The Development Gap – The essentials MEDCS - North LEDCs - South

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<ul><li> Slide 1 </li> <li> The Development Gap The essentials MEDCS - North LEDCs - South </li> <li> Slide 2 </li> <li> 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 </li> <li> Slide 3 </li> <li> Exam questions </li> <li> Slide 4 </li> <li> 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. </li> <li> Slide 5 </li> <li> Examples of correlations </li> <li> Slide 6 </li> <li> 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. </li> <li> Slide 7 </li> <li> Exam questions </li> <li> Slide 8 </li> <li> 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. </li> <li> Slide 9 </li> <li> 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) </li> <li> Slide 10 </li> <li> Exam question </li> <li> Slide 11 </li> <li> 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: </li> <li> Slide 12 </li> <li> 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 &gt; 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) </li> <li> Slide 13 </li> <li> Exam question </li> <li> Slide 14 </li> <li> 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. </li> <li> Slide 15 </li> <li> 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 </li> <li> Slide 16 </li> <li> Exam questions </li> <li> Slide 17 </li> <li> 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. </li> <li> Slide 18 </li> <li> 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 to improve the quality of life of their citizens. LOAN SOLUTIONS Small businesses in the USA have been lending money to individuals in LEDCs. It enables people to invest in equipment, hire extra workers (if necessary) and raise output. The technology used was appropriate, allowing the business to become sustainable and successful. CONSERVATION SWAPS These are agreements whereby a proportion of a countrys debts are written off in exchange for a promise by the debtor country to carry out environmental conservation projects e.g. tropical rainforest. </li> <li> Slide 19 </li> <li> FAIR TRADE Fair trade is an international movement ensuring that producers in LEDCs get a fair deal. They receive a minimum guaranteed price for their crop which helps them maintain a reasonable standard of living TRADING GROUPS This is where members (countries) get and work together e.g. Mercosur: Mercosur is the trade group in South America. It has 4 full members (Argentina, Brazil, Paraguay and Uruguay). As a result: 1.They will more likely control the price of the goods they export. 2.It will make it more difficult for richer countries to shop around to find a cheaper price. 3.Tariffs between countries can be scrapped making it easier to trade AID There are different types of aid: 1.Short term aid e.g. food, clothing and medicines intended to help people who are suffering from a disaster such as an earthquake, a flood, a famine or war. 2.Long term (after 1 month) aid is loans to governments to help them with economic development e.g. building schools/hospitals, investment in industry and agriculture </li> <li> Slide 20 </li> <li> 3. Multilateral aid is when MEDCs give money to international organisations e.g. World Bank, International Monetary Fund (IMF) or the United Nations (UN) which then redistribute it to LEDCs for development projects 4. Bilateral/Tied aid is when aid is given to a poor country on the condition that all or part of the money will be spent on buying commodities from the donor countries. This is done to boost the export incomes of donor countries. The problem with tied aid is that the recipient country is not able to shop around for the best prices or the most appropriate product 5. Top-down aid is used so governments can run more efficiently or to build infrastructure such as roads and bridges 6. Bottom-up aid is used to provide basic health care for communities, clean drinking water and money for education </li> <li> Slide 21 </li> <li> What are the advantages of aid? It helps people through a crisis (lives are saved) Giving aid after a disaster gives people a feel good factor New industries improve the skills and provide jobs for people Agriculture improves with new and better crops New infrastructure e.g. schools and hospitals are built Providing a reliable water supply can help improve health standards Better farming can improve diet Improving education and developing skills helps a country become self sufficient More recently, projects have used appropriate technology, so are more sustainable Individuals from companies may find well paid work in overseas projects </li> <li> Slide 22 </li> <li> What are the disadvantages of aid? Big projects e.g. building airports/dams are expensive donors may feel this money is wasted Local people lose land to large scale projects e.g. dams Most people do not benefit from large scale projects e.g. dams that create HEP Occasionally, governments and charities fail to provide exactly what is needed A lack of infrastructure can prevent development happening as planned, for example schools/hospitals cannot be built without roads and power Trained staff may not be available Charity funds may reduce in an economic recession There may be a lack of money for fuel, spare parts etc. </li> <li> Slide 23 </li> <li> How can international aid can encourage sustainable development in a poor country(ies)? CASE STUDY 1: ACTION AID, CALCUTTA, INDIA Action Aid works to alleviate poverty. Some of its work is done through sponsorship schemes. Donors are encouraged either to: Give monthly to general projects Sponsor a child and his/her family or community This is a successful approach. Low technology is used. Local people benefit (both individuals and communities) and costs are kept low. Environmental quality is improved. </li> <li> Slide 24 </li> <li> Exam question </li> <li> Slide 25 </li> <li> CASE STUDY 2: STUDENT PARTNERSHIP WORLDWIDE (SPW) SPW is a UK based organisation placing gap year students in development projects in countries like Uganda. They work with pupils and farmers to: Raise awareness of AIDs through role plays and drama in schools Teach energy conservation methods e.g. how to make a fuel-efficient stove or how to start a tree nursery (growing trees form seeds) to provide wood for fuel Introduce appropriate technology e.g. covering natural springs (creating covered water tank) so that water supplies dont get polluted from animal waste i.e. improving living standards In villages, primary and secondary schools have had SPW students as volunteer teachers, providing lessons and workshops on sexual health awareness and improving life skills A demonstration on how to keep banana plants disease free </li> <li> Slide 26 </li> <li>...</li></ul>