The Development Gap

The Development Gap

1. Contrasts in Development

   • Ways of dividing the World
     • 1st, 2nd, 3rd Worlds
     • North/South
     • Different stages of development
       • LDC (LEDC)
       • MDC (MEDC)
       • NIC
     • Five-fold division based on wealth
       • 1 Rich industrialising countries
       • 2 Oil-exporting countries
       • 3 newly industrialising countries (NICs)
       • 4 Former centrally planned economies (previously communist)
       • 5 Heavily indebted countries
   • Measuring development
     • Correlation
       • GDP-Education = +ve
       • GDP-No. of people per doctor = -ve
       • High Development -> High HDI (Human Development Index)
     • Limitations of single measures (e.g death rate, birth rate, GNP
     • Advantages of multi-variable approach
       • Physical quality of life index (PQLI)
         • Literacy
         • Life expectancy
         • Infant mortality
       • Human development index (HDI)
         • Life expectancy
         • Literacy
         • Income

2. Global Inequalities

   • Factors making inequalities worse
     • Physical
       • Climatic hazards
         • Drought
         • Tropical Storms
       • Tectonic
         • Earthquakes
           • e.g. Haiti
     • Economic
       • Poverty
       • Low life-expectancy
       • Low standard of living
     • Environmental
       • Desperate poor farmers don't look after the land
     • Social factors
       • Water
       • Education
       • Health
     • Political
       • Poor government
   • Physical factors making inequalities worses
     • Case Study
       • Haiti Earthquake 2010

3. Reducing Inequalities

   • Loans and aid
     • Conservation swaps
       • Debts written off in exchange for promise to look after environment
         • Bolivia Rainforest 1970s
     • Loans
       • e.g. Brazil to build factories 1970s
       • Have to be paid back
         • Failure -> in debt
           • People have to work hard to pay debt
           • Debts can be written off by rich countries
       • Borrow - e.g. from Word Bank
       • Microloans
         • Start small businesses
           • e.g. Bangladesh
     • Aid
       • Gifts
         • Money, food machinery
         • "Tied aid"
           • Conditions attached
             • Payback required
       • Short-term
         • Emergency aid
           • Food
       • Long-term
         • Build schools hospitals
         • Invest in Industry
         • Needs infrastructure & support for success
       • Avantages & disadvantages of short & long-term
   • Fairtrade
     • Small case study
       • Cuapo Cocoa (chocolate)
         • Ghana
   • Case study of Development Project (one of those shown in detail, or one of your own)
     • Goat Aid
     • Computer Aid
     • Cahora Bassa Dam (Mozambique)

4. Contrasts in the EU

   • EU - Development high
     • Life expectancy - over 70 for all countries
   • Significant differences
     • GDP per capita
       • Luxembourg - 7x that of Bulgaria
   • Ireland
     • Poor country before joining EU in 1973
       • 1990's
         • Rapid economic growth
           • High tech service industries
             • e.g. Apple Europe
   • Policies to reduce inequalities
     • CAP (Common Agricultural Policy)
       • Subsidies to farmers
         • Guarantee food production
         • Ensure fair standard of living for farmers
         • Ensure reasonable prices
     • European Investment Bank
       • For regions suffering difficulties
     • Urban II fund
       • Jobs & sustainability in urban areas
     • Structural funds
       • Infrastructure, especially transport