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1.4 Strategies for
   National development
1. Economic strategies
2. Demographic strategies
3. Social strategies
1. Economic development strategies
  – Agricultural development
  – Industrial development
  – Case study:
     •   Industrial development in S. Korea
     •   KALAHI project in Philippines 2001
2. Demographic development strategies
  – Population growth
  – Case study:
     •   Population policy in China
3. Social development strategies
  – Healthcare services and education
  – Case study:
     •   Healthcare services & education in Singapore
     •   Parivartan Slum Networking Programme (mid 1990s) in
         Gujarat, India,
     •   Hill Tribe Education Project (1998) in Thailand
In the following, we will learn:

1. What are the policies that can bring about
   development?
2. How does each policy work?
3. What are some real-life examples?
4. How successful are the policies?
1. Economic Development
       Strategies
   to bring about Development
1. ECONOMIC DEVELOPMENT
           STRATEGIES
•   Measured by increase in GDP/ GNP per
    capita.
•   To increase GNP, countries need to
    develop both agricultural and industrial
    sector -> improve both quality and
    quantity of goods.
    1.Agricultural development
    2.Industrial development
1.1 AGRICULTURAL DEVELOPMENT
 • Low agricultural technology     low
   productivity
 • Falling food prices   look for high paying
   jobs in urban areas    result in labour
   shortages in the farms

  Low productivity → low yield →
  economic development will be affected
1.1 AGRICULTURAL DEVELOPMENT

 What can be done ?
 • Develop the agricultural sector in rural
   areas so that farmers will stay
 • Government help farmers to increase
   productivity
1.1 AGRICULTURAL DEVELOPMENT
 GREEN REVOLUTION (1960s)
 • Modern farming technology and scientific
   research to develop high-yielding
   seedlings
 • Genetically engineered high yielding crop
   varieties (HYVs) e.g. rice & corn
 • Better irrigation method and use of
   chemical fertilisers
 • Used in India, Indonesia and Philippines
GREEN REVOLUTION
SUCCESS
• Increase in crop production   increase
  agricultural productivity
     In the end, only rich farmers benefit
      and did not bring about large scale
LIMITATIONS
            economic development
• More expensive
  – Set up irrigation system
  – Large amount of pesticides needed as seedlings
    are more vulnerable to pests and disease
• Need more water & chemical fertilisers to grow
  well
1.2 INDUSTRIAL DEVELOPMENT
• Goal of many LDCS to change from an
  agricultural economy to industrial economy
• Problems faced: Lack of skilled workers,
  financial resources and strong competition from
  other DCs
• LDCs sell off their raw materials to DCs to be
  processed, at low prices
• DCs sell back to the LDCs the final products, at
  higher prices                  What model/ theory
                                Core-Periphery
                               does it remind you
                                     Model
                                        of?
1.2 Industrial Development
• What can be done?
 – Efficient air, land & sea transport
   network E.g. port of Singapore, Changi
   International Airport
 – Reliable power & water supplies
 – Good telecommunications systems
 – Sound financial & banking institutions
 – E.g. Jurong Town Corporation (JTC) set
   up in 1968 to manage industrial estates
Case Study 1: Industrial
Development in South Korea
INDUSTRIAL DEVELOPMENT IN
       SOUTH KOREA
• GNP grew from US$100 in 1963 to US$22,045
   in 2005
         Key to succeed in Industrial Development is
• Relies largely on exports to improve economic
   growth. E.g. cars, ships, electronics etc have
       Skills & Technology transfer. Once you
        the skills & technology, you don’t have to sell
Reasons for SUCCESS: DCs for processing. You
       your raw materials to
1. Good geographical location tofinishedraw
       can process & sell your own attain products
   materials
2. Receiving financial & technical aids from Japan
   and USA
3. Skilled & cheap labour
  –   Reduce dependency from foreigners through skill
      development
Case Study 2: KALAHI project
     in Philippines 2001
Job Creation & Financial
            Assistance
• UNDP 2000 noted that:
  – 4.3 million poor families
  – 75% of poor are indigenous people/ poor rural
    farmers
  – Wide rich-poor gap
• KALAHI project 2001
  – Aim to improve SOL of poor
KALANI PROJECT 2001
• Develop informal sector, i.e. sale of hand-
  made products
• Pro-poor policies implemented:
  – Microfinance (i.e. small loans) for
    entrepreneurs
  – Interest-free loans for ultra-poor
  – Private organisations provide financial aid
  – Training & advice
     • Skills training
     • Leadership and self-employment training
Success                    Limitations
Benefited ~ 3 million       Wide income gap still
people                      persists

600 000 agricultural jobs  Current market is too
created                    small. Need to diversify
                           products & skills of poor
Provided jobs to about 1.7 to reach bigger markets.
million unemployed.
                           Insufficient volunteers to
                           offer microfinance & train
                           poor people.
2. Demographic
Development Strategies
  to bring about Development
2. DEMOGRAPHIC
DEVELOPMENT STRATEGIES


Focus on overcoming problems of rapid
population growth

      Population Control Policies
2. POPULATION GROWTH

• Rapid population increase – strains government
  & country’s natural resources
• Limited resources left to improve quality of life,
  income & living conditions

  Hence, LDCs need to control their rate of
  population growth
HOW TO DECREASE
      POPULATION GROWTH?
• Family planning
  educate couples of having fewer children,
  contraception
• Improve healthcare
  In LDCs, couple tend to have more children so
  that some may survive to adulthood
  Reduced infant mortality rate lower birthrates
• Educate the women
  More career-minded      marry later   less
  children
World Population


                                                            CHINA




                                                        INDIA




Source: http://en.wikipedia.org/wiki/World_population
Case Study 3: One-child
    Policy in China
POPULATION POLICY IN CHINA
• One-child policy in 1979
• Incentives:
  – free education,
  – better employment and
  – more priority in purchasing house
• Raised marriageable age for men to 22 and
  women to 20.
  – Ask permission from authority when they want to get
    married or have children
  *Policy have been relaxed to allow 2 children per family
Success                   Limitations
Fertility rate reduced      Difficult to implement in
from 6 in 1970s to 1.8 in   rural areas.
2006.
                            Traditional mindsets
                            preferring sons to
                            daughters. Couples
                            continue to bear children
                            until they get a son.

                            Rise in social problems
                            due to issues like
                            infanticide.
3. Social Development
      Strategies
 to bring about development
3. SOCIAL DEVELOPMENT
            STRATEGIES

•   Impact on the quality of life of people in
    the country
•   2 major aspects are
    1.Health care
    2.Education
2.1 HEALTHCARE
• In LDCs – poor healthcare due to lack of
  well-trained doctors & nurse
• Most doctors are in urban areas

• Recall: Good health is determined by…
  – Clean water & sanitation
  – Availability of healthcare services
  – Balanced diet
Case Study 4: Parivartan Slum
 Networking Programme (mid
   1990s) in Gujarat, India.


 Improving water supplies &
     sanitation facilities
Parivartan Slum Networking
     Programme (mid 1990s)
• 41% of population in Ahmedabad, state of
  Gujarat live in slums and squatters.
• > 25% of population have not toilet
  facilities
• Widespread extreme poverty
What was done?
• Collaboration between government (plan)
  & local banks (finance $$$)
• Basic infrastructure built in slums. I.e.
  access to clean water, underground
  sewerage, & individual toilets & solid
  waste collection
• Monthly monitoring meetings to review
  work progress & discuss future plans
• People taught proper usage of new
  facilities
Results

Improve supply of clean water, sanitation,
food supply    healthier workers
increase productivity     increase income
   higher standard of living & quality of life
  Development
Success                 Limitations
Reduction in spread of         Many LDCs lack
diseases caused by bacteria in the financial
waste and contaminated water. resources to build
                               the basic
Benefited over 56 000 people infrastructure.
in over 40 slums. Has been
expanded to 59 more slums.

Decline in death rate from 6.9
to 3.7 per 1000 people

Improved SOL and brought
development.
2.2 EDUCATION

Better education → greater career
opportunity for young people → higher
income level → better standard of living →
more development in country
Case Study 5: Hill Tribe
Education Project (1998) in
        Thailand

    Improving Education
         Standards
Hill Tribe Education Project (1998)
• Hill tribes make up about 1 million people
• Most have no formal education & live in
  extreme poverty
What was done?
• Goal of “Education for All”
• Formal and informal education programmes
• Volunteer teachers came from more
  developed regions to live & teach hill
  community
• Community learning centre built in each
  village
• Learn sustainable farming methods,
  Mathematics, etc.
Success                   Limitations
Agricultural production  Difficult to reach masses
increased                as geographical location
                         of hill tribe communities
Able to find employment  not easily accessible.
in cities
                         Communication barriers
Gain income       Better between hill tribes &
living conditions        volunteers &
                         government
                         organisations.
Case study 6: Singapore
      The Little Red Dot
Strategies:
• Economic development
    Demographic development
• Social development
1. Economic Strategies
• Industrial Development in Singapore
  – Economic Development Board (EDB) set up
    in 1961
  – Attract foreign investors, human & financial
    capital
  – Set up branches in major cities of Asia,
    Europe, USA
• EDB set up technological
                                      institutions with governments of
                                      Jap, Germany, France
                                      • Skills Development Fund
                                      • R&D facilities & incentives
               More skilled labor     • Overseas ventures e.g.
             needed>> increase in     Singapore-Suzhou Industrial Park
            vocational institutions   in China
              to provide training     • FTAs


1960s           1970s & 1980s                  1990s
• Labor-        • capital-intensive            • knowledge-
intensive       industries                     based industries
industries      • electrical & electronic      • IT,
• Garment &     industries, semi-              pharmaceutical &
textile, toy    conductors & integrated        life sciences
manufacturing   chips
Today
• Develop secondary & tertiary industries
  such as tourism, healthcare, education
Improving
    Improving                Healthcare
education standards           services

                      2. Demographic
                         & 3. Social
                       Development
                         Strategies

   Population                             Housing
    Growth
2. Demographic Development
            Strategy
• Population growth
  – ‘Stop at Two’ campaign in 1966
  – Liberalised abortion in both public & private
    clinics
  – Voluntary sterilisation
  – Incentives to encourage small family size. E.g.
    priority in school admissions, reimbursement
    of delivery fees
  – Disincentives to big families. E.g. increase
    delivery fees
1960s:
  Fertility                 1975:
rate: 2.5%              Fertility Rate:
                            2.1%
                                                 Foreign Talent
                                                     Policy
                     “Stop At
                     Two” Policy          Three of more if
                                          you can afford it

              1966                  1982                  Year
3. Social Development Strategies
• Education
  – 1960s, bilingual education policy introduced
  – English as compulsory subject and used as medium
    for instruction for all subjects
  – Benefits:
     • Common language for communication between different
       races
     • Attracted international trade and commerce
  – Subsidized education to raised literacy rate
  – Increase government spending on improving
    education standards
• Healthcare services
  – Government-built public hospitals & clinics to
    provide affordable healthcare
  – Well-being of workforce affects productivity
  – Insurance plans and medical savings
    schemes (Medishield, Medisave) linked to
    compulsory savings scheme for all working
    adults, Central Provident Fund (CPF).
• Housing
  – Late 1960s and early 1970s: Public housing
    Programme
  – Aimed to replace slums with affordable
    housing complete with basic amenities to
    ensure basic living conditions are met
  – New towns planned are self-contained and
    well-linked to rest of the island by roads and
    expressways
Recall…
National Development Strategies:
1. Economic development
2. Demographic development
3. Social development

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Development 1.4

  • 1. 1.4 Strategies for National development 1. Economic strategies 2. Demographic strategies 3. Social strategies
  • 2. 1. Economic development strategies – Agricultural development – Industrial development – Case study: • Industrial development in S. Korea • KALAHI project in Philippines 2001 2. Demographic development strategies – Population growth – Case study: • Population policy in China 3. Social development strategies – Healthcare services and education – Case study: • Healthcare services & education in Singapore • Parivartan Slum Networking Programme (mid 1990s) in Gujarat, India, • Hill Tribe Education Project (1998) in Thailand
  • 3. In the following, we will learn: 1. What are the policies that can bring about development? 2. How does each policy work? 3. What are some real-life examples? 4. How successful are the policies?
  • 4. 1. Economic Development Strategies to bring about Development
  • 5. 1. ECONOMIC DEVELOPMENT STRATEGIES • Measured by increase in GDP/ GNP per capita. • To increase GNP, countries need to develop both agricultural and industrial sector -> improve both quality and quantity of goods. 1.Agricultural development 2.Industrial development
  • 6. 1.1 AGRICULTURAL DEVELOPMENT • Low agricultural technology low productivity • Falling food prices look for high paying jobs in urban areas result in labour shortages in the farms Low productivity → low yield → economic development will be affected
  • 7. 1.1 AGRICULTURAL DEVELOPMENT What can be done ? • Develop the agricultural sector in rural areas so that farmers will stay • Government help farmers to increase productivity
  • 8. 1.1 AGRICULTURAL DEVELOPMENT GREEN REVOLUTION (1960s) • Modern farming technology and scientific research to develop high-yielding seedlings • Genetically engineered high yielding crop varieties (HYVs) e.g. rice & corn • Better irrigation method and use of chemical fertilisers • Used in India, Indonesia and Philippines
  • 9. GREEN REVOLUTION SUCCESS • Increase in crop production increase agricultural productivity In the end, only rich farmers benefit and did not bring about large scale LIMITATIONS economic development • More expensive – Set up irrigation system – Large amount of pesticides needed as seedlings are more vulnerable to pests and disease • Need more water & chemical fertilisers to grow well
  • 10. 1.2 INDUSTRIAL DEVELOPMENT • Goal of many LDCS to change from an agricultural economy to industrial economy • Problems faced: Lack of skilled workers, financial resources and strong competition from other DCs • LDCs sell off their raw materials to DCs to be processed, at low prices • DCs sell back to the LDCs the final products, at higher prices What model/ theory Core-Periphery does it remind you Model of?
  • 11. 1.2 Industrial Development • What can be done? – Efficient air, land & sea transport network E.g. port of Singapore, Changi International Airport – Reliable power & water supplies – Good telecommunications systems – Sound financial & banking institutions – E.g. Jurong Town Corporation (JTC) set up in 1968 to manage industrial estates
  • 12. Case Study 1: Industrial Development in South Korea
  • 13. INDUSTRIAL DEVELOPMENT IN SOUTH KOREA • GNP grew from US$100 in 1963 to US$22,045 in 2005 Key to succeed in Industrial Development is • Relies largely on exports to improve economic growth. E.g. cars, ships, electronics etc have Skills & Technology transfer. Once you the skills & technology, you don’t have to sell Reasons for SUCCESS: DCs for processing. You your raw materials to 1. Good geographical location tofinishedraw can process & sell your own attain products materials 2. Receiving financial & technical aids from Japan and USA 3. Skilled & cheap labour – Reduce dependency from foreigners through skill development
  • 14. Case Study 2: KALAHI project in Philippines 2001
  • 15. Job Creation & Financial Assistance • UNDP 2000 noted that: – 4.3 million poor families – 75% of poor are indigenous people/ poor rural farmers – Wide rich-poor gap • KALAHI project 2001 – Aim to improve SOL of poor
  • 16. KALANI PROJECT 2001 • Develop informal sector, i.e. sale of hand- made products • Pro-poor policies implemented: – Microfinance (i.e. small loans) for entrepreneurs – Interest-free loans for ultra-poor – Private organisations provide financial aid – Training & advice • Skills training • Leadership and self-employment training
  • 17. Success Limitations Benefited ~ 3 million Wide income gap still people persists 600 000 agricultural jobs Current market is too created small. Need to diversify products & skills of poor Provided jobs to about 1.7 to reach bigger markets. million unemployed. Insufficient volunteers to offer microfinance & train poor people.
  • 18. 2. Demographic Development Strategies to bring about Development
  • 19. 2. DEMOGRAPHIC DEVELOPMENT STRATEGIES Focus on overcoming problems of rapid population growth Population Control Policies
  • 20. 2. POPULATION GROWTH • Rapid population increase – strains government & country’s natural resources • Limited resources left to improve quality of life, income & living conditions Hence, LDCs need to control their rate of population growth
  • 21. HOW TO DECREASE POPULATION GROWTH? • Family planning educate couples of having fewer children, contraception • Improve healthcare In LDCs, couple tend to have more children so that some may survive to adulthood Reduced infant mortality rate lower birthrates • Educate the women More career-minded marry later less children
  • 22. World Population CHINA INDIA Source: http://en.wikipedia.org/wiki/World_population
  • 23. Case Study 3: One-child Policy in China
  • 24. POPULATION POLICY IN CHINA • One-child policy in 1979 • Incentives: – free education, – better employment and – more priority in purchasing house • Raised marriageable age for men to 22 and women to 20. – Ask permission from authority when they want to get married or have children *Policy have been relaxed to allow 2 children per family
  • 25. Success Limitations Fertility rate reduced Difficult to implement in from 6 in 1970s to 1.8 in rural areas. 2006. Traditional mindsets preferring sons to daughters. Couples continue to bear children until they get a son. Rise in social problems due to issues like infanticide.
  • 26. 3. Social Development Strategies to bring about development
  • 27. 3. SOCIAL DEVELOPMENT STRATEGIES • Impact on the quality of life of people in the country • 2 major aspects are 1.Health care 2.Education
  • 28. 2.1 HEALTHCARE • In LDCs – poor healthcare due to lack of well-trained doctors & nurse • Most doctors are in urban areas • Recall: Good health is determined by… – Clean water & sanitation – Availability of healthcare services – Balanced diet
  • 29. Case Study 4: Parivartan Slum Networking Programme (mid 1990s) in Gujarat, India. Improving water supplies & sanitation facilities
  • 30. Parivartan Slum Networking Programme (mid 1990s) • 41% of population in Ahmedabad, state of Gujarat live in slums and squatters. • > 25% of population have not toilet facilities • Widespread extreme poverty
  • 31. What was done? • Collaboration between government (plan) & local banks (finance $$$) • Basic infrastructure built in slums. I.e. access to clean water, underground sewerage, & individual toilets & solid waste collection • Monthly monitoring meetings to review work progress & discuss future plans • People taught proper usage of new facilities
  • 32. Results Improve supply of clean water, sanitation, food supply healthier workers increase productivity increase income higher standard of living & quality of life Development
  • 33. Success Limitations Reduction in spread of Many LDCs lack diseases caused by bacteria in the financial waste and contaminated water. resources to build the basic Benefited over 56 000 people infrastructure. in over 40 slums. Has been expanded to 59 more slums. Decline in death rate from 6.9 to 3.7 per 1000 people Improved SOL and brought development.
  • 34. 2.2 EDUCATION Better education → greater career opportunity for young people → higher income level → better standard of living → more development in country
  • 35. Case Study 5: Hill Tribe Education Project (1998) in Thailand Improving Education Standards
  • 36. Hill Tribe Education Project (1998) • Hill tribes make up about 1 million people • Most have no formal education & live in extreme poverty
  • 37. What was done? • Goal of “Education for All” • Formal and informal education programmes • Volunteer teachers came from more developed regions to live & teach hill community • Community learning centre built in each village • Learn sustainable farming methods, Mathematics, etc.
  • 38. Success Limitations Agricultural production Difficult to reach masses increased as geographical location of hill tribe communities Able to find employment not easily accessible. in cities Communication barriers Gain income Better between hill tribes & living conditions volunteers & government organisations.
  • 39. Case study 6: Singapore The Little Red Dot Strategies: • Economic development Demographic development • Social development
  • 40. 1. Economic Strategies • Industrial Development in Singapore – Economic Development Board (EDB) set up in 1961 – Attract foreign investors, human & financial capital – Set up branches in major cities of Asia, Europe, USA
  • 41. • EDB set up technological institutions with governments of Jap, Germany, France • Skills Development Fund • R&D facilities & incentives More skilled labor • Overseas ventures e.g. needed>> increase in Singapore-Suzhou Industrial Park vocational institutions in China to provide training • FTAs 1960s 1970s & 1980s 1990s • Labor- • capital-intensive • knowledge- intensive industries based industries industries • electrical & electronic • IT, • Garment & industries, semi- pharmaceutical & textile, toy conductors & integrated life sciences manufacturing chips
  • 42. Today • Develop secondary & tertiary industries such as tourism, healthcare, education
  • 43. Improving Improving Healthcare education standards services 2. Demographic & 3. Social Development Strategies Population Housing Growth
  • 44. 2. Demographic Development Strategy • Population growth – ‘Stop at Two’ campaign in 1966 – Liberalised abortion in both public & private clinics – Voluntary sterilisation – Incentives to encourage small family size. E.g. priority in school admissions, reimbursement of delivery fees – Disincentives to big families. E.g. increase delivery fees
  • 45. 1960s: Fertility 1975: rate: 2.5% Fertility Rate: 2.1% Foreign Talent Policy “Stop At Two” Policy Three of more if you can afford it 1966 1982 Year
  • 46. 3. Social Development Strategies • Education – 1960s, bilingual education policy introduced – English as compulsory subject and used as medium for instruction for all subjects – Benefits: • Common language for communication between different races • Attracted international trade and commerce – Subsidized education to raised literacy rate – Increase government spending on improving education standards
  • 47. • Healthcare services – Government-built public hospitals & clinics to provide affordable healthcare – Well-being of workforce affects productivity – Insurance plans and medical savings schemes (Medishield, Medisave) linked to compulsory savings scheme for all working adults, Central Provident Fund (CPF).
  • 48. • Housing – Late 1960s and early 1970s: Public housing Programme – Aimed to replace slums with affordable housing complete with basic amenities to ensure basic living conditions are met – New towns planned are self-contained and well-linked to rest of the island by roads and expressways
  • 49. Recall… National Development Strategies: 1. Economic development 2. Demographic development 3. Social development