World Development

World Development

1. Terminology

   • GDP= Gross domestic product
   • HDI= Human development index
   • MEDC= More economically developed countries
   • BRIC= Brazil, Russia, India, China
   • NIC= Newly industrialised country

2. Theories of Development

   • Rostow: Modernisation Theory (Functionalist)
     • Rostow: 5 stages of economic growth. (Trad society, preconditions for take off, take off, drive to maturity and the age of high mass consumption
     • Capitalism vs Communism
     • True development can only be achieved by economic success
   • Frank: Dependency Theory (Marxist)
     • Metropolis & Satellite nations
     • Debts act as 'bondage'
     • Systematic under-development
     • Colonialism to blame for regression
     • Dependency maintained by the third world's reliance on the west for aid
   • Wallerstein: World Systems theory
     • hierarchy of core, semi-periphery and periphery countries.
     • The core countries are developed and exploit periphery countries, who are dependent on them for capital.

3. Urbanisation

   • The process of moving from agricultural to industrial society
   • Modernization theory view
     • Universally positive phenomenon
     • Wages paid to factory workers filter into the rest of society e.g housing shops and infrastructure
     • cities play a central role in promoting cultural change
     • cities loosen ties to traditional institutions & value systems by reducing dependency on community
     • promotes modern values e.g individualism
   • Dependency theory view
     • Urbanisation causes developing nations to regress
     • Urbanisation based on European experience of development, but different circumstances in LEDC's
     • Migration to cities in developing countries creates slums and underclasses
     • colonialism responsible for rapid growth of cities
     • TNC's act in similar ways to colonial powers

4. TNC's

   • Neo-liberal view
     • TNC's have been an important generator of wealth in the northern hemisphere
     • TNC's bring technology and infrastructure to the south without the risks of aid
     • provides jobs and opportunities for local people- helping them out of poverty and spurring economic growth
     • Even though levels of pay are lower compared to the northern hemisphere, they are still higher than previously available
     • TNC's are central to neo-liberal development planning and govts are advised to make themselves more attractive to TNC's. (Remove barriers to trade, reduce tax etc)
   • Modernisation theory (echoes neo-lib)
     • TNC's as a means of overcoming barriers to development
     • can help ensure preconditions for take-off
     • Demand for educated workforce promotes education, urbanisation and also overcomes cultural barriers
     • Likely to operate along Western lines and therefore will promote western values
     • Promotes gender equality, (likely to have progressive views)
   • critical perspectives
     • TNC's are the result of colonialism
     • It is increasingly difficult to embed TNC's within the moral, political and legal framework of society
     • LEDC's become dependent on them, giving them power to control govt's
     • Because TNC's operate in different countries, they are able to exploit loopholes and 'pick n mix' the legal systems
     • TNC's can abuse the relationship between subsidiaries and parent company's, using them as a buffer when in trouble
     • It is incredibly hard to decide how to punish TNC's
     • Exploitation of workers, environments and markets

5. Trade

   • Trends in global trade
     • The volume of international trade has grown massively since 1945, but only a few states have shared the wealth
     • as trade has grown, exports from developed countries have become more expensive, while exports from ledc's have grown cheaper
     • USA's imports have increased, exports decreased
   • Issues with trade
     • Instability of export products
     • Single-commodity markets
     • Terms of trade have shifted
     • Irony of the product refinement cycle
     • LDC's constantly playing catch-up
     • Difficuly in bridging the technology gap
     • Trade barriers and tarrifs eat away any of the profits brought about by trade
   • Neoliberal perspective
     • Making trade between countries easier
     • Cheaper resources, maximize profits and effieciency
     • Removal of various to trade: Tariffs, Regulations, certain regulations & laws, restrictions of capital flows and investment
     • Goal: To allow the free market to naturally balance itself via the pressures of market demands
     • Freedom from state/gov control
     • Privatisation

6. Global environmental issues

   • Ellwood (2001): Only so long before local and global ecological systems collapse
   • Population
     • Ehrlich (Neo Malthusian): The earth's resources cannot sustain present levels of population growth
     • NMalth: Population should be controlled by state policies
     • Criticism of NM's: We do have enough resources, but not if 3rd world caught up with west
     • The developed world constitute a 'consuming class'