Development Dynamics Flashcards
1
Q
Development
A
> Means improving peoples lives.
It means different things to different people.
Economic, social and political.
How advanced a country is compared to others, can be measured using a variety of indicators.
2
Q
Birth/death rate
A
> How many people are born/die each year per 1000 people.
3
Q
Life expectancy
A
> How long you are expected to live to assuming trends continued.
4
Q
Fertility rates
A
> Average number of births per woman.
5
Q
Maternal mortality
A
> Measured per 100,000.
6
Q
Infant mortality
A
> Measured per 1000
7
Q
GDP
A
> Gross Domestic Product.
Total value of goods and services provided by a country in a year.
Per capita = GDP/population.
8
Q
PPP
A
> Purchasing Power Parity.
How much you can by in each country.
Measure of GDP.
9
Q
HDI
A
>Human Development Index. >Considers social and economic measures. >Introduced by UN in 1990. >Ranks countries. >1 is the best score.
10
Q
Poorest Countries (Life Expectancy)
A
> Low life expectancy: Insufficient health care because of cost and low incomes: Poorly people can’t work: Population is very young not old.
11
Q
Poorest Countries (Maternal Mortality)
A
> High maternal mortality: Bad health care: Women die and are unable to reproduce and participate in population growth.
12
Q
Poorest Countries (Literacy Rates)
A
> Low literacy rates: Can’t afford an education: Can’t get high income jobs - cycle.
13
Q
Poorest Countries (Free Election)
A
> Rarely have free elections: Government is corrupt: No political development as people don’t have a voice so won’t be interested.
14
Q
Poorest Countries - Solution to problems
A
Money
15
Q
Globalisation
A
> Globalisation describes the growth and spread of companies, ideas and cultures across the world.
Relies on connections and networks between people and regions.
Takes 3 forms - economic, political and cultural.
16
Q
Factors which have made globalisation easier.
A
> Lower transport costs.
Cheaper labour.
Tourism.
Changes in shipping, containerization and aircraft technology.
17
Q
TNC’s
A
> Trans-National Companies.
Firms which produce goods and/or services in 2 or more countries. They grow as part of the process of globalisation.
Link national economies of the world because they produce their goods for a global market.
Usually owned by MEDC’s.
$421 billion = total revenue of Walmart, 2013.
$75,760 million = total GDP of Ghana, 2013.
Richer and more powerful than countries.
Go global to sell inside trade barriers, be close to markets, take advantage of incentives, spread industrial risks and find cheap labour and land.
18
Q
TNC Organisational Levels
A
- Headquaters.
- Research and development.
- Branch Plants.
19
Q
Advantages of TNC’s for LEDC’s
A
> Improves levels of education + technical skills of people.
Get to experience western products eg. Coca Cola, McD’s.
Brings expensive machinery and modern technology to the country.
Local workforce receives a gauranteed wage.
Improvement in roads, airports and services of the country.
Brings work into the country and uses local labour.
20
Q
Disadvantages of TNC’s for LEDC’s
A
> Jobs are unskilled and involve long hours.
Companies don’t often respect employee rights, bad treatment.
TNCs take all the profits and give little to countries making the stuff.
In some countries, children work in factories = miss education.
Workers paid very little.
Company may leave the area causing massive unemployment.
21
Q
Case Study: Nike
A
> Started in 1978, now one of the biggest TNC’s.
Goods are made in LEDC countries, 700 factories in 52 countries.
75% of the workforce is based in Asia.
Organises the manufacture of it’s products by contracting out to South Korean and Taiwanese companies. These subcontracted companies then operate not only in their home countries but also in lower-wage Asian economies.
124 plants in China, 73 in Thailand, 35 in South Korea, 34 in Vietnam.
22
Q
Nike - Product Manufacturing in Vietnam
A
> Companies image+ advertising may help undermine national culture,
Concerns about the political influence of Nike.
Investments could be transferred quickly from Vietnam to lower cost locations in other countries.
> Locates many factories in Asia because they have lower-wage economies and therefore can maximise its’ profits.
23
Q
Outsourcing
A
> Occurs when a project is given to a company overseas that was formally done at home.
Form of ‘teleworking’ - doesn’t include manufacturing of goods.
Recent occurrence, increased dramatically over last 20 years due to improvement in technology.
A company may choose to outsource as it’s cheaper and easier to employ people.
Lots of countries tend to outsource to countries in the Common-Wealth.
24
Q
Outsourcing - Costs to LEDCs
A
> Economy may get locked into ‘low-value’ activities.
Further relocation will occur as wage costs increase = unemployment.
Unsocial hours.
Westernisation and loss of cultural identity as a result of training and working with English speakers.
25
Outsourcing - Costs to MEDCs
>Job losses - by 2008, 200,000 jobs had been outsourced from the U.K.
>Loss for female jobs in particular.
>Many job losses have been from economically vulnerable areas which have suffered deindustrialisation such as north-east England.
26
Outsourcing - Benefits to LEDCs
>2008, outsourcing brought in $24 billion to the Indian economy.
>Outsourced jobs have higher starting salaries.
>More jobs created in LEDCs than lost in MEDCs.
>Gender inequalities reduced as call centre jobs split 50:50.
>Young workers have higher than normal incomes.
27
Outsourcing - Benefits to MEDCs
>Many companies claim efficiency benefits when they outsource.
>Companies make larger profits benefiting share holders.
>40% cost saving rather than keeping operations in home country.
>Labour costs in UK call-centre = £18-20,000.
>Labour costs in Indian call-centre = £2500 per year.
28
Call Centres in India
>Since the 1990s, many companies have moved their call centres to developing countries like India where wages are lower.
>India has a highly educated and computer literate workforce that speaks English.
>Employ 5 million people earning $60 million a year.
>Outsourcing to cheaper countries allows TNCs to keep high profits.
>Negative multiplier effect.
29
TNC Tertiary Case Study: BT
>BT is one of the largest telecommunications companies.
>Operates in over 170 countries in the world.
>Profits are based on sales, rather than manufactured goods. (Example of the new economy).
>Offers many jobs in the tertiary and Quaternary sectors.
>Outsourced by buying or merging with several companies in the USA, Italy, Germany, South America and South Africa.
>Bangalore (India's 'silicon valley') has experienced and IT boom making it a successful BT outsource.
>In its high-tech buildings are found every major global technology company.
30
What has Bangalore gained and lost from BT outsource to them?
>GAINED: High-tech equipment, money, good for the economy, development of infrastructure,
>LOST: Loses out on maintaining culture, over-population.
31
What has BT gained and lost from outsourcing to Bangalore?
>GAINED: Money, profit, advertising.
| >LOST: Don't stick to U.K roots, reputation.
32
Global Economy
>Globalisation has led to inter-dependence between countries.
>FDI (Foreign Direct Investment) from MEDCs has resulted in a huge growth of industry in countries like China, which became the world's 2nd largest trader in less than 20 years.
>FDI = 1990s, American + European TNCs invested in new factories and transport infrastructure for Chinese cities this is known as FDI.
>Global Institutions such as the IMF and WTO aim to ensure that the economies of countries are stable.
33
IMF
>International Monetary Fund:
- Gives bankrupt countries money.
- Stops existing crisis from developing and spreading.
- To spot potential crisis there are research team reports.
- Check investment and how banks operate.
- Reduce global poverty by helping world's poorest countries.
34
WTO
>World Trade Organisation:
- Make's sure no trading is unfair.
- Aims to get countries to agree that goods traded between them will be tariff free.
- Tariffs add to price of goods, peeps will buy more.
- However, can lead to countries own producers losing out to cheaper overseas competition.
- Cutting tariffs doesn't help all - banana trade.
35
Greece - Times of 'austerity'.
>2012, Greece facing austerity (cuts in government funding).
>Government spent more than earnt - mass redundencies in civil servants-negative multiplier effect - protests.
>Received 'bail out' from the European Central Bank and IMF.
>€109 billion 'support package' , €40 billion was 'written off'.
>In 2012, another €130 billion was given out as the first one wasn't enough.
36
Types of Employment
>Primary
>Secondary
>Tertiary
>Quarternary
37
Primary Employment
>Involves getting raw materials from the Earth, e.g. fisherman, farmer, miner, lumberjack.
38
Secondary Employment
>Process materials from primary sector. Any job which manufacture items, e.g. builder, car manufacturer.
39
Tertiary Employment
>Service sector.
| >Any jobs which provide a service, e.g. bus driver, teacher, policeman, doctor, vet.
40
Quaternary Employment
>Research sector.
| >Creative or knowledge-based industries, e.g. bioscientists, IT, market researcher, media.
41
Which model shows trends in employment and what does it show?
>Clark-Fisher Model
| >Shows fall in primary, rise in tertiary.
42
Pearl River Delta - China (Background)
>NIC (Newly Industrialised Country)
>Workshop of the world.
>Main industrial region is the Pearl River Delta - 30 million people are employed there and increasing.
>It's economy is growing rapidly and is in a highlight of an industrial revolution.
>One town can supply products for lots of people.
>PRD is size of Belgium and drains into South China sea.
>South-east China.
>Pollution is a problem.
43
Pearl River Delta Industrial Cities
>Four industrial cities in PRD area:
- Shenzen: 70% of world's photocopiers, 80% of fake xmas trees.
- Zhuhai: Computer games, consoles and golf clubs.
- Zhongshan: Major centre of electric lighting industry.
- Guangzhou: Large export-only Honda plant, foods, chemicals, pharmaceuticals, beverages + electrical appliances.
44
Pearl River Delta - Pollution
>Polluted water contaminates crops and has made cancer China's biggest killer.
>Air + water pollution and deforestation are main problem in PRD.
>Crops near the river are irrigated with contaminated water, from which humans can catch diseases.
45
Acid Rain
>Rainwater containing sulphuric acid, nitric acid and compounds of ammonia.
>These pollutants have been pumped into the atmosphere by the manufacturing industry and vehicle emissions.
46
Pearl River Delta Solutions
>2007, 8 in 10 rainfalls in Guangzhou were acid rain due to the high concentration of factories + power stations + cars.
>14 out of 21 of Guangzhou's cities were affected.
>Half of waste water in urban areas not treated before being dumped into the river this kills fish and crops.
>To reduce it:
-Higher sewage treatment charges.
-Stricter pollution regulations on factories.
-Tougher national regulations on vehicle emissions.
>Environmental protection bureau classifies the environmental situation as 'severe'.
47
CO2 Emissions
>Amount of CO2 produced, in metric tonnes, per person in a given year.
48
Food Consumption
>Daily calories consumed per capita.
49
Access to Safe Water
>Percentage of population who have access to safe water.
50
Healthcare
>Number of doctors per 100,000 people.
51
Gross National Income
>Total value of goods and services produced by a country in a year (GDP), plus income receives from other countries.
52
Access to Technology
>Number of mobile phones per 1000 at a given time.
53
Reason for low HDI
>Low life expectancy
>High Maternal Mortality
>Low literacy rates
>Rarely have free elections.
54
Development Barriers
```
>Conflict
>Lack of infrastructure
>Geographical location
>Corruption
>Natural disasters
>Lack of education
>Landlocked
>Lack of natural resources
>Prevalence of disease
```
55
Purchasing Price Parity
>The value of GDP per Capita, whilst taking into consideration the cost of living.
56
Development Gap
>Gap between the most and least developed countries in the world.
>North-South Divide (Brandt Line). This identified 2 groups of countries in 1980.
>Group 1 = wealthy countries, North America, Western Europe, Japan, Australasia. World's HICs. Most in northern hemisphere.
>Group 2 = poorer countries. Latin America, Africa, Asia. LICs. Global South.
>World Bank ranks countries by total GDP from 1 (USA - US$17 trillion) to 230 (Tuvalu - US$39 million). Then put into 5 equal bands of 46 countries.
>The top quintile is the richest 1-46.
>2014, world's wealth totalled US$78 trillion.
>Top quintile includes 83% of the world's wealth.
>Bottom two qintiles (poorest 40%) includes just 3% of the world's wealth.
57
HIC/LIC
>High Income Country
| >Low Income Country
58
NIC
>Newly Industrialised Countries (e.g. Hong Kong, Malaysia).
| >Their growth is due to the relocation of US and European TNCs.
59
RIC
>Recently Industrialised Countries (e.g. China, India).
60
BRIC
>Brazil, Russia, India, China.
61
Emerging Economies
>Countries that have recently industrialised and are progressing towards an increased role in the world economy.
62
MIC
>Middle Income Countries.
>In 1980, rapid development in Latin America. Brazil and Chile.
>Large reserves of raw materials encouraged investment and growth.
>Population rose massively.
63
Malawi
>One of most under-developed countries in the world.
>Currently going through cycle of poverty.
>Government gets little tax so there's little to invest, fewer goods.
>GDP per capita = $1100
>Life expectancy = 61.7
>Infant mortality = 43.4
>Literacy rates = 62.1
>BR = 41
>Fertility rate = 5.49
64
Malawi's Development Barriers
```
>Landlocked
>Rural Isolation
>Climate Change
>Increased Population
>Terms of Trade
>Colonisation and Cash Crops
>Global trade and international relations
```
65
Malawi's Development Barriers - landlocked
>No ports to import/export goods.
>Reaching coastline involves a train along a 800km single track railway.
>Slow and expensive.
66
Malawi's Development Barriers - rural isolation
>85% of Malawi's population is rural (highest percentage in the world).
>Isolated and poor infrastructure.
>Roads are dirt so takes hours to travel on in raining seasons.
>Floods cut farmers off.
>Rural telecommunications vary.
>1 per 77 people had telephone landlines in 2012.
>Landlines are expensive so Malawi is expanding its' mobile phone coverage instead.
>Rural coverage is poor.
> 1 million (2007) -> 4.4 million (2012) have mobile phone out of a population of 17.4 million people.
67
Malawi's Development Barriers - Climate Change
>Causes water shortages as temperature rises.
>Food shortages caused by variable rainfall and increased drought.
>Rainfall has been much lower since 2000.
>Rainy season shortened means river have dried up and crop yields have fallen.
>When it does rain it is intense.
>2012 - heavy rains have damaged and reduced Malawi's maize harvest by 7% and 10,000 families were left homeless from flooding.
68
Malawi's Development Barriers - increased population
>Economic growth rapid since 2010 but this has been at a cost.
>It has led to rapid growth, squatter settlements grown with no sanitation or waste management, rivers and local dams contaminated with waste and bacteria.
>Lilongwe's water supplies were contaminated in rainy season due to surface run-off from built-up areas.
>Air pollution has risen.
>Dust, industrial smoke and exhaust fumes have reduced air quality.
>Traffic congestion has increased carbon monoxide and carbon dioxide pollution.
69
Malawi's Development Barriers - Terms of Trade
>Value of countries exports relative to to its imports.
>Malawi's export value is less than that of its' imports, which means it earns less than it spends.
>In 2014 it's export value was $1.3 billion, whilst imports were at $2.5 billion.
>Reason for poor terms of trade is that it largely exports raw materials/ primary products to developed countries which was typical trade in the 1980s, but now a third type of trade is important.
>Malawi's goods sold = tobacco (53%), tea, sugar, cotton, coffee...
70
Malawi's Development Barriers - colonisation and cash crops
>Britain colonised Malawi in 19th century and took over its' land.
>Plantations developed are owned by TNCs who hire landless labourers (they only paid 1p per kg of tea leaves - 800 times less than UK supermarket price.
>80% of its population works in farming and the country depends on cash crops for its exports.
>Sold on a global market so it's tough for farmers as they are constantly changing.
>Estate workers lose out.
>Profits go to companies in developed countries - neocolonialism.
71
Malawi's Development Barriers - global trade and international relations
>WTO = global organisation that aims to make trade easier.
>Aims to get exports to be tariff free, but it doesn't always work.
>Malawi exports raw coffee beans instead of roasted coffee beans which would get a higher price.
>As EU and the USA charge a 7.5% tariff on imported roasted beans against 0% on raw ones.
>Cheaper for companies to roast them themselves.
72
Trade Flow
>Until the 1980s flow of trade was either between the world's developed and developing countries, or, between developed countries themselves.
>Now there's a 3rd type of trade between developing countries like Malawi and the emerging economies of India and China.
>China now buys food and raw materials form African countries, and Chinese goods are exported to developing economies of Africa and Latin America.
73
Rowstow's Model of Development
1. Traditional society: most work in agriculture, producing little surplus - 'subsistence economy'.
2. Pre-conditions for take-off: shift from farming to manufacture. Trade increases profits, which are invested into new industries and infrastructure, agriculture produces cashcrops for sale (Uganda).
3. Take-off: growth is rapid, investment and technology create new manufacturing industries. This requires investment from profits earned by overseas trade.
4. Drive to maturity:technology is used throughout the economy, industries produce consumer good, period of growth.
5. Age of high mass consumption: period of comfort. Consumers enjoy a wide range of goods.
74
Frank's Dependency Theory
>'Rules decided by the wealthy'.
>Frank believed development was about two types of global region: 1. The Core 2. The Periphery.
>The core is powerful nations, MEDCs e.g. US, Europe.
>Semi-periphery is NICs.
>Periphery is other areas that provide the raw materials.
>So low-value raw materials are traded between the Periphery and Core, the Core process these into high-value goods and become wealthier.
75
Clark-Fisher Model
>A model of changing employment - helps determine the stage of economic development of a country.
1. Pre-industrial: most jobs are in farming, mining and fishing.
2. Industrial: manufacturing industry and towns grow rapidly, some tertiary employment provided, e.g. water, transport.
3. Post-industrial: tertiary sector most important, demand for services increasing, fuels increase in the health and financial services.
>In later stage the quaternary sector develops in IT and media.
76
India - an emerging country - it's situation
>Next to China - the Chinese economy has doubled in size every 10 years, it's the world's largest exporter of manufactured goods.
>Near UAE - the UAE economy doubles in size every 14 years.World's largest GDP/capita.
>Near the Suez Canal which is important as it allows the Western markets to the East. It's a man-made canal. Helped India emerge faster.
>Himalayas in north-east are a geographical barrier to the north.
77
India - social
>World's 2nd largest population, 1.25 billion in 2015.
>Has world's 4th and 5th largest cities - Mumbai and Kolkata.
>Has some of the world's worst urban slums, housing 40 million people, a quarter of its' urban population.
78
India - political
>World's largest democracy - 2015, 672 million were registered to vote.
>Growing global influence.
>One of the founding member of the UN and G20 industrial nations.
>Takes part in UN peacekeeping missions, contributing 2nd largest number of troops to the UN.
79
India - environment
>Has some of the world's richest biodiversity.
>6% of the world's plant and bird species there.
>But population and economic growth threaten them.
>Bad environmental problems with land, air and water pollution.
>3rd greatest emitter of greenhouse gases.
80
India - cultural
>Birth place of 4 of the world's religions.
>Diverse: 2011, 78% - Hindu, 15% - Muslim, 2.5% - Christian, 2% - Sikh.
>Largest film industry, Bollywood, producing over 1200 films each year.
81
India - geographical location and growth
>Location has encouraged its' economic growth.
>Located between Middle East and South-east Asia, the world's fastest growing economic regions.
>Half of the world's population lives in China and southern Asia providing labour and a huge market for goods and services.
>Whole region is becoming an economic powerhouse.
>In 2014, 4 of its' biggest customers were the Middle East, China, Singapore and Hong Kong.
82
Uneven development in India
>India's workforce is 500 million and its economy is growing at a very fast pace -7% a year.
>It's developing but development is uneven.
>Most developed areas are cities and ports.
>$1,219 is the average GDP/capita in India.
83
Mahasashtra
>GDP/capita is $1,660.
>Urban core region, economic powerhouse for the whole country.
>India's richest core region and contains Mumbai India's biggest cities.
>Has 2nd largest port in the country.
>Service industries - banking, IT, call centres.
>Has a booming construction industry - building factories, offices.
>Manufacturing - half of Mumbai's factory workers make clothes.
>Mumbai hosts world's largest film industry - Bollywood.
>Economic growth from service industries, manufacturing, ports, construction and entertainment.
84
Bihar
>$418 = GDP/capita, India's poorest state, part of periphery.
>Receives little investment and distant from cities.
>86% of its' population is rural.
>Half of its households earn less than 80p a day.
>59% of its' population has electricity, little investment as people can;'t afford the basic services.
>80% in low-skilled jobs.
>Subsistence farmers are trapped in the poverty cycle.
>Cate-based society. Higher castes are literate. Marry within caste so the poor remain poor.
>Women literacy rates = 33%.
>School attendance is low, a third of kids complete primary school, 2% reach years 12 and 13.
>Overall literacy rates = 47%.
85
Environmental Impacts of Growth
>India's economic growth caused environmental issues:
-Water pollution from poorly managed garbage and waste removal services, poor street drainage, lack of sewage treatment and cremations near the river.
-Air pollution from public transport, urban traffic, emissions from coal-fired power stations increasing greenhouse gas emissions.
>Loss of biodiversity and land degradation, as more land is needed for food, cities and industries.
86
Top-down Development
>Decisions about development are made by the government or large private companies. These decisions are then imposed on people as supposedly there's benefits for them.
87
Bottom-down Development
>Experts work within communities to identify their real need, giving locals control in improving their lives, experts assisting in progress.
88
Top-Down Project - India
>Narmada River Scheme.
>India's rainfall is seasonal and unevenly spread, dams make it possible to store these rains for the dry season.
>As India's population and economy grows, water demand rises.
>Government decided western India needs super dams to:
-encourage economic development, by providing drinking water and electricity for cities and industries.
-farm dry lands to fee the population using irrigation.
>Indian Government built over 4500 dams, 14 of which are super dams.
>Now the Narmada River is being tackled by building 3000 dams, of which 30 are super, taking 100 years to complete.
>The Sardar Sarover Dam.
89
Benefits of The Sardar Sarover Dam - Top-down Project
>One of largest dams in the world on the Narmada River.
>India's cities benefit. Dam is multipurpose providing 3.5 billion litres of drinking water daily and HEP.
>Farmer's in western India benefit. A netwrork of canals will irrigate 1.8 million hectares of farmland in west, where they suffer drought causing a loss of crops and animals each year.
90
Downsides of The Sardar Sarover Dam - Top-down Project
>Local residents lose out. 234 villages have been flooded by the dam, forcing 320,000 people out. Few rural families can afford electricity from the scheme so only cities benefit.
>Local farmers - good quality farmland has been flooded.
>People downstream. Region has history of earthquake activity. Seismologists think weight of large dams can trigger earthquakes, which could destroy dams and cause massive loss of life.
91
Bottom-up Project - India
>Biogas
>ASTRA is a recent development project in rural India.
>Researchers from the University of Bangalore spent time in villages finding out about locals lives.
>ASTRA found that peoples daily routine takes time for most rural families.
>Chores before paid work is done - especially so for women and girls.
>Girls have little education in rural areas.
>Biggest job is collecting fuelwood. Every family needs 25-30kg of it a week and takes ages to collect. As the population rises, there's a smaller supply of it.
>The solution to fuel and time is cow dung.
92
Biogas bottom-up project
>Cowdung produces biogas, which can be used for cooking, powering electricity generators - methane gas.
>It's simple and uses local materials, uses little space, located in a village with no impact. Example of intermediate technology.
>By 2010, 4 million cattle dung biogas plants had been built in India, this created 200,000 permanent jobs mostly in rural areas.
93
Intermediate Technology
>Uses low-tech solutions using local materials, labour and expertise to solve problems e.g. biogas plant.
94
Benefits of biogas
>Unlike firewood, cooking with gas creates smoke-free kitchens so fewer lung infections.
>Heat is instant so cooking is quicker.
>Girls have more time to go to school as don't need to collect fuelwood.
>After digestion, sludge is richer in nutrients than raw dung so it makes a better fertiliser.
>Biogas powers electricity generators that provide light at night and pump drinking and irrigation water from underground so farmers can now get 3 crops of vegetables a year using pumped water.
95
Impact of economic growth on people
>Demographic change, urbanisation, regional contrasts, age and gender.
>Rural-urban migration due to an increase in jobs. in 1990 25% of the population was in urban area, this rose to 33% in 2015 due to urban expansions due to the construction of apartments for 1.
>200 million middle class people by 2020, but 1 billion aren't well paid as TNCs set up factories taking advantage of low wages.
>In 2015 , 80 million employed in the clothing manufacturing industry.
>TNCs minimum wage is 87% lower than the UKs'.
>BR 1991 - 30, 2014 -19.9.
>Infant mortality has fallen 50% since 1991 due to the expansion of hospitals in rural areas and a rise in access to safe water.
>LR rose from 50% in 1991 to 74$ in 2015.
>Educated urban women, later marriage and fewer kids as they develop their career = fall in BR and FR.
>Reduced lower age groups and lower dependency ratio.
>Gender gap narrowed.
>Change in social customs: urban Hindus are freer to marry outside their caste.
96
Indias Problems
1. To attract business, India's tax rates are low.
2. So little money for government to spend on infrastructure.
3. As a result, water sanitation, schools and healthcare are poor.
- two thirds of India's homes don't have toilets.
- 45% of kids are malnourished.
- 300 million Indians earn less than $1 a day.
- Only half of those in rural areas have electricity.
97
India's future
>India suffers as a result of political unrest.
>After gaining dependence in 1947, broken into 2 countries India and Pakistan.
>Since, countries involved in 4 wars over control of Kashmir.
>Both countries claim in full but own in part.
>Now one of most militarized zones in the world.
>Water scarcity creates conflict as source of the major rivers for both countries are in Kashmir.
>India has many HEP projects so can effectively starve Pakistan from a water supply.
98
India's global status
>Member of G20, which is an initiative aimed at international co-ordination of economic policy. IMF and WTO included.
>G20 economies account for around 85% of global GDP, 80% of world trade, two thirds of the world population and half of world land area.
>So India has a say on resolving climate change, world bank investment, raising economies of Asian countries.
>Likely to become member of UN Security Council.
99
India - FDI
>Much of India's economic growth has come from FDI which the government encouraged after 1991.
>By 2005, India was second to China in terms of overseas investment received.
>Most of it has come from major TNCs such as Oracle, and international banks (such as Merrill Lynch) who have invested in telecoms and services.
>The service economy has grown most, with TNCs investing in IT, research and development, and call centres, all providing cheaper services.
