Development Dilemmas

Development Dilemmas

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  • Created by: Sophie
  • Created on: 05-06-13 17:13


  • Development that meets the needs of the present without compromising (limiting) the ability of future generations to meet their own needs.
  • Capable of being continued with minimal long-term effect on the environment
  • Sustainability creates and maintains the conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future generations.


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Criteria for Sustainability

1) Involve local people in decision making

2) Be affordable-not put countries/people into debt

3) Promote good help i.e. no negative effects on people

4) Protect and encourage native plants and animals

5) Use land that has already been developed before = brownfield sites

6) Minimise waste and encourage recycling

7) Minimise energy use and use natural resources like solar power

8) Minimise pollution

9) Minimise water use and use rainwater where possible

10) Offer benefits to poor as well as rich

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Bottom Up Sustainable Scheme-Kerala

Kerala focuses on health and education.  It is one of the poorest states in India and it’s reforms were based around communities. Political sustainability

In state elections  a Communist government was elected in 956 and one of its first actions was land reform – it transferred land to people who had previously only rented small plots.  This produced a motivated rural workforce.

Now, almost all villages have access to a school and a modern health clinic within 2.5km.  This is paid for by taxes, including a tax on remittance payments (money that is sent back to people in Kerala from family members working in the Middle East) Economic sustainability.

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Kerala Impacts

  • Education and health care are high because of investing in education and women’s health.
  • Relies less on farming than other states and is developing a strong service sector – especially through tourism.
  • Food programmes focus on the nutrition of mothers and children – with ration cards and free school meals.
  • Women in Kerala marry on average 4 years later and have their first child 5 years later than other Indian women.
  • The state of Kerala has India’s lowest birth rate, 95% are born in hospitals, birth rate is only 2 and have a very low infant mortality rate.
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Bottom Up-Cow Dung Biogas, Tumkur

Biogas has proven to be an excellent resource for the villages in Tumkur.  
The dung ferments in brick/clay/concrete pits to produce methane which is then piped into homes.

  • The biogas results in smoke and ash free kitchens and the gas stoves reduce eye and lung problems within six months of being installed.
  • Women and children don’t have to gather firewood, giving them more times for other things and now over 200 women are earning incomes for their families. 
  • Across India, 4 million cow dung biogas plants have been built which has created 200,000 permanent jobs, mainly in rural areas.  
  • Cows are now kept in family compounds which prevent them from grazing in forests and destroying saplings (which prevents woodland from regenerating). 
  • Issues that can arise include building too large a pit, which leads to ‘under feeding’ (not enough cow dung) and eventually failure to produce enough gas.
  • Cultural practices can also affect the decisions to use biogas, as using gas burners often means that the staple bread chapatti cannot be properly roasted and families may have to change their diet and potentially lose centuries of history.
  • These bottom up schemes also struggle to make a massive impact on poverty on the national scale.
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Bottom Up Schemes

  • A sand dam is a reinforced concrete wall built across seasonal river beds that are 2-4 metres high and up to 90 metres across.
  • By constructing concrete dams across these water courses sand is washed downstream and trapped behind the dams, this often only takes one season to occur.
  • Water is subsequently trapped behind the dam wih the sand providing a filtered and reliable supply of water for farmers nearby.
  • Gari is a staple food in Nigeria made from Cassava peelers.
  • Traditional way is to peel, remove water, then either grate or pound it by hand, time consuming and the knives are open and dangerous.
  • Local initiatives developed cheap machines, Cassava peelers with protected cutting blade. 

  • Play pumps in Durban, South Africa
  • Runs on energy created by children playing – free, fun and environmentally friendly. 
  • Leaves women more time to earn money, and their children more time for education.
  • The tank and pump are sealed units, so the water supply is free from contamination
  • The play pump is made from basic equipment and materials that are relatively easy to buy in most rural areas. 
  • The pump can be maintained by local people. 
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Top Down-The Green Revolution

In the 1960’s starvation was common in India.  

In the 1970’s, the Green Revolution changed rice growing there by providing farmers with HYV (High Yielding Variety) seeds.  These new rice plants are shorter, grow more quickly, and produce more grain than traditional rice (1.6 tonnes per hectare compared to 0.9 tonnes).  

The HYVs were developed by scientists and are sold by multinational companies.

  • Farmers have to buy seeds, instead of using some saved from last year’s harvest and only larger, wealthier farmers can afford this.
  • The new seeds are high-yielding, but need irrigation water, fertiliser and pesticides.  
  • India is now a rice exporter, but the environmental impacts of using fertiliser and pesticides have been huge, and the HYVs now have no resistance to some plant diseases.

  • Crop yields are much higher than traditional varieties, so incomes have risen – especially for the wealthy.
  • Large farmers have become much wealthier, especially in Punjab, which has been at the centre of the Green Revolution.
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Top Down-Three Gorges Dam

  • Generates Hydroelectric power, 10% of China's electricity
  • Attracts tourists to the area
  • Some employment
  • Improves Navagation so more transportation of goods - boasts economy
  • Positive impact on flood control
  • 1.3 million people had to move due to flooding behind Dam
  • 50% of silt deposited behind the dam
  • White flag dophilns habitat is being effected - risk of becoming extinct
  • Loss of cultural monuments
  • Sediment builing up behind Dam
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A Transnational Company is one that operates globally and tends to have headquarters in their country of origin (often an MEDC) and braches or production lines all over the world.

Why did Fiat choose to locate in Brazil
The Brazilian Government wanted a car industry (long-term employment) and offered large incentives to TNCs
Fiat located in Minas Gerais as the state gave 50% of the start up costs
Fiat would have a guaranteed market and could cope
1970-2000:255,000-2,800,000 cars produced and sold
Cheap labour $7/hr (£18)
Strikes unlikely (military gov. & good work ethic)
4 people waiting for a job for every person hired so no production time lost 

Why has Fiat expanded in Brazil
State of Minas Gerais gave Fiat $135 towards opening of a new factory
Also Fiat expecting huge increase in demand.
If in country save costs of import duties and transportation to other SA countries. 

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Factors affecting location of TNC's investments

Market- size, growth, access to regional and global markets

Cost- labour, inputs/raw materials, transportation, tax

Natural Resources- oil, gas, agricultural land

Infrastructure framework- ports, institutions, 

Policy framework- legal system, stability

Business promotion and support- availability of info and help

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Advantages of TNC's on the host country

  • Providing employment - employment benefits for the host country as most employees will be locally recruited. These benefits may be relatively greater given that governments will usually try to attract firms to areas where there is relatively high unemployment or a good labour supply.
  • Source of tax revenue - profits of multinationals will be subject to local taxes in most cases, which will provide a valuable source of revenue for the domestic government. The investment itself will be a direct flow of capital into the country and the investment is also likely to result in import substitution and export promotion. 
  • Technology transfer - multinationals will bring with them technology and production methods that are probably new to the host country and a lot can therefore be learnt from these techniques. Workers will be trained to use the new technology and production techniques and domestic firms will see the benefits of the new technology. 
  • Increasing choice - if the multinational manufactures for domestic markets as well as for export, then the local population will gain form a wider choice of goods and services and at a price possibly lower than imported substitutes.
  • National reputation - the presence of one multinational may improve the reputation of the host country and other large corporations may follow suite and locate as well.
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Disadvantages of TNC's on the host country

  • Environmental impact - multinationals will want to produce in ways that are as efficient and as cheap as possible and this may not always be the best environmental practice.
  • Access to natural resources - multinationals will sometimes invest in countries just to get access to a plentiful supply of raw materials and host nations are often more concerned about the short-term economic benefits than the long-term costs to their country in terms of the depletion of natural resources.
  • Increased competition- the impact the local industries can be severe, because the presence of newly arrived multinationals increases the competition in the economy and because multinationals should be able to produce at a lower cost.
  • Transfer pricing - multinationals will always aim to reduce their tax liability to a minimum.
  • Low-skilled employment - the jobs created in the local environment may be low-skilled with the multinational employing expatriate workers for the more senior and skilled roles.
  • Health and safetymultinationals have been accused of cutting corners on health and safety in countries where regulation and laws are not as rigorous.
  • Export of Profits - large multinational are likely to repatriate profits back to their 'home country', leaving little financial benefits for the host country.
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Urban Core-Maharashtra

Core region-based on the urban area, has the majority of the services, business and people

Has more diverse services and industry such as engineering, bollywood and computer softwaring, lots of hotels taking advantage of tourism 

Population Density Rank: 12

Literacy rate: 83%

GDP: $1,700

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Rural Periphery-Bihar

Periphery is rural- remote countryside involved in producing raw materials
The poorest periphery region and India’s most rural state.  
Farming pays poorer wages than urban industries.

  • 86% live in rural areas and most work in farming.
  • Over 50% of households are below the poverty line
  • 80% work in low level jobs paying little.
  • 60% of houses had electricity
  • 12% had water flushed toilets

GDP: $343

Population Density Rank: 1

Literacy Rate: 64% (can't afford education)

Fertility Rate: 4.4 (don't learn about contraception)

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Cycle of Poverty

Few of India's rural population own land - they usually rent from a wealthy minority who own the land.

Because they own only small areas they can only farm enough to support their own family.  This is known as SUBSISTENCE FARMING.  Much of the work is done by hand and any ploughs are traditional wood/iron and pulled by oxen or buffalo.

With no surplus crops or income, farmers cannot invest in machinery to help them grow more - this means they are trapped in a CYCLE OF POVERTY 

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Exam Question Basis

Explain differences between a named urban core and rural periphery

Maharashtra had developed into a core region because it is near the coast so can import and export goods. There has been government investment into the city helping to provide services and education helping people to get better jobs.

Bihar is a periphery region because it is a rural area with a lack of jobs. The people there are stuck in a cycle of poverty. Their income is low and there is no investment from the government to improve their lifestyle. 

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