Development Dynamics Flashcards
Development
Term that measures how advanced a country is compared to others. About the standard of living in a country
What is GDP?
Gross Domestic Product - total value of goods and services produced by a country in a year
What is GDP per capita?
Total value of goods and services produced by a country in a year divided by the population of that country
What is HDI?
Human Development Index - Puts together measurements of a country’s gross national income per capita, life expectancy and years in education to provide a figure that represents the country’s development level
Limitations of GDP and HDI
- All measures of development show averages only
- Data doesnt show everything and are not always accurate
What score is HDI between?
0-1, 1 being the highest
How are fertility rates and age in emerging countries?
- High rates
- Youthful pop
How are fertility rates and age in developed countries?
- Lower fertility rates
- Ageing pop
Problems of Rostow’s modernisation theory
- Outdated (1960) and simplistic
- Some countries skip stages
- Not all countries have same resources/climate
- Eurocentric - model based on the experience of Europe
- Other ways to develop (tourism, attracting FDI)
- One-way, some countries fall backwards (debt/corruption)
Franks dependancy theory
- Idea that developing countries cant develop because they are dependent on developed countries
- Most developed countries have the economic and political power to exploit less developed countries and impose trade barriers and conditions for loans that hinder development
Describes neo-colonialism
Problems of Franks Dependancy Theory
- Written in 1950s so is outdated
- No middle grounds - China is not a periphery and not yet a core
- Colonialism had good benefits - it provided with a basic infrastructure (eg transport/communication)
- Bangladesh hasnt improved yet despite receiving increased aid from the west for 2 decades
- Never colonised countries eg Afghanistansuffer from severe problems as they lack infrastructure provided by colonial powers
What is top-down development?
- Large-scale projects that aim at national-level
- Very expensive - funded by international development banks
- Sophisticated tech that needs experts to install and maintain
- Broad development aims not targeted towards local people
- Money comes from World bank or from TNC investment
What is bottom-up development?
- Cheaper - funded by the village itself
- Local-scale that aim to bnefit a small group
- Straightforward tech that local ppl can repair and operate
- Money comes from NGOs
- Aim is to help poor people
What is the Brandt Line?
A line that divides developed and developing countries on the world map
What is neo-colonialism?
Control of less-developed countries by developed countries indirectly - a less-developed country cant earn money if a developed country doesn’t buy their goods - causes dependency
What is infant mortality rate?
The death of children under the age of one year
What is an NGO?
Non-Government Organisation - a company or organisation that operates separate from the government, but doesn’t aim to make a profit e.g charities, universities
What is Rostow’s Modernisation Theory?
The development of a country takes 5 stages of growth: Traditional Soceity, Pre-conditions for Take Off, Take Off, Drive to Maturity, Mass Consumption
What is a traditional society according to Rostows Modernisation Theory?
- Economy based on primary sector
- Agriculture, small-scale mining, foraging and fishing
- Low levels of tech or scientific knowledge
- No currency
What is “Pre-conditions for Take Off” according to Rostows Modernisation Theory?
- Country starts to create resources that are in demand
- Hasnt started trading internationally
- Starting to mine, farm or collect resources that they might sell later for profit
- Bartering (trading w/o money)
What is a “Take Off” according to Rostows Modernisation Theory?
- Country rapidly industrialises
- Many businesses choose to invest or start a new company in the country
- Country will start to trade valuable eg minerals and cotton
- Jobs increase in industry instead of agriculture
What is “Drive to Maturity” according to Rostows Modernisation Theory?
- Businesses will develop and the government will earn enough tax to improve the country and control probs like pollution, poverty, sweatshops
- Industries that pollute or exploit their workforce are fined until they lieave
- This leaves behind good job oppurtunities, attractive cities and a good economy
What is “High Mass Consumption” according to Rostows Modernisation Theory?
- Final Stage for most developed countries
- They have high income, most families can afford more luxury
- Good quality of life and good access to health and education
Social causes of inequality
- Education - right qualifications or else increased unemployment
- Health - some countries more vulnerable to diseases and poor health e.g mosquitoes in hot climates = malaria
- Historically disadvantaged = countries that were ruled by other countries, countries exploiting resources
Advantages of GDP
- Data is availible for every country with an economic structure
- Theres lots of historical data to compare as many countries measure GDP
- It remains the same (uniform). Therefore easy to calculate and consistent to measure across all countries
Disadvantages of GDP
- It uses an average amount of money per person and so hides any gap between rich and poor ppl. (India has a bout 60 billionaires - but millions of ppl below the poverty line)
- Doesnt include important activities that dont involve money (eg subsistence massive inequality)
- GDP per capita disguises massive inequality
Demographic data
- All the data related to countrys population
Population pyramid
Bar graph which shows tha age and gender structure of a place
What does HDI look at?
- Life expectancy, income/GDP, literacy/education
- Scale between 0.000 - 1.000
- Developed = 0.8-1
- Emerging = 0.55-0.799
- Developing = Below 0.55
Advantages of HDI
- Uses 2 types of social data (health and education) and 1 type of economic data
- Much more accurate measure of both the standard of living and quality of life in a country
- Info updated annually
Disadvantages of HDI
- Wealth still has too much importance
- HDI is still too simple and that for a real measure should be a range of 10-15 diff measures
Dependancy Ratio
- Proportion of ppl below (0-14) and above (65+) normal working age.
Causes of global inequality
- Colonialism
- Slavery
- World war/ civil war
- Pandemics
- Corruption
- Crimes
- Education
- Health crisis
Terms of trade
Means the value of a countrys exports relative to its imports
Cash Crops
Crops which are sold for money
What type of country is Malawi? What is its GDP in 2017? What rank is Malawi based on HDI? What about the UK? Malawi HDI now
Developing, $1200 per capita,174th out of 189 countries, UK = 0.932 in 2019, Malawi HDI 2023 = 0.512
Physical barriers for Malawi
- Landlocked - cant trade due to no coastline
- 1 railway track (800km, badly maintained), slow train, weigtht is limited
- 85% live in rural isolation - primary sector, poor infrastructure
- Roads are mostly dirt -> takes hours to travel to local markets
Evironmental barriers for Malawi
- Living with climate change
1. Water shortages - rising temp
2. Food shortages by droughts
3. Rainfall has been lower since 2000, river dried up - Increased pollution
1. Water supplies become contaminated
2. Squater settlement (slums) grown rapidly with no sanitation/waste management
3. Increasing due to industry growth and traffic
4. Smoke in rural areas increased (bush fires, tyre burning)
Economic Barriers for Malawi
- Terms of Trade -value of Malawi’s exports is less than their imports
1. Malawi exports largely primary products (raw materials)
2. They import manufactored goods in term which are often more expensive - Cash crops - 80% popo farming and country heavily relies on this
1. Known as commodities and sold to global markets
2. Profits of exported goods tend to go to the companies in developed nations
Malawi’s history of colonisation
- In the 19th century, British colonised Malawi and its land
- They developed planttions to grow coffee and tea for export
- This means these plantations largely remain under British ownership and control (TNCs)
- Plantations - workers get paid 1p per kg
What are core countries according to Franks’ dependancy theory?
Developed, powerful, capitalist countries that demand goods from periphery countries
What are periphery countries according to Franks dependancy theory?
Produce raw materials, they satellite goods to the core, relationship = neocolonial
Advantages of Top-Down Projects
- Country will develop more quickly because of the size of the projects
- Scheme is run by the gov so its more likely to acheive its development objectives
Disadvantages of Top-Down Projects
- Much of the building work is done by machines or foreign companies so local jobs arent created
- Local people have no say in what happens. In many cases people have lost land
Advantages of Bottom-up advantages
- The scheme is run by the locate people so is likely to acheive its development objectives
Disadvantages of Bottom-up development
- The country will develop more slowly because of the size of the project
What is the site?
Location of a place made up of the physical characteristics of the landscape eg climate, landforms, water, harbour, soil quality
What is the situation?
- Location of a place relative to its surroundings and other places eg proximity to other countries, relationship to other countries
India - Environmental Constrasts
- India extends from Kashmir in the north
- The tropic of cancer divides the country almost into 2
- India is ahead of GMT by 5 hrs and 30 min
- Himalaya in North, jungles in NE, Desert in the West
- Indian monsoon is the Earth’s most powerful weather system
India - Social and Religious compositions
- Hindi and English
- More than 1500 languages
- Social ranks “caste” determined at birth by parents status
- 80% Hindu, 13% Muslim, 3rd largest Muslim pop
India - Government and States
- Parliamentary democracy
- India divided into 29 states and 7 union territories
- More than 50% of pop live in 6 states
India - Colonial legacy
- More people speak English in India than the UK due to colonialism. Important factor in India’s integration into the global economy
- Economically, split into village and urban India
- Increasing economic power
- Independance in 1947
India - Indian Dispora
- 20ml people who make up Indian dispora are scattered over more than 100 countries
- 2014, they sent US$71bn in remittances in India - a source of foreign exchange that exceeds revenues generated by India’s software industry
What is PPP?
Purchasing Power Parity
3 reasons to invest in India
- Long coastline for trade
- They have a democracy
- They speak English so they can communicate with other countries like America
Is India an emerging or developed country?
Emerging
How much has India’s GDP grown in the last 2 decades?
7%
What happend in 1991 in India?
Economic Liberisation
* India started to trade with other countries
* Before 1991, gov controlled where and what industries produced. They controlled where the money went
* Liberalisation changed it to a “market economy” where consumers and individual companies decide
1. Where goods can be made must cheaply
2. Where people will buy
Outsourcing
Where a company moves services oversease, such as software development or call centres because labour is cheaper
Containerisation
Textiles, clothing and footwear arrive in containers which are easier to load and unload
TNC benefits
- Massive rise in urbanisation
- Birth rates and fertility rates have fallen
- Dependancy ratios have fallen
- Increased hospitals in rural areas
- Life expectancy (yrs) in 1991 was 59.7, in 2014 it increased to 68
TNC Exploitations
- Garment workers are particularly likely to be discriminated against
- Many sweatshops discriminate against women returning to work after raising children
- 70% in textile work are young kids on the lowest pay
- Poverty is widespread in India - no shortage of workers willing to work 100+ hrs, £35 per week
3 types of outsourcing that have occured in India
BT
- Call centres - most employees are graduates earning £3000 a year
- Software Development - Unis such as Banaglore provide technically-qualified graduates who enable BT to develop and support its broadband
- Company administration - eg administration
How many countries does BT operate in?
BT
180 countries (including India, New Delhi)
What is the new economy?
BT
Based on the scale of services, rather than manufactored
What is meant by “footloose”? How does this benefit these “new economy companies”?
BT
They can locate anywhere - as long as high quality communication links are availble
Why is it also referred as the “knowledge economy”?
BT
Relies on skilled, well-qualified people with high levels of technical skills
What factors determine where they locate?
Depends of skills and wage costs
Why is India an attractive location for outsourcing for?
High pop which means jobs are in demand even if its low wage, they speak english, very low tax rates
What are the advantages for outsourcing for India?
BT
- Social and economic - more people have jobs and earn money
What are the disadvantages for outsourcing for India?
- Social - low wages, working conditions may be unsafe,
- Environmental - pollution by factories
Advantages of economic globalisation in India
- Increased transport and movement of goods
* Glob. allows workers to migrate more easily
* More transport leads to positive multiplier effect encouring more trade = more jobs and oppurtunity for emergind country - TNC/Outsourcing
* More jobs
* Companies benefit from low pay
* Ppl go from rural to urban
* Products come cheap for the companies
* Benefits skilled workers - FDI
* Increases GDP of country
* Increased consumption of goods and services and employment
Disadvantages of economic globalisation in India
- Increased transport and movement of goods
* Some emergind countries find it difficult to keep their best skilled workers who are attracted to higher wages elsewhere
* Environmental damage - TNC/Outsourcing
* Cheap labour - exploitations
* Men earn more than women
* Increased pollution
* Doesnt fix poverty completely - FDI
* Gov might be corrupt so might misuse the money
* Slavery
What is the core region and periphery region in India?
Core = Maharashtra
Periphery = Bihar
Maharashtra
- Has largest city = Mumbai
- Economic growth = manufactoring, service industries, entertainment
- 2ndary, Tertiary jobs
- Biggest GDP - economic powerhouse for India
- HDI = 0.65 -0.69
Bihar
- Receives little investment , no FDI
- No coastline
- Primary Jobs
- 1/2 households get less than 80p a day
- Women are lowest in Bihar (literacy)
- Traditional society - gender inequality
- School attendance is low
- HDI = 0.5 -0.549
Geopolitics
How countrie try to exert political power over a geographical place
India’s International Roles
- Relationship with Pakistan - India want geopolitical influence in Asia, both want Kashmir since 1998 due to religious differences:
1. Money has to go into military interventions
2. There are disputes over water supplies - India is a member of G20, they hosted it there
1. Positive = get to meet with country representatives
2. Get to discuss = trade deaks, agriculture, reducing carbon footprints - World Bank
1. Positive = now paying money into world bank to lend to other countries - EU AND USA - want relationships so they can develop their education, science, tech and climate change stratgies
1. 2021, India to EU trade by £88bn
2. EU is largest investor to India
3. 2021, India and US trade reach $157bn
4. US supplies India with lots of defence equipment - Climate negotations - India wants to contribute to reducing the climate crisis without damaging economic growth
1. They want to encourage renewable energy
2. Signed COP21 climate pledge in 2018
3. PM supports climate action
4. 2008 - created a National Climate Change Action Plan - BRICs = Brazil, Russia, India, China, South Africa
1. High levels of pop
2. Higher demand for goods and services provides a business opurtunity
3. More likely to become superpowers
Economic impactsof the rural to urban migration
- Increase GDP
- Low GDP in rural areas
Social impacts of the rural to urban migration
- Businesses in rural areas would close down because people work in urban areas
- Gender equality may increase
- Less depedant people, decrease in the dependancy ratio
- Low birth rates because more people are working
- Population density in rural areas will decrease
Environmental impacts of the rural to urban migration
- Increased pollution in urban areas
- Decreased pop and pollution in rural areas
Demographic Change - India
- Fertility rates have declined rapidly
- Life expenctancy at birth has improved from 50 years between 1970 - 1975 to 70.5 years in 2020
Urbanisation in India
- Increasing proportion of Indias pop is living in urban areas (where better paid jobs are located)
- India still remains well below the global average
Regional Contrasts in India
- GDP per capita varies greatly between Indian States
- Goa , the highest ranking stated is US$625 in 2022
Age and Gender in India
- 81% overall literacy now
- Research had shown that girls tend to receive less food and medical care than boys
- In 2015, women accounted for only 12% of the Indian parliament
Air Pollution in India
- 30 of the world top 50 polluted cities are in India
- Air pollution reduces life expenctancy by 302 years for the 660 million Indians who live in cities
Desertification and Deforestation in India
- Half of Indias lakes and wetlands disappeared between 1991 and 2014
- 68% of India is prone to drought
Climate Change in India
- India is the world 3rd largest emitter of co2 after China and USA
- India wants to reduce its emissions, but there are still 400 million people in the ocuntry without access to electricity
Water Pollution in India
- Main cause for river pollution is high levels of sewage from cities
- The Ganges and Yamuna are ranked among the world ten most polluted rivers
What is debt relief?
When rich countries call off heavy debts from poorer countries with preconditions
Microfinance loans
- Loans given to families and ppl in developing countries who dont have access to bank loans
Uses of microfinance loas?
- use money to start up small businesses
- offer employment to others
Problems with aid to poorer countries
- No guarantee that it reaches the neediest ppl
- can be taken by corrupt gov
- reliant on aid - stops improving itself
- Tied aid = in return country has to be goods or services - doesnt help development of poorer country
4 types of aid
- Bilateral aid
- Multilateral aid
- Emergency/ Short-term aid
- Tied/ Conditional aid
Whats bilateral aid?
Given from one country to another
Whats multilateral aid?
Aid from international organisations like UN and World Bank
Whats emergancy aid?
Aid given after a natural disaster
What is conditional aid/tied?
Country that gives a poorer country aids tells poorer country to buys goods from their country in return
Preconditions to countries receiving debt relief
- countries have to prove that they can manage their own finances and gov isnt ocrrupt
- agree to spend money on healthcare and education
