14.1 National Development Flashcards
Explain the stages of the Clark fisher model
- pre-industrial stage is dominated by primary sector employment such as agriculture, fishing, mining + other activities involving the extraction of raw materials
- the industrial stage revolves around a large manufacturing industry after experiencing a decline in the agriculture sector generally
- post industrial stage is dominated by the tertiary sector which involves the provision of services such as tourism, education + healthcare - development into this stage was facilitated by an increase in incomes so govt had greater tax revenue to invest in development of education + healthcare = creates a highly skilled workforce
Give an example for the pre-industrial stage
- Mali
- agriculture is still their largest economic sector, with crops such as maize + cotton being grown to be exported
- the pre-industrial stage is usually found in LICs due to their primary product dependency
Give an example for the industrial stage
- agricultural revolution in the UK caused a shift from primary to secondary employment
- mechanisation meant less workers were required in the farming industry, thereby encouraging rural-urban migration as employment moved towards the manufacturing sector with the Industrial Revolution
- china in 1980s experienced rapid economic growth from industrialisation + its successful manufacturing sector led to continued development into the tertiary sector but it still remains the biggest manufacturing nation in the world
Give an example for the post-industrial stage?
- the uk is one of the largest economies in the world with London being ranked as the most competitive financial centre
- the quaternary sector is growing at a fast rate in the UK, with the country having the highest share of global pharmaceutical research + development
Evaluation of the Clark fisher model
- some countries fit well e.g. UK experienced the changes displaced by the model + is now in the final stage of its quaternary sector growth
- BUT some countries have not undergone the ‘industrial stage’ of the model but their tertiary sector is still bigger than primary + secondary e.g. Jamaica
- model doesn’t consider globalisation = FDI from TNCs acts a catalyst for development rather than mechanisation + NICs are getting technology more than HICs that have already gone through the process
- model doesn’t consider impact of high levels of debt = LICs lack the money to invest in their infrastructure = limits FDI + development through stages
What’s a reason for the change in employment structure in HICs?
- outsourcing —> companies did this to save money by moving work abroad where labour costs are lower e.g. many British + American companies have outsourced their call centres to India
- it has been the revolution in information + communications technology that has enabled outsourcing to develop so rapidly
What is development?
- improvements in people’s quality of life, seen through factors such as wealth, health, education etc.
- seen in LICs when local food supply improves due to investment in farm machinery + fertiliser, electricity in rural areas, improvements in literacy rates etc.
What is the Brandt report?
- made 1890 to display the global differences in development
- claims there is the ‘rich north’ above the equator + ‘poor south’
- BUT = model deemed too simplistic due to there being many stages of development + country’s develop at different speeds
What are the different levels of economic development
- LDCs = 45 countries today
- LICs
- MICs
- HICs
What are the economic indicators of development?
- GDP/GDP per capita
- GNP
- GNI
- GNI PPP
What is GDP + GDP/capita?
- total value of goods + services produced by the country
- /capita = divided by the population
What is GNP?
- the total value of all goods and services produced by a country’s citizens in a given financial year, irrespective of their location
What is GNI?
- total value of goods + services produced by the country + income from other countries
What is GNI PPP?
- purchasing power parity
- converted to US dollars to make it comparable + then adjusted to the country’s cost of living to allow comparison between standards of living
What are the strengths of GNI PPP?
- facilitates comparison of standards of living between countries
- data collected over time so changes are taken into account
Limitations of GNI PPP
- it is an average = masks extremes of income inequality within a country
- e.g. Saudi Arabia has a high GNI due to having a few extremely wealthy people but the figure hides the large amounts of poverty that also exists
- e.g. Cuba has a low GNI ($7,879 in 2021) but a higher HDI (0.764) compared to others with the same GNI because of their communist govt which invests heavily in health + education = doesn’t take into account how govts invest the money
- doesn’t include informal sector or unpaid contributions to the economy
Strengths of GDP per capita
Limitations of GDP per capita
What is the Human Development Index?
way of measuring development using three indicators:
- life expectancy at birth (health)
- educational attainment (mean years of schooling for adults / expected years of schooling for children of entering age)
- GNI per person PPP (income)
What is the Human Development report?
- launched by the UN in 1990
- explores challenges including poverty, gender, democracy, human rights, globalisation, water scarcity etc,
- contains the HDI which displays the health, education + income levels of all countries
Strengths of the HDI?
- composite index (health, education + income) = combines social + economic data to calculate a figure to represent the level of development + therefore considers quality of life as well as just income
- produced annually by the UN as party of the HDR so it can be used to track changes in countries over time
Weakness of the HDI
- statistics are based on averages = hides wealth + quality of life distributions between people + regions
- e.g. Brazil = more development in SE (São Paulo) due to greater educational attainment than rural north
- doesn’t identify the quality of education in each country
- fails to consider rural + urban differences, as well as gender inequality —> e.g. Peru 95% of men + 84% women are literate in urban areas, compared to 88% men + 63% women in rural areas
What is the multidimensional poverty index?
- an international measure of multidimensional poverty that focuses on over 100 developing countries
- uses 10 indicators that covers health, education + living standards
- health = nutrition, child mortality
- education = years of schooling, school attendance
- living standards = cooking fuel, sanitation, drinking water, electricity, housing, assets
Strengths of the MPI
- provides very detailed data for the poorest countries = enables comparisons to be made both between countries + within countries
- allows areas that need focus on for funding be identified = able to design policies to meet the country’s needs
Weaknesses of the MPI
- only focuses on the 100 poorest countries
- however, it is still an effective tool to use alongside the HDI and when trying to advance development in LDCs
What is the gender inequality index?
a composite metric which uses three dimensions: reproductive health, empowerment + the labour market
Strengths of the GII
- covers a weakness of the HDI by identifying gender inequality
- e.g. Peru the GII identified in 2022 that female labour participation rate was 66% compared to it being 82% for men
What are the individual measurements of development?
- infant mortality rate
- education
- nutrition
How is infant mortality rate calculated?
Number of deaths of infants under the age of one per 1000 live births per year
Strengths of infant mortality rate
- most sensitive indicator of socio-economic development
- important measure of health equity between + within countries
- significant influence on fertility rates
Limitations of infant mortality rate
- many countries have significant disparities in IMR due to differences in access to health technology in different regions
- urban/rural problem
How is education calculated?
- Mean years of schooling received by adults aged 25+
- expected years of schooling for a child entering school
Strengths of education as a measurement
- world bank concluded that female literacy + quality education in general is fundamental to development
- strong rship between female literacy + infant mortality rates = women more knowledgeable on spacing births, encouragement of female empowerment + allows women to make more rational decisions
Limitations of education as a measurement
- doesn’t take into account quality of education
How is nutrition calculated?
Strengths of nutrition
- directly impacts health, productivity + economic growth
- reduces infant + maternal mortality
- increases LE
- increased labour force participation
- malnutrition strongly associated with people stuck in the cycle of poverty in LDCs
Weakness of nutrition as a measurement
- needs to be used alongside other measurements to provide a full picture of development within a country
What is the current global poverty situation?
1 person in every 7 struggles on a daily basis in terms of:
- adequate nutrition
- uncontaminated water
- safe shelter
- adequate sanitation
- access to basic healthcare
/
- people in LDCs have to survive on less than $1.25 a day (1 bn people)
What allows countries to move through levels of economic development?
- positive multiplier effect = cumulative causation
- Bangladesh is set to move up from an LDC to LIC in 2026 due to TNC investment in their textile industry which enabled them to gain a fairer share in the terms of trade
What are LDCs?
- poorest of the developing countries
- they have major economic, institutional + human resource problems
- these are often made worse by geographical handicaps and natural + human disasters
Where are most LDCs found?
- many are found in sub-Saharan Africa
- ## others located in the poverty belt of Asia e.g. Nepal + Afghanistan or small island nations in South Pacific
What limits LDC growth?
- as the gap between the richest + poorest nations widens, LDCs are increasingly marginalised in the world economy
- their share of world trade is declining + they are usually dependent on one or a small number of exports for their survival
- in many LDCs national debt equals or exceeds GDP
Examples of NICs
- first generation of NICs were South Korea, Singapore, Taiwan + Hong Kong = referred to as the four ‘Asian tigers’
- second generation was BRIC = Brazil, Russia, India + china = India + China opened their economy to FDI from TNCs in the 1990s
What causes a development gap?
- physical geography
- economic policies
- demography
How does physical geography cause a development gap?
- location = landlocked countries have higher transport costs + limited access to ports, which could be intensified if the country is in conflict with neighbouring countries e.g. Sudan + South Sudan
- amount of natural resources = limits their exports
- climate
How does economic policies cause a development gap?
- needs a govt that will welcome FDI from TNCs e.g. China + India to stimulate a multiplier effect
- TNCs won’t invest in a country with a corrupt govt or civil rights issues
How does demography cause a development gap?
- high BR puts pressure on a country’s resources e.g. education + healthcare
- low status of women = limited access to education + expectations to have lots of children
- stuck in viscous cycle of poverty = unable to develop
Economic consequences of a development gap?
- 1/8 live on less than $1.25 per day + almost 1/2 live on less than $2 per day
- poor countries frequently lack the ability to pay for food, agricultural innovation + investment into rural development
Social consequences of the development gap
- more than 850 million people in poor countries can’t read or write
- nearly a billion people do not have access to clean water
- 2.4 billion do not have access to basic sanitation
- 11 million children under 5 die from preventable diseases every year
Environmental consequences of the development gap
- poor countries have increased vulnerability to natural disasters
- lack the capacity to adapt to climate change or deal with consequent droughts
- poor farming practices lead to environmental degradation + often raw materials are exploited with little economic benefit to poor countries
Political consequences of the development gap
- LDCs often have a non-democratic govt or they are democracies that function poorly
- usually a strong link between development + quality of govt