topic 5 – bridging the development gap the causes of the ‘development gap’

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Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’ Understanding the development and the development gap Considering different measures of development Explain and contrast the different views of development Graph and analyse different development indicators to identify global variations

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Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’. Understanding the development and the development gap Considering different measures of development Explain and contrast the different views of development - PowerPoint PPT Presentation

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Page 1: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Topic 5 – BRIDGING THE DEVELOPMENT GAP

The causes of the ‘development gap’

Understanding the development and the development gap Considering different measures of development

Explain and contrast the different views of development

Graph and analyse different development indicators to identify global variations

Page 2: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

How is this unit examined?

2 ½ hour written exam, including pre-released synoptic resources (8 weeks in advance)

Part 1 – 5 out of 6 topics Part 2 – 6th topic in a synoptic context (will pull

together aspects of the other 5 topics)

30% of A level

Page 4: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Development

What is the development gap?The social and economic difference or disparity between the wealthy and the poor both globally,

between nations, and within countries (within cities or local regions)

What is it measured by?GNP

HDI – Human development Index 0-1, 1 being best – uses income per capita, adult literacy,

life expectancy.And many other development indicators

Page 5: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Views on development The Rostow Model

• A study of 15 countries mainly in Europe suggested that all countries had the potential to break the cycle of poverty and develop through 5 stages

Page 6: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Stage 1 – Traditional SocietySubsistence economy based on farming with limited

technology or capital to develop

Stage 2 – Preconditions to take-offOften an injection of external help – industries develop and

growth of infrastructure. Often single industry will dominate

Stage 3 – Take offManufacturing industries grow, airports and roads are built.

Political and social changes. Farming will decline. Investment or borrowing increases

Stage 4 – Drive to maturityGrowth should be self-sustaining. Often multiplier effects

in similar industry types. Rapid urbanisation

Stage 5 – High mass consumptionRapid expansion of tertiary services, employment in service

industries grow but decline in manufacturing

2 3 4 5UK 1750 1820 1850 1940USA 1800 1850 1920 1930Japan 1880 1900 1930 1950India 1950 1980 - -Ethiopia - - - -

Page 7: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Is this model valid?

• Model assumes that all countries start off at the same level

• Although capital is needed to advance from a traditional society it often brings debt repayments which stop a country developing

• Underestimates the extent and impact of colonialism

• Predicts too short a timescale between the beginning of growth and becoming self-sustaining

Page 8: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Views on developmentFriedmann’s Core and Periphery Model

• Shows how some areas become more economically developed than others and why some regions are more wealthier than others

Page 9: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Stages Stage 1 (Pre-industrial). The agricultural society, with localized

economies and a small scale settlement structure. Fairly isolated, dispersed and low mobility.

Stage 2 (Transitional). The concentration of the economy in the core begins due to capital and industrial growth. Trade and mobility increase

Stage 3 (Industrial). Due to economic growth other growth centres appear. The main reasons for this are increasing production costs (mainly labour and land) in the core area.

Stage 4 (Post-industrial). The urban system becomes fully integrated and inequalities are reduced significantly.

Page 10: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

• Development is like an electric cable – the power to drive countries from primitive to more advanced states.

• As the development cable model (right) shows, development is a multi-faceted process

• At its core is economic development, but to achieve real progress social, political, environmental and personal development is also needed.

Views on Development

The Development Cable

Page 11: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

• Development can also be seen as a pathway.

• Countries develop at different speeds and may cluster at different places

• What could hinder development?

Views on Development

The Development Pathway

Page 12: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

How do we measure development?1) Economic WealthMeasured as Gross Domestic Product (GDP) per capita = dividing the monetary value of all

the goods and services provided in a country by its total population

Gross National Income (GNI) – includes income from overseas investments

GDP – preferred by the EUGNI by the UN and USA

X Only useful in countries which have many economic transactions i.e. ‘market economies’ rather than the non-money economy e.g. barter and exchange

X Hides extremes and uneven distribution of income between regions or socio-economic groupings

X Not reflective of the local value of money

2) Purchasing Power Parity (PPI) GDPShows what per capita income will purchase when the cost of living is taken into account.

E.g. In China the cost of living is low so $100 will buy far more there than in the USA

Page 13: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

This basket of goods costs 112 Indian Rupees in India, the equivalent of £1.50*. To buy the same basket of goods in the UK

would cost around £6. The difference in how much goods and

services really cost, is why PPP (purchasing power parity) GDP income is used rather

than ‘raw’ GDP. Using raw GDP per capita average income in India is about $1000, but PPP GDP per

capita income is $2800

*data for Dec 2009

Page 14: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Burgernomics• THE ECONOMIST's Big Mac

index is based on the theory of purchasing-power parity: in the long run, exchange rates should adjust to equal the price of a basket of goods and services in different countries. This particular basket holds a McDonald's Big Mac, whose price around the world we compared with its American average of $4.20.

Page 16: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

North South Divide

Brandt Commission in 1981

Page 17: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Other criteria2) Social, cultural and welfare criteria• Recognising the complex nature of development is why development

is often measured using an index, which combines a range of data• Indices are considered more accurate than single data points such as

GDP per capita.

Human Development Index (HDI) gives a country a score between 0 and 1

Enables anomalies to be spotted and identifies where poverty is greatest

X No measure of human rights or freedom. There was a separate Human Freedom Index in 1991 but has not been done since.

The Human Development Index (HDI)Life expectancy at birth + Literacy rate + Enrolment rate + GDP

per capita PPP

Page 18: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

The development gap

• The geography of the development gap is more complex than a simple ‘North-South divide’

• Latin America has HDI levels similar to eastern Europe; China’s HDI and some others in SE Asia are relatively high

• South Asia has a concentration of levels below 0.6• Level in the Middle East are relatively high, although not in Yemen, Syria and Iraq• The picture for Africa is very complex, with the extreme north and south having

decent HDI levels, but some regions with shockingly low numbers

Page 20: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Infant mortalityThe number of children who die before they are five out of every 100 born. Life expectancyThe average age people can expect to live to World Freedom StatisticsThis is an index which takes into account a range of measures to determine how free people are in a particular country. The

index is complex but takes into levels of political and civil liberties, levels of corruption, and levels of political and religious conflict. It generates an index score from 1 (free) through to 7 (not free).

% GDP from AgricultureThe % of total GDP (the value of everything sold and made in a country) that comes from farming. % GDP from Secondary SectorThe % of total GDP (the value of everything sold and made in a country) that comes from manufacturing and secondary

industry. PopulationThe total number of people living in a country. % Population growthThe % change (up or down) in a country’s population – measured annually (every year). % of population living on less than $1 a day % of population living on less than $2 day

Page 21: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

What is this map showing?

Page 25: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Oxford p183

• Over to you qs• On your own qs

Page 26: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Plenary

Why is it hard to measure the development gap?

Is the Brandt Line still valid?

Page 28: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Explaining development

Do you remember the food crisis of 2008?This is probably because you were well-sheltered from the worst because we live in a developed country.P179 Oxford

Page 30: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

• Which of the following are real causes for the rise in food prices since 2006:

Global food crisis

Extreme weather

Growth of biofuels Rising demand in NICs

Climate change Rising demand for cattle feed

Traders hoarding food Diseases wiping out crops

Globalisation

Rising oil prices Change in agricultural policies

Page 31: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

Global food crisisGlobal food crisisWhich of the following are real causes

for the rise in food prices since 2006:Which of the following are real causes

for the rise in food prices since 2006:

Extreme weather

Growth of biofuels Rising demand in NICs

Rising demand for cattle feed

Traders hoarding food

Rising oil prices Change in agricultural policies

Page 33: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

The food price crisis shows how susceptible less-developed countries are to price rises.1. What happened to food prices in 2008?2. Why was this?3. Using the Philippines as an example, explain how a

development gap was shown by the way in which the food crisis affected its people.

4. What is the development gap?

Page 34: Topic 5 – BRIDGING THE DEVELOPMENT GAP The causes of the ‘development gap’

HW Reading Oxford 178-183

• Note taking