Development and Globalisation Flashcards
Types of development
Economic Demographic Social Political Cultural (Dev: above, changes associated with development (continuum)).
Economic dev
Inc in a country’s wealth (and dec in those in primary industry).
Greater access to natural resources + inc energy use per capita.
Environ exploited in increasingly sustainable way.
Demographic Dev
Inc in life expectancy + dec in overall DR (+IMR) and falling BRs.
Social Dev
Changes of factors affecting quality of life of pop.
Education, access to medical care, sanitation levels, better housing.
Political Dev
Freedom means people have greater say in who forms Gov and therefore, the impact it has on their lives.
Cultural Dev
Greater equality of women and better race relations in multi-cultural societies.
Developed countries
Most highly developed countries with high living standards.
Developing countries
Countries at lower stages of development.
LDC’s
C’s with low living standards, low LE, high IMR, low education.
Sub-Saharan Africa
NICs and RICs
C’s beginning to develop through industrialisation in last 40 yrs.
Centrally Planned Economies
Communist c’s (few left).
North Korea
Oil-Rich Countries
High GNP per head - wealth concentrated in few.
Without oil would fall into developing.
Saudi Arabia
Development Continuum
Dev process with c’s at different stages of development and are developing in different ways.
North-South Divide
Brandt Line
Separates rich N from poor S
Development Gap
Difference in affluence of rich/poo c’s. Increased with time.
Foreign Direct Investment
FDI
Investment by a TNC in c’s other than its parent.
Key to help developing c’s develop.
Measures of Development
GDP (gross domestic product)
GNP (gross national product)
HDI (human development index)
Real GDP
GDP (gross domestic product)
Total value of all finished goods and services produced by country in a year.
Usually per capita.
GNP (gross national product)
total value of all finished goods and services produced by a country in a year
plus all net income earned by that country and its pop overseas.
- wealth varies between groups/regions
- doesn’t consider local cost of living and therefore, the purchasing power of people’s incomes.
HDI (human development index)
measures:
- LE at birth
- real GDP per capita
- adult literacy and enrolment in edu at primary, secondary, tertiary levels
+ Composite measure
Real GDP
per capita based on purchasing power of peoples incomes (PPP).
LDC
Poorest, most economically weak of developing countries with formidable economic, institutional and human resource problems: often compounded by geographical handicaps and natural and man-made disaster.
Categories of LDCs
- low income (>$800 GDP per capita)
- poor human resource base (poor nutrition, health, LE, enrolment in education)
- poor physical resource base (landlocked, drought, excessive rain, poor soils, natural disasters)
- economic vulnerability (poor level of economic diversification, energy consumption, export concentration levels and % of pop. displaced by natural disasters)
Examples of LDCs
Malawi Burkina Faso Haiti Gambia Bangladesh
3 Characteristics of LDCs
- Quality of life
- Debt
- Social Problems
Characteristics of LDCs
Quality of Life
- poverty
- limited resources
- high pop growth rate
- dependent on external finance
Characteristics of LDCs
Debt
1970s: borrowed from banks I developed world
causes:
- inc oil prices in 70s
- higher interest rates in 80s
- falling export prices
- problems of domestic economic management
No hope of repayment: socio-economic decline
Characteristics of LDCs
Debt - Attempts to Help
1996: Monetary Fund and World Bank est. Heavily Indebted Poor Countries Programme
2005: G8 c’s proposed to cancel debt of HIPC’s in scheme: Multilateral Debt Relief Initiative
2007: 16 LDC’s receiving debt relief under HIPC (all sub-Saharan Africa) and benefited from MDRI
Characteristics of LDCs
Social Problems
2000: world leader adopted a UN Millenium Declaration targeting more HDI’s
8 Millenium Goals –> 2015 Sustainable Dev Goals
21st Century: Investment and Development
- Education: primary, girls
- Health Care: improved LE, child mortality, reprod health, affordable rural primary HC, dev partnerships with NGOs
- Agriculture Development: loans for farmers, inc fertiliser use 30%, produce ‘dry season’ varieties=inc food security
- Micro-finance projects: now widespread
e. g. Grameen Bank (90% women: work from home), founders Nobel Peace Prize 2006, range of projects: clothing (export)
Case studies for LDCs
Malawi
Bangladesh
Burkina Faso
Globalisation
increasing the number of links between countries throughout the world and the greater interdependence that results from this.
Global marketing
marketing on a worldwide scale, taking advantage of global operational similarities, differences and opportunities to meet global objectives.
2 main groups in global economy
- TNCs
- global groupings
6 forms of globalisation
- economic (trade, finance)
- cultural (media, art, sport)
- political (groupings)
- urban (cities importance)
- demographic (migration, population)
- linguistic (English, Chinese)
- environmental (pollution - all c’s impact each other)
Globalisation start in 19th Century?
- transport + comm expanded
- world trade growth: inc interdependence bet rich and poor c’s
- capital flows expanded as Eur c’s start ops in other parts of world
Changes since 1950s
- more complex intern. trade
- emergence of NICs and new generation of NICs
- opening up of large economies (China, India)
- fragmentation of production process across national boundaries
20th Century events that shaped Globalisation
- free market ideas (M. Thatcher)
- deregulation of world financial markets so no longer within own national boundaries
- inc movement across intern. borders (people seeking employment)