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Economic development
Progress in economic growth
Social development
Improvement in people’s standard of living
Political development
Having a stable political system with institutions that can meet the needs if society
Maternal mortality rate
The number of women who die due to pregnancy related problems per hundred thousand live births
Gross domestic product
The total value of goods and services a country produces in a year
Birth rate
The number of live babies born per tjousand of the population per hear
Gross national income
The total value of goods and services produced by a country in a year, including income from overseas
Death rate
The number of deaths per thousand of the population per year
Fertility rate
The average number of births per women
Infant mortality rate
The number of babies who die under 1 years old, per thousand babies born
Doctors per 1000 of population
The number of working doctors per thousand of the population
Gini coefficient
A measure of economic inequality, countries are given a score between 0(equal) and 1(total inequality)
Gender inequality index
A number calculated based on women’s education/access to jobs/political rights and health during pregnancy, the higher the score, the more inequality
Human development index
A numher calculated using life expectancy, education level and income per head. Each country has an HDI value between 0(least developed) and 1(most developed)
Corruption Perceptions Index
A measure of the level of corruption existing in the public sector on a scale of 1-100, the lower the score, the more corruption
Comparing development between a developed country, emerging country and a developing country
Malawi(developing) has 38.54% of people in the age structure(0-14), compared to 16.01% for UK(developed) and 26.3% for India (emerging country)
Inequality
Extreme differences between poverty and wealth, as well as in people’s wellbeing and access to things like jobs, housing and education
Evidence of inequality
People in the richest 20% of the world’s country have 70.1% of the world’s wealth as measured by GDP per capita and the poorest 20% have just 1% of the world’s wealth
Purchasing Power Parity
Shows what GDP will buy in each country
Most youthful population in world
Malawi - in 2015, 47% of Malawi’s population was aged 0-14: 8.2 million out of a total of 17.4 million
Malawi health and education
Many Malawian women working as landless labourers, so Malawi’s infant and mortality rates are among the world’s worst.
Primary education is free in Malawi, but there are few state secondary schools, so few girls attend secondary school beyond the age of 13.
Poisitive multiplier effect
1) Government invest in water quality and sanitation means more people at work in school.
2) More people at work in school means more people paying taxes, so fewer deaths and a lower infant mortality.
3) Fewer deaths and a lower infant mortality means more investment in education.
4) More investment in education means women’s status improves - their education and ability to work improves.
5)Fewer babies are born because of women’s new career focus, so birth rates begin to fall.
6) Birth rates falling means individual and governkent wealth improves - so healthy lifestyles are promoted.
7) Healthy lifestyles cause the life expectancy to increase.
Political factors stopping Malawi from developing
Malawi was a British colony - British powers exploited cheaply Malawi’s raw materials and didn’t develop Malawi’s infrastructure or economu.
Following anti-government protests, Britain halted all aid to Malawi, accusing the government of mishandling the economy and failing to invest in people.
Social factors stopping Malawi from developing
Malawi’s population is rural, these people are poor and isolated from the towns and jobs due to poor transport infrastructure, roads and telephone and internet provision.
Corruption has meant little investment in education and health.
HIV/AIDs continues to reduce life expectancy and impact on productivity of workers.
Environmental factors stopping Malawi developing
Landlocked - Malawi has no coastline, so no port from which to export or import goods.
Lilongwe, the capital, has contaminated water supplies and rapid squatter settlements(slums), which along with air pollution reduced the life expectancy and productivity of workers.
Economic factors stopping Malawi developing
Malawi always loses money from trading - exports primary(raw material) products and imports secondary(manufactured) products
Debt - from over borrowing in the 1970s. In 2004, Malawi was spending 9.6% of its national income on debt servicing, but only 4.6% on public health care.
Environmental consequences of poverty
Developing countries have increased vulnerability to natural disasters. They lack the capacity to adapt to climate-changed-induced droughts. Poor farming practices lead to environmental degradation(with raw materials exploited with limited economic benefit to developing countries and little concern for the environment).
Rostow’s theory
1) Traditional society - Most people work in agriculture, but produce little surplus(extra food which they could sell): a subsistence economy.
2)Pre-conditions for take off: a shift from farming to manufacturing. Trade increases profits, which are invested into new industries and infrastructure.Agriculture produces cash crops for sale. A few low technology and labour-intensive manufacturing industries develop, with development of infrastructure like canals and railways.
3) Take-off: Rapid growth. Investment and technology create new manufacturing industries. Take-off requires investment from profits earned from overseas trade.
Administrative systems(banking and trade growth) develop to support further growth.
4)Drive to maturity - a period of growth.Technology is used throughout the economy, with industries producing consumer goods. New industries replace the old, outdated zones.
5)Age of high mass consumption - period of comfort:consumers enjoy a wide range of goods, which keeps businesses going.
What did Rostow base on his model on?
On what happened in many European countries, who have now reached the final stage.
Rostow suggested countries further behind on the development path would move through the stages more quicjly than those countries before them.
Rostow:development gap due to countries being at different stages of the model, with capitalism fundamental to economic development
What’s Rostow’s theory called?
Modernisation theory
Disadvantages of modernisation theory
Lack of explanation about progress of development from one stage to another
What is Frank’s model
Believed historical trade/colonialism made countries poor in the first place as global economy rules are decided by the wealthy. The capitalist system of world trade meant rich countries sell their manufactured goods and services at high prices to developing countries, which in turn buy raw materials from developing countries at much lower prices.
