What is the message of the carton?

Transcription

1 What is the message of the carton?

2 The development gap Enquiry Question 1: What is the nature of the development gap? How has it arisen?

3 Causes of the development gap

4 Development - Introduction What is Development? Development means the ways in which a country seeks to develop economically and to improve the standard of living for its inhabitants. What is the development gap? The development gap describes the widening difference in the level of development between the world s richest and poorest countries. It can also occur within countries, for example between regions or between rural and urban areas.

5 How can the development gap be measured? How is development measured? Traditionally economic indicators e.g. GDP or GNI Development Indicators e.g. Life expectancy or Birth rate Or an index of development e.g. HDI or PQLI

6 How do we measure development? 1) Economic Wealth Measured 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 EU GNP by the UN and USA X X Only useful in countries which have many economic transactions i.e. market economies Hides extremes and uneven distribution of income between regions or socioeconomic groupings 2) Purchasing Power Parity (PPP) Shows 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

7 Why might this be more useful than just looking at economic measures?

8 North South Divide Brandt Commission in 1981

9 How can the development gap be measured?

10 Positives and Negatives of development indicators

11 MDG What are they?

12 Example of questions: 4a. Suggest reasons for the variable progress towards reaching the Millennium Development Goals shown in Figure 4. (10 marks) 4b. Using examples, evaluate the role trade plays in the development gap. (15 marks)

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14 Theories of development In groups of 5 you are going to teach each other about the different theories of development. Some of them should be familiar. You can use the textbook to help you. You have 4 minutes to teach your group. Once you have taught the rest of your group about the model we will explore the strengths and weaknesses of each theory as a class.

15 Theories on development The Rostow Model This model suggests that a country passes through 5 stages to become developed.

16 Stage 1 Traditional Society Subsistence economy based on farming with limited technology or capital to develop Stage 2 Preconditions to take-off Often an injection of external help industries develop and growth of infrastructure. Often single industry will dominate Stage 3 Take off Manu industries grow, airports and roads are built. Political and social changes. Farming will decline. Investment or borrowing increases Stage 4 Drive to maturity Growth should be self-sustaining. Often multiplier effects in similar industry types. Rapid urbanisation UK USA Japan India Ethiopia Stage 5 High mass consumption Rapid expansion of tertiary services, employment in service industries grow but decline in manufacturing

17 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 selfsustaining

18 Theories on development Friedmann s Core and Periphery Model Shows how some areas become more economically developed than others and why some regions are wealthier than others. Friedman argued that beneficial effects can spread from developed core regions or countries to less developed, peripheral regions.

19 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.

20 Theories on Development The Development Cable Development is like an electric cable the power to drive countries from primitive to more advanced states. Core is economic growth, technology and enterprise. The Outer is many different aspects of development growth. This shows that development factors can interact.

21 Theories on Development The Development Pathway Development can also be seen as a pathway. Countries develop at different speeds and may cluster at different places

22 Theories on Development The Poverty Cycle Focus on underdevelopment using poverty and social deprivation to explain the inequality between countries. Less developed countries are trapped, unless the cycle is broken.