2. Development: 2.5 Development is a unfolding of human potentials for meaningful participation in economic, social, political and cultural process and institutions, so that people can improve their conditions .
3. Development Includes
4. Growth 4.1 Generally growth refers to an increase in some quantity over time. The quantity can be: • Physical (e.g., growth in height, growth in an amount of money) • Abstract (e.g., a system becoming more complex, an organism becoming more mature).
5. Economic Growth
5.1 Economic growth is an increase (or decrease) in the value of goods and services that a geographic area produces and sells compared to an earlier time.
6. Types of Economic Growth
6.1 Positive growth: If the value of an area's goods and services is higher in one year than the year before, it experiences positive growth, usually simply called "economic growth."
6.2 Negative economic growth: In a year when less value than the year before is produced and sold, it experiences "negative economic growth," also called "recession" or "depression."
7. Measures of Economic Growth
7.1 Using measures of economic performance in terms of the value of income, expenditure and output
GDP – Gross Domestic Product
The value of output produced within a country during a time period
GNP – Gross National Product
The value of output produced within a country plus net property income from abroad
GDP/GNP per head/per capita
Takes account of the size of the population
Accounts for differences in price levels in different countries
7.2 Using measures of economic growth can give distorted pictures of the level of income in a country – the income distribution is not taken into account.
7.3 A small proportion of the population can own a large amount of the wealth in a country. The level of human welfare for the majority could therefore be very limited.
But this could be just around the corner! Copyright: chinagrove, http://www.sxc.hu This might be a common picture…… Copyright: unseenob, http://www.sxc.hu
High economic growth fuelled through capital spending can hide a number of underlying economic problems – how is the income and wealth distributed? Who is doing the spending and will it ‘trickle down’ to the poor?
Shopping Mall in Saudi Arabia Copyright : Christo Pacheco, http://www.sxc.hu Dubai Skyline Copyright: zchizzerz, http://www.sxc.hu
8. National Income Accounting – Problems with using GDP/GNP
8.1 Reliability of data?
How accurate is the data that is collected?
8.2 Distribution of income?
How is the income distributed – does a small proportion of the population earn a high percentage of the income or is income more evenly spread?
8. National Income Accounting – Problems with using GDP/GNP
8.3 Black/informal economy?
Some economic activity not recorded – subsistence farming and barter activity, for example
Some economic activity is carried out illegally – building work ‘cash in hand’, drug dealing, etc.
Work of the non-paid may not be considered but may contribute to welfare – charity work, housework, etc.
It might not be pleasant, but what he finds among the refuse could be all he has. Title: Sierra Leone Liberia. Copyright: Photolibrary Group
9. Growth versus Development
9.1 Economic growth may be one aspect of economic development but is not the same
9.2 Economic growth:
A measure of the value of output of goods and services within a time period
A measure of the welfare of humans in a society
10. Conditions for Development:
“ The concepts of freedom , participation in decision making towards fulfilling one’s potentials and rights to organize are all essential conditions for development process.
---A. Sen (Development as freedom:1998)
11. Core values of Development:
11.1 There are three core values of Development
Sustenance- The Ability to meet basic needs
Self-esteem-To be a Person
Freedom of choice- To be able to Chose
12. Where Should be Developed?
12.1 The development process has multiple interface and these are between following issues:
Population and development
Poverty and development
Environment and development
Cultural values and development
Natural resources and development etc.
13. Human Development:
13.1 The concept of HD first introduced publicly in 1990 by the UNDP’s global Human Development Report (HDR).
13.2 HD is a process of enlarging peoples choice.
13.3 Wide ranging choice are—
a. to live a long and healthy life.
b. to be educated
13.4 To have access to resources needed for a decent standard living.
13.5 Political freedom
13.6 Guaranteed human rights and
13.7 Personal self respect
Human Development Index
Iraqis have supposedly been given their freedom following the American led ‘Operation freedom’ but has it improved welfare?
Copyright: Photolibrary Group
14. Other Measures
15. Population growth & natural resources
15.1 In demography, population growth is used informally for the more specific term population growth rate, and is often used to refer specifically to the growth of the human population of the world.
15.2 There are about 6.6 billion people in the world and over 95 million babies are born per year – that is an average of three babies per second!
The effects of the population explosion
16. Population impact on natural resource How does human activity affect the environment? Reduce the land available for plants and animals Raw materials (inc. non-renewable) resources are being used up More waste is produced which (if not handled properly) may pollute air, water & land
17. Urbanization & sustainable development
17.1 “Urban” varies widely from country to country. Some countries distinguish between rural and urban based on:
Size or density of localities
Administrative considerations (only major cities are classed as urban)
The percentage of persons not dependent on agriculture
Some nations define all of their population as living in urban areas (e.g. Singapore). Some nations define none of their population as urban (e.g. Polynesia (South Pacific Islands))
17.2 An urban (or metropolitan) area = a town or a city plus its adjacent suburbs with a population of >2,500 people
17.2 A rural area = an area with < 2,500 people
18. Urban Growth
18.1 Urban areas grow in 2 ways:
Natural increase of its population (births)
Immigration (mostly from rural areas)
18.2 Proportion of the global population living in urban areas: 2% (pre-industrial period) 46% (2001) ( ~160,000 people added to world’s urban areas each day)
18.3 UN projections: by 2050, ~63% of world’s people will be living in urban areas, with 90% of this urban growth in developing countries
18.4 Number of large cities (>1 million people) increasing rapidly throughout the 20 th century. In 1900: 19 cities had >1 million people (95% of the population then were rural) and in 2001: more than 400 cities have >1 million people.
18.5 Urban growth is much slower in developed countries than in developing countries (still, projection: 79% (current) 84% (2025) in developed countries)
19. Urban Problems
19.1 Urban area suffers from:
Very high unemployment
A soaring crime rate (robbery, assault, murder)
Severe noise pollution
Bad traffic congestion
Inadequate housing (>1/3 of the people living in slums with no running water or electricity)
Inadequate sanitation ( widespread infectious diseases such as hepatitis)
20. Impact of Urbanization on Environment
20.1 Survive only by importing food, water, energy, minerals, and other resources from somewhere else
20.2 Produce vast quantities of wastes
20.3 Affect the health of their inhabitants but also the environmental health of rural areas and the health of the planet
20.4 Often, agriculture and cities develop in similar areas expanding urban areas = using up agricultural land
Water Fuel Food Daily Inputs U.S. city of 1 million people Daily Outputs Air pollutants Rubbish Sewage Urbanization
21.1 Population control is fundamental and essential as to avoid long term damage to the environment as a consequence of acid rain, green house effect and possible Global Warming, and the threat to the ozone layer.
21.2 ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system.