L/O: To understand what the development gap is.To investigate the methods for measuring development and the advantages and disadvantages of these.
Using your mini whiteboards suggest the following: What is the development gap? How do we measure development? What indicators can we use?
What is Development?Not just the difference between the developed, rich and powerful countries and those less developed. Within each country there are differing levels of prosperity and development What is it measured by? GNP HDI – Human development Index 0-1,1 being best – uses income per capita, adult literacy, life expectancy. Development Indicators
Definition of developmentEconomic growth – Increase in total value of goods and servicesproduced. (measured by GDP)Development – Improvement in human welfare, quality of life,social well being. Satisfying the population’s needs and wants.(measured using a range of socio-economic indicators)Sustainable development – “Sustainable development isdevelopment that meets the needs of the present withoutcompromising the ability of future generations to meet their ownneeds." (Measured using indicators of environmental quality)
Sort the cards according to the development level of thecountries.
A study of 15 countries mainly in Europe suggested that all countries had the potential to break the cycle of poverty and develop through 5 stages
Stage 1 – Traditional SocietySubsistence economy based on farming with limited technology or capital to develop Stage 2 – Preconditions to take-offOften an injection of external help – industries develop and growth of infrastructure. Often single industry will dominate Stage 3 – Take offManu industries grow, airports and roads are built. Political and social changes. Farming will decline. Investment or borrowing increases Stage 4 – Drive to maturityGrowth should be self-sustaining. Often multiplier effects in similar industry types. Rapid urbanisation Stage 5 – High mass consumptionRapid expansion of tertiary services, employment in service industries grow but decline in manufacturing
Model assumes that all countries start off at the same level Although capital is needed to advance from a traditional society it often brings debt repayments which stop a country developing Underestimates the extent and impact of colonialism Predicts too short a timescale between the beginning of growth and becoming self-sustaining
Shows how some areas become more economically developed than others and why some regions are more wealthier than others
Stage 1 (Pre-industrial). The agricultural society, with localized economies and a small scale settlement structure. Fairly isolated, dispersed and low mobility. Stage 2 (Transitional). The concentration of the economy in the core begins due to capital and industrial growth. Trade and mobility increase Stage 3 (Industrial). Due to economic growth other growth centres appear. The main reasons for this are increasing production costs (mainly labour and land) in the core area. Stage 4 (Post-industrial). The urban system becomes fully integrated and inequalities are reduced significantly.
Some countries remain largely unconnected to the modern globalised world. This is especially true in Sub-Saharan Africa , which remains very much part of the global periphery (see map) Other peripheral regions include north South Asia, the Andean region, parts of East and Central Asia. Growth areas (upward Sub-Saharan Africa has a range of factors which make transition) are much better development very challenging; these include debt levels, landlocked states, conflict, corruption, Aids/ HIV, malaria, connected to the global core lack of infrastructure and communications, low education areas. levels, drought and many others
Views on Development The Development Cable Development is like an electric cable – the power to drive countries from primitive to more advanced states. Core is economic growth, technology and enterprise. The Outer is many different aspects of development growth.
•At its core is economic development, but toachieve real progress social, political,environmental and personal development isalso needed.•Recognising the complex nature of developmentis why development is often measured using anindex, which combines a range of data•Indices are considered more accurate than singledata points such as GDP per capita.
Views on DevelopmentThe Development Pathway Development can also be seen as a pathway. Countries develop at different speeds and may cluster at different places What could hinder development?
1) Economic WealthMeasured as Gross Domestic Product (GDP) per capita = dividing the monetary value of all the goods and services provided in a country by its total populationGross National Income (GNI) – includes income from overseas investmentsGDP – preferred by the EUGNI by the UN and USAX Only useful in countries which have many economic transactions i.e. ‘market economies’X Hides extremes and uneven distribution of income between regions or socio-economic groupingsPurchasing Power Parity (PPI)Shows what per capita income will purchase when the cost of living is taken into account. E.g. In China the cost of living is low so $100 will buy far more there than in the USA
2) Social, cultural and welfare criteriaHuman Development Index (HDI) gives a country a score between 0 and 1 and is based on life expectancy, education and income. Enables anomalies to be spotted and identifies where poverty is greatestX No measure of human rights or freedom. There is a separate Human Freedom Index in 1991 but has not been done since. Birth rates Death rate Infant mortality rate Lack of clean water % rural population Types of employment Level of literacy
HDI (Human Development Index) - a summary measure of basic human development GDI (Gender-related Development Index) - the HDI adjusted for gender inequality GEM (Gender Empowerment Measure) - Measures gender equality in economic and political life, participation and decision making HPI (Human Poverty Index) - Captures the level of human deprivation in country 19
Advantages Summarises complex statistics Attract public interest, support policy-makersDisadvantages Too simplistic Could be misleading 20