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
How is development measured?
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)
Why are countries less developed?
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
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
Reducing Glocal Inequalities
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)
Reducing Global Inequalities 2
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.
Advantages/ Disadvantages of top down/ bottom up a
Advantage: Improve healthcare and education
Disadvantages = involve a lot of money
- Local people have no say
Advantages : work is done by organisations (FARM-Africa)
- Local people have control over lives
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
Highly indebted poor countries
Group of 38 of the poorest countries with the greatest poverty and debt, Honduras and Uganda are examples.
Trade or Aid?
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
EU bridging the gap
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
Urban II fund
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
European Investment Bank
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.
- support poorer regions of Europe and improve infrastructure (transport), as it enables the economy to work more efficently
UK and Poland
- 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
- 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