G2:1.1: Introduction to Development

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Defining Development

It's very difficult to define development as it is continuously changing and is a very subjective topic.

DICTIONARY: An event constituting a new stage in a changing situation.                  HISTORICAL: Link to wealth - probably beacuse it's easy to measure wealth.               CURRENT: Are broader and link to social and cultural advancements.                              RECENT: Link to sustainability.                                                                                               WJEC: Increase in SoL adn QoL for an increasing population of the population.

Historical Definitions of Development: 1st, 2nd and 3rd World

  • 1st World: Countries developed in a Capitalist reigeme. 'An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.' E.g U.K.
  • 2nd World: Countries developed due to a command structure- communism. 'A theory or system of social organisation in which all properties are owned by the communities and recieves according to their ability and needs. E.g North Korea.
  • 3rd World: This term arose during the Cold War, to define countries non-aligned with either NATO or the Communist Bloc. The countries often considered to have not yet chosen a path.  E.g Ghana
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Development is a sliding scale, and defining a country as either developed or undeveloped: created in the 1980s.

Industrialisation and Development:

  • NICs: Newly Industrialised Countries
  • The earlier the country undergoes an idustrial revolution, the more developed it is likely to be an MEDC.
  • Examples of NICs include China, Brazil and India.
  • Examples of RICs include Thailand, UAE and Banglasdesh.

The Development Gap

  • Devide by Willy Brandt, former West German Chancellor, head of a group of statesmen who published the Brandt Report.
  • 80% of the world's wealth is owned by 20% of the world.
  • New Zealand and Australia brought upto the rich north.
  • Simplifies data making it easy to understand and GDP is an easy way to access data.
  • Some LEDCs were already developing in the 70s, many countries such as Thailand have grown rapidly since the 80s. Brandt line could be considered out of date.
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1960s: Modernisation

Science and modern technology can be used to advance industry and stimulate economic growth. Development is achieved when a country has high industrial outputs and exports goods to the worlds economy.

  • Provides governemnts with a clear course for development, idea of 'take-off' suggests rapid development and economics growth provides jobs and can increase living standards.
  • Outdated and Eurocentric, as modelled on the development of the wealthiest nations and industrial revolutions and economic growth can cause environmental degradation.
  • Stage 1: TRADITIONAL SOCIETY: Basic, substiense faming. Some local trade.
  • Stage 2: PRE-CONDITIONS for TAKE-OFF: Mechanised and commercial agriculture.
  • Stage 3: TAKEOFF: Industrial Revolution      
  • Stage 4: DRIVE to MATURITY: Range of industries established.  
  • Stage 5: AGE of MASS CONSUMPTION: Tertiary sector grows rapidly.        
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1970s: Dependancy

In a globalised world, all countries are often interconnnected. Some countries are winners of global trade, whilst others are loosers. Countries become wealthy by exploiting and underdeveloping the poorest nations through unfair trade.

  • Richer countries play a role in creating poverty, industry in the periphery given subsidies to develop and barriers to foreign imports, encouraging the citizens to buy nationally prdouced goods.
  • Government intervention could make global trade inefficient, spending to support industry could be spent provising basic needs and tread barriers could increase the cost of living for citizens.

Global-Core Periphery: The world is divided into two reigons:core and periphery. The core contains developed countries, the periphery contains undeveloped countries. Resources flow into the core for industrial production. High value goods flow back to the periphery. This structure of the world's conomy maked for a richer core. Note the core is much smaller than the periphery, and contains less people.

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1980s: Post Neoliberalism

Free global trade can stimulate economic growth and large businesses can profit more without governemnt intervention. Universal development an therefore be achieved through the promotion of 'trade not aid'.

  • With no trade tariffs or duties, a wide choice of goods can be bought world wide at low costs. Transnational Corperations freely invest overseas due to skilled workforces and no trade barriers. It promotes entrepreneurship and competative buisness. 
  • Declining governments power and influence due to increased TNC power, poor countries have to repay all historical debt with insurance, this can bankcrupt countries. 

Multiplier Effect: leads to spiral of economic growth.

Economic Growth > Immigration > Investment by TNCs > Job Creation > Consumption > Economic Growth

Economic growth encourages more people to move to a reigon, TNCs will be encouraging movment to areas with a large and skilled work force. TNC investment can create large-scale employment.

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1990s: Human Development

Development cannot be achieved throughout economic improvement alone. Multiple dimensions (e.g social, cultural, political) need to be taken into account. Development means individuals have freedom to make life choices.

  • Wider definition of development takes human welfare into account, assesses development on and individual (not a national) scale, believes everyone is equally entitled to a good life.
  • People can live fufilled lives without completely free choices, but they still live in poverty and free choices can focus on individual needs, not those of society or collective groups.

Livelihood Assets

  • All human beings have livelihood assets, which they can use to make choices.
  • Financial capital includes: wages, savings, pensions and remittances.
  • Natural Capital includes: wages, savings, pensions and remittances.
  • Human capital includes education, knowledge, skills and health.
  • Physical capital includes: transport, technology and energy.
  • Social capital includes: friends, representatives, neighbours and leaders.
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2000s: Post Development

The rich cannot lift the poor out of poverty. Local communities need to address their own problems, using their own ideas. People have to develop themselves, rather than relying an ill-suited ideas from overseas.

  • Countries do not have to develop according to western ideas, local communities could be empowered by creating their own development ideas, developing countries do not have to follow the cultural and moral guidance of development donors.
  • Provides limited practical alternatives to replace overseas exprience, the poorest of the poor will struggle to meet their basic needs in the short-term. Data shows that abslute poverty as has been halved.
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