the development gap – the essentials medcs - north ledcs - south

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  • Slide 1
  • The Development Gap The essentials MEDCS - North LEDCs - South
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  • Development measurements/indicators GNP per capita (per person/head) - This is the total amount of money that a person makes in a country, usually given in US dollars. GNP - Total amount of money that a country makes ($US) HDI (Human Development Index) - It divides the world into 3 groups of countries: Low (lowest indices), medium and high (highest indices). It is worked out by a formula using measures of life expectancy, literacy, educational attainment and GDP per capita for each country. It uses a scale from 0 to 1 (maximum). Birth/death rates - Number of births or deaths / 1000 people in a country / year. Literacy rate - % of people who can read and write. Life Expectancy - This is the average number of years a person can expect to live Infant mortality - These are the amount of children out of every 1000 born alive that die before the age of 5. Healthcare - You can measure the amount of doctors per 1000 of the population in a country and the number of hospitals in a country
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  • Exam questions
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  • Scattergraphs how used with development indicators? Scattergraphs are used to compare 2 sets of data e.g. % of people employed in agriculture and GNP per head, on other words to see if there is a correlation. If one set of data increases and so does the other, then there is a positive correlation. If one set of data increases but the other set decreases, then this is a negative correlation. The 'line of best fit' goes roughly through the middle of all the scatter points on a graph.
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  • Examples of correlations
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  • Limitations of using a single indicator e.g. GNP/capita The figures can be misleading on their own, as they are averages e.g. GNP per capita may be very high as a result of some very rich people living in a country, whereas a lot of the population may actually be quite poor e.g. Iran They do not show variations across a country e.g. in Devon, GNP per capita is much lower than London As a country develops, some aspects develop before others e.g. in Ecuador, literacy rates are high but GNP per capita is very low HDI may be better to use as it measures 3 variables: life expectancy. Levels of education, literacy and GDP per capita (income) What do we mean by Quality of Life and Standard of Living? They are not the same! Standard of living refers to the economic level (wealth) of a persons daily life. Are they comfortably off or not? It can be measured. Quality of life is how good or bad people think their life is (perception). This cannot be measured e.g. people may be poor but educated, have a long life expectancy and are health. In this situation, standard of living is low but quality of life is good.
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  • Exam questions
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  • How can we classify the world? Who is rich and who is poor? In 1971, The Brandt Report used GNP per capita (wealth) to make a simple division between the rich (industrialised) and poor (mainly agriculturally based) countries of the world. A line called the North-South divide was drawn on a world map to make this difference clear. Recently, this approach has become less popular as it is seen to be too simple.
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  • Why is this simple division no longer valid? Development is not only economic (wealth/jobs) but also social (education/healthcare/life expectancy etc.) and cultural Some LEDCs are growing more rapidly than most MEDCs. A new category had to be introduced to cover those developing fastest. They became known as NICs (newly industrialising countries e.g. China) Even within a country, there can be significant differences between people and regions It does not cover variations in quality of life Some countries grow richer at a greater rate than others and some may get poorer so a simple two-fold division is no longer acceptable A five-fold division is more realistic because it recognises the great variety in the types of country (1. rich industrialising e.g. USA 2. oil exporting e.g. Saudi Arabia 3. newly industrialising e.g. China 4. former Communist e.g. Russia 5. Heavily in debt e.g. many African countries)
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  • Exam question
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  • What factors make global development inequalities worse? PHYSICAL/ENVIRONMENTAL FACTORS (natural) Countries near the tropics suffer from more climate related diseases than cooler parts of the world e.g. malaria. People cannot work as they are so ill. Environmental hazards (natural events which threaten peoples lives and property, particularly climatic hazards e.g. drought/flooding are a problem in countries like Ethiopia and Mozambique). These limit development e.g. agriculture. ECONOMIC FACTORS (costs) Civil war has made many countries poor e.g. Somalia, Sierra Leone and Ethiopia etc. Global trade policies have not favoured the poorest countries. Sometimes tariffs (govt. tax on imported/exported goods) are put on goods by the buying country, discouraging the buying of these goods. World trade is often unfair. There are many disadvantages for LEDCs and a few advantages for MEDCS with world trade:
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  • Disdvantages for LEDCs: 1.LEDCs sell mainly primary products which are of low value (more supply than demand) and make little money for that country. 2.MEDCs can buy raw materials/primary products from alternative sources (other LEDCs) 3.Farmers are often poor in LEDCs (as a result of low prices), so do not earn enough to support their families 4.The prices of raw materials e.g. fruit, coal etc. have not risen as much as manufactured goods (made in MEDCs) 5.A lot of LEDCs depend on exporting one raw material e.g. Cocoa, Ghana = 80%. If the world price collapses or the harvest is bad, they receive less money, leading to job losses etc. 6.LEDCs have little industry (factories), so have to buy expensive, manufactured goods e.g. TVs from MEDCs 7. LEDCs suffer a trade deficit (money spent on imports > exports) Advantages for MEDCs: They have a ready supply of raw materials They can control the processing of goods (have factories) and create more jobs They can have more political power in controlling trade (choose who to buy from)
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  • Exam question
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  • SOCIAL FACTORS (peoples health, lifestyle, community) Water quality poor water quality causes disease, which makes people ill/unable to work and prevents economic development. In many LEDCs, diseases are carried in water and water quality is unreliable. Reliability of water supply inadequate water supplies limits crop yields (harvests) and therefore food supply. If in short supply, people waste a lot of time searching and then carrying it. Education LEDCS find it difficult to fund education for all children i.e. investors are put off by a lack of an educated workforce Health for LEDCS with a poor health system, there will be many people who are sick and incapable of working. POLITICAL FACTORS (government decisions) Corrupt politicians make themselves richer illegally at the expense of their countrys development, often by using this money to keep them in power e.g. Zimbabwe. Here, land was taken from white farmers by government officials. The countrys economy has been destroyed. When this happens, money is not spent on education, health services, roads, clean water and sanitation Corrupt governments are unstable. Foreign investors are discouraged from investing money because they cannot guarantee that money will reach its target.
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  • Many people were injured or killed (est. 25,000 dead) Many peoples homes were destroyed (1/2 million homeless) Government estimates that it will cost $309 billion to rebuild homes, farms, factories, roads, railways and electricity lines As many factories destroyed, difficult to export goods i.e. generate income Difficulties in producing enough electricity, as nuclear power stations damaged i.e. affecting businesses CASE STUDY to show the impact of a natural hazard on a countrys development Japan 2011
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  • Exam questions
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  • How can international efforts reduce global inequalities? OVERVIEW Loans are sums of money that at some time in the future have to be paid back with interest. This helped some countries develop but others have struggled paying back loans in the world recession. A country which wants funds for development projects can: Borrow from other countries Borrow from world financial organisations (e.g. IMF, World Bank) or international banks e.g. HSBC If the project is a success, the debt is repaid. However, if the debt cannot be paid back, this then has to be paid back over a longer period and the standard of living and level of development cannot improve. Aid is gifts of money, goods, food, machinery, technology and trained workers. The aim is to raise standards of living. Why is it needed? To help after disasters e.g. 2004 SE Asia Tsunami; help with large development schemes e.g. airports, building dams etc; to improve basic services and amenities e.g. reliable water supply, hospitals, schools etc. True aid is not a loan that needs to be repaid. However, in the real world, some aid has payback connected to it.
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  • How can international efforts reduce global inequalities? How can LEDCs be helped? DEBT RELIEF This is where the amount of interest or the loan is reduced. Sometimes debts are written off. Debtor countries (those who have borrowed) benefit hugely as they can start


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