The Development Gap

Development: A change for the better-progress and an improvement in the way of life

LEDC's = Less Economically Developed Countries

• often poor and low standards of living

MEDC's = More Economically Developed Countries

• wealthy, lots of services, high standards of living

1971, Brandt Report made a simple division contrasting economically wealthier countries with poorer, less mature and largely agricultural ones.

• contributed to the North/South Divide (measures via GNP)

Environmental factors: caused by a drought or famine

• key workers lost in industry
• Huge debts to repair from natural disaster

Economic factors: Trade or debt

• Tariffs placed on buying country
• Not enough resources = no income

Social factors: water quality/education

• poor water = disease - prevents economic development
• Difficult to fund education

Political factors : corruption and conflict

GDP = Gross Domestic Product - value of goods and services provided by a country

GNI = Gross National Income - money earned abroad + GDP

Infant Mortality Rate = number of babies dying per 1,000 live births

Birth rate = number of babies born per 1,000 people

Death Rate = number of deaths per 1,000 people

Literacy rate = number of people who can read and write per 1,000 people.

Human Development Index = uses 4 indicators (GDP per capita, Birth Rate, Literacy Rate, number of years in education)

Historical: was a former colony/has annual flooding

Environmental : landlocked/climatic diseases/deforestation

• natural disasters
• few resources

Social-Economic: Trade tarrifs/Poor health-care and education/Little trade

• Corrupt government
• Debt

Social: Water quality/ reliable water source/ education

Buying or selling goods and services between countries

Primary industries = extract raw materials from the land

Secondary industries = manufacture goods (factories)

Tertiary Industries = provides services (doctor)

MEDC= seconday + tertiary              LEDC= primary industries

MEDC export manufactured goods (cars, chemicals)

LEDC export primary goods (meat, coffee, cocoa)

Import = Goods brought into the country

Export = good sold from the country

Trade Balance = difference between exports and imports

Trade surplus = too much trade = countries richer

Trade deficit = too little trade = countries poorer.

Tariffs = taxes paid on imports. Make imported goods more expensive and less attractive to buyers tha home-produced goods.

Quotas =precise limits on quantity of goods imported. Restricted to primary goods and work against LEDC's

Loans = sum of money that at some point needs to be paid back with interest

AID = gifts of money,goods,food, machinery, technology and trained workers.            Aims to raise standards of living

Short term aid = (emergency aid) coping with the immediate problems caused by natural disasters.

Long term aid = prevents emergencies happening in the future (providing well for water, vaccinations against disease, schools, hospitals)

Bilateral aid = given by government to another government (may include trade and business agreements tied to the aid)

Multilateral aid = more developed countries give money to international organisations, 'the world bank', which is distributed to less developed countries for projects.

Donor Country = country giving aid to another country

Recepient = recieves the aid

Top-down aid = used so government can run efficently or build infrastructure

Botton-up aid = used to provide basic health care for communities, clean water and money for education.

Top Down:

Advantage: Improve healthcare and education

Disadvantages = involve a lot of money

• Local people have no say

Bottom Up

Advantages : work is done by organisations (FARM-Africa)

• Local people have control over lives

None!!!

Debt relief = forgiving a debt in part or in total

Debt = when a country owe's a large sum of money

Sometimes debt can be cancelled

Is a way of tackling debt and benefitting nature and conservation at the same time

• country (creditor) which owed money, cancels debt by other country in agreeing for debator to pay for conservation activities
• NGO's and the WWF

2002-2008 Peru &USA agreed debt swap worth $40 million, Peru agreed to conservation activities to preserve endangered rainforest

• home to the jaguar and pink river dolphin

Group of 38 of the poorest countries with the greatest poverty and debt, Honduras and Uganda are examples.

FARM-Africa and Moyale Pastoralist Project

• project helps communities in North Kenya to survive by reducing their dependance on animals for income
• Help families adapt their crops and avoid deforestation which will worsen drought conditions for allows soil erosion
• Make easier for families to go to market
• Training local people to spot safe water sources and dig wells.
• Provides small scale loans for people to start small businesses (taxi)

An international movement ensuring producers in poor countries get a fair deal

• Recieve a minimum guaranteed price for their crop, providing them with a living wage so their lives can improve more.

Trade made fairer?

• organisations like the WTO removing farm subsidies
• reducing quotas and tarrifs
• join fair trade

Common Agricultural Policy (CAP)

= subsidies paid to EU farmers

Purposes are to:

• guarantee a minimunal level of production so there is enough food for Europe's population.
• ensure a fair standard of living for farmers
• ensure reasonable prices to customers

Money comes from the European Regional Development Fund

• is for sustainable development in troubled districts of European cities

Aims to provide economic and social regeneration:

• improve living conditions (renovating old buildings)
• create new jobs in services that benefit the whole population
• intergrates people into education and training them so they find jobs
• develop environmentally friendly transport systems
• make use of renewable energy
• use up to date ICT equipment to improve people's skills

Money comes from the member countries who own it.

• contribute according to their size and wealth

Main purpose is to invest in regional development.

• Projects are often locally based, funds are used to train people with new skills and to help them set up new buisnesses.

Structural funds

• support poorer regions of Europe and improve infrastructure  (transport), as it enables the economy to work more efficently

• UK
• UK is part of Europe's 'core', meaning it has a larger, wealthier population- creating more wealth.
• Produces and consumes more goods and services than other regions.
• Joined the EU in 1973
• One of the EU's richest countries (14% live in poverty)
• GNP per capita ppp = $36,130
• 80.4% of people in services. 1.4% in agriculture
• Imports more than exports
•  
• Poland
• On the edge of the EU, have poorer population and poorer communcations
• Used to be a communist country (17% live in poverty)
• GNP per capita ppp = $17,310
• 53.4% of services. 17.4% in agriculture
• Imports more than exports