Global Development

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Measuring Development

Development - the process a country makes economic, social or political progress.

Measuring Development

Gross Domestic Product - Total value of goods and services produced within a country per year.

Corruption Perception Index - The proportion of people who view there to be corruption in the public sector. Countries governments are graded from 0 (highly corrupt) to 100 (very clean)

Gini Coffienct - A measure of economic inequality. Countries are graded from 0 (same income for everyone) to 1 (one person has all the income). 

Human Development Index : Composed of three indicators : Life expectancy , GNI per capita , Mean years of Schooling. A country is given a score between 0 and 1 (1 being the most developed)

Developing - <0.550

Emerging - 0.550-0.850

Developed - >0.850

 

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Causes of uneven global development

Physical factors :

Climate : A hot and dry climate can reduce crop yields. This can lead to a food shortages. As a result, life expectancy is reduced due to malnutrition. 

Landlocked : A country that is landlocked does not have access to the sea. This means it will find it more difficult to trade. As a result, it will make less profit from exports, slowing economic development. 

Historical Factors :

Colonalism : This is when one country takes control of another.This means that the colonised county lost control of their resources. As a result, development was slowed as there are less resources to export and use for developing infrastructure. 

Economic Factors:

Foregin Investment :Most foreign investment into the UK is in London due to London having the best infrastructure and being the political hub of the UK which attracts businesses to the capital. 

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Differences in development within the UK

Relief - The south east of the UK is flatter in relief than areas such as Wales and North Scotland. This means that land is more easier to bulid in south east.

Deindustrialisation: Traditional heavy industries in the North moved away to developing countries leaving high unemployment and lower incomes.

Political : The seat of government in in London. Businesses like to be close to where decisions are made.

Foreign Investment : Most foreign investment into the UK is in London due to London having the best infrastructure and being the political hub of the UK which attracts businesses to the capital. 

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Chloropeath map

Using GUE :Describe the trend in HDI scores shown in the figure above (3)

G : The highest HDI scores are in the northen hemisphere.

U : The UK has a HDI of 0.9 or above

E : However , Australia is an expectation as it has a HDI of above 0.9 but it is in the southern hemisphere.

Advantages and Disadvantages of chloropeath map :

Disadvantages : Hides variation within countries = less accurate , Colour scheme is unclear= map is difficult to read and to detirmine exact percentages

Advantages : Easy to see general patterns and there is clear patterns over space to be able to identify trends , See a large amount of information as it is visually effective

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Stragies used to reduce uneven development

Billateral aid : Aid is given from one goverment to another usually with attached agreements e.g Loans or trade deals. One advantage is that high amount of money = able to fund many top-down projects = larger impact. However , it can lead to debt due to attached agreement and attached agreeements can lead to power imbalance.

Multaterial aid : Developed countries give money to international organisations who then redistribute money in the form of loans to poorer countries. One advantage is that it will reduce the risk of power imbalance as the world bank is neutral and large sum of money as mutiple countries donate to the world bank. However , money can be wasted as the world bank is less likely to track the projects.

Voluntary aid = Money that is raised from donations and charities. Bottom up projects have both advantage and disadvantages.

Trade= Countries can make large profits from exporting goods to other countries. This will increase their GDP and the country can invest in infrastructure and services.

Aid = Country can recieve specific help to an area of need e.g education. This means that money can be provided to tackle a problem e.g lack of school bulidings. As a result , literacy rates in the area could improve which could increase employment.

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Top down and bottom up development projects

Top down projects : Bi-lateral and multi-lateral aid often fund top-down development 

A government or large organisation fund and make decisions about how best to direct the project. Akosombo dam in Ghana (North Africa) received investment from the World Bank and aid from the UK and USA. 

The projects are large in scale meaning they help a large population in a country. The scheme is run by the government so it is likely to achieve its development objectives.

The country may go into debt because the money is loaned. The technology used in the projects is advanced meaning few local people can work on them. The project may have conditions attached to it which mean that it will be under the influence of another company/country.

Bottom up projects : Voluntary aid often funds bottom-up (community-led) development projects 

Local people and communities decide on ways to improve things for their own community (NGOs often fund the project). The charity ‘Practical Action’ set up Micro-hydro projects in Peru for rural communities who lack access to basic services, including energy. 

Intermediate appropriate technology is used meaning local people can work on the project. The end product is cheap to maintain as it uses less technology. 

The development can be slow because of the small size of the project meaning fewer people benefit. 

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Development Gap in India

Urban Core :

Location : Located on the west coast of India and has a large port which has been used and as it is not landlocked it allows trading to occur more easily. This was one of the most important factors in the growth of the core because this encouraged foreign direct investment into the area as global businesses and TNCs were attracted by the good infrastructure.

Foregin Direct Investment : Universties in Mumbai produce well educated , english-speaking graduates which attracts more TNC’s. Many TNC’s (such as Volkswagen) outsource here for these graduates as they are skilled and this lead to employment boom and large number of people paying taxes leading to greater funding for services including education and healthcare.The greatest factor in its growth rate is TNC investment as this has led to the positive multiplier effect it experiences.

Rural Periphary :

Location : Located in the North of India away from a lot of infrastructure such as roads and rail connection and it is landlocked 

Foreign Direct Investment : Only 35% of children go to school in Bihar which will lead to TNC’s are not attracted to the area due to dependent and uneducated population and subsistence farmers are working on the land to survive with little income. Taxes generated in Bihar are very low. Little available funding for education leading to a low literacy rate. As a result , this lead to the cycle of poverty.

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Economic Changes in India : Primary sector

Primary Sector has decreased

Why has it changed

Due to mehanisation of farming which meant that advanced farming teachnology means that machines can produce more than people, farming jobs declined which left many farmers unemployed.

As India has become more developed , people are in search of a better QoL and shifted job sectors towards higher paid work. This was due to the presence of TNCs setting up in India e.g Tesco.

Postives of the change

Higher income can lead to better QOL for many people in India which can mean more disposable income=postive mutipler effect and more tax revenue lead to improvement in services e.g healthcare ,education as more tax paid.

Negative of the change

Some people struggled to access other job sectors and were left unemployed and this enhanced the cycle of poverty. Furthermore , many people lose their jobs and as a result of this decline and seek work in the city leading to pressure in services and leaves a dependent population in rural and lead to an increase in people living in poor quality housing.

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Economic Changes in India : Secondary sector

Secondary sector jobs have increased partially due to the 1091 economic reforms: trade tariffs were cut to allow increased trade between India and the rest of the world and this lead to a open economy.

Postive Impacts

Pay is higher than the primary sector and this led to more disposable income and generates more tax

Negative Impacts :

TNC’s may exploit workers by long working hours and poor working conditions and this lowers the workers quality of life.

It may lead to an increase in pollution due to burning fossil fuels and this lowers air quality and an increase in respiratory diease.

Overall : Very small impact as this sector has never dominated as it was leapfrogged 

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Economic changes : Teritary sector

Teritary sector has increased due to Tnc outsourcing parts of their buisness to India 

Positive Impact :

Higher paid jobs than primary and secondary. Tertiary sector in India has increased this means that people have higher paid jobs as a result more tax  is paid to the government who reinvest it to improve infrastructure and services.

Working conditions are better with offices and usual working hours.

Negative Impact :

Due to Tncs only setting up in coastal areas , there was large economic inequaliy in India as landlocked areas in the north of India did not benefit.

Many of the jobs require highly skilled workers this means that many of the population cannot access better jobs, particularly from rural India  leading to economic inequality

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Economic Changes in India : Quaternary Sector

It has increased

Many of the jobs only require highly skilled workers as not all population can access for example the rural periphary

The India Space Program costs $750 million per year preventing money being spent on infrastructure and services to increase development and the money can be better spend on education.

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TNCs in India

Why has Tesco outsourcing to India

Tesco has outsourced their factories to India as the labour is cheap meaning Tesco can make more profit and 

Postive Impact of Tesco outsourcing in India

Many new teritary  jobs are created which have higher salaries and better working conditions as they are tertiary jobs. This means workers have more disposable income and can pay more tax leading to the positive multiplier effect with better infrastructure and education. 

 Employees are invested in with education and training which provides them with skills which they can then use in later life/careers. This means that in the long term residents benefit and can access new jobs in the tertiary sector and wont fall into the cycle of poverty.

Negative Impact of Tesco outsourcing in India 

Many of the secondary workers are exploited with low pay, long hours and poor/cramped conditions. Working hours remain long and workers are needed 24 hours a day and lowers the quality of life and will still exploit workers to gain maxium profit

Tesco is ‘footloose’ meaning it could always move to a cheaper country or new market whenever it wanted. This means that India does not have economic cerntatiy. As a result , leading to unemployment of teritary sector workers.

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Global Status

Global status : The way a country is perceived by other countries on the world stage. 

ISRO  : Aims for greater exploration of space-How does it improve global status : Proves to other countries India has a large quatenary sector as it shows a highly educated workforce , Increases media coverage/attention interationally due to the space exploration to mars, Proves to other countries India has a large economy as it can invest in advanced technology.

Cons : However, ISRO is small in scale when compared to NASA.This demonstrates that the USA has a higher global status and that India still is not competitive on the world stage.

India is a member of the G20 : The G20 is an economic group of 20 countries -How does it improve global status: Proves to the rest of the world that India is economically influential meaning that other countries are more likely to trade with them , Hosting the G20 summit in 2022 , increased media coverage leading to the postive pereception of India. Greater influence in the World Trade Organisiation could allow them to trade with the EU in the future.

Promoting International Tourism through "Visit India Campigan" :Through the Visit India campaign more tourists are choosing India as a tourist destination. This means India is perceived as a safe, welcoming and attractive leading to positive international perceptions. 

Cons : Only focues on certain areas of India.

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Geopolitics : Negative Relationships

Geopolitics -The relationships between a country and the rest of the world 

Territorial Dispute : Conflict with Pakistan over land of Kashmir

Increased funding on India’s military - This diverts funding away from investing in services such as hospitals and schools which can slow social development. 

Trade Route -  Restricts access to trade with the rest of Asia through the North of India. Alternate routes must be taken.  

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