Unit 2 Topic 4 Development dilemmas
1.
How to measure development—describe each of the methods below and
outline its strengths and weaknesses.
A. GDP (economic indicator)= The total value of goods and services produced
by a country in a year. Measured in US $. Often measured per person/
capita. Gives a good idea of how wealthy a country is but wealth could be
unfairly distributed within the country. Only gives information on wealth not
quality of life (QOL)
B. HDI (social indicator)= Human development Index. Measured using life expectancy, education and GDP. It is a compound indicator as it combines more than
1 thing. Gives a better view of QOL in a country as it includes social and economic indicators.
C. Corruption Perceptions Index (political freedom)= A scale from 1 (most corrupt) to 10 (least corrupt). In corrupt countries money may be invested in buying
arms or bribing officials—this makes it had for a country to develop. Businesses do
not invest in corrupt countries.
2. The Development Gap. In 1980 Willie Brandt (a German economist) drew a line
on a world map dividing the wealth/developed north and the poor/
undeveloped south.
Draw a line on the map below to
show the development gap.
What happened to the development gap in the 1980s?
Rapid economic growth happened in south America. These
countries grew because they developed their raw materials eg.
Iron ore, this gave them more
money to invest in industry and develop their economies. These created middle
income counries (MICS) e.g.. Brazil, Peru and Chile.
What happened in the 1990’s?
Rapid economic development took place in South east Asia eg. Hong Kong, Singapore and South Korea. They benefited from MEDCS locating their manufacturing industries in Asia to benefit from lower costs. These countries are NICS (newly
industrialised countries). They are called the “Asian Tigers” because of their aggressive economic growth
2. Continued.....
What happened in the 2000’s?
Rapid industrialisation in China and India. They are called RIC’s—Recently Industrialised countries. All of the RIC’s are called the BRICS—Brazil, Russia, India and China.
Is the line still relevant today?
The distribution of global wealth has changed dramatically. There has been
economic growth in South America and Asia. However the 10 poorest countries in
the world are still in sub Saharan Africa.
3. Developing countries in sub Saharan Africa- Malawi
Malawi Fact file
GNI per capita = $320
Indicator
2010
Trend from 1998
Infant mortality
per 1000 live
births
79
Down from 132
Life expectancy
52
Up from 36
Malnutrition ( %
under 5s under
weight)
15
Down from 48
Female adult
literacy
69
Up from 42
Read page 208. What problems does the new President face?
The country has food shortages, food prices are increasing and 1.2 million
people face hunger. GDP is low and there is little money to invest in health
care and education.
Look at the table above. Has Malawi developed since 1998?
All indicators have improved. Less malnutrition and improved health care
(including childhood vaccinations) has lead to longer life expectancy. Both
female and male literacy rates have improved showing more children are
receiving a primary school education.
Look at the cycle of poverty below.
Where is the best place to try and
“break” the cycle of poverty?
Inputs could be added (e.g. fertiliser,
tools and labour) to increase productivity leading to higher incomes.
Health care could be improved by
the government. This could reduce
illness and make people able to work
more productively on the land increasing productivity. Better food
supply would have the same effect.
4. Barriers to development in Malawi (factors that prevent it/slow down its
development)
A. Its landlocked
It has no coast. It is difficult to trade as most goods are imported and exportee by
sea. It is 800km to the coast by train. It makes it slow and expensive to export tobacco, sugar and tea and expensive to imort fertiliser, fuel and manufactured
goods.
B. Poor infrastructure
Unreliable power supply, water shortages and poor telecommunications mean
TNCs do not invest in Malawi.
C. HIV/AIDS
20% of adults in Malawi are HIV positive
People become weak and cannot work.
Ant retroviral drugs are too expensive for most people.
AIDs is the main cause of death and low life expectancy.
Most deaths are in the 20s/30s age group. This means the workforce is dying out
having a direct impact on the economy.
Funerals push people further into poverty.
In 2009 there were half million orphans living with grandparents who are less able
to work.
C. TRADE
Malawi needs to increase trade to develop. Malawi exports raw coffee beans. It
could earn more by exporting them first. Tariffs (taxes0 in the EU and USA add 7.5%
to the price of imported roasted coffee beans. Coffee processing firms in the EU
roast their own beans as its cheaper for them to sell to companies like Costa or
Starbucks.
5. Geographical models = Rostows modernisation theory. Explains how countries
develop over time.
Use page 2010 to describe each stage of the model.
Stage 1 Traditional Society
Most people work in agriculture. Some surplus food can be sold. This is called a
“subsistence” economy.
Stage 2 Preconditions for take off
There is a shift from farming to industry. Trade increases profits. Profits are reinvested in industry. Agriculture produces cash crops for sale.
Stage 3. take off. Rapid economic growth.
Money is invested in new technology. Factories are more productive. Take off requires profits earned from overseas trade.
Stage 4. Drive to maturity.
Technology is used throughout the economy. Industries produce consumer
goods.
Stage 5. Age of high mass consumption. A period of comfort. Consumers enjoy a
wide range of goods. Societies choose how to spend wealth eg on education,
welfare, arms, luxuries.
6. Geographical theory. Franks dependency theory
Use page 211 to describe the model.
Frank believed that development was
about 2 different types of reghions—
core and periphery. The core represents
the developed, powerful nations of the
world (North America, Europe and Australasia), and the periphery consists of
“other” areas, which produce raw materials to sell to the core. The periphery
therefore depends on the core for its
market.
In Franks theory low values raw materials
are traded between the periphery and
core. The core processes these into higher value products, and becomes
wealthy.
7. Describe the main differences between Rostows model and Franks dependency theory.
Rostow believes there is a simple route to economic development and countries
just need to follow it.
Frank disagreed with Rostow, because he believed that historical trade was what
made countries poor in the first place. He believed that poorer countries aren't
primitive versions of wealthier countries, but are weaker members of a global
economy whose rules are decided by the wealthy.
8. The multiplier effect
Use page 212 to describe
the multiplier effect.
The multiplier effect shows
how investment in and area
(e.g. a TNC building a factory) can
help increase wealth. If a factory is
built new jobs are created and
people get more regular/
higher wages. More people will
move to the area to work in the
factory. These people need housing
this creates more jobs. Demand
for food increase providing work
and income for farmers and shop
keepers. The population and economy
9. Different levels of development in India
Urban Core regions = Maharashtra
Maharashtra is a state in Western India. It contains Indias largest city, Mumbai.
Explain why Maharashtra is a core region
Maharashtra is a location for many different economic activities
1.
Secondary Industry
A. Manufacturing
Half of Mumbais factory workers make clothing
Other important industries are food processing, steel and engineering.
B. Construction Industry
There are lots of jobs in the building industry for example building factories and roads
and homes for workers.
2. Tertiary industry
A. Services
There are lots of jobs in banking, IT, call centres (as TNCs baed in mEDCs outsource
work e.g. BT)
B. Entetainment
Mumbai has the worlds largest film industry (Bollywod) this provides a wide range of
different jobs.
All of these economic activities contribute to the multiplier effect increasing Mumbais
wealth.
10. Rural Periphery regions = Bihar
Bihar is a state in North Eastern India. 86% of people live in the countryside. Most
work in farming, wages are low. 50% of households are below the poverty line.
Look at the cycle of poverty (page 213)explain why many people in Bihar are
stuck in a cycle of poverty.
86% of the population is rural and
work in agriculture. People are
poorly educated (overall literacy =
=
below 50%) and there are few other
job opportunities. School attendance is very poor—35% go to primary school. As people are poor
they cannot afford to add extra inputs to their farms eg fertilisers and
pesticides. They have few tools and
Most work is done by hand. Less
than half of people own their own
Land. They rent land
(sharecroppers)and have to
Pay half of their crops as rent. This
means there is no surplus to sell.
Every year they loose half of their income and have no money to invest in the
farm.
11. Top down development strategies
DEF: Top down ( page 214) = Is when governments look at the “big picture” to identify
needs or opportunities eg. To improve overall water supply in a country. Experts help
plan the changes. Local people are not consulted. Local people are expected to
benefit by the trickle down effect when jobs and wealth are created.
Katse Dam an example of a top down development strategy.
Complete the factfile and table below.
ACTIVITY 1: The Katse Dam in Lesotho is an example of a top down development
scheme.
Watch the documentary on the Katse Dam. Record the following information.
AIMS = 1. To help develop the economy of Lesotho by selling water to South
Africa.
2. To store water for use by Lesotho and south Africa.
3. to provide hydro Electric power for Lesotho
SCALE=
Large/ International as water is transported across country borders
FUNDING =
vided loans.
The project cost $8 Billion. The world bank and other organisations pro-
TECHNOLOGY=
High tech
IMPACT ON DIFFERENT GROUPS OF PEOPLE
POSITIVE
A. The population of Lesotho
Selling water to South Africa provides 75% of Lesotho's income.
This can be invested in the countries economic development e.g.. Schooling, better
health car and infrastructure (e.g. roads)
B. People living close to the dam
A wide range of jobs has been create from construction work to engineering.
C. South Africa
Township residents now have clean water supply to there homes. This helps improve
hygiene and sanitation. It is safer and less time consuming than collecting water from
shared stand pipes.
NEGATIVE
A. People living close to the dam
Land has been flooded when the reservoir was created. Local people have lost their
gardens/farm Land. They are no longer self sufficient in food and need to be given
food parcels (compensation) by the government.
The reservoir has also flooded roads effecting transport. School children now have to
walk significantly further to school.
Some people were made homeless.
2000 people were effected in total.
12. Bottom up development strategies
DEF: BOTTOM UP = Use page 215 to write a definition
Means experts work with communities to identify their real needs. Giving local
people control in improving their lives.
Sand Dams an example of a bottom up development strategy.
Complete the factfile and table below.
ACTIVITY 1: The Sand Dams in Lesotho are an example of a bottom up development scheme.
Watch the documentary on the Sand Dams. Record the following information.
AIMS = 1. To improve water supply (total amount of water available and water
quality) for local communities living in arid environments.
SCALE= Local/small Excellent development (a charity) working with local communities/villages
FUNDING =
The projects have very low costs as most matyerials are sourced
locally in the natural environment. Labour is provided free by local people. Excellent development send volunteers (free) to teach communities about sand dams.
TECHNOLOGY=
Low tech/intermediate/appropriate technology
IMPACT ON DIFFERENT GROUPS OF PEOPLE
POSITIVE
A. Communities with sand dams
Clean/safe/reliable wqter supply even in the dry season. Each dam can store 20
million litres of water. Enough for 100 people. They save people up to 8 hours a
day (dams are on average not more than 30 minutes from peoples homes) this
time can be invested in improving agriculture.
Health and sanitation are improved.