growth )
4. Drive to maturity (growth to all sectors of the economy, decreasing social equality)
5. High Mass Consumption (Durable consumer industries, services, welfare capitalism & international power (?)) - 4Indicators of development - China a MEDCEconomic:
- 1949 to 1978 soviet style rule with a central planned economy
- Small economic growth
- Since 1976 one of the fastest economic growths globally ~ 10.5% 2001 - 2010
Demographics:
- 16.6% < working age
13.26% > working age
One-child policy is increasing the dependency ratio (was 7:3)
Social/ Health:
- junior education compulsory since 1986
82.5% of children continue to secondary education & 27% to higher education
- Increase of 74% in the number of literate adults from 1950 to 2010
- Improvements in sanitation & hygiene led to increased life expectancy (at birth) and malnutrition decreased from 33.1 % in 1990 to 9.9% in 2010
NO freedom of speech - 5South Korea - An NIC- 0.69% of the world's pop
GNI PPP per capita = 33,440
- Split inot N & S after 1948
Korean war 1950 -1953 (USA aid helped recovery)
- 1960s = Military dictatorship gave rapid economic growth & political repression
- Developed from textiles to metal and shipbuilding to high tech products
- Democracy in 1980s
- OECD member in 1996
Follows Rostow model of Development - 6Poverty CycleLess developed countries are trapped in a continuing cycle of poverty due to a lack of capital and low incomes
Doesn't account for rapid economic growth ( China & S. Korea)
Theories assume development is in isolation from other countries and is free of global investment
UNTRUE
* foreign aid helps to break the cycle - 7Nigeria - An improving LEDC?Economy:
-Mixed Emerging Market
- Ranked 30th Globally by GDP 2012
- Close links to USA & is the USA's largest sub-Saharan trading partner
- IMF projected 9% economic growth in 2008 & 8% in 2011
- 70% of Nigerians employed in agri.
- Petrol = 40% of GDP & 80% of gov. earnings
Social/Health:
- 1/2 pop have access to potable water
- low life expectancy (52yrs)
- High infant mortality (97.1/1000)
- Low HIV/AIDS compared to other African Countries
-NOT eradicated polio
- 1987 reorganized healthcare system to increase community based methods of drug access & general services
- Education improved after 1970s oil boom
- Free education from government but secondary attendance = 29%
- 68% pop = illiterate
Demographics:
-massive growth from 1990 to 2008 (57 mill +)
- Dependency ration will decrease due to large young pop.
Blasphemy law: Curbs Freedom of Speech - 8Theories of Development - Poverty- Uses poverty & social deprivation to explain inequalities
- Less developed places are in the cycle of poverty
-Doesn't account for rapid economic growth (BRICS)
- Extension of this theory is the cycle of development - 9Theories of Development - Politics- Examine the impact of different philosophies on equality and development
- Karl Marx believes that a capitalist market causes exploitation & social inequality, while communism made development effects equitable - 10Theories of Development - DependencyDeveloped countries such as USA control and exploit less developed satellite areas of the world
- Produces a dominance and dependency relationship
* may lead to poverty and underdevelopment
(Colonialism) - 11Theories of Development - Core - PeripheryFriedmann argues that beneficial effect can spread from the core to the peripheral areas
- Myrdal's model is similar however the spread effects are outweighed by the backwash effects (that favour the core region, widening the development gap)
- Governments try to neutralize backwash effects with international aid/ trade agreements - 12Theories of Development - The debt crisisIn the last 50 years many poor countries accepted loans from rich countries
- Interest on these loans affect development as they increase pressure on stretched financial situations
- Mainly concerns developing countries & prevents thee gap from closing
- The crisis was produced by
* Arab - Israeli war '73-'74 led to sharp oil prices
* Individuals & govs invested petro dollars in rich countries
* Banks offered loans at low interest rates, poor countries would pay back with their increased income
* 1980s western recession led to increased interest rates - 13Why does the debt crisis continue ?High interest rates
- corruption within developing countries (diverting money from intended purpose)
- Political instability leading to a loss of confidence that the country will repay the loan
- IMF & World bank loans help pay back original loan but have attached conditions (FDI)
- Trade barriers imposed by developed countries make exporting goods hard for developing countries - 14Global Players - TNCs- Large TNCs rival countries in terms of power
- To maintain profits they search for more efficient ways to produce goods
- Traditionally located in NICs
BRICS are developing their own large corporations
* May lead to a second generation of globalisation involving the south - 15The UNs Transnationality Index for TNCsTNI based on 3 ratios:
1. Foreign assets : total assets
2. Foreign sales : total sales
3. Foreign employment : total employment - 16TNC mining activity in Botswana- 1970 - 2000 Botswana was one of the fastest growing economies globally
1966 agri = 40% GDP
2006 agri = 2% GDP & Mining = 40% GDP
- Mining has made Botswana an upper-middle income country
- Nearly all mining companies are fully/partly owned by TNCs
- 1975-2006 industry contributed 46% of total GDP growth (diamonds = 80% of total exports between 2001 & 2005
Per capita increased from $88 in 1975 to $16,500 in 2007
- Better living standards and socio-economic infrastructure
- 2 mining companies have invested in health & education targeting AIDS and anti-retroviral therapy to the general public - 17Trade & Investment - Closing the gap?- increasing exports can decrease the gap
- Traditionally N-S flows focus on developing countries exporting primary products.
- Last 20 years developing countries have moved to manufacturing
* Change in N-S trade relations
- Trade deficits may lead to a debt trap that inhibits investment and growth - 18Terms of Tradecurrencies earned from exports : price of imports
generally world prices for raw materials has fallen in relation to the price of manufactured goods
if a country exports raw materials and imports manufactured goods they are likely to have a negative term of trade - 19Case Study : Coffee Trade Patterns- Can account for 80% of a country's foreign exchange earnings
- Produced in tropical & subtropical climates in Latin America, Asia & Africa
- Mostly exported to HICs (USA Europe)
- The supply chain works against the producer who receives little pay
* TNCs dominate the market
* Prices fluctuate widely, impacting the producers
Falling prices due to:
- loss of jobs
- abandoned farms
- reduced central revenue and export earnings
- rural to urban migration
- emigration - 20Mali's Cotton - Factors Hindering development (Physical, Political & Economic)Physical:
- Land locked
- Hot desert (N) to sub tropical sahel (2/3)
-Niger river
- 5x UK size
Political:
- Former French colony
- Stable
- China is investing
- french neo-colonialism
- USA aid (top down)
Economic:
- Very poor
- 77% pop = < $2 a day
-80% pop in cotton industry
- investing in gold and iron ore
- unfair trade agreements - 21Mali's Cotton - Factors hindering development (Social & Demographic)Social:
- 33% urban
- 1/3 pop no access to clean water
- 12 million = no adequate sanitation
- 36% child labour
Demographic:
- 15 mill pop
- 3% growth pa
- 35 million by 2050
Birth rate 45/1000
Death rate 15/1000
Infant mortality 116/1000
- Fertility rate : 6.4
48% pop < 15 years
3% > 65 years
Life expectancy = 50 years - 22The HIPC Initiative - Facts- Highly Indebted poor countries
- 38 least developed countries (32 in sub-Saharan Africa): greatest poverty & debt
-> Eligible for IMF and world bank funding
- Began in 1996 following NGO pressure to reduce debt
-> Further debt reduction in 2005 (UK held presidency) all loans worth $40 billion (18 countries) were cancelled by the IMF, World & African development bank - 23HIPC - Conditions for debt relief (2)1. The government of each country had to demonstrate good financial management & a lack of corruption
2. The money saved (not paying interest) had to be spent on poverty reduction, education & healthcare
By 2008 27/38 HIPC countries had met the conditions & they received a total of US$85 billion in aid - 24HIPC - The impact of debt Relief (Uganda)$1.5 billion of Uganda's debt was cancelled
- Increase of 20% on public spending
- 40% extra spent on education
-70% increase on healthcare spending
-Free primary schooling introduced (benefiting girls most)
* 5 million extra children attending school
- 2.2 million have gained access to clean water (10% total pop) - 25The Significance of Educating Girls-The ration of girls to boys in primary school is 1:1 but by age 16 it is 1:10
- Young marriages (13/14) leading to high fertility rates (6.8)
- Educated women defer marriage until older, decreasing the fertility rate
- Infant mortality rates among educated women are as low as in developed countries - 26List the Millenium Development Goals (8)1. Eradicate extreme poverty & hunger
2. Achieve universal primary education
3. Promote gender equality & empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria & other diseases
7. Ensure environmental sustainability
8. Create a global partnership for development - 27Factoring Hindering Development - Social & PhysicalSocial:
- HIV/AIDS
-Population size
- Dependency ratio
- Crude birth & death rate
- Healthcare & life expectancy
- Religion
- Crime
- Lack of education
- Freedom of speech
- Internal conflict
Physical:
- Climate change (rainfall/ drought)
- Water availability
- Biodiversity range
- Land-size
- Desertification
-Availability of natural resources
- Geographically Isolated
- Deforestation
- Natural disasters - 28Factors Hindering Development - Historical/Political, Economic & TradeHistorical/Political:
- Military dictatorship
- Communism/ Capitalism
- Wars
- Colonialism
- Corrupt Governments
- International relations
- Neo-colonialism
Economic:
- Poverty
- Lack of TNCS
-FDI
- Non-diversification (exports)
- Job opportunities
- Subsidies
- Primary, secondary & tertiary sectors
- Dent
- Industry
-Urbanisation
- Informal Sector
Trade:
- Outsourcing
- Landlocked countries
- Technology
- Infrastructure
- Trade blocs
- Unfair trade
- Fluctuating trade prices - 29Issues of Food SecurityIssues:
- Poverty
- Biofuels
-Climate change (fewer crops)
- Increasing global population
- Nutrition Transition
Solutions:
- GM crops
- Increasing Vegetarianism
- Teach sustainable living to subsistence farmers
- Lower demand for bought foods
- Decrease food waste
MDG No.1 - 30How does the globalisation of food production make food security worse?Economic Impacts:
-1950s 50-60% of every £1 spent on food went to the farmer
Today = 9%
- Largest manufacturing sector in the UK
*470,000 employed
- 1/3 - 40% of UK road freight is food
Social Impacts:
- 25,000 people can come to the UK under the govs seasonal agriculture worker's scheme
Deforestation (mcDonalds)
- Cargill built a port & 13 soya storage works in the Amazon region
* in 2 yrs deforestation rates doubled to 69,000 acres pa
-Improved yields (2x cows milk and wheat yield from 2.6 to 8 tonnes per hectare)
- Unfair trade (2002 banana Wal-Mart) - 31Megacities & the Development Gap - Housing, Deprivation & EmploymentHousing :
- Migrants move to cities & cannot afford to buy/rent homes
-> = Building temporary settlements, often near transport routes, or on steepy marshy land (landslides/mudflows)
-> No tenure security (illegal dwellings)
Deprivation:
- Poor rely on the informal sector
- Inadequate, overcrowded & insecure housing & services
- little/ no social protection (little police help / legal rights)
- Limited access to health & education services & infrastructure (phones/internet)
Employment:
- Many people work in the informal sector
- Cycle of Poverty
- Strong growth in manufacturing, finance & telecommunications
* Dhaka = 80% of garment industry's 2 mill employees
* 23% unemployment
* 33% self-employed
* High child-labour (below poverty line households) - 32Megacities & the Develpment Gap - Makoko (Lagos), Lagos (Nigeria) & Dhaka (Bangladesh)Makoko:
- 100,000 people in this shanty town
- Uncontrolled development means the gov cannot plan structured transport or basic services
- Lack of health care = high fertility rate
- Flooding = poor sanitation and sewage networks
Lagos:
- 9.5 mill in 2008
- 48% have poverty of access to key services
- City growth due to poor economic return for farmers (rural-urban migration)
-Income inequality
Dhaka:
- 15 mill pop
- Physical geog. major cause of poverty
* flooding, seasonal monsoons
- TNCs (Primark) = employment
- shanty towns fueled by rural-urban migration & high fertility rates
- Sewage & sanitation issues
- recent decline in fertility rates due to NGOs educating women on contraceptives - 33Somalia: A Failed State? - Facts-9.8 mill pop
- Life expectancy 5-53 yrs
- GDP per capita = 145.06 US $
- Infant mortality = 100.14/1000
@ failed state = the government has failed it's people socially, economically & politically'
* ineffective/ corrupt gov
* Little territory control
* Incoming aid - 34Why is Somalia a Failed state? & what are the effects of being a failed state?Why:
- Worst drought in 60 years
-60% livestock dead/malnourished
- malnourished youth pop
- Extremist group Al-Shabab
- Changed from a colony to free state in 1965
- Territorial issues left areas without services and caused civil wars
- Military dictatorship focused on generating gov. income NOT DEVELOPMENT
Effects:
- S. states in great poverty
- 10,000 people migrating Pw in 2011
- Piracy
- Child soldiers
- Unemployment
- HIV & malaria
- Famine
- 20% of pop left homes - 35Uganda's Oil: Blessing or Curse?-Land-locked country
- 1 billion barrels of oil reserves have been found
- revenues are expected to be $2 billion a year at peak production (national budget = $3 billion with 1.7 bill overseas aid)
- HDI levels suggest funding is needed as Uganda will otherwise not meet the MDG by 2015
- To avoid corruption Uganda needs good governance
- Transparency with the citizens about revenue and resources
- Publish what you pay laws may help in avoiding corruption
- Revenue needs to be spent wisely to reach MDG & long term development
HIV/AIDS is the main reason for poor standard of living
- Unemployment <5%
- 1997 primary education free for up to 4 children per family
- Political instability left Uganda poor and underdeveloped. - 36Natural Resource Curse - Case StudiesGuinea:
- Presidents son owns $35 mill mansion and $33 mill private jet but 20% of the pop dies <5yrs
Nigeria:
-Political instability due to poor people living on oil rich deltas
-Environmental degradation from pollution
Sierra Leone & Liberia:
- Weapons for conflict
- Illegal diamond trading
Democratic Republic of Congo:
- Demand for coltan (mineral) used for making phones has worsened the war
Botswana:
- Became an MIC from diamond wealth
- Avoided corruption & conflict - 37Land grabbingWhat?
-Land acquisitions in developing countries by large companies (from small farmers/companies)
Increase:
- 80mill hectares of deals since 2001
- Due to global food prices hitting a record high in 2011 demand for land has increased
Used For:
- Crops for food
- Crops for biofuels
- Land for profit - 38Land Grabbing: Benefits & DisadvantagesBenefits: (Host country)
- Increase jobs
-New technology
- Better infrastructure
- Extra tax revenues
- Compensation
Disadvantages:
- Scarce jobs as they are often filled by outsiders
- Isolated area as they try to cut off from the poverty stricken countryside
- Companies often pay very little tax - 39Land Grabbing: Case studiesSouth Sudan:
13 people per km2
2.5 cents per hectare
Investors have bought 10% of fertile land
long term leases with Nile trading & development & Jarek Managment
Bangladesh:
- Locals depend on the land for living and may lose it to foreign investors
- Land lost to urbanisation
- Corrupt government
Madagascar (EXCEPTION):
- Approved S. korean company to use 1/2 the arable land
- Land deal fallen by 2/3 over 2 years
- Mayor invite investors to help finance projects that cannot be supported by the gov. - 40Land Grabbing: Solution- Provide secure access to land for small farmers
- Biofuel production given careful thought
- Investments made by marginalised communities (not just thinking of profit) - 41The Demograpihc Dividend:-where fertility rates fall due to significant reductions in child & infant mortality rates
- Lasts 30-50 years
-Followed by an increase in life expectancy
- Lowers dependency ratio & promotes economic growth
-Women often start entering the work force during this time
- Large economic growth
- Increased quality of life
e.g. Indonesia
Doesn't always occur
- Poor education will stop the dividend occurring
- Corrupt gov. will also stop economic growth
- Outward youth migration - 42Apartheid in S. AfricaStarted in 1948
- Poverty, unemployment, income inequailty, life expectancy, and HIV have worsened since the end of apartheid. (1994) - widened gap
- Large economic growth since 1994, but few jobs (capital intensive)
- unemployment = 30%, many jobs lost during economic transition
- 50% pop <18 yrs
- Cuts in health spending
VERY WIDEN DEVELOPMENT GAP INTERNALLY - 43International Agencies: How poverty is addressed on a global scaleMDGs
UNs Economic & Social council
World Bank
IMF
Structural Adjustment Policies
HIPC
Private foundations (Gates foundation)
Charities (NGOS - Oxfam) - 44Reducing the Development Gap - InvestmentMicrofinance:
-Mincrofinance Institutions
- alleviate poverty, address social justice & gender equailty
* needed for people who have no access to financial services
* aid women and prevent exploitation
Bangladesh:
- bottom up approach
- small scale local development projects
- People taking a loan must agree to '16 decisions' to help development and wealth
95% of borrowers are women
- profit provides 6,000 scholarships to children of borrowers
However:
- Some loans are non-productive
- Women may be manipulated by husbands
- MFIs have higher interest rates than commercial bankers - 45Women's Role in Development- more likely to be unpaid or occupy low paid jobs in developing countries
- limited participation in politics & gov.
- 64% of illiterate adults are women
-57% of children who have no primary education are girls
- 1 in 17 women die during child birth in LDCS - 46How Nature Protect the US coast-reefs protects from rising sea level & storms (hurricane Sandy)
- Habitats inc.:
- Marshes
-Dunes
- Sea Grass beds
- Mangrove
- Kelp forests
- Coral reefs
Help to stop storm surges, flooding and coastal erosion
Coral reefs can reduce wave energy by 85% - 47FDI - Mobile Phones in Afghanistan- Conflict has meant it is too dangerous to lay landline cables.
- Technological leapfrogging to mobiles
- Roshan is the largest telephone provider
- 2006 68% of the world's mobile subscriptions were in developing countries
HELPS TO REDUCE THE GAP - 48Remittances- help to reduce poverty
- Allow spending on health & education
- quadrupled since 2000
- Diversified destinations = more reliable remittances for migrants
Bangladesh:
- 10% of total GDP - remittances
- 4/5 pop on <$2 p day, 1/3 on less than $1 p day
Mexico
- 2.5% of GDP - remittances
- 2008/09 reduction in US remittances saw increase in child labour and reduction in school attendance - 49EthiopiaIssues:
- variable rainfall (non-irrigated crops)
-1/2 pop have clean water
- Farming - 85% workforce & 45% GDP
-Famine - prominent
-One of the poorest countries in the world
2003 GDP grew rapidy - 11.4% in 2007
2008 Drought
-HEP couldn't operate at fully capacity
- Electricity available 5 days a week at most
- rural people struggled to find drinking water
* launched urgent appeal for aid (£154 mill)
* food aid is also needed - 50Ethiopia - Solutions;Low -Tech:
- Rainwater harvesting
* small pits dug to hold rainwater
* breeding ground for mosquitoes and causes debt
High - Tech:
- Build another dam
- Use 9 bill m3 of water to irrigate 60,000 hectares of land (stop famine) and generate electricity
* extra energy can be sold
* created jobs (2000) - 51Signs of Hope in Africa:Causes of growth:
- Mining
-Oil
- Agriculture
- Improving Infrastructure
- Slightly Better Governance
- More Business-friendly governments
- Decreasing dependency ratio
- FDI & TNCS (Nando's) - 52Trade Vs. AidMultiplier Effect
Fair trade
Neoliberalism
- Modernisation
Trickle-down effect
structural adjustment
Trade liberalisation
Bilateral Aid
Multilateral aid
tied aid
investment
top-down
bottom-up
NGOs - 53Ghana : A growth Economy1957 - gained independence
oil,mining & quarrying grew by 225%
service sector grew by 4.%
Agricultural sector grew by 2.8%
Number of people in poverty fells from 52% '92 to 28.5% '06
2001 tax collection was strengthened to ensure the gov has the money to tackle problems - 54Reducing the Development Gap: Trade & AidTrade:
- MINTS
China's scramble for africa
- neo-liberalism
-political stability
-Fair trade
- Subsidies
- Trade Blocs
-Modernisation
- Manufacturing/processing
- Multiplier effer
-Trickle down effect
Aid:
-Multilateral aid
NGOs
BINGOs
Long & Short term aid
Tied aid
Bilateral aid - 55Reducing the development gap: Investment & PoliciesInvestment:
- FDI
- Remittances
- Reducing trade barriers
-New technology
- Microfinance
-Tourism
- Trade blocs
Internal Investment
- Top down
- Bottom up
Policies :
- IMF
World bank
WTO
Slum Dwellers international
MDGs
Debt relief (HIPC)
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