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KEYWORDS:
Measuring development continued.
The World Bank classification
A country's level of development is now classified in a different way. The World Bank uses the names:
Low income countries (LIC) - these are countries with a GNI per capita of US$ 1,045 or less, e.g. Chad
and Ethiopia
Medium income countries (MIC) - these are countries with a GNI per capita of more than US$ 1,045 but
less than US$ 12,746, e.g. Mexico and Iraq
High income countries (HIC) - these are countries with a GNI per capita above US$ 12,746, e.g.
Germany and the USA
Limitations of development indicators
Used on their own, each measure of development has advantages and disadvantages:
Birth rate – this is a good indicator of social progress and the most developed countries tend to have
low birth rates. However, birth rates can be changed by government policies. These policies do not
always mean that a country is developed.
Death rate – this is effective as it shows how good a country's healthcare system is. It can also indicate a
good standard of living. However, very rich countries often have many older people, so death rates can
be higher than expected.
GNI per capita – this measure only shows economic development and says nothing about whether
people in a country have a good quality of life. It is also an average and so it hides information about
people who are very rich or very poor.
Causes of global inequalities
Levels of development are determined by several factors:
Physical factors –
Climate : some areas have a hostile or difficult landscape. This can make development more difficult.
Examples of this are very hot climates or arid climates which make it difficult to grow sufficient food.
Tropical climates experience more incidences of climate related diseases, such as malaria.
Landlocked : access to the sea is an important influence. For example, many landlocked and
mountainous countries have developed more slowly than coastal nations because trade is more difficult
for them.
Economic factors – some countries have very high levels of debt. This means that they have to pay a lot
of money in interest and repayments and there is very little left over for development projects.
Historical factors – colonialism led to countries being exploited for economic gain and unequal trading
relationships distorted local economies, which meant that many colonies received little benefit. Neo-
colonialism is a term used to describe how rich countries can still dominate poorer countries. This now
happens in an economic and political sense, through mechanisms such as debt.
Environmental factors – some places experience environmental issues, which can prevent them from
developing. Examples might be extreme flooding or desertification. Natural hazards, can also slow or
reverse development in some countries.
Social factors – some parts of the world have issues that are caused by people. These include low levels
of education, poor water quality or a lack of doctors. Countries that have prioritised investment in
education and health care generally develop faster than nations that have invested less in these sectors.
Political factors – some countries are at war or the government may be corrupt. Therefore money does
not reach the people who need it most and spending on areas such as education and infrastructure may
be insufficient. Open economies, such as the UK, encourage foreign investment and develop faster than
closed economies, such as North Korea, where imports and exports are not allowed.
Natural resources – some countries have an abundance of raw materials such as oil or precious
minerals. These can be sold and the money invested into developing the country.
The consequences of global inequalities
Uneven development creates differences between countries. Developed countries have a lot of money
and so they have the power to make decisions that affect developing countries.
Low income countries
Many low income countries (LICs) have a shortage of safe, clean water and have low levels of health.
They do not have factories or processing facilities and so they have to sell materials in their raw
form. Raw materials usually sell for much less money than finished products and so these countries
earn less. Some governments in LICs are corrupt. This means that money earned is not necessarily used
to benefit the people that need it and disparities in wealth and health occur. Some LICs also have high
levels of international migration, as people move to find work and a better standard of living. This
results in fewer people of a working age and an increased proportion of dependent people.
High income countries
High income countries (HICs) have good, clean water supplies and sanitation systems. They are able to
buy raw materials for a low price and process them into a more expensive product. Their imports cost
less money than their exports and so they have a good balance of trade. They are able to become
wealthier as a result. HICs usually have stable governments and so any money earned is used to benefit
the people in the country, so fewer disparities in wealth and health occur.
Global Geographical Issues: Development Dynamics
Development The economic or social progress a country of people makes
Fertility rate The average number of children born per woman in a country
Gross Domestic
Product (GDP)
The total value of goods and services produced by a country in a year
Colonialisation Acquiring control over another country by occupying it with settlers, and exploiting it
economically.
Migration The long-term movement of people within or between countries
Globalisation The increasing interconnectedness and interdependence of the world economically, culturally
and politically
Debt Money owed by a country to another country, to private creditors or to international agencies
such as the World Bank and IMF
Remittances Money sent back by migrants to their families in the home community or country.
Transnational
Corporation (TNC)
A firm that owns or controls productive operations in more than one country through foreign
direct investment.
Foreign Direct
Investment (FDI)
Overseas investment in physical capital by transnational corporations
Internet A global system of interconnected computer networks
HDI
A measure of people’s quality of life using social measures of development, based on life
expectancy, education and standard of living (GDP per capita) on a scale from 0-1 (1 being the
highest)
Gini Coefficient A way of measuring inequality in a country: the higher the value of the GIni Coefficient, the
more unequal a country is.
CPI
A ranking of countries according to perceived levels of corruption
Closed economies A country which does little trade beyond its borders
Modernisation
Theory
Created in the 1960s by an economist W.W. Rostow, this is a theory based on the economic
history of a number of developed countries, which go through distinct economic and social
changes and move from one stage to another.
Multiplier effect Spin-offs from one growing business, allowing other businesses to grow as well
Intermediate
technology
Often small-scale technology that the local community can use without too much training or
high costs
Microcredit Tiny loans and financial services to help the poor – mostly women – start a business and escape
poverty
Sustainable
development
Development that meets the needs of the present without compromising the ability of future
generations to meet their own needs
Diaspora The dispersion of people from their original homeland
Outsourcing The concept of taking internal company functions and paying an outside firm to handle them
Topography The shape and physical features of an area
Geopolitical influence The way in which a country’s geography and economy affect its relations with other countries
How do we define and measure development?
Development is a broad idea linked to improving people’s quality of life. One aspect involves money and wealth (economic development
measures). Other aspects consider social development factors such as good healthcare, or political development factors such as freedom of
speech.
Access to safe water = The percentage of people who have access to safe, clean water.
Birth rate = The number of live births per 1,000 people. Birth rates are often high in a less developed country.
Death rate = The number of deaths per 1,000 people. High death rates can indicate a less developed country.
(GNI per capita) Gross national income per person = The value of a country's income, divided by the number of people in that country.
Infant mortality rate = The number of babies who do not survive to the age of 1 per 1,000 live births.
Life expectancy = The average age that a person may live to.
Literacy rate = The percentage of adults who can read and write.
People per doctor = A ratio to show the number of people per doctor. A lower ratio can indicate a richer country.
Human development index (HDI)
HDI = see keywords
No single measure can give a complete picture of the differences in development between countries. In 1990, the United Nations introduced
the HDI, which considers aspects of both economic and social development, but not environmental considerations. The HDI groups countries
into four levels of human development, and categorise countries into ‘developed’, developing’ or ‘emerging countries’.
Very High = 0.800 and above = Developed countries = 49 in total
High = 0.700 – 0.799 = Emerging countries = 56 in total
Medium = 0.550 – 0.699 = Emerging countries = 38 in total
Low = below 0.550 = Developing countries = 45 in total
How do development theories explain development?
Rostow’s modernisation theory – see keywords
Stage 1 – Traditional society – Technology is very limited. Most people work on the land and live in rural
areas, e.g. The UK in the Middle Ages
Stage 2 – Pre-take off – A few low technology and labour-intensive manufacturing industries begin to
develop. Development of infrastructure such as canals and railways, e.g. The UK in the very early years of
the industrial revolution (1750s)
Stage 3 – Take-off – Rapid growth of manufacturing industries and better infrastructure. Steady growth in
the economy. Administrative systems (banking and trading networks) develop to support further growth,
e.g. The height of the industrial revolution in the UK (1820s)
Stage 4 – Drive to maturity - Economic Growth extends to all parts of the economy. New indutries
develop to replace old, outdated ones, e.g. The UK in the 1850s.
Stage 5 – Age of High Mass consumption – The economic systems is almost self-sustaining because
people buy products and services, which keeps businesses going. Welfare systems are fully developed,
trade expands, e.g. The UK by 1940.
Frank’s dependency theory
In the late 1960s, the economist A.G. Frank produced a theory that was critical of capitalism. He argued
that:
Colonialism was a major cause of poverty in developing countries. Developed countries had become rich
at the expense of developing countries, by exploiting natural resources such as oil, metallic minerals etc.
In the modern world neo-colonialism may be having a similar impact. The capitalist system of world trade
has benefitted the rich developed countries far more than the poorer developing countries. Rich
countries sell their manufactured goods and services at high prices to developing countries. In turn, they
buy raw materials from developing countries at much lower prices.
Frank used a simple model to explain how the ‘economic core’ (developed world) exploited the ‘economic
periphery’ (the developing world). The model is based on a chain of exploitation.
Criticisms of dependency theory;
- Many countries in the developing world that were never colonised (e.g. Ethiopia) remain poor, whereas
some former colonies such as Singapore are now developed.
- Countries that followed the socialist model have mostly remained poor, for example Tanzania.
- Some poor countries have successfully developed (e.g. South Korea)
- Rich-country influence today (neo-colonial) may be positive, for example aid without ties.
What are the different approaches to development?
Top-down development
These project occur through the actions of governments and transnational corporations (TNCs). The
traditional ‘ top-down’ approach is when experts from developed countries, and the governments of
developing countries, plan large-scale projects (requiring technology) with limited involvement of the
people who will be directly affected. The motive of the government are often broad and not well targeted
towards the local people most in need.
Some disadvantages of top-down projects include:
- The country will more than likely go into debt from the loans borrowed to fund the scheme
- The loan may also have some conditions attached, leaving the country to be under some external control
over the economy or other development aspects of the country
- Jobs are not provided for the local people, instead a lot of machinery and technology is used
- The end product will be expensive to operate
Bottom-up development
Non-governmental organisations (NGOs) have often been much better than government agencies
directing aid towards sustainable development ( see keywords ). The selective nature of such aid has
targeted the poorest communities using appropriate technology and involving local people in decision-
making. Bottom-up development schemes are projects that are planned and controlled by local
communities to help their local periphery area. They are not expensive because they use smaller, more
appropriate technology, which the local people will have to pay for. Because the project is on a smaller
scale compared to a top-down project, the environmental damage is often much less.
Advantages and disadvantages of TNCs
Countries that are not attractive for TNCs, mainly in Africa and Asia, are among the world’s poorest
countries. Countries where TNCs first set up manufacturing industries followed by tertiary industries, have
profited the most. Here, TNCs create jobs and bring capital, modern technology and skills into the country.
The country’s infrastructure (transport and energy supplies) is improved as better access and
communications are needed. The initial investment and jobs have a knock-on effect, creating more jobs
and providing money to generate services ( multiplier effect – see keywords ).
TNCs are sometime guilty of exploiting cheap labour and tax avoidance. They cream off large profits to
send back to the developed countries, and their industries cause air and water pollution because local
pollution controls are either weak or ignored.
India - an Emerging Country
India is now the second most populous nation on the planet, with 1.25 billion inhabitants and is also the seventh largest economy in the
world. Since the economic reforms of 1991 (Economic liberalisation), it has experienced rapid economic development that has allowed it to
be grouped with other rapidly-emerging economies known as the BRICS (Brazil, Russia, India, China and South Africa). India has the third
largest army in the world and is known as the largest democracy in the world, consisting of 29 states and seven union territories.
Up until the 1980s, India's main type of industry was primary. Many people were subsistence farmers, which is not very profitable. From the
late 1980s, the Indian government encouraged foreign transnational corporations (TNCs) to set up within the country. Factories were built and
secondary jobs in manufacturing were created. Factory workers earn more money, which means that they can afford to pay people for
services, such as entertainment and healthcare. Workers in the tertiary (service) sector are paid more than in primary and secondary. The
additional wealth generated from the changing industrial structure in India has created a multiplier effect - as one thing improves, it allows
other things to improve too.
The role of transnational corporations in India
Many transnational corporations (TNCs) have set up factories and offices in India. The country is an
attractive location to TNCs because the population speaks good English, has strong IT skills and works
for lower wages than people in many other countries. Companies like Toyota, Volvo and
Hyundai manufacture cars in India. Companies like ASDA, BT and Virgin Media have call centres in India.
Advantages of TNCs in India
TNCs have created jobs and offered education and training to employees
The additional wealth has led to the multiplier effect ( see keywords)
- Some TNCs have set up schemes to provide new facilities for local communities
The infrastructure of the country has been improved, with new roads and internet cabling
TNCs pay tax to the government, which can be spent on development projects
Disadvantages of TNCs in India
- Some corporation leaders have taken advantage of the relaxed environmental laws in the country by
creating lots of pollution
- The conditions for workers in factories can be very harsh
- Many TNCs are owned by foreign countries so economic leakage occurs, where profit is sent abroad
- The best jobs are often given to foreign workers from the TNC's country of origin
- TNCs use many of the country's natural resources - a soft drink bottling plant in Kerala, India, was shut
down due to its impact on local water supplies.
Global Geographical Issues: Development Dynamics: Case Studies
Improving quality of life
Quality of life refers to the wellbeing of individuals or groups of people. Instead of measuring the amount of
money that people have, it refers to where people live and whether they are healthy and happy. The quality of
life for some Indian people has improved dramatically over the last 30 years.
Social improvements in India
The structure of the population in India is changing. Health and hygiene improvements have meant that life
expectancy has increased from 38 to 68 years within a generation.
The increase in older people has meant that the population is less youthful. This is good as there are fewer
dependents and more people of working age. The nature of the workforce is also changing, with India seeing a
growing middle class.
Fertility rates have decline from 5.2 in 1971 to 2.3 in the present day
Infant mortality has decline from 129 per 1000 live births in the 1970s to 40 per 1000 live births in 2013.
Urbanisation – the country’s towns and cities are growing because of a combination of rural-urban migration
and natural population increase ( crude birth rates are greater than crude death rates) , however the level of
urbanisation remains a long way behind the global average.
Economic participation – only one-third of working age women in India have jobs compared to two-thirds in
Brazil.
Regional contrast
Generally, the states in the south and west (with the exception of Rajasthan) have a far higher level of
development than the states in the north and east.
These disparities are due to several reasons:
Coastal locations such as Mumbai (in Maharashtra) historically benefitted from being linked to trade routes
with the rest of the world. This is in contrast to landlocked states such as Bihar. This gap increased further when
coastal locations allowed the south and the west to develop large container ports, which linked these states to
an increasingly globalised world.
The south and the west also had the lowest rates of natural increase compared to the high rates of natural
increase in the north and the east. In Kerala, in the south, fertility rates are now 1.7 - the same as in the UK.
The Green Revolution (and also the increase in food exports) was greatest in the south and the west compared
to the north and the west. Rajasthan, which separates the rich states of Gujrat and Haryana, is often affected by
drought and crop failure due to the failure of the monsoon.
These reasons led to the positive multiplier effect in the south and the west where a high level of development
created a well-educated work force. This then attracted foreign investment from transnational corporations,
further increasing the wealth of the south and the west. In contrast, the north and east of India are landlocked,
therefore cannot directly trade internationally. This deters foreign investors from these regions. This can result
in a lack of schools, transport networks and employment opportunities causing young people to move out of
the region towards successful cities. This is known as brain drain ( the emigration of highly trained or qualified
people from a particular country or region).
Environmental improvements in India
The quality of the environment has a direct impact on the health and wellbeing of residents. The National
Green Tribunal is an environmental court that was set up in India in 2010. It deals with issues of environmental
protection and conservation and it can make companies and individuals pay compensation under the 'polluter
pays' principle. India is the third country to have this type of system (Australia and New Zealand have similar
systems).
The National Green Tribunal is helping to clean up India's cities. An example of this is the emergence of e-
waste recycling, where old computers and electronic equipment is broken down and re-used. Also, in cities like
Mumbai, a new Metro system, a ban on diesel cars and regular checks on factory waste are improving the
quality of the environment for the people living there.
India’s trading patterns
India's imports
India imports raw materials and products from many countries. The highest value of imports come from China, the United Arab Emirates
(UAE), Saudi Arabia and the United States of America (USA).
India’s biggest imports are crude oil, gold, silver, electronic goods and machinery. Oil and machinery are used to run factories. Gold, silver and
electronic goods are luxury items, which shows that the country is becoming wealthier.
India's exports
India exports products to lots of different countries. The highest value of exports go to the USA, UAE, Singapore and China. The UK is the
eighth biggest importer of Indian products.
India's biggest exports are petroleum products, jewellery, pharmaceutical products, transport equipment and clothing. These are high value
products. It is beneficial for India to import cheaper raw materials and export more expensive finished products.
Malawi: a country in the developing world.
Some of the challenges Malawi faces;
It’s landlocked
Malawi has no coastline – so it has no port from which to export or import goods. The single track railway line they use to export (tobacco, sugar
and tea) are slow and expensive.
Rural isolation
85% of Malawi’s population is rural (it has the highest percentage rural population in the world). Much of rural Malawi is isolated, with poor
infrastructure. Roads are mostly dirt, so it takes several hours to travel to local markets. During floods farmers are completely cut off.
Living with a changing climate
Climate change is affecting Malawi, it is causing water shortages as temperatures rise and food shortages caused by variable rainfall and
increased drought.
Increased pollution
Economic growth has been rapid in Malawi since 2010, but at a cost. It’s led to rapid urban growth. In the capital, Lilongwe water supplies
become contaminated during the rainy season. Squatter settlements have grown rapidly, with no sanitation or waste management. Rivers and
local dams have become contaminated with waste and bacteria, causing risk to human health. Air pollution has increased due to industrial
smoke and traffic congestion which has increased carbon monoxide and carbon dioxide pollution.
Despite physical and environmental barriers, it can only develop by increasing trade with other wealthier countries. But this is not easy. Three
problems stand in their way:
Its terms of trade, and it’s debt
- The tea and coffee trade
- Global trade and the World Trade Organisation
Terms of Trade
The value of Malawi’s exports every year is less than it spends – terms of trade are stacked against it. Exporting more would help. But what and
how? One of the reasons for such poor terms of trade is that Malawi exports largely raw materials, know as primary products. It has traditionally
sold these to developed countries, and in return bought manufactured goods that it does not make itself. This was typical of trade in the 1980s.
Trade has changed in recent years and a new type of trade is important. This new type of trade is between Malawi and the emerging economies
of India and China. China now buys food and raw materials from African countries, and Chinese goods are exported to developing economies of
Africa and Latin America.
Colonisation and cash crops
In the nineteenth century, the British colonised Malawi and its land. They developed plantations to grow coffee and tea for export. Plantations
still remain under British ownership, some large TNCs. Farming is critical to Malawi. Over 80% of its population works in farming, and the
country still depends on cash crops (sold for cash) for exports. These are know as commodities, and are traded on global markets. Malawi’s
farmers find this tough, because global prices change constantly, and they never know what price they will get. People who work on the estates/
plantations lose out as profits made go to companies in developed countries.
Global trade and international relations
The World Trade Organisation (WTO) is a global organisation which aims to make trade easier. It tries to help developing countries trade with
wealthier countries so they can increase wealth, jobs and investment. It also aims to get countries to agree that good will be free from duties, or
tariffs, which are added on to the price of good, making them more expensive.
It doesn’t always work. Malawi exports raw coffee beans, instead of roasting them which would get a higher price. The reason is that the EU
(including the UK) and USA charge tariffs of 7.5% on imported roasted beans, but nothing on raw beans. It’s cheaper for European or American
coffee companies (e.g. Costa or Starbucks) to roast beans rather than but ready-roasted from Malawi.
India’s changing population structure
Population structure: the make up (age and sex) of a population, usually shown in a population
pyramid
In 1985, India had a typical population structure of a developing country with large numbers of young
children and a rapidly decreasing number of older people.
This was caused by:
- A high birth rate since having a large number of children was seen as an asset - they could help work
on the farm and look after their parents in their old age.
- Life expectancy of older people was low due to the lack of good medical care and poor access to clean
water.
Although there is a large number of children under 15, this is no longer increasing and there is a sign of
a decline in the number of very young children 0-5 years old.
This is caused by:
- A decline in birth rates. As more people work in secondary and tertiary jobs, children are seen as less
of an asset and so the birth rate has dropped.
The development of the economy has improved the education of the population and so more people
are pursuing a career before having children, resulting in smaller families.
The life expectancy of older people has increased due to improvements in medical care, particularly in
the use of vaccinations and improved sanitation, reducing the number of deaths due to water-borne
diseases.
Demographic/ Population dividend – is a term used describe the benefit India will receive in the
future when the large youthful population will become the working population due to improvements
in education and healthcare.
Top-down development project: Narmada River Scheme: The Sardar Sarovar Dam
Construction began 1987 and ended in 2017
Advantages
Population is growing - enough clean water for everyone; Be able to install pipelines - water in all villages
Irrigate 1.8 million hectares of land in the Gujurat; Government making money from hydroelectric power
Supplies 3.5 billion litres of drinking water; Workers earn enough to send children to secondary school - more
chance of tertiary jobs in the future - less primary industry jobs; Cheaper power - cheaper electricity bills -
cheaper cotton- more trade; More stable wages for workers; Environmentally friendly hydroelectric power
Disadvantages
254 villages flooded, religious and historic site were flooded.; 320,000 people forced to migrate; Cost approx
US$8 billion to build, which had to be funded by the World Bank; Farmers grow less crops - worse off; Sediment
gets trapped behind dam - electricity turbines become clogged - expensive to fix; Farmers will have to buy
expensive fertilisers as fertile sediment that would have been naturally deposited is lost as the river is damned.
Bottom-up development project: Biogas tanks, Kerala (rural India)
Biogas ( a gas produced by the breakdown of organic matter, such as manure or sewage, in the absence of
oxygen. It can be used as biofuel)
Biofuel – any kind of fuel made from living things, or from the waste they produce
ASTRA stands for the Application of Science and Technology in Rural Areas, and has been a major
development project in India. Its researchers visited villages to find out about rural people’s lives.
The problems
They found that most rural families spent hours doing routine things like collecting fuel and water, and
preparing and cooking food. The most commonly used fuel was wood, but, with an increasing population,
suitable firewood was becoming scarcer. So dried cow dung was often burnt instead. Women and girls did
most of the domestic work, which left little time for helping in the fields, or for school.
The solution
Cow dung! Instead of just burning the dung like wood, it can be used to produce biogas. This gas can then
be used for cooking and powering electricity generators.
Benefits
Biogas has brought a range of benefits:
Women and children gain 2 hours a day, because they don’t have to collect firewood. So children have
more time to go to school; About 80% of families use this time to earn extra money; The slurry that’s left
after fermentation is used to increase crop yields, because it’s high in nutrients; Cattle are kept in
compounds to make collecting the dung easier. So they don’t graze in the forest and eat all of the
vegetation; Many villages use the biogas to power electricity generators. These generators can be used to
pump water up from boreholes for domestic use and to irrigate crops, as well as generate electricity for
light.
How has India’s International role changed?
India is on track to become the third largest economy by 2050. India is one of the BRICS. In 2015 the BRICS set up
the New Development Bank to provide resources for projects in BRICS and other emerging developing countries.
India is a member of the Group of Twenty (G-20), but not a part of the G8. Politically India would like a permanent
seat in the United Nations Security Council, and more influence with the World Bank, the IMF and WTO. India are
going to need to be more environmentally responsible the more they develop and take considerations /
recommendations from Climate Summits on board, even if it cost them financially in the short term. – this will
help them geopolitically.
Impacts of economic growth on the natural environment?
Air pollution – According to the WHO (World Health Organisation) 13 of the world’s top 20 polluted
cities are in India. Delhi topped the list. Air pollution affects the productivity of labour, with many
worker suffering from heart and lung diseases and it can reduce life expectancy by 3.2 years.
Water pollution – Less than one-third of sewage generated in urban areas is treated, the rest flows into
bodies of water. The Ganges and Yamuna are among the world’s ten most polluted rivers.
Deforestation – a problem with rising demand for forest-based products. The causes are commercial
logging, the conversion of forest to agriculture, urban and industrial expansion, mining and overgrazing.
Greenhouse gases – India is the world’s third largest emitter of carbon dioxide. The main reason is
India’s heavy reliance on coal as a source of energy. India wants to reduce its emissions, to meet its
target for lower emissions, India will need to increase its forest cover to create an additional carbon sink
of 2.5 – 3 billion tonnes.
Climate change – More than 60% of Indian farming relies on monsoon rain. The increasingly erratic
monsoon rain patterns pose a threat to a farming sector worth almost US$370 billion, and hundreds of
millions of jobs.
