Bridging the development gap

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1. What is the Development Gap?

Definitions

Development: the way in which a country seeks to improve economically and raise the standard of living for its inhabitant

The development gap: the widening difference in levels of development between the world's richest and poorest countries - it can also occur within countries e.g between regions or between urban and rural areas

The development continuum: better reflection of reality? There is a distinct graduation between countries at different levels rather than clusters in distinct groups

Measuring the development gap

GDP/GNI(includes income from overseas investment)/HDI (life expectancy, education (literacy and length of schooling), GDPpc)

Development classifications

North-South divide

Redrawing the line

UN levels of income

Theories of development

Rostow's modernisation

Frank's dependency theory

Myrdral's core-periphery

Debt crisis

2. Impacts of the Development Gap

Migration and development

Women and castes

Megacities

Social and political unrest: South Africa

3. Tackling the Development Gap

Aid

The Pergau damn (1994-2000) : £234 million of British aid, tied to an arms deal (the Mayalsian Government agreed to spend £1 billion on British-built fighter jets in return for the dam), a judicial review in the High court ruled ruled that this contravened the UK's overseas Aid Act (1966), contracts for the dam's construction were awarded jointly to Balfour Beatty (a donor to the conservative party) and Cementation International (who employed Thatcher's son)

Ugandan co-ops (bottom up): supported by NGOs, all farmers have an equal say in decisions (even women),shared costs of machinery and trucks, allows them to sell directly to consumers in the capital (not exploited by middle men) e.g 2007-200

Trade/investment

Between June 2006 and June 2011 the private operator Aqua Vitens Rand Ltd. (AVRL), a joint venture of the public Dutch company Vitens and the public South African company Rand Water, supports GWCL under a five-year management contract to improve its performance and rehabilitate and extend the infrastructure.

The main objectives of the 5-year management contract were:

Improving the reliability (pressure and flow rate) and quality of potable water,

Ensuring the company’s financial sustainability,

Improving customer service, and

Providing access to potable water at affordable prices to low income consumers.

Improving the reliability (pressure and flow rate) and quality of potable water: This objective was not reached in terms of pressure and flow rate, but was reached in terms of quality.

Ensuring the company’s financial sustainability: Improvements were made. The annual revenue increased from GHC 57 million to GHC 143 million, with the operating surplus growing from GHC 9 million to GHC 36 million per annum.

Improving customer service: A call centre was established and - according to the operator - training "improved the staff attitude towards the consumers".

Providing access to potable water at affordable prices to low income consumers: The number of connections increased from 364,000 to 438,000. However, water tariffs increased by 80%.

Millennium development goals

To eradicate extreme poverty and hunger

To achieve universal primary education

To promote gender equality

To reduce child mortality

To improve maternal health

To combat HIV/AIDS, malaria, and other diseases

To ensure environmental sustainability

To develop a global partnership for development