Lesson 7- Inequality and Unequal Flows (Uganda) Flashcards
How is development unequal?
- The proportion of people living on less than $1.25 per day has fallen from 47% to 22%, but there is great disparity; the wealthiest 20% receive around half of the world’s income and the poorest 20% (predominantly women and minority groups) receive less than 10%.
- More than 215 million people live outside their countries of birth. The money they send home (remittances) supports their families and is three times greater than aid
- More than half the world’s people now live in towns or cities, but 820 million live in slums.
- The internet has changed the way the world learns, communicates and does business. In 2012, 78.6% of the population in North America were using the internet compared to only 15.6% in Africa.
Global inequalities
- Indicators suggest that globalisation is reducing global inequality through the transfer of capital and income from richer to poorer economies.
- In contrast, it may be increasing inequality within countries as richer members of societies cope better with the changes in jobs and technology.
Inequalities between countries
- Inequality between countries is reducing.
- As communication and transport increase the integration of economies, developing countries (LICs/NEEs) are closing the gap with their rich-world counterparts (HICs).
- The HDI ranking of countries has become more similar
- The fastest growing economies continue to be in Asia and although countries in sub-Saharan Africa have a large gap to make up in living standards, some are now growing more quickly than most developed countries.
Inequalities within countries
- Inequality within countries is increasing.
- The Gini Index is the statistical measure (similar to HDI) that is usually used to indicate levels of inequality of income distribution within a country.
- The level of inequality varies widely around the world but there is usually more income inequality in LICs than in wealthier countries for example, South Africa has one of the highest scores with 0.63.
- The index indicates that, over the past 25 years, income inequality has also increased in most NEEs and also HICs, suggesting that globalisation has had a negative effect on income distribution in one country.
- Many countries, including the UK, Canada and even traditionally egalitarian Sweden, have seen a rise in income inequality
Unequal flows of people
- People tend to flow more freely due to globalisation which is good for developing countries due to remittance payments but also negative due to the brain drain effect
Unequal flows of money
- Heavily flows through TNC’s to which promotes globalisation
- FDI usually flows to developed countries which exacerbates inequality between wealthier countries and less wealthy countries
Unequal flows of ideas
- Ideas usually flow to developing countries as they arent able to conduct much research within their quaternary sector as they arent as developed
-Free trade and deregulation
Unequal flows of technology
- HIC’s have far higher access to more advanced technology and is heavily concentrated here and is far more accessible here
How can poverty lead to poverty?
-economy
The poverty trap
- low growth> low income> low MPS>low investment>low FDI
How can poverty lead to poverty?
-development
The poverty trap
- low levels of education> low levels of human capital> low productivity>less attractive to invest
How is Britain’s global control over the world relevant?
- UK benefitted in many ways from its physical environment
-Coastline exploited for recourses and made potential trade routes
-Right mix of natural recourses to exploit for Industrial processes like coal, iron ore and limestone
Which factors cause a country to be poor?
- Climate related disease, lack of natural recourses, landlocked, natural hazards
Definition of geopolitical
Relates to politics, especially international relations, as influenced by geographical factors.
Unequal Power Relations
- HICs have more wealth, technology, and military power, providing aid to NEEs/LICs, often expecting geopolitical support in return.
- HICs collaborate in groups like the G7 and OECD to coordinate efforts and influence global economic/political systems.
- HICs have significant influence in global governance organizations like the UN and World Bank, often shaping changes to their advantage.
- Developing countries depend on HIC decisions, limiting their ability to respond to geopolitical issues and making them reliant on more powerful allies.
Comparing UK to Uganda- Population problems in the UK
- Poverty among elderly.
- Increasing heart disease, cancer, diabetes is expensive and provides a challenge for NHS + voluntary sector which rely on donations + volunteers.
- Creates a need for new suitable housing – e.g. for limited mobility. Creates a need for sheltered accommodation for those who need carers.
- Government will receive less tax revenue from smaller number of workers while demand for pensions + healthcare rise.
Comparing UK to Uganda- Key features of the UK
- Drop in fertility rate.
- More women go to university than men.
- Many women continue professional careers rather than or as well as raising a family.
- As many women start family’s later in life they are less fertile – chance of conception decreases for a woman in 30’s – smaller families for older mothers.
- Research shows numbers of ‘child-free’ women will increase.
- Increasing life expectancy
- Baby booms in 1940-60’s
Comparing the UK to Uganda-Attempted solutions for the UK for their issues
- Migration into UK
- Since 1940’s – immigrants from Commonwealth countries. E.g. India, Pakistan, Caribbean + Africa.
- In 2004, EU enlarged – resulted in surge of immigration to UK from Central and Eastern Europe. Polish migrants – UK largest single migration.
- Recent immigrants – young + well qualified. Immigrant populations – younger age structure.
- Age of retirement increased
- Encouraging women to have more children.
Comparing the UK to Uganda- Why are the UK’s solutions sustainable
- Brings more young working people to support ageing population.
- Doesn’t increase population, might mean more jobs needed.
- Increases young population.
Comparing the UK to Uganda- Population problems in Uganda
- 2nd fastest growing population – population doubling time: 19 years
- Youthful population – median age – 15.
- Too many people for resources.
- Pressure on health services when youthful population reaches childbearing age – pressure rises also from HIV/AIDS.
- 50% of population is under 15. In 2003 unemployment was 2.2%. When youthful population reaches working age – not enough jobs.
Comparing the UK to Uganda- Key features of Uganda
- Uganda is green, fertile and has plenty of water.
- Has hydroelectric power, reserves of metal ores + fertile soils which produce main exports of: coffee, tobacco, sugar cane and tea.
- Should be wealthy – 2009 GDP per capita $1300. 3.7 of UK’s $35,200
- Uganda’s economy – based on export sale of primary products – e.g. tea. Value of these products varies as global supplies and prices vary. Tax income therefore also varies.
- Very few wealthy companies and individuals for Uganda to tax.
Leads to little money to spend on education and healthcare.
Impacts population – birth, death, fertility rates + infant mortality. - High birth and fertility rates Low life expectancy.
Comparing the UK to Uganda- Attempted solution for Uganda
- Education.
- Primary education free.
- By staying on at school girls delay having children.
- Cancellation of debts. Increase spending of education
- Increase spending on healthcare. 2.2 million more people have access to clean water.
- Encouraging use of contraceptives.
- Policies to combat spread of HIV/AIDS.
Comparing the UK to Uganda- Why are Uganda’s solutions sustainable
- By education lasting longer, women will have children at a later stage – this would reduce their fertility, and lower birth rate.
- With access to clean water more girls can access school as they are not needed to fetch water.
- Reduce birth rate – prevent overpopulation from getting worse.
- Reduce spread of disease – relieves pressure on healthcare + frees up money that can be used to develop sustainable irrigation techniques for farming communities.
What are the consequences of the development gap for disadvantaged countries like Uganda?
Social Factor:
- Infant mortality rates for the poorest 20% in Uganda are nearly 1 in 9, with skilled workers attending only 20% of childbirths, leading to high risks for newborns.
- Additionally, 24% of Ugandan families are undernourished.
Economic Factor:
- Uganda’s economy relies heavily on low-priced primary goods exports, resulting in low government tax income from exports and few wealthy individuals to tax. This limits government spending on healthcare and education.
Political Factor:
- Uganda’s government was the first in Africa to attract international aid for HIV/AIDS education programs, reducing the HIV positive rate from 20% in the early 1990s to 6% now.
