Development

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What is development?

'An increase in standards of living and quality of life for an increasing proportion of the population.'

DEMOGRAPHIC- decrease birth.r, increase life exp.

ECONOMIC- increase GDP, GNI or PPP

SOCIAL- equality in gender, race relations, greater participation in political processes.

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ISSUE OF SCALE

SCALE- global, national, regional, local, individual

Pockets of poverty- first world in third/ third world in first

1950s

MODERNISATION-Europe reconstructed after war

other countries dev. as a result of STATE- DIRECTED MODERNISATION

Dev. implied LEDCs modernised and assumed the qualities of MEDCs

1960s

Modernisation theory challenged by DEPENDENCY THEORY

Highlighted weak structural position of THIRD WORLD COUNTRIES

TNC became increasingly powerful and used ECONOMIC and POLITICAL power to exploit or suppress less powerful or vulnerable nations

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NORTH/SOUTH DIVIDE

-OVERSIMPLIFIED

-Within the North SIGNIFICANT west-east DIVIDE

-No regional variations

-Doesn't take into account the local cost of living, unlike PPP

-GDP is an income measure that ignores other dimensions

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MEASURING DEV.

COMPOSITE MEASURES:

-Human Development Index (HDI)

-Multidimensional poverty index

-Human suffering index

GDP (gross domestic product)

-wealth by location

-if something is made in a country it's included e.g car manufacturers

GNP  (gross national income)

-wealth by ownership

-total income that residents in a country earn annually

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IS WEALTH A USEFUL MEASUREMENT?

-CURRENCY FLUCTUATIONS

-DISTRIBUTION of wealth

-informal sector employment

-GOV. spending

-fluctuating VALUE of GOODS

-REMITTANCES

-correlation with standard of living/quality of life

-IMPORTANCE of money

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INDICATORS

ADULT LITERACY RATE

PROS- level of ed. available, easy to understand

CONS- importance of other skills, reasons for poor literacy not told

LIFE EXPECTANCY

PROS-level of healthcare/sanitation, access to food water, working conditions

CONS- impact of natural disaster

INFANT MORTALITY

PROS- quality of healthcare, water, food supply

CONS- not all births& deaths registered, social or polictical factors

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INDICATORS

DAILY CALORIES

PROS-access to food, impact on Q of L, impact on health

CONS- doesn't tell us nutrition deficiencies

CARS PER 1000 PPL

PROS- level of wealth, level of infrastructure

CONS- distribution of wealth not told, impact on enviroment

% OF EMPLOYMENT IN AGRICULTURE

PROS- level of industrial dev., avg income, level of eduction

CONS- eurocentric measure

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BIG MAC INDEX

-INVENTED by the ECONOMISTS

-PURCHASING POWER PARITY THEORY

-EXCHANGE RATES should balance out so that a basket of food would COST the SAME AROUND THE WORLD

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HDI

SIMPLE summary measuring 3 parts of DEV.:

-LIFE EXP.

-ADULT LITERACY

-GDP PER CAPITA

PROS-social and economic measure, easily comparible

CONS- factors weighted the same, comparitive measure, easier for less dev. countries to progress

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GENDER RELATED DEV. INDEX

- RATIO of female to male HDI

-HDI calculated for FEMALES AND MALES with the SAME METHOD

-addresses GENDER GAPS in 3 MEASURES

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HUMAN POVERTY INDEX

HPI 1- used for DEVELOPING countries

HPI 2- used for DEVELOPED countries

HPI 1

-% of ppl not expected to reach 40

-adult illiteracy rates

-% of ppl w/o access to safe water and health care

HPI 2

-% of ppl who don't survive to 60

-adult functional illiteracy rate

-% of ppl living below 50% of median personal disposable income

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MULTIDIMENSIONAL POVERTY INDEX

-someone DEPRIVED in 3 or MORE INDICATORS described as MPI poor

-info comes from HOUSEHOLD SURVEYS

-reflects both PEVALENCE of MULTIDIMENSIONAL DEPRIVATION, INTENSITY- how many ppl experience it at the same time

-BROKEN DOWN by INDICATORS

-allows PARTICULAR PROBLEM AREAS  to be APPROPRIATELY ADDRESSED

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HUMAN SUFFERING INDEX

measure of SOCIAL and ECONOMIC well being

-score of 0-10 on EACH FACTOR includes:

-LIFE EXP.

-DAILY CALORIE SUPPLY

-CLEAN DRINKING WATER

-INFANT IMMUNICATION

-SECONDARY SCHOOL EXPERIENCE

-GNP PER CAPITA

-RATE OF INFLATION

-COMMUNICATION TECH

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RWANDA

Two tribes, Hutu and Tutsi's,16th century Tutsi moved into Rwanda- More dominant, Controlled wealth like cattle, Hutu without wealth, no power

GERMANY- Controlled Rwanda, Tutsi's selected as elite race

BELGIAN- Took after Belgians after WWI, Intensified the class structure, Forced labour, tax increases and beatings became the norm, Shift to cash crops

1950s- Tutsis began to campaign for independence, July 1962 Independence granted, Hutu's take control, Hutu rulers established ethnic quotas that limited Tutsi access to education and government employment

1989- Coffee prices dropped, Maintaining aid required agreement to the IMF structural adjustment programme, The French began to supply weapons and support to the Rwandan government, 1990 - 50,000 Rwandans marched in prodemocracy demonstration

1994- Tribal war, Genocide between Hutis and Tutsi

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GLOBAL DEVELOPMENT

The GAP between RICH and POOR countries, where MEDCs get RICHER and LEDCs get POORER.

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WHY WE HAVE A DEV. GAP?

ECONOMIC- poor trade links, debt, primary products

SOCIAL- child education, safe drinking water, women in society

POLITICAL- unsustainable gov., corruption, conflict

ENVIRONMENT- poor climate, poor farming land, limited water, raw materials, natural hazards

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HOW TO REDUCE THE GAP?

-INTERNATIONAL AID

-TRADE

-DEBT REDUCTION

-SELF HELP

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SOUTH KOREA- RAPID GROWTH

-5 decades ago GDP per capita was COMPARABLE with Asia and Africa
-6th in the world for INDUSTRIAL GROWTH

-20th largest economies
-FIRST WAVE Asian Tiger

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SOUTH KOREA- ECONOMIC, SOCIAL& POLITICAL

ECONOMIC- Established ports, Large consumer ports, Higher import taxes,TNCs attracted to low wages and tax, Large consumer markets

SOCIAL- Workforce willing to work long hours, Cheap labour

POLITICAL- Imports of technology, Know-how from Japan and US

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SOUTH KOREA- ADV/DISADV

ADVANTAGES- More money available for consumer goods, More disposable income, Closing of the technology gap

DISADVANTAGES- Poor working conditions, Increase in pollution, Development of smog, Inequalities between

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GAMBIA

-1 of world's POOREST countries, Average ANNUAL INCOME of £200, HDI 0.420, 63.5 years (life expectancy)

DEV. in AGRICULTURE- Methodist Mission Agricultural Project (MMAP)
- Established 1974, NGO, Focus on supporting farmers

BIOMASS ENERGY- 1. Promotes use of cooking stoves - Reduce deforestation and desertification 2. Trains Gambians how to use stoves

SMALLHOLDER IRRIGATION FOR LIVELIHOOD ENHANCEMENT- 1. Promotes affordable technologies2. Reduces time + effort for women to lift water: - Provides ropes, Drip irrigation systems been supplied to increase efficiency

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GAMBIA DEV.

EDUCATION- 1. Methodist church established 13 schools- Enhanced quality, 2. Six years lower basic are compulsory (ages 7-13)- Free,Lack facilities, 3. Secondary education available

TOURISM- 1. 25% GDP, 2. Growth in luxury lodges, hotels, guest houses, 3. Tourism has been limited: Poor infrastructure, Country highways are dirt tracks, Power cuts and water shortages are common, 4. Potential for eco-tourism- Wide range of habitats, beaches, rivers

RELATION TO DEV. MODEL- 1. Rowstow's Model of Development
- Stage 2 (pre-conditions for take off)
- Reliant on agriculture
- Resources have started being exploited
- Increased quality of health and education through methodist church
2. Clark's sector model
- Increase in tertiary industry
- Tertiary industry will expand as investment in infrastructure increases
3. Minimal Quaternary

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MALAYSIA

1. NIC
2. 2nd wave Asian Tiger
3. Tertiary 50% (biggest sector)
- Secondary 26%
- Primary 24%
4. Export rubber and tin

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MALAYSIA REASONS FOR DEV.

ECONOMIC-Availability of cheap labour, Good transport systems and ports, Increase in jet aircrafts

POLITICAL- Role of Dr Mohammed- Oversaw economic growth + prosperity, Controlled movement of money, Gave local industries comparative adavantages

PHYSICAL- Presence of natural resources- Oil, Rubber, Palm, Timber

CULTURALLook East Policy- Introduced by Dr Mohammed, Based on Japanese success, Malaysian workers visited Japan, Learned about their work ethic and management

SOCIAL- Semi-skilled workforce, Investment in high education

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FUTURE DEV.- MALAYSIA

1. Vision 2020
- Malaysian mega project is the Multimedia Super Corridor
- Aims to build new cities powered by solar
- Bring in international companies like Microsoft and IBM
- Attracted to tax breaks
- Presence of Bill Gates led to prestige
2. Cyberjaya- Every house connected to a city command centre, Increase communications

CRITICISM

.1,Vast amounts of money - Could be spent on housing
2. Government ignoring primary industry
3. Rubber and plant oil plantations less investment
4. Environmental degradation
5. Investment concentrated in centre

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What model does Malaysia's development refer to?

ROSTOW'S MODEL
1970
- Oil exported to Japan
1980s
- Tourism develops
- Investment in higher education
- Universities built
1990s-2000
- Shift from labour intensive to high tech
- Building of science parks
- 2020 Vision Project and Cyberjaya

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RWANDA

LASTING IMPACTS-

1. 95,000 children orphaned
2. No healthcare or educaiton
3. Debt $6 million
4. Rise of HIV/AIDS

COLONIALISM CONTRIBUTED TO POVERTY?

1. Europeans in elite position
- Money used to develop Europe
2. Excluded education
3. Increased debt
4. Conflict with DRC
5. AID/HIV

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D.R. OF CONGO

Africa's first war, Deadliest conflict since WWII, Conflict began with colonialism

CAUSES- Rich in resources- Diamonds, gold, copper, cobalt and zinc,Corrupt government, Ethnic tensions

KING LEOPALD STALL DEV.-  Created Congo Free State, Enslaves millions, Makes fortune for himself and Belgium, Exploits rubber, Responsible for death of 10 million people

1994 STALL OF DEV.Genocide in Rwanda (Hutu and Tutsi's) - 2 million Hutu's flee into Rwanda, Hutu's ally with Mobutu, Rwanda's Tutsi government fight against DRC

2008 STALL OF DEV. - Rebel groups emerged
- LRA
- M23

IMPACT OF CONFLICT -1. 5 million deaths, Safe water access 3%, 2.5 million people in capital live on less than $1 a day, Children account for 47% of deaths, 1.5 million displaced

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WHAT IS GLOBALISATION?

The spread of COMPANIES, IDEAS and LIFESTYLES around the world, leading to a GREATER level of INTERDEPENDENCE between countries.

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GLOBALISATION

WHY ARE WE MORE GLOBAL?-freedom of trade, container shipping, internet, increased air travel, liberalisation of trade, improving education in NICS

ECONOMIC GLOBALISATION- late 1990s- 50% of manufacturing jobs located in LEDCs and 60%+ of LEDC exports to MEDCs manufactured goods, WORLD TRADE of manufactured good increased more than 100x between 1955-2005

TNCs PLAY A PART- Transnational corporation, HQ in MEDC, factories commonly in LEDCs- cheap labour, cheap land, no trade unions, limited enviromental laws

REASONS FOR GOING GLOBAL-SELL INSIDE TRADE BARRIERS

-spread INDUSTRIAL RISKS

-take ADVANTAGE of INCENTIVES

-CLOSE  to MARKET

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