Unit 3 contested_planet_bridging_the_development_gap
6GEO3 Unit 3 Contested PlanetTopic 5: Bridging the Development Gap
What is this topic about?• ‘Bridging the Development Gap’ should be seen as complimenting the ‘Superpower Geographies’ topic• The two topics represent two sides of the same coin – the rich and developing on one side, the poor and underdeveloped on the other• The topic explores the causes and consequences of the development gap• The last section of this topic focuses on solutions – can the ‘gap’ be narrowed?
CONTENTS 1. The causes of the gap 2. The consequences of the gap 3. Bridging the gapClick on the information icon to jump to that section.Click on the home button to return to this contents page
1. The causes of the gap• The development gap relates to global inequality• Around 2.8 billion people live on under $2 per day (‘moderate poverty’)• Some 1.1 billion people live on less than $1.25 per day (‘extreme poverty’) Since 1980, the percentage of people living in extreme poverty• Over time a greater has fallen from 40% to 20% of proportion of wealth has world population, but because of concentrated in the hands of population growth the total the richest 20% of people, number of people is extreme poverty is still very high. compared to the poorest 20% of people (see graph)
Measuring development• Measuring development levels is a challenge.• Traditionally development has measured using economic data such as GDP or GNI per capita.• These measures fail to recognise:1. Income distribution2. The local value of money3. The non-money economy e.g. This basket of goods costs 112 Indian Rupees in India, the equivalent of £1.50*. To buy the same barter and exchange basket of goods in the UK would cost around £6.• It is also important to recognise The difference in how much goods and services that development has social really cost, is why PPP (purchasing power parity) GDP income is used rather than ‘raw’ and quality of life aspects GDP.• Measures such as life Using raw GDP per capita average income in India is about $1000, but PPP GDP per capita expectancy, education level, income is $2800 access to sanitation are *data for Dec 2009 important
• As the development cable model (right) shows, development is a multi-faceted process• At its core is economic development, but to achieve real progress social, political, environmental and personal development is also needed.• Recognising the complex nature of development is why development is often measured using an index, Physical Quality of Life Index which combines a range of data (PQLI)• Indices are considered more Life expectancy + Literacy rate + accurate than single data points Infant Mortality rate such as GDP per capita. The Human Development Index (HDI) Life expectancy at birth + Literacy rate + Enrolment rate + GDP per capita PPP
The Millennium Development Goals• The MDG were adopted by the UN in the year 2000• The MDG are a global attempt to measure, and actively improve, quality of life for the poorest people• There are 8 Goals, with 21 targets within these. The target date to achieve the MDG is 2015• The most famous Goals are1. Halve the proportion of people living on less than $1 a day2. Halve the proportion of people who suffer from hunger Explore MDG progress and annual3. Achieve universal primary education reports at4. Reduce by two thirds the under 5 mortality http://www.un.org/millenniumgoals/ rate• Progress has been patchy, especially in Africa and South Asia were the problem tend to be most acute.
The development gap• The geography of the development gap is more complex than a simple ‘North-South divide’• Latin America has HDI levels similar to eastern Europe; China’s HDI and some others in SE Asia are relatively high• South Asia has a concentration of levels below 0.6• Level in the Middle East are relatively high, although not in Yemen, Syria and Iraq• The picture for Africa is very complex, with the extreme north and south having decent HDI levels, but some regions with shockingly low numbers
Core and Periphery• 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. Sub-Saharan Africa has a range of factors which make development very challenging; these include debt• Growth areas (upward levels, landlocked states, conflict, corruption, Aids/ transition) are much HIV, malaria, lack of infrastructure and better connected to the communications, low education levels, drought and global core areas. many others
Global Players • There are a range of players involved in the development process: Player RoleWorld Bank / These two IGOs lend money to the developing world – essentially fundingIMF development, and as part of this process guide economic policy (the IMF). Much of the developing world’s debt is owed to the IMF and WB.TNCs Invest in the developing world e.g. building factories; Foreign Direct Investment tends to flow to low cost locations, but where people are educated and skilled; Africa’s share of FDI is therefore small.United Nations Monitors the MDG, but has many component organisation which focus on development (UNDP), health (WHO), food and farming (FAO) and environmental issues (UNEP); often involved in disaster relief as well as longer term aid.Governments Developed world governments provide funding for the UN, IMF and WB. They also provide bi-lateral aid the developing world in the form of Official Development Assistance (ODA). Developing World governments manage their countries path to development.NGOs Charities and not-for-profit organisations provide aid to the developing world, often in a smaller, more localised way compared to Governments and IGOs. Some NGOs receive government fundingIndividuals As consumers and voters, individuals can alter government policy both in the developed and developing world; community led development in becoming more common; developed world consumers may support fair trade.
Trade and development• Trade is important to development, because it generates income.• Least developed countries play a limited role in trade:• LDCs tend not to be part of trade blocs, so their exports are subject to tariffs• LDCs often export commodities, the price of which fluctuates wildly (see graph)• Cheap commodity export earn The 49 least developed few Dollars, but Dollars have to countries be used to import manufactured account for only 0.9% of good – this creates poor terms of world trade, trade (see picture) but have over 700 million• Much of the value of the products people we buy is added outside the country which supplied the raw materials
2. The consequences of the gap• The development gap means The African countries shown all that poverty is common in have infant mortality rates of over 80/1000 live births, and least developed countries, under 5 mortality of over especially in Sub-Saharan 100/1000; Sierra Leone’s 2008 Africa rates were 160 and 278• In many countries males still have more access to education than females, and this has an impact on opportunities later in life (see diagram for Pakistan)• In some situations, such as the Indian Caste system (still prevalent in rural India – see pyramid), society has built inequality into the social system
Megacities• Poverty and lack of opportunity is often most A UN-Habitat report in 2006 stated there was acute in rural areas* “concrete evidence that there are two cities within one city – one part of the urban population that has• However, developing world all the benefits of urban living, and the other part, megacities contain growing the slums and squatter settlements, where the poor often live under worse conditions than their rural concentrations of urban relatives.” poverty• Some 1 billion people live in urban slums, likely to grow to 2 billion by 2030• Slums often have:Poorly built, shack housingLimited and expensive water supplyLimited sanitationInformal, unreliable employmentLack of rubbish collectionSocial problems such as disease, crimeFew services such as education and health *see the rural urban data for Pakistan and Guatemala on previous and next slides
Ethnic and religious dimensions• Ethnic and religious minorities often suffer worse poverty than the wider population• The data for Guatemala show a large different between poverty rates for Native Indians and the White Hispanic population• Such differences can result from subtle prejudice, and direct discrimination and persecution• In South Africa, the long history of 2001 Census Black South White South apartheid has left a legacy of stark Africans Africans differences between black and Under 15 yrs old 34% 19% white populations No education 22% 1%• Often different ethnic groups live Households with a 31% 95% telephone in different geographical areas Adult mean income $1600 $8800 e.g. white gated communities versus black townships in South Africa
East Timor• East Timor (Timor-Leste) was a Portuguese colony which gained independence in 1975, and was invaded by Indonesia in the same year.• Indonesia occupied East Timor until 1999; East Timor regained its independence in 2002. East Timor Indonesia• The Indonesian campaign against East Colony of Portugal Holland Timorese resistance fighters involved forced resettlement of 1000s of people Religion Catholic Muslim into camps Ave Income $2300 $4000• The death toll from fighting was high HDI 0.49 0.73• Portuguese was banned• Around 150,000 Indonesians were Indonesia’s occupation created a settled on East Timor as part of the dual population of poor Timorese Transmigration Programme and better off Indonesian migrants,• Most businesses were taken over by reflected in the post-independence Indonesians differences in HDI and income
Poverty reduction at a price?• The pressing need to reduce Social and Environmental Issues poverty has led some countries to ‘go for growth’ •Increased rural –v- urban inequality• Both China and India (and the •Mass rural-urban migration and rise in urban slums ‘Asian Tigers’ before them) •Increased air and water pollution have opened their economies from industry to world trade and •Stress on forests and water supply investment as resource demands rise •Possibility of rising debt; financial• This has created crises employment, raised incomes •Social problems – urban crime and and reduced poverty disease •Worker exploitation and human(estimates of rights abusesextreme poverty) 1980 2005 •Breakdown of traditional familyIndia 45% 25% structures and community supportChina 60%+ 10%
3. Bridging the gap• How should the development gap be bridged?• This question is important because there are a number of different approaches that might be taken• The choice of approach is influenced by political viewpoint Neo-liberal / Marxist/ Socialist Populist Grassroots CapitalistChina, Asian Tigers Cuba, Kerala (India) Venezuela / Latin Community based America•Market led •Breaking free of •Charismatic ‘man of •Small-scale,development, capitalism and profit. the people’ leaders community focussedfollowing the •State ownership and create a ‘them and us’ development often‘Modernisation Theory’ planning so that profits discourse promising aiming to meet basicof WW Rostow from industry and uses social equality and needs rather than•Stressing industry and for health and using policies that hugely improveinfrastructure, free education; usually appeal to the pockets incomestrade and attracting involves wholesale of ordinary people •Often involves local orforeign direct land reform . •Critics state populism international NGOsinvestment to create •State control and is directionless and who provide somejobs and raise limited involvement in leads to poor economic funding and otherincomes. world trade and TNCs decision-making support.
Strategies• Development projects are often characterised as either ‘top-down’ or ‘bottom-up’: (see the next slide for examples) Bottom up Top Down Scale Small; based on one community or Large; often part of national planning area e.g. a valley aims Leadership Community and NGOs; partnership Government and government agencies; arrangements construction and engineering TNCs Funding Local people and NGOs; donations or Government, via multilateral aid (WB / source earned income recycled into the IMF) or bilateral aid; private community investment Aims Meeting basic needs of food, health, Meeting national needs in terms of education and water; small energy or water supply, or transport; improvements in income profit Technology Intermediate / appropriate Hi-Tech Types of Food production, water supply, Electricity, transport, industry and project small scale renewable energy infrastructure Winners Local people; the environment Industry, urban dwellers, TNCs Losers Usually are none Environment, rural people
• These three projects show contrasting strategies.• ‘A’ is a small-scale, bottom-up intermediate technology project• ‘C’ is a classic ‘top- down’ ‘big project’ with clear winners and losers• ‘B’ is less easy to pigeon-hole as it is a national scheme, hi- tech, but aimed at the poorest and led by an NGO with a private partner
Aid• Aid means assistance given to the developing world• Aid can be in the form of money, food, goods, advice and technical assistance• Aid comes from a variety of sources (see diagram).• Development Aid given by OECD countries is termed Official Development Assistance (ODA)• An UN target of OECD countries giving 0.7% of their GDP as ODA has existed for 40 years, but few countries actually give this amount (2006 data):OECD average = 0.45%USA = 0.17%UK = 0.52%Sweden = 1.02%
Investment• Flows of money to the developing Governments use Export Processing Zones world may be in the form of aid, but (EPZs)and Free Trade Zones (FTZs) to help attract FDI. China has over 50 of these. In investment is important these zones foreign investors receive• When companies and TNCs invest in special tax breaks, rents are low and unions the developing world this flow is are often banned. called Foreign Direct Investment The top 10 developing world locations for FDI in (FDI) 2007 (in $ millions).• FDI is motivated by profit Notice the lack of least developed countries in the list• FDI is used to set up factories fund China & Hong Kong 1,511,000 construction in the developing world Brazil 328,000• Most FDI flows towards NICs and RICs Mexico 266,000 because they have a skilled Turkey 146,000 Chile 106,000 workforce, and large markets South Africa 93,000• There are question marks over the Thailand 86,000 environmental and social value of Malaysia 77,000 FDI is relation to pollution and India 76,000 worker rights Saudi Arabia 76,0000
• Some of the least developed countries face stark development choices The Washington Consensus This is a set of economic reforms which the• In order to qualify for debt relief WB and IMF advise developing nations to under the HIPC scheme they must undertake as part of a SAP to qualify for undertake ‘structural adjustment debt relief, and to help development. The policies’ (SAPs) reforms include:• Critics argue that World Bank and •Cutting public spending IMF sponsored SAPs and HIPC are •Currency devaluation in some cases •Removal of import / export barriers simply another way of OECD •Opening up to FDI countries controlling the least •Removing subsidies developed world •Privatisation and deregulation• Others say Washington Consensus The aim of these policies is to help a reforms open countries and workers country enter the global economy and up to exploitation by TNCs benefit trade.• The counter argument is “Look at China”
Fair trade• There are alternatives to FDI and Free Trade• ‘Fair-trade’ is perhaps the most well known• Fair-trade coffee, cocoa, cotton and tea farmers receive a ‘fair price’ for their produce, above market prices.• The extra money improves income and some moneys is invested in community health and education projects• Fair trade has grown and spread, but how much difference does it actually make? In 2008 fair-trade coffee sales were $1.75 bil of•Fair Trade coffee price = $1.55 per lb,10% above market price. the global $70 bil• Growers get 50¢ per lb. after Fair Trade cooperative fees, taxes market; only $5 bil ofand farm expenses.•Most farmers earn $1,000 ($2.75 per day). that $70 bil went to the• According to Fair Trade researchers at the University of California, developing worldthe price needed for farmers to rise above subsistence level is morethan $2 / lb.
Development futures• Bridging the development Gap is a story of both good and bad news: Good news Bad news o In some countries, such as India and o In regions such as Sub-Saharan AfricaChina, the gap has narrowed little progress has been made and the gapo Debts have been reduced fro some HIPC has widenedcountries, possibly giving them a chance o Many African nations will fail to achieveof a new start their MDG targetso Aid in 2008 was at record levels and o The 2008-09 recession may have tippedmany OECD countries seem serious about up to 200 million people back into povertythe MDG and hunger, reversing progresso Some initiatives such as Fair Trade have o Aid may be less of a priority in the nexthelped, and NGOs often make a difference decade as OECD countries struggle withwith bottom-up community led projects, their own financial problemsbut these need to be spread much more o Corruption, conflict and bad governancewidely still bedevil may LDCso Progress has been made with some o Neo-colonial relationships persistdiseases such as Aids and Malaria