Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

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Topic 5 BRIDGING THE DEVELOPMENT GAP The causes of the development gap. Understanding the development and the development gap Considering different measures of development Explain and contrast the different views of development - PowerPoint PPT Presentation


The causes of the development gap

How is this unit examined?2 hour written exam, including pre-released synoptic resources (8 weeks in advance)

Part 1 5 out of 6 topics Part 2 6th topic in a synoptic context (will pull together aspects of the other 5 topics)

30% of A level

StarterDiscuss with the person sitting next to you:

What is the development gap?

How do we measure development?

DevelopmentWhat is the development gap?The social and economic difference or disparity between the wealthy and the poor both globally, between nations, and within countries (within cities or local regions) What is it measured by?GNPHDI Human development Index 0-1, 1 being best uses income per capita, adult literacy, life expectancy.And many other development indicators Views on development The Rostow ModelA study of 15 countries mainly in Europe suggested that all countries had the potential to break the cycle of poverty and develop through 5 stages

Stage 1 Traditional SocietySubsistence economy based on farming with limited technology or capital to develop

Stage 2 Preconditions to take-offOften an injection of external help industries develop and growth of infrastructure. Often single industry will dominate

Stage 3 Take offManufacturing industries grow, airports and roads are built. Political and social changes. Farming will decline. Investment or borrowing increases

Stage 4 Drive to maturityGrowth should be self-sustaining. Often multiplier effects in similar industry types. Rapid urbanisation

Stage 5 High mass consumptionRapid expansion of tertiary services, employment in service industries grow but decline in manufacturing2345UK1750182018501940USA1800185019201930Japan1880190019301950India19501980--Ethiopia----Is this model valid?Model assumes that all countries start off at the same levelAlthough capital is needed to advance from a traditional society it often brings debt repayments which stop a country developingUnderestimates the extent and impact of colonialismPredicts too short a timescale between the beginning of growth and becoming self-sustainingViews on developmentFriedmanns Core and Periphery ModelShows how some areas become more economically developed than others and why some regions are more wealthier than others

StagesStage 1 (Pre-industrial). The agricultural society, with localized economies and a small scale settlement structure. Fairly isolated, dispersed and low mobility.

Stage 2 (Transitional). The concentration of the economy in the core begins due to capital and industrial growth. Trade and mobility increase

Stage 3 (Industrial). Due to economic growth other growth centres appear. The main reasons for this are increasing production costs (mainly labour and land) in the core area.

Stage 4 (Post-industrial). The urban system becomes fully integrated and inequalities are reduced significantly.

Development is like an electric cable the power to drive countries from primitive to more advanced states. As the development cable model (right) shows, development is a multi-faceted processAt its core is economic development, but to achieve real progress social, political, environmental and personal development is also needed.Views on DevelopmentThe Development Cable

Development can also be seen as a pathway.Countries develop at different speeds and may cluster at different placesWhat could hinder development?Views on DevelopmentThe Development PathwayHow do we measure development?Economic WealthMeasured as Gross Domestic Product (GDP) per capita = dividing the monetary value of all the goods and services provided in a country by its total population

Gross National Income (GNI) includes income from overseas investments

GDP preferred by the EUGNI by the UN and USA

X Only useful in countries which have many economic transactions i.e. market economies rather than the non-money economy e.g. barter and exchange

XHides extremes and uneven distribution of income between regions or socio-economic groupings

X Not reflective of the local value of money

2) Purchasing Power Parity (PPI) GDPShows what per capita income will purchase when the cost of living is taken into account. E.g. In China the cost of living is low so $100 will buy far more there than in the USA

This basket of goods costs 112 Indian Rupees in India, the equivalent of 1.50*. To buy the same basket of goods in the UK would cost around 6. The difference in how much goods and services really cost, is why PPP (purchasing power parity) GDP income is used rather than raw GDP. Using raw GDP per capita average income in India is about $1000, but PPP GDP per capita income is $2800*data for Dec 2009BurgernomicsTHE ECONOMIST's Big Mac index is based on the theory of purchasing-power parity: in the long run, exchange rates should adjust to equal the price of a basket of goods and services in different countries. This particular basket holds a McDonald's Big Mac, whose price around the world we compared with its American average of $4.20.

North South Divide

Brandt Commission in 1981Other criteria2) Social, cultural and welfare criteriaRecognising the complex nature of development is why development is often measured using an index, which combines a range of dataIndices are considered more accurate than single data points such as GDP per capita.

Human Development Index (HDI) gives a country a score between 0 and 1

Enables anomalies to be spotted and identifies where poverty is greatestX No measure of human rights or freedom. There was a separate Human Freedom Index in 1991 but has not been done since.

The Human Development Index (HDI)Life expectancy at birth + Literacy rate + Enrolment rate + GDP per capita PPPThe development gapThe geography of the development gap is more complex than a simple North-South divideLatin America has HDI levels similar to eastern Europe; Chinas HDI and some others in SE Asia are relatively highSouth Asia has a concentration of levels below 0.6Level in the Middle East are relatively high, although not in Yemen, Syria and IraqThe picture for Africa is very complex, with the extreme north and south having decent HDI levels, but some regions with shockingly low numbers

Other Development Indicators?

Infant mortalityThe number of children who die before they are five out of every 100 born.Life expectancyThe average age people can expect to live toWorld Freedom StatisticsThis is an index which takes into account a range of measures to determine how free people are in a particular country. The index is complex but takes into levels of political and civil liberties, levels of corruption, and levels of political and religious conflict. It generates an index score from 1 (free) through to 7 (not free).% GDP from AgricultureThe % of total GDP (the value of everything sold and made in a country) that comes from farming.% GDP from Secondary SectorThe % of total GDP (the value of everything sold and made in a country) that comes from manufacturing and secondary industry.PopulationThe total number of people living in a country.% Population growthThe % change (up or down) in a countrys population measured annually (every year).% of population living on less than $1 a day% of population living on less than $2 day

What is this map showing?

Life expectancyInfant mortality


Oxford p183 Over to you qsOn your own qsPlenaryWhy is it hard to measure the development gap?

Is the Brandt Line still valid?

Explaining developmentDo you remember the food crisis of 2008?

Explaining developmentDo you remember the food crisis of 2008?This is probably because you were well-sheltered from the worst because we live in a developed country.P179 OxfordWhich of the following are real causes for the rise in food prices since 2006:Global food crisisExtreme weatherGrowth of biofuelsRising demand in NICsClimate changeRising demand for cattle feedTraders hoarding foodDiseases wiping out cropsGlobalisationRising oil pricesChange in agricultural policies

Global food crisisWhich of the following are real causes for the rise in food prices since 2006:Extreme weatherGrowth of biofuelsRising demand in NICsRising demand for cattle feedTraders hoarding foodRising oil pricesChange in agricultural policies

The food price crisis shows how susceptible less-developed countries are to price rises.What happened to food prices in 2008?Why was this?Using the Philippines as an example, explain how a development gap was shown by the way in which the food crisis affected its people.What is the development gap?

HW Reading Oxford 178-183Note taking