Global Development Flashcards
Define development
The process by which societies change
How can development be economic?
Economic growth is the growth of national income, usually measured by Gross National Income (GNI). Developing countries start on subsistence farming, to growing cash crops. Finally to factory based mass production and mass consumption
How can development be social?
Developed countries will have free or accessible education, health care, democracy, human rights, gender equality and sustainability.
How is social development measured?
The human development index (HDI), created by the UN. It considers material standards of living, education, and health. Each countries score is between 0 and 1. 1 being the highest.
What is the measure of absolute poverty?
The world bank claims an income of less than $1.25 a day is a measure of absolute poverty.
Define relative poverty
Conceptualising poverty by defining it in comparison to others.
What is the modernisation theory of global development?
Internal factors in LEDC’s inhibit their development.
What are Rostow’s (modernisation) 5 stages of economic growth?
Subsistence farming
Cash crops (selling/trading surplus)
Industrialisation and urbanisation (with aid and TNC investment)
Maturity (cities developing)
Mass consumption (consumerism, materialism and growth of service sector)
What changes do Hoselitz (modernisation) claim are needed for development to take place?
Technological advancement, subsistence farming to commercial production, industrialisation, urbanisation, democracy, western values (meritocracy).
What are the criticisms of modernisation theory?
Ethnocentric (western values are superior)
Ignores ‘crisis of modernity’ such as poverty and inequality
What is the neo-liberal theory of development?
Encouraging a global free market will increase trade between all countries allowing them to develop.
What policies does Friedman (Neo-liberal) claim encourages development?
Removal of import and export tariffs
Removal of subsidies (sums of money that keep the prices of a commodity low)
Promoting privatisation
No government intervention
Cutting public expenditure for social services
What does Bauer (neo-liberal) claim inhibits development?
Foreign aid has encouraged the greed of kleptocracy (elites of LEDC’s pocketing money from aid in order to control its distribution). This stifles the free market. Bauer claims developing countries need to open their borders and rely on market forces so that wealth ‘trickles down’ to the population of the developing country.
What are the criticisms of neo-liberal theory?
- Countries that introduced neo-liberal capitalism had wages decline by up to 50% and living costs rise by 80% because TNC’s did not wish to pay them a living wage to increases profitability.
- Tiger economies collapsed because they developed to fast with no welfare state to act as a ‘safety net’
What is the dependency theory of development?
LEDC’s are prevented from developing because the core nations wealth is based on intensifying the poverty of the peripheral nations through dependency
What is Frank’s (dependency) theory of development?
Colonisers set up plantations to grow cash crops, using slave labour to sell for higher profits. This exploitative economic relationship continues today. Frank notes ‘neo-colonialism’ is its form in global contemporary society. This is where former colonies gain political independent but are still economically dependent on their former western empires through TNC’s and aid.
According to dependency theorists, how are TNC’s a form of Neo-colonialism?
TNC’s act immorally and illegally in the pursuit of profit.
Give examples of TNC exploitation of LEDC’s
- Shell in Nigeria forcibly seized land of indigenous people in order to gain access to natural resources by removing them at gunpoint from their homelands.
- Primark has been found to have sweatshops in India and Bangladesh where many women have been working for less than 11p a day in dangerous working conditions.
What is Bakan’s (Neo-Marxist) view of TNC’s
Heads of TNC’s are ‘institutional psychopaths’ as they are programmed to exploit and dehumanise for profit.