GIS resource: what do you think this 3D map represents?

What is the name of this line?What does it divide?

Measuring and explaining the development gap

By the end of today’s lesson you will: Know how to measure the development gap.Understand the theories used to explain the development gap.Understand the role of global organisations affecting global levels of development

Textbook reference pages 104-110

http://www.gapminder.org/world/#$majorMode=chart$is;shi=t;ly=2003;lb=f;il=t;fs=11;al=30;stl=t;st=t;nsl=t;se=t$wst;tts=C$ts;sp=5.59290322580644;ti=2011$zpv;v=0$inc_x;mmid=XCOORDS;iid=phAwcNAVuyj1jiMAkmq1iMg;by=ind$inc_y;mmid=YCOORDS;iid=phAwcNAVuyj2tPLxKvvnNPA;by=ind$inc_s;uniValue=8.21;iid=phAwcNAVuyj0XOoBL_n5tAQ;by=ind$inc_c;uniValue=255;gid=CATID0;by=grp$map_x;scale=log;dataMin=283;dataMax=110808$map_y;scale=lin;dataMin=18;dataMax=87$map_s;sma=49;smi=2.65$cd;bd=0$inds=;example=75

How can we measure development?Make notes on each of the following:

GDP

PQLI

HDI (1990)

GDI and GEM (1995)

How can we explain global variations in development?

1. Modernisation Theory (The Rostow Model; 1960)

2. Dependency Theory (development of underdevelopment theory; Andre Gunder Frank; 1966)

3. World System (Core/periphery model; Wallerstein; mid 1970s)

Organisations involved in global development:

IMFThe World BankWTOTNCSGovernmentsNGOs

Read the photocopied sheets. Highlight phrases that describe the work of each global organisation.

Very brief notes• International Monetary Fund: Aim – prevention of disruption to financial

system. How – Funding comes from member countriesCriticism – Venezualean President Hugo Chavez

dubbed the organisations as "the tools of the empire" that "serve the interests of the North“.

Recently in the news: Ireland Nov 2010

Very brief notes• The World Bank: Aim – Reducing poverty, with a commitment to promote

foreign investment, international trade and facilitate capital investment

How – Borrows between $20-$30 billion a yearCriticism - Critics argue that the so-called free market

reform policies which the Bank advocates are often harmful to economic development if implemented badly, too quickly ("shock therapy"), in the wrong sequence or in weak, uncompetitive economies. Caufield said there was an assumption is that poor countries cannot modernise without money and advice from abroad.

Very brief notes• The World Trade Organisation: Aim – to supervise and liberalise international trade.How - deals with regulation of trade between

participating countries; it provides a framework for negotiating and formalising trade agreements, and a dispute resolution process.

Criticism – Not all countries benefit from free trade (a hypothetical situation whereby producers have free access to markets everywhere). Does free trade benefit all those concerned or it is a subtle way in which the rich nations exploit their poorer counterparts???

Very brief notes• Transnational Corporations (TNCs):Aims – Driving force behind globalisation; Capitalist

enterprises that engage in foreign investmentHow – TNCs are able to extend their global reach as

movement has become more relaxedNotes/criticisms - Some transnational corporations

are very big, with budgets that exceed some nations' GDPs. They therefore have great influence over local economies. Can also influence govt policy by a threat of withdrawal from a country where they hold a lot of market power.

Very brief notes• Governments:Aim – they control a state at a given timeHow – Their function is to enforce existing laws,

legislate new ones, and arbitrate conflicts via their monopoly on violence

Notes/Criticism – Some governments are not representative. Some governments may be deemed ‘totalitarian’ where they regulate all aspects of public and private life. Not all are concerned with the development gap. They are many things you could say in this section!!!

Very brief notes• Non-governmental organisationsAim – pursue some wider social aim that has political

aspects, but that are not overtly political organisations such as political parties

How - operates independently from any government, therefore excluding government people from being members of their organisations.

Notes - The number of internationally operating NGOs is estimated at 40,000. National numbers are even higher: Russia has 277,000 NGOs; India is estimated to have around 3.3 million NGOs. Examples include: Oxfam, Cafod, WaterAid.

Independent study:Find examples of 3 countries that have been badly

affected by debt.Write a short paragraph/list of bullet points

outlining the issues for each country.

Bridging the development Gaphomework 1 - Key words page 104

Use the key words on page 104. For each key word: if the word is the answer, what is the question?

W. W. Rostow

Andre GunderFrank

Countries are in stages.

Take-off then occurs when sector led growth becomes common and society is driven more by economic processes than traditions.

Development gap due to countries being at different stages in the model.

Based on the economic history of European countries.

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Take-off can occur when there is a rise in the rate of productive investment to over 10% of national income.

Take-off can occur when there is development of one or more substantial manufacturing centres with a high rate of growth.

Take-off is a very difficult stage for countries to get to in reality.

Modernisation Theory: the stages of development

Richest countries in final stage.

One criticism is his model is based on American and European history and aspiring to the American norm of high mass consumption.

Based on capitalism.

1966 Dependency Theory Also known as ‘development of underdevelopment theory’.

Poverty happened due to capitalism in the world.

Countries were prosperous before the arrival of European colonialists.

A takeover by a capitalist system led many countries on the path to being classed as ‘LEDCs’.

The rich exploit the poor.

Developing countries became dependent on developed countries, particularly through exports.

The stronger the links to the developed world, the worse the level of development.

The model shows a chain of exploitation which begins with small towns in the periphery expropriating surplus from the surrounding areas.

The theory blames the underdevelopment of the developing world on exploitation by developed nations.

World System (core/periphery) theory

Mid-1970’s

A capitalist economy has existed since the 16th century; before this, global interdependence did not exist.

A small number of core countries transformed a much larger area into a periphery; and a semi-periphery developed between the core and periphery.

A division of labour is seen, split three ways.

Core countries = manufacturers.

Periphery/Semi-Periphery countries = agricultural/ raw material producers.

Degree of optimism as some countries can escape from underdevelopment signifying the dynamic nature of the system.

The rising semi-periphery countries of the present are NICs (newly industrialised countries).

Due to their status in the labour division, core countries are the most dominant.

One criticism is that the theory is too focussed on economy and not enough on culture.