Measuring Development
Gross
National
Product
GNP per
capita
Calorie
intake
Birth rate
Death rate
Infant
mortality
People per
doctor
Literacy rate
Life
expectancy
Measures the total economic output of a
country, including earnings from foreign
investments
A country's GNP divided by its population.
(Per capita means per person.)
Average number of Calorie intake per person.
Number of babies being born per 1000
population per year
Number of people that die per 1000
population per year
Counts the number of babies, per 1000 live
births, who die under the age of one.
Takes into account statistics such as how
many doctors there are for every patient.
The percentage of adults who can read and
write. This is 99 per cent in the UK, 85 per
cent in Kenya and 60 per cent in India
The average age, to which a person lives, eg
this is 79 in the UK and 48 in Kenya.
But…when measuring development you need to
remember:
- GDP and GNI give an average picture across a
country so does not show variations between
areas inside a country (eg between urban and
rural areas).
- Often only show one aspect of development; eg
GNP per capita shows wealth so is high for
countries in the Middle East but if you looked at a
social indicator the countries would look less
developed.
Dividing up the world
1.
The North-South Divide:
In 1980, the German Chancellor named Willie
Brandt produced the ‘Brandt Line’, which
showed the development gap between ‘The
Rich North’ and the ‘Poor South’.
He said 80% of the
world’s wealth is in
the north
2. Four levels of income: The World Bank divides countries
into high, upper-middle, lower-middle and low incomes.
3. The Human Development Index: Looks at wealth and
social variations by combining GDP per capita, life
expectancy and adult literacy. Every country is ranked on a
scale of 0 to 1.
4. Quality of life: A social measure that depends on people’s
perceptions of what they need in life.
Measuring Development
Environmental factors:
- Being landlocked makes it harder to
trade
- Tropical diseases affect workforce
- Poor soils or dry conditions
- Natural hazards
Social factors:
- Are women able to work and
help contribute to the
economy?
- Do women benefit from
education?
- Do they have a good water
supply?
Economic factors:
- Unfair trade agreements
- Tariffs make trade difficult
- Primary products do not sell for
much money
- High levels
of debt need
repaying
What causes the
Development
Gap?
Political factors:
- Political instability scares off investment
- Wars and conflict disrupt the economy and displace people
- Corrupt governments take the funds
Barriers to development
CASE STUDY:
Why is Rwanda a
developing
country?
-
Increasing floods and droughts.
Trade with other countries is difficult because it is landlocked.
Possibility of conflict breaking out again.
Neighbouring Democratic Republic of Congo is very unstable; refugees may come to Rwanda.
AIDs and HIV is at 3% which is high compared to other countries in the world.
Sells primary products for a low price but has to import manufactured products at a higher
cost.
Natural Hazards and Development
Haiti Earthquake Fact file
• Earthquake was magnitude 7
• 12 January 2010
• Near the capital city – Port au Prince
• 316 000 dead
• 250 000 homes destroyed
• 30 000 offices and factories destroyed
• A nursery school and a midwifery school (where nurses are trained
to deliver babies) were destroyed, as was the president's palace.
• Many roads were blocked with rubble.
Haiti before the
earthquake (2009)
Haiti after the
earthquake (2012)
145th of 169 countries
on the Human
Development Index
158th of 169 countries
on the Human
Development Index
GDP per capita:
$1300
GDP per capita:
$1300 (UK: $36000)
Infant mortality rate:
59.59
Infant mortality rate:
54.02 (UK: 4.56)
Impact of the earthquake on development
• World leaders promised $4.5billion to
help rebuild Haiti but by 2012 only $2.3
billion had been given so rebuilding has
been slow.
• Donor countries have insisted their
companies do the reconstruction work so
locals have not had jobs.
• Half a million people are still homeless.
• 40% of rubble is not cleared.
• This all means Haiti has gone backwards
in its level of development following the
earthquake in 2010.
World Trade
Trade is the exchange
of goods and services
between one country
and another.
World trade BENEFITS richer
countries because:
- Governments subsidise (give extra
money to) farmers to grow crops
so they can sell their crops around
the world cheaply but still make
money. This gives them a higher
income.
- Most manufacturing happens in
richer countries which means low
value primary products are made
into high value finished products.
- Quotas and tariffs stop cheaper
imports so industries are
protected.
A trading group is an agreement between
countries, where barriers to trade (tariffs –
where you pay to trade in a country) are
reduced or eliminated among the participating
groups.
If a developing country joins a trading group
then they can work with the other countries
to negotiate fairer prices. This way the
countries all make more money.
World trade DISADVANTAGES poorer countries because:
- Farmers are not subsidised (given extra money) so they
cannot make enough money from growing crops.
- Many poorer countries depend on low value primary
products but then have to pay to import the useful
manufactured version.
- Prices of primary products (raw materials) are not
fixed. Poorer countries have to compete to sell at the
lowest price so do not make very much money.
Reducing Global Inequalities
Strategy 1: Loans
A country can borrow money from other countries, the
World Bank, the International Monetary Fund or
international banks. If the project is a success and they
make money, they can use this money to pay back the
loan. But if the project fails, the country has to pay back
the loan another way and with interest. This takes
money away from investing in education and health care.
Strategy 2: Conservation swap
These are agreements by which some of the countries
debts are written off in exchange for conservation
projects to protect the environment. For example, the
Bolivian government protected a large area of its
rainforest in exchange for writing off over $650,000 of
debt.
Strategy 3: Fair trade
This is an international movement to encourage
producers in poorer countries to be paid a fair wage.
They receive a minimum guaranteed price for their crop,
which provides then with a living wage and money to
invest in their local communities.
Sometimes richer countries agree to reduce
the interest on loan repayments (called debt
relief) or to cut the debt completely (called
debt abolition). This means the countries can
use the money they would have paid back to
invest in their country.
Loans can also be given by micro-enterprises.
These give small loans to individuals and
communities to start up businesses. Once the
business gets going, the money borrowed is
paid back in small amounts. An example is the
Grameen Bank in Bangladesh.
But the global recession has made global
inequalities worse. The problems in the
wealthier countries mean that they have
less money to lend or to give as aid.
World prices have decreased so poorer
countries get paid even less for primary
products. This could send poorer
countries further into debt.
Aid and Development
Aid is gifts of money, goods,
food, technology and
workers. It is not a loan and
does not need to be repaid.
Aid can be given:
- By one government to another: bilateral aid
- By multiple governments to organisations like the
World Bank who distribute it: multilateral aid
- Following a disaster: short term aid
- Over a long period to promote economic
development: long term aid
Type of aid
Advantages to donor
(giving) country
Disadvantages to
donor (giving)
country
Advantages to
recipient country
Disadvantages to recipient country
Short term aid
People willing give to a
disaster – they feel like
they are helping
People might get
tired of giving to
charity
Immediate help to
save lives
Aid might continue to
help rebuilding
Might not get the exact help they need
Long term aid
Makes trade links
between countries that
can last
None
New industries
develop
New infrastructure like
schools and hospitals
Aid might be tied so can only be spent on specific things
Locals might not have the training for the new jobs
Technology might be unsustainable
People might lose their homes; eg due to dam building.
Top-down aid
(from
governments)
Donor country is in
control of how aid is
used
Projects can be very
expensive so money
might be wasted
Aims to help country as
a while
Large projects improve
national infrastructure
Most locals do not benefit
Bottom-up aid
(from charities)
Direct link between
charity and recipient
and they work together
None
Charity funds might reduce in future
Development and the EU
In the EU all countries have a
high HDI and life expectancy
but GDP per capita varies a lot.
Contrasting EU Countries
The EU tries to reduce inequalities
between countries by:
Not in USSR
anymore
Bulgaria: A relatively poor country
- GDP per capita $14200 (second
poorest country in the EU)
- Population of 7 million and falling.
Emigration
- 16.1 infant deaths per 1000
population.
- Population below the poverty line is
On periphery – poor
21.8%.
Ireland: A relatively rich country
- GDP per capita $37300
- Population of 4.6 million and rising
- Population below the poverty line is
5.5%.
From agriculture
to hi-tech
industries
communications and
infrastructure
In Core – good
communications
and infrastructure
Immigration
Structural Funds: Support poorer regions of
Europe and improve infrastructure,
particularly transport. Aim to accelerate
economic development so they catch up with
other EU countries.
The Common Agricultural Policy (CAP): This is
a system of subsidies to all EU farmers. Its
main purpose is to ensure that there is enough
food production in the EU to feed the
population of the EU, that the farmers have a
fair standard of living and that customers pay
a reasonable price.
European Investment Bank: Money from the
EIB is invested in regional development.
Projects are locally based and funds are used
to train people with new skills and to help set
up new businesses.
Urban Fund II: This is for sustainable
development in troubled areas of cities. It
aims to provide social and economic
regeneration through improving living
conditions and creating new jobs.
Test Yourself
What are the
problems with
using development
indicators?
How can we
measure
development?
What can prevent
a country from
developing?
What are the
advantages and
disadvantages of
aid?
How can we
reduce global
inequalities?
Why are some
countries in the
EU more
developed that
others?