Development Flashcards
- Development definition
- 4 economic indicators of development
- Happy indicator of development?
- Social indicators of development?
- What is the human development index?
- 2 benefits of the HDI?
- 3 negatives of the HDI?
- The overall improvement in the social and economic well-being of a country.
- GDP, trust indices, inclusive wealth index, GNP.
- Happy Planet Index
- Number of doctors per 1000 people, literacy rate, birth/death rate, infant mortality rate.
- It’s a summary measure of a average achievement in key dimensions of human development.
- Measures a broad range of information
b. Uses social and economic data
- Rostow’s development theory?
- Name and explain each stage.
- He claims that development occurs in various phases that are related to the economy.
2a. 1st - Traditional society: economy mainly agrarian, limited tech, subsistence farming, primary sector jobs.
2nd - Preconditions for take off: societal changes which enable sustained economic growth, infrastructure, agricultural productivity, industrialization improvements.
3rd - Take off: rapid economic growth, industrialization, increased productivity, tech advancements, new industries, jobs, urbanization, modern manufacturing.
4th - Drive to maturity: economy further diversifies, increased specialisation of tech, innovation.
5th - Age of High Mass consumption: society is fully developed, is affluent, mass production and consumption, majority of population enjoy high living standards.
- Sen’s theory of development?
- 2 Weaknesses of HDI?
- State 7 key areas of development?
- He claims that development is enhanced by democracy and the protection of human rights. Involves improvement in quality of life and the people’s’ freedom to pursue their goals.
- Doesn’t include income inequality, doesn’t measure political freedom, environmental sustainability and gender equality.
- Meeting basic needs, economic growth, environment/ sustainable development, political and social freedoms, well-functioning institutions, fairer income distribution, reduction of poverty.
Political and Social Freedoms
- What indicators can be used to measure this?
- A country that has high Political and Social Freedoms.
- A country that has low Political and Social Freedoms.
- Limitations of this indicator?
Political and Social Freedoms
- No. of doctors, standard of living, clean water access - link to these freedoms are they relate to social equity.
- Cuba has 8.42 doctors per 1000 people, one of the highest in the world. Italy has 8.01 doctors per 1000 people.
- Somalia has 0.02 doctors per 1000 people
- No. doctors may not link to social freedoms of the population is not burned by lack of doctors. These freedoms don’t essentially include economic factors which can influence poverty, unemployment etc.
Well-functioning institutions
- What indicators can be used to measure this?
- A country that has well-functioning institutions.
- A country that has low functioning institutions.
- Limitations of this indicator?
- Effectiveness of this indicator?
Reduction of poverty
- What indicators can be used to measure this?
- A country that has high Reduction of poverty?
- A country that has low Reduction of poverty?
- Limitations of this indicator?
- Effectiveness of this indicator?
Well-functioning institutions
- Corruption perception index (CPI) - measures perceived corruption in countries.
Rule of Law Index (ROL) - evaluates extent of a countries legal systems’ impartiality. - Low corruption - Denmark ,NZ, Finland, Switzerland.
- High corruption - Somalia, South Sudan, Angola.
- Both indices are perception based, focus on specific aspects of development don’ capture social well being, healthcare, education.
- CPI and ROL valuable as they reflect quality and effectiveness of countries institutions. Strong institutions characterized by low corruption and robust rule as they are essential for economic growth, political stability and protection of rights.
Reduction of poverty
- Poverty headcount ratio - measures proportion of pop living below national poverty line.
Multidimensional poverty index (MPI) - assesses poverty by considering multiple deprivations in health, education, living standards. - Norway, Sweden, Denmark, Germany, Australia, Japan has low pov headcount and MPI.
- South Sudan, Niger, Afghanistan have high poverty headcounts and MPI’s.
- Provides partial view of development, poverty line varies across regions so cross-country comparisons are difficult.
- Provide insights into extent and depth of poverty within a society, these ratios and scores generally indicate progress in reducing poverty. Helps assess the impact of poverty reduction policies, social safety nets and economic development efforts.
Fairer income distribution
- What indicators can be used to measure this?
- A country that has Fair income distribution?
- A country that doesn’t have Fair income distribution?
- Limitations of this indicator?
- Effectiveness of this indicator?
Fairer income distribution
- Gini Coefficient - measures income inequality within a country, ranges from 0 (perfect quality) to a 100 (perfect inequality).
Palma ratio - compares the income share of the richest 10% of the pop to income share of poorest 40%. - Finland (27.3), Iceland (26.1), Slovenia (24.6)
- South Africa (63), Namibia (59.1), Zambia (57.1).
- Cultural variations - income distribution norms can vary between cultures and regions.
Data inaccuracy - can be subject to manipulation or inaccuracies particularly in countries with weak institutions. - Low gini coefficient and Palma ration generally indicate fairer income distribution, which can be associated with a more equitable and socially cohesive society.
- How has perceptions of development changed?
- 3 factors that inhibit development?
- How does poor management inhibit development?
- How does corruption inhibit development?
- How does political instability inhibit development?
- Moved towards a focus on human welfare, thinking of health and income as a joint concept, hunger and geographical patterns of malnutrition.
- Poor management, corruption and political instability.
- If governments can’t manage maintaining and building infrastructure, wisely raising and spending finance, creating laws and business practices that encourages investment and initiative that honour property rights development will not be stimulated.
- Involves bribery, embezzlement, fraud which undermines social and economic development by fostering inequality. It creates inefficiencies, enables private gain which can lead to poor infrastructure, poor education and health systems and economic instability.
- Shortens policymakers horizons, economic stagnation, corruption and unrest, short term solutions, crises, disruption.
- What was Botswana’s development originally like?
- How has poor management impacted development in Botswana?
- How is Ugandan development hindered by poor management?
- What factors does Zimbabwe have that are conducive to economic growth and development (3)?
- How does poor management influence Zimbabwe’s development (3).
- Exception economic growth for 14 years, engaged in projects to boost economic and energy needs.
a. aimed on enhancing their stature as a regional powerhouse.
b. has one of the most progressive policies in the world.
c. admired for their economic growth rates. - Experienced severe power and water shortages due to poor planning in public service sector.
b. Ability to implement policies has been short.
Many projects are not completed within budget or desired scope.
c. Money set aside for future development is used now which hinders future growth and delays other projects. - National development hindered by a lack of strong political commitment to effective governance, causes poor decision making and policy implementation.
- Uganda doesn’t embrace meetings between east Africa presidents to promote regional integration.
- tariff barriers, such as restrictions on goods like sugar, disrupts trade flows and creates uncertainty for Ugandan businesses.
- Inefficient trade processes, as seen with conflicting statements from trade authorities, hinder the smooth flow of goods.
- Businesses involved in political matters can be impacted by favoritism, corruption, lack of transparency etc. - well-educated population, literacy rate over 90%, abundant natural resources (gold, diamond, platinum, coal).
- Early 2000 land reform programme which wanted to redistribute land to black Zimbabweans dispossessed during colonial era was poorly implemented - caused decline in agricultural production - impacted major section of their economy.
- Economic mismanagement policies on their mismanaged: price controls, currency controls, and excessive government spending. But led to inflation, goods and services shortages + decline of their currency.
- Weak institutions: includes the judiciary, the legislature, and the regulatory bodies. Makes it difficult to enforce contracts, protect property rights, promote fair competition.
- What is corruption?
- 6 issues linked to corruption.
- How does corruption impact development in Lebanon (1)?
- In Somalia?
- Abuse of power for private gain, involving behaviours such as bribery, embezzlement or fraud.
- Economic instability: Corruption distorts economic development and creates inefficiencies.
b. Political instability: If citizens perceive that their leaders are corrupt, they are less likely to respect or follow laws, leading to social unrest e.g. Lebanon.
c. Social inequality: poor public resource distribution, can exacerbate income inequality and social tensions.
d. Erosion of trust.
e. Environmental degradation: corrupt practices can facilitate illegal practices, which may hinder the enforcement of environmental regulations
f. Lack of foreign investments: Businesses are less likely to invest in countries where corruption is present. - Negligence of Lebanese gov: be seen from the August 4th, 2020, explosion on The Harbour of Beirut. This was a result of the failed Taif agreement.
- 2012 World Bank report alleged that $130 million or 68% of funds received over 2009 and 2010 was unaccounted for.
- July 2023 UN monitoring group on SOmalia accused a presidential adviser Mohamed Ganjab of receiving a portion of Somalia’s frozen state assets that had been recovered from abroad.
- Corruption is exacerbated by the absence of a functional government, a lack of resources and administrative capacity, weak leadership and a limited ability to pay public officials.
- How does political instability inhibit development?
- Evidence in Somalia. (3)
- Evidence in Pakistan. (4)
- Country that is an exception to this?
- Political instability hinders the economic growth of a state.
b. The continuous switch in policy creates uncertainty for the future of a state.
c. Long-term growth projects are unattainable.
d. In a politically unstable environment, governments are unable to focus on the growth of the state.
e. It also has social effects, demoralises the public. - Blocked progress on health improvements.
- 400,000 of the 6.6 million Somalis in need of aid are facing famine-like conditions.
- 1.8 million children are at risk of acute malnutrition in 2023. - Not fully democratic, illegitimate government. Voting disputes in 2013
- Assassination attempts: former Prime Minister Benazir Bhutto in 2007, political violence.
- Seize of control by Pakistani Taliban.
- Separatist movements creating conflict and unrest.
- Not fully democratic, illegitimate government. Voting disputes in 2013
- Ethiopia ranks 11th on the political instability index, yet it has still seen great economic growth.
- The GDP has risen exceptionally in recent years. Growing by nearly 10% each year, one of the highest rates in the world.
- Its HDI has also grown from 0.287 to 0.498 since 2000.
- Why are debt crises common in LEDC’s?
- Causes of the debt crisis?
- Scale of the debt crisis?
- Effect of debt on developing nations?
- Possible solutions to the debt crisis?
- Obstacles to these solutions?
- They don’t make sustainable systems, so over-reliant on foreign aid and finance, IO’s such as world bank support poorer countries initiatives to improve development yet when they require resources needed it’s not in the interest of MEDC’s so not sufficiently required. They have to continually borrow more money to pay for previous support, creating a loop.
- International siphoned off onto developing states.
Odious debt - unfair debt resulting from illegitimate loans.
Mismanaged lending - this is due to poor spending and lending as well as inflation.
Corruption and embezzlement by the elite in developing countries. - In africa 2002 they had $295 in debt.
Around $153 billion owed in debt to IMF and World Bank.
5,000,000 people have lost their lives in Sub-saharan Africa because of debt.
Poor countries are told by the IMF and World Bank to pay around 20-25% of their export earnings towards debt repayment. - Debt becomes a burden, creates limited access to financing, rises borrowing costs, devalues currency and slugs growth.
3.3 Billion people live in countries that spend more on interest payments than on education of health.
Countries divert resources from social provisions to repay debt. - Improve tax collection to reduce borrowing needs.
(may need tax reform).
Manage borrowing and lending better.
Increased accountability to improve the behaviour or borrowers and lenders - allows domestic citizens and parliaments to provide incentives for governments to improve debt contraction. - Political challenges and social resistance - hinders implementation of reforms.
Global economic conditions e.g. commodity price fluctuations, interest rate movements which can hinder economic recovery.
Credibility issues - can make it difficult to rejoin markets.
Inequality - resolution such as austerity policies can exacerbate socio-economic inequalities.
- What type of social factor is a significant inhibitor of development?
- 5 effects of the expulsion of the Asian community on Ugandan development by Idi Amin in 1972.
- How are discrimination issues affecting development in Saudi Arabia?
- What mechanism is being used to help this and how?
- How can fewer children support development?
- Therefore, how can culture affect development? + example
- Discrimination
- Destroyed significant proportion of the countries’ tax base, created a shortage of skilled workers.
- Damaged trade links that were vital to keep industries functioning.
- Uganda’s international reputation was tarnished and capital inflows into the country stagnated.
- Asian businesses were handed over to Ugandans however many who took ownership of the businesses didn’t have the skills or knowledge to run these firms.
GDP of Uganda fell by 5% between 1972 and 1975
- 60% of women in Saudi Arabia have a university degree but only one in six of them work.
Saudi women weren’t able to drive until 2018.
Huge amounts of their salaries used to go to their drivers.
Every Saudi company that employs women has to create a separate working space for them. Creates a barrier between men and women. - online job market Glowork was formed by young Saudi entrepreneurs to bring empowerment to women and increase diversity in the Saudi workforce.
- Glo work helps to remove logistical and cultural barriers that hinder women looking for jobs.
- Saudi ministry of Labour supports glo works initiative.
- poor households can invest more in health and education of each child, equipping next generation with the health, nutrition and education that can lift living standards in future years.
- Women need to be given education and autonomy as they will have a choice between pursuing careers or remaining at home.
This is important as some countries have seen their population double or triple without their economies keeping pace.
- Women need to be given education and autonomy as they will have a choice between pursuing careers or remaining at home.
- Some cultures encourage women to be domesticated, have lots of children which affects development.
- Hinduism has been cited as a reason of preventing India’s development however the recent growth of India’s economy proves otherwise.
Racism and abuse has historically been legitimized because of superiority beliefs over other countries.
- Hinduism has been cited as a reason of preventing India’s development however the recent growth of India’s economy proves otherwise.
- Define post-development theory and explain it.
- Institutional factors can affect development, name some of these institutions.
- State some ways the world bank inhibits development.
- State some ways the world bank promotes development.
- Outline one of the main criticisms of the world bank and IMF (3).
- holds the concept and practice of development is a reflection of Western-Northern hegemony over the rest of the world. This theory argues there is no universal model of development.
- UN, IMF, World Bank, WTO.
- In LEDCs these institutions impede economic development by siphoning funds from productive uses, discourage investors, increase costs for consumers and producer.
- One IMF instrument is the Poverty Reduction and Growth Facility established in 1999 to provide poor countries with low-interest loans.
The World Bank (IBRD) and IMF lead the effort
to achieve UN Millennium Goals, and they
provide development assistance to poor countries.
In 2010, the World Bank (IBRD) committed a
record $44.2 billion in loans to LDCs for 164
projects to provide education, health, electricity,
environmental protection, and clean water. - Some view IMF and WB efforts as methods to expand western capitalism.
Over-reliance on these organizations prevents the development of lasting and sustainable progress.
In IMF US has 17% of voting rights - there is disparate power.
- environmental factors that affect development are?
- How do resources impact development?
- How does location impact development?
- How does climate change impact development?
- Example where a country’s development is limited due to environmental factors.
- 3 ways the 2022 floods in Pakistan affected its development.
- Resources, location, climate change.
- Some countries have more natural resources that can be exploited for economic growth e.g. minerals, water, forests, arable land for cultivation. These are necessary for primary and secondary industries.
- Access to major rivers and oceans allows for trade and transportation of goods, countries with flat and fertile land can sustain larger populations than those in mountains. Climate can also cause harmful natural disasters. Being landlocked prevents trade and globalisation.
- Climate change causes more natural disasters that disproportionately impact poorer and less developed nations as they have a reduced capacity to respond to these events.
- Democratic republic of congo - has most of the world’s coltan, precious material for phone manufacturing. However most of it is extracted by richer nations thus Congo can’t benefit from it.
- The floods damaged most of the water systems in affected areas.
They caused $15.2 billion in economic losses.
Over 20 million people required humanitarian assistance.
- Explain Rostow’s modernization theory.
- Explain each step.
- What is the dependency theory?
- What were the Structural Adjustment Programmes? (SAPs)
- What did the SAPs become to be known as? Who coined this term and when?
- It is a 5 step linear process that leads to economic growth.
- ○ 1st stage - traditional society, primarily agrarian, low tech level.
○ 2nd stage - emergence of conditions needed for development. By influence of trade, communication, subsistence farming, more manufacturing jobs.
○ 3rd stage - take off stage rapid economic growth.
○ 4th stage - Drive to maturity. Economic growth spreads. Increased specialization diversifying the economy.
○ 5th stage - High mass consumption, welfare systems fully developed, trade expands. Majority of jobs are tertiary. Developed countries exploit the developing countries who are still in manufacturing stage. - The development of the West was only due to its capitalist pursuit, this capitalism in turn is only a mechanism to exploit the underdeveloped and restrain them from developing.
- Programmes aimed at reducing inflation and increasing economic growth. They were economic policies for developing countries promoted by the IMF and WB, countries that followed SAPs were entitled to receive loans from these organisations.
- The washington consensus coined by John Williamson 1989.