Unit 2- Development dilemmas

Development- The use of resources to improve the standard of living in a nation.

Measuring development:

• Economic wealth-GDP- Gross domestic product over a year.
• Human development Index (HDI) gives country a score between 0 and 1 based of life expectancy, education and income.

Problems- It fails to show disparity, or difference in poverty within a country.

Core region- Based in urban areas, majority of services, businessand people.

Periphery region- Rural, remote, countryside. Involved in producing raw materials, poor.

HICs- High income countries, group of wealthy countries, North America, Western Europe, Japan and Australasia. 'Global North'.

LICs- Low income countries, South and central America, most of Africa and Asia. 'Global South'.

MICs- Middle income countries, Brazil, Peru and Chile.

NICs- Newly industrialising countries, South West Asia, Hong Kong, Singapore, Thailand and Malaysia.

RICs- Rapidly industrialising countries, China, India. BRICs.

BRICs- Brazil, Russia, India and China, rapidly industrialising to become superpowers.

The North posseses 80% of the worlds wealth.

8 goals- target date 2015

Agreed by all countries and development institutions.

1. Eradicate extreme poverty and hunger.

2. Achieve universal primary education.

3. Promote gender equality and empower women.

4. Reduce child mortality.

5. Improve maternal health.

6. Combat HIV/ AIDs, maleria and other diseases.

7. Ensure environmental sustainability.

8. Global partnership for development.

Barriers to progress:

• Increasing food prices
• Fuel shortages
• 1.2 million facing hunger
• Malawi is landlocked- can't import or export goods.
• Poor infrastructure- needs transportation and communication networks.
• HIV/ AIDs 20% of adults are infected. Every year tens of thousands of people die from aids, mainly in their 20s and 30s, working age. Children have to provide instead of parents, don't go to school. High cost of drugs mean families can't afford them. 1/2 million orphans due to AIDs.

The president believes joining the globalised world will bring investment and industry.

Malawi is unlikely to develop until it increases trade. World trade organisation fairer to countries like Malawi but all trade still presents problems. 7.5% tariff on roasted coffee beans, companies want to roast their ownto save money, preventing Malawi from making more money.

American economist after ww2, believed poverty was the cause of communism in countries like China. Theory based on the understanding of Western development. 5 stages of development:

1. Mostly agriculture, little surplus. Subsistance economy.

2. Shift from farming to manufacturing. Trade increases profit, which is invested in new industries and infrastructure.

3. Growth is rapid. Investment and technology create new manufacturing industries.

4. A period of growth. Technology is used throughout the economy. Industries produce consumer goods.

5. Period of comfort. Consumers enjoy a wide range of goods. Spend on military strength or education and welfare.

• May not apply to all countries.
• Some countries skip manufacturing and exploit tourism.

2 types of global region development:

The core and periphary

• Low levels of development in poorer countries (periphary), resulting from the control of the worlds economy by rich countries (core).

Dependancy ratio:

• Rich countrie interfering with the internal politics of poor countries.
• Unbalanced trade, poor countries sell materials cheaply but buy expencive products.
• Selling of non essential products to poor countries e.g. carbonated soft drinks.
• Bi-lateral aid- aid with agreements attached that benefit the rich countries.
• Poor countries get into debt after borrowing too much from the developed world e.g. about 25% of aid recieved by African countries each year is used to repay debt.

Development means change- usually improvement for people and the economy. Brings jobs and trade. Sometimes the benefits are only for some people.

Who will benefit the most- people in the cities or the rural areas?

Will some parts of the country benefit more than others?

These questions present dilemmas.

• Population is the second largest in the world, 20x UKs.
• Huge workforce of 500 million people.
• Economy 5th largest in 2008, worth $3 trrillion.
• Indias wealth is not evenly shared out. Some Indians are very wealthy, while others live in great poverty.
• Its wealth varies between states (From the wealthiest Maharashtra to thepoorest Bihar) and Cities (e.g. Mumbia) and rural areas, although one state, Punjab is a wealthy rural state.

• Richest- core region
• Largest GDP per person
• Contains Indias largest city, Mumbai

Economic wealth has come from:

• Services- banking, insurance, IT and call centres. Mumbais unis produce well educated, English speaking graduateswho are employed by large western companies who contract them to provide services (outsourcing) wages are low.
• Manufacturing- 1/2 Mumbais factory workers work in cotton textiles for export, led to a construction boom, building factories and offices.
• Entertainment- worlds largest film industry, Bollywood
• Leisure and buisiness services e.g. Hotels and restaurants.

Much of Indias economic growth has taken place around ports and cities, known as growth poles.- Points or places where industries and ports develop. When this happens:

• People move there for jobs.
• New workers spend- creating demand for additional companies.
• They need services, such as housing, which create jobs.
• Creating an 'upward spiral' multiplier effect. Over time the effect gets greter and a whole region develops (core region).
• Areas which do less well get left behind- periphery.

Top-down development:

• Changed rice growing forever.
• Offered HYV (high yielding variety) seeds instead of traditional lower-yielding varieties, whichhave sometimes not produced enough food.
• HYVs were developed by scientists working for the TNCs.
• Rice plants are now shorter grow quicker and produce more grain than traditional rice.
• Due to HYV India now exports rice,the results have been mixed.
• Farmers must buy seeds every year, instead of saving some from last years harvest.
• Seeds are high yielding, but also need irrigation water, fertiliser and pesticides. Only larger wealthier farms can afford these.
• Crop yields are higher than traditional varieties- so incomes have risen for the wealthy.
• Over-use of chemicals to control pests has reduced the resistance to pesticides.

• Experts work with communities give locals control, experts assist process.
• ASTRA-recent development project in Rural India
• Researchers found what peoples lives were like.
• Daily routine took alot of time especially for women and girls.
• Must girls time was spent collecting fuelwood , it takes hours.
• Cow dung produces biogas- used for ooking by day and powering an electric generator by night.
• Dung ferments to form methane.
• Intermediate technology.
• Less time spent collecting fuelwood
• No ash- less time cleaning.
• Heat is instant- cooking is quicker.
• Less smoke- fewer cases of lung cancer.

• Bihar is India's poorest state - and its most rural - over 80% of the population live in rural areas, and most work in farming. 
•  Farming in India pays poorer wages than urban industries.
  Average incomes in Bihar are only 6000 rupees (£75) per person per year.  This is only 33% of
• India's average income and only 20% of Maharashtra's.
  55% live below the poverty line and 80% work in low level jobs paying little.
• 26 of India's 100 poorest districts are in Bihar.
• Less than 60% of its households had electricity, 12% have water-flushed toilets, 80% still use wood for fuel and 35% use cow dung.