Core Theme 2 - Disparities In Wealth And Development Flashcards
What is the Human Development Index (HDI) ?
A composite measure of development. It includes three basic components of human development
What are the three components of human development ?
- Life expectancy from birth
- Adult literacy and average number of years schooling
- Gross Domestic Product (GDP) per capita (decent standard of living)
Why has the UN encouraged use of HDI ?
- more reliable than single indicators such as GNI
- global measure
- composite index
Disadvantages of HDI
- doesn’t look at social factors factors e.g. happiness
- doesn’t measure internal disparities
Infant mortality rate (IMR)
The number of children in a country who die before their first birthday per 1000 live births
Why is the IMR used as an indicator of development ?
- high IMRs found in poorest countries
- most causes of death in areas with high IMR are preventable
- Where water supply, sanitation, nutrition, housing and basic healthcare are adequate, IMRs are low
Gender Empowerment Measure (GEM)
- GEM reveals whether women can take an active part in economic and political life
- tracks percentages of women in parliament, among legislators and the gender disparity in earned income, reflecting economic independence
- Norway is ranked first in GEM (0.837) + Yemen 70th (0.127)
The Education Index
- the Human Development Report 2009 provides an index of education
- based on adult literacy rate + combined enrolment for primary, secondary + tertiary schools
- Australia (0.993)
- Niger (0.282)
The Human Poverty Index 1 measures poverty in developing countries. It focuses on deprivations in three dimensions:
- the probability at birth of not surviving to age 40
- knowledge, as measure by the adult illiteracy rate
- the percentage of people without sustainable access to an improved water source and the percentage of children underweight for their age
Why does the Human Poverty Index 2 exist?
Because human deprivation varies with social + economic conditions, a separate index HPI-2 has been devised to measure poverty in selected OECD countries.
What are the indicators of HPI-2 ?
- the probability at birth of not surviving to age 60
- the adult functional illiteracy rate
- the percentage of people living below the income poverty line
- the long-term unemployment rate (12 months or more)
What is the difference between HDI and HPI?
Whilst HDI measures overall progress in a country in achieving human development, HPI reflects the distribution of progress and measures the backlog of deprivation that still exists.
How many people living in developing countries are hungry ?
815 million
The Food and Agriculture Organisation calculates that of the 815 million hungry:
- half are farming families, surviving off marginal lands
- 25% live in shanty towns
How much does malnutrition contribute to the child mortality rate in LEDCs?
Malnutrition contributes to 53% of the 10.6 million deaths of children under five every year in developing countries
What are the problems with malnutrition ?
- Undernourished infants lose their curiosity, motivation + will to play.
- Millions leave school prematurely
- Chronic hunger delays physical + mental growth of children
- Every year that hunger continues at present levels costs five million children their lives
- Hunger is responsible for reducing the GNP of some developing countries by 2-4%
What proportion of the world’s hungry people are female?
Seven out of ten
In India what proportion of children are underweight and what proportion are stunted?
In India, almost 45% of children under 5 years old are underweight, and over 45% are stunted
What is undernutrition?
- Undernutrition is caused by poor absorption of nutrients as a result of repeated infectious disease.
- It includes being underweight for one’s age, too short (stunted), too thin (wasted) and deficient in vitamins and minerals (micronutrient malnutrition)
6 Negative aspects of slums
- high concentrations of poverty + social + economic deprivation
- may include broken families, unemployment and economic, physical + social exclusion
- limited access to credit + formal job markets due to stigmatisation, discrimination + geographic isolation
- slums are recipients of industrial effluent + noxious waste
- suffer from waterborne diseases e.g. typhoid, cholera
- HIV / AIDS
Slums have the most intolerable of urban housing conditions, which frequently include:
- insecurity of tenure
- lack of basic services, especially water + sanitation
- inadequate + sometimes unsafe buildings
- overcrowding
- location of fragile, dangerous or polluted land
Positive aspects of slums
- slums are first stopping point for immigrants | provide low cost + affordable housing that lets immigrants save for their eventual absorption into urban society
- informal entrepreneurs operating from slums have clienteles extending to the rest of the city
- vibrant mixing of diff cultures frequently results in new forms of artistic expression
Case study: Ninga Mia, and Aboriginal shanty town
- Ninga Mia is an Aboriginal shanty town in the shadow of one of the world’s biggest gold minds
- A third of houses lack bathrooms
- Houses insanitary and overcrowded
Whereas Australia is ninth in the world for life expectancy, those born Aboriginal can expect to:
- die 20 years earlier than their non-indigenous compatriots
- have an IMR 4x higher than general population
- deaths from heart disease + strokes are 3x more common
- Aborigines are 45x more likely to be victims of domestic violence
What does the Centre of Housing Rights and Evictions (COHRE) report in Cambodia ?
- many vulnerable poor communities face land tenure insecurity + forced displacement.
- In contrast, the rich have little difficulty in acquiring land titles in high-value areas in which poor communities live. These are often acquired through ‘unofficial’ fees
Shanty town
An illegal settlement on land not owned by the householder. This makes their inhabitants vulnerable to resettlement.
Two theories stress how development issues in poor countries are closely linked to what has happened in rich countries. What are they?
- Dependency Theory
- World systems analysis
What is Frank’s Dependency Theory
- recourses flow from PERIPHERY of poor states to a CORE of wealthy states enriching the latter at expense of former
- one could not survive without the other: poor nations provide natural resources + cheap labour, without which the core could not have standard of living it enjoys
- periphery countries need core to maintain their economy providing these services
The dependency theory is a very different approach from most models of development:
- It stressed that to be developed is to be self-reliant and to control national resources
- Modernisation doesn’t mean westernisation. Underdeveloped countries must set goals of their own, appropriate to their own resources + values
What countries make up the semi-periphery?
Countries undergoing class struggles and social change e.g. Latin America in 1980s and Eastern Europe in 1980s-90s
Core and periphery
The concept of a developed core surrounded by an undeveloped periphery
Gross National Income (GNI)
The total value of foods and services produced within a country, together with the balance of income and payments from or to other countries
The gap between poorer and richer households has widened since the 1990s. What does this reflect ?
This reflects the impact of financial globalisation and the weaker ability of domestic policies to enhance the income position of the middle class and low-income groups
Between 1990 and 2004 approximately two-thirds of countries experienced an increase in income inequality. What do the statistics show ?
The income gap between the top and bottom 10% of wage earners increased in 70% of countries
What other factors could excessive income inequalities be associated with?
- higher crime rates
- lower life expectancy
- malnutrition
- increase likelihood of children being taken out of school in order to work
What are Gini coefficients?
Income inequality is usually measured by a country’s Gini coefficient, in which 0 is perfect equality and 1 is perfect inequality
What are Gini coefficients based upon?
Gini coefficients in Latin America are based on income; those in Asia are mainly based on expenditure, because reliable income data are often not available
What does the Asian Development Bank recommend to reduce inequality?
- governments focus on policies that lift the incomes of poor, e.g. improving rural access to health, education + social protection.
- more investment in rural infrastructure could boost productivity in farming + increase job opportunities for poor
Asian Tigers
Four economies (Hong Kong, Singapore, South Korea + Taiwan) that were the first NICs, and were associated with very high growth rates + industrialisation between the 1960s and 1990s
Why is life expectancy increasing ?
- more people than ever before have access to minimum health care, safe water supplies + sanitation.
- most children are immunised against six major diseases of childhood
- child mortality reducing. 21million in 1955, 10million in 1997 + projected 5million in 2025
Life expectancy has decreased in some countries. Why?
Between 1975 and 1995, 16 countries with combined population of 300million saw decrease in life expectancy. Many of them were African countries in the grip of an HIV/AIDS epidemic
How have trends in education improved ?
- since 1999 the no of children not at school has fallen by 33million
- in India the no of kids not in school fell by 15million in 2years(2001-2003)
- in just one primary school generation, Senegal has moved from 85girls for every 100boys to an equal no of girls + boys
Why might poorer countries countries face the imminent prospect of education reversals ?
The 2010 EFA report warned that 72 million children were still out of school, and a combination of slower economic growth, rising poverty and budget pressures could erode the gains of the past decade.
How do language and ethnicity reinforce marginalisation in Turkey?
Turkey has made rapid progress in education, but Kurdish-speaking females from poor households average around three years in school
Why has Haiti’s HDI reduced from 0.475 in 2006 to 0.471 in 2013?
- in Jan 2010, Haiti was hit by magnitude 7 earthquake
- affecting 3million + killing 220,000+
- major setback in economic + social advancement
- esp. w local businesses + industry destroyed
Kibera Slum
- world’s largest slum
- 2.5 square km
- population = 1 million
- 20% children die before age 5
- 60% adults are HIV positive
- most families survive on 85p per day
Mumbai
- population of 16 million people
- more than half work + live in slums
- Dharobi: 1million+ people live in 1 square mile
- includes a recycling plant: 80% plastic recycled
Ship-breaking (informal sector employment)
- mainly informal sector with few safety contracts
- 90% is carried out in Bangladesh, China, India, Turkey
- large amounts of carcinogens + toxic substances
- an average sized shop contains up to 7tonnes of asbestos
- majority have no waste management systems
- also affects environment, fishing, agriculture etc..
Changing global trade
- both developing + developed countries are now specialising in manufactured goods
- some developing countries are big exporters of services like tourism
What is trade?
The exchange of goods / services for money
What is a trading bloc?
A group of countries who have joined together to promote trade e.g. the EU
What is an embargo?
The prohibition of trade with a particular country. An embargo might be a way of punishing a country or an attempt to force a country to change its priorities.
What are sanctions?
Restrictions placed on a country’s trading. For example, after Russia-backed-forces invaded Crimea, Ukraine in 2014, the EU imposed sanctions on Russia. Russia has also retaliated.
What is protectionism?
Attempts to protect domestic markets by making foreign goods less competitive. This is most commonly done through tariffs + quotas placed on foreign goods. Subsidies are also given to domestic goods.
What are tariffs?
Tax / duties placed on imported goods to make them more expensive + so reduce demand
What are quotas?
A limit placed on foreign goods to reduce the supply of them, therefore forcing the price up and reducing the demand for them
What are subsidies?
Financial help given to companies to make their production costs less. This might be through grants, or the reduction of taxes.
What is free trade?
When trade is totally free + fair, there are no protectionist policies in place. It is the aim of the World Trade Organisation to promote free trade around the world
Was Millenium Development Goal ‘Eradicate Extreme Poverty and Hunger’ achieved by 2015?
- the proportion of people whose income is less than $1.25 a day has been cut in half
- still 836 million people live in this kind of extreme poverty
- as pop. grows, problem worsens
- 1 in 9 people in world are still undernourished, whilst obesity rates increase in MEDCs
- UN has now given itself until 2030 to achieve this goal, as part of the Global Goals for Sustainable Development
Was Millenium Development Goal ‘Promote gender equality and empowerment of women’ achieved by 2015?
- worldwide, gender equality exists at primary age, and there is 90% enrolment in primary education in developing countries
- however, 57 million children are still out of school and globally, women earn 24% less than men for the same work
- many regard female empowerment as highest priority: as soon as women are more educated, they can have higher aspirations + escape cycle of poverty
Was Millenium Development Goal ‘Reduce child + maternal mortality’ achieved by 2015?
- 6 million children die before their fifth birthday every year
- 830 women die daily from preventable causes related to pregnancy
- but some progress has been made:
- since 1990, 17,000 fewer children are dying each day
- maternal mortality has dropped by 45%
Advantages of remittances + migration for source country
- reduces unemployment
- reduces pressure on schools + hospitals (if migrants take children)
- reduces pressure on infrastructure
- remittances go directly to family so enter economy on local level
- migrants return with new skills (language, ICT)
- improved relations with countries
Disadvantages of remittances + migration for source country
- remittances can fall during economic downturn
- can create dependency
- creates family division + conflict
- increased dependency ratio in source country
- brain drain: usually youngest + most skilled choose to leave
- reduced incentive for government investment in education
- migrants are open to extortion
What are Free Trade Areas?
FTAs are created when 2 or more countries agree to eliminate barriers to trade on all goods from other members
What is a common market?
When member countries trade freely in all economic resources. This means that all barriers to trade are removed.
What was the initial aim of the EU?
To create a single common market for goods, services, capital and labour by eliminating all barriers to trade + hence promoting free trade between members
What is the EU?
The world’s largest trading bloc and second largest economy after the USA. In 2014, the value of EU output was $18.5 trillion
How do trading blocs advantage job creation?
Jobs may be created as a consequence of increased trade between member countries
How do trading blocs advantage specialisation?
Knowing that they have free access to each other’s markets, members are encouraged to specialise
How do trading blocs advantage protection?
Firms inside the bloc are protected from cheaper imports from outside, such as the protection of the EU shoe industry from cheap imports from China + Vietnam
Disadvantages of trading blocs
- The benefits of free trade between countries in diff. blocs are lost
- Inefficient producers within bloc protected from more efficient ones outside bloc
- e.g. inefficient EU farmers protected from low-cost imports from LEDCs
- Retaliation: e.g. ‘beef wars’ when US applied £60m tariffs on EU beef in response to the EU’s ban on US beef treated with hormones
What is emergency aid?
Help that is given to a country that is suffering from a natural disaster or conflict. May include food, water, tents, clothing + rescue teams to look for victims of natural disasters
What is development aid?
Aid that is given to benefit a country. May be money to build a new road or port to improve infrastructure. May be money given to build new hospital / school to benefit people of country
What is tied aid?
Aid that is given to a country with provision that they spend it in a particular way or follow particular policy
What is untied aid?
Aid that is given to a country with no policy or spending requirements attached
What is multilateral aid?
Aid that is given by multiple donors to a specific country. May be collected by an NGO or UN organisation e.g. WFP
What is bilateral aid?
Aid that is given by one country directly to another country
Why did many LEDCs fall into debt in the latter half of the 20th Century?
- Many LEDSs borrowed heavily in the 1970s + early 1980s, encourage by western lenders inc. export credit agencies
- LEDSs main exports are in primary + raw materials, which are not particularly profitable
- Had to import more expensive manufactured goods, forcing them to borrow money
- Lead them into credit deficits which they are still struggling their way out of
What are Structural Adjustment Programmes?
SAPs were designed to cut government expenditure, reduce state intervention in the economy and promote liberalism + international trade. However some argue these measures have made situation worse
What are the advantages of Trade?
- free trade economy attracts FDI, which can create new jobs, improve infrastructure etc…
- ensures countries dont become dependent on others
- improve relations between foreign powers
- allows countries to access products they dont have themselves e.g. UK and bananas
What are the disadvantages of Trade?
- many LEDCs trade in low value primary products which may cause them to build up a large trade deficit
- TNCs can move into emerging markets and exploit resources + workers
- trade can cause environmental damage e.g. Deforestation
What are the advantages of Aid?
- after natural disaster, food + medical aid can save lives
- build schools + hospitals to improve quality of life
- aid agencies may employ local workers to carry out projects: not only creates employment but teaches new skills
What are the disadvantages of Aid?
- countries can become dependent on aid money, instead of developing own economy
- aid does not always reach most in need + may be taken by corrupt officials
- tied aid can force countries to carry out policies not beneficial to country
- food aid can undercut local food market + take local farmers out of business
Benefits of Free Trade
- gives local companies chance to become TNCs e.g. Pollo Campero
- countries who participate in free trade grow faster
- jobs created for local workers
- workers may improve skill + education level
- more competitive companies = lower prices
Benefits of protectionism
- producing locally reduces transport costs + air miles
- local companies take greater care of environment
Disadvantages of free trade
- TNCs take over local producers e.g. Walmart taking over local supermercados in El Salvador
- workers often exploited by TNCs
- countries dependent on foreign countries imports e.g. Europe relies on Russian gas
