Bridging
the development gap
Development
gap = social and economic disparity between wealthy and poor, can occur
globally or locally.
Food
security = the extent to which a country can feed its own population or
can afford purchase food on global markets when shortfalls occur.
Civil
unrest = the disruption of typical social order e.g. strike, protest,
violent or unviolent.
+around 2008 there was a 15 year period of economic growth
and low inflation
+costs of imported manufactured goods was low and there was
cheap labour in places like china
+food and wine prices had also fallen due to food surpluses
+low global interest rates made house prices cheap
-
Food prices rose sharply worldwide after 2006
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Poor harvests after extreme weather = low grain stock
-
Growth of bio fuels reduced amount of land under food
cultivation
-
Rising demand in rice supporting countries e.g. India,
China
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Rising incomes and food consumption reduced amount for
exports
-
Rising demand for cattle feed e.g. Saudi Arabia largest
barley imports
-
Hoarding of food by traders experiencing price increases
Rising oil prices also affects the increasing prices of
distributing and growing food
FAO = UN organised Food and Agricultural Organisation
Development = means change and implies that it is for the
better could be economic and improves the standard of living
Food crisis illustrates
the development gap between
rich and poor countries worldwide. Poorer countries have poorer food security caused by higher import
costs. Many governments of rice producing countries banned the export of rice in
order to guarantee supplies for their own people.
Case study: The Philippines
2007 rice prices increased, as
well as global increases. 2008 government used troops to deliver subsidised
rice to poorer districts. Following protests rice hoarders were imprisoned if
guilty. Until 1990s the Philippines was self-sufficient in terms of rice
production. By 2008 it was the world’s biggest importer in 20 years the country
lost its best farmland to urban developments. Examples of cash crops include
coffee, chocolate, chilli and tea.
Factors making it worse =
Urban Sprawl (extension of
cities into rural landscapes) + Climate change (result in flooding or desertification)
Since 1980 people living in extreme poverty has fallen from
40% to 20% but poverty is still bad due to population growth.
2.8 billion People live on $2 per
day = moderate poverty
1.1 billion People live on $1.25
per day = extreme poverty
GDP = Gross domestic product.
GNI = Gross National Income USA GNI double other countries
NNI = Net national income GDP
and GNI don’t take income distribution into account. GDP and GNI show the local
value of money.
PPP = Purchasing Power Parity
(112 rupees may be £1.50)
Economic development relates to incomes, businesses, technology and
enterprise. Whereas human development refers to quality of life, education and
cultural values. Economic development could act as an indicator of a country’s
economy and demonstrate their levels of employment.
Human development can be measured by assessing quality of life, birth and
death rate and access to services. This is harder to measure as it is not in as
many statistics like economic development is.
HDI = human development index.
This uses 3 indicators: life expectancy, GDP and education, these are averaged
out for each country.
PQLI = physical quality of life
index
TAI = technical achievement
index
GDRI = Gender related development
index
MDG = Millennium
development goals – they were developed in 2000 to measure income and
quality of life. There are 8 goals and 21 targets to be met by 2015. E.g. goals
halve proportion of people suffering from hunger, achieve universal primary education,
and reduce under 5 death rate by two thirds.
North south divide can also be seen in supercar sales
Brant line = developed north and poor south with the
exception of Australia. It was developed in 1981 (it is now outdated and over
simplified)
Asian
Tigers = BRIC countries
Mydal Model of core and periphery – demonstrates sub Saharan
Africa and shows more detail than brant line.
Volvo cars = 40% owned by Chinese (they wanted to move
money into Europe to avoid a collapse)
Example: Fair trade trying to get rid of the development
gap by paying farmers good prices
Key players = World Bank, IMFG,
NGOS, TNCs, and Governments
Poverty = lack of opportunity which
is most acute in rural places
India’s
caste system
This is a system of social
stratification, which historically separates communities by birth and family.
It is a social and religious class system found mostly among Hindus and
Muslims. It is thought to be traditional Hindu way of life, yet many people argue
that British colonialism may have affected it. India’s constitution makes caste
discrimination illegal. Untouchability was also made illegal in 1950.
Inter-caste marriages are now more common.
Reasons
for gender inequality in developing countries:
·
Gender
bias laws, no equal pay, women can’t vote
·
Gender
bias religious values e.g. Hindu caste system puts women at an disadvantage
·
Traditional
values in society e.g. women stay at home for children and men work
·
No
modern technology may shut them off from third world countries
·
Not
a good level of primary and secondary education – not learnt about feminism –
poor literacy – cannot get good job – limited opportunities
·
No
democratic Government – unfair politics
·
Early
marriages – lots of children
·
Poor
health care – death at childbirth – poor sanitation – disease e.g. malaria,
cholera
·
People
may not be well travelled – understand western societies way of life e.g. equal
rights
Who contributes to global
development?
·
United nations – promote free trade, provide investment
·
EU – promotes economic co-operation, raise standards of
business practice
·
Ngo e.g. Oxfam, water aid, unicef – bottom up approach,
non-bias assessment
·
World trade organisation
·
TNCs e.g. nike, unilever, nestle – have large employed
workforce
·
Trading blocs
·
Superpowers e.g. USA – regulate the economy, influence
politics, provide infrastructure.
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( RANKED INTO HOW EFFECTIVE I THINK THEY ARE HDI BEING TOP)
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Advantages
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Disadvantages
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1.
HDI (human development index)
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Encounters economic growth, quality of
life, education and health care. This shows how governments invest, but not
how much money they have.
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Doesn’t take issues of water and sanitation into account. Doesn’t factor
in gender equality. It is only an
average so it does not show the different areas
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2.
GDP ( gross domestic product)
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It shows values of goods and services
over a year, this is averaged per person. You can see how much is produced in
dollars.
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This does not show what per capita income is actually worth in terms of
spending power. Does not take living costs in different places into account.
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3.
PPP ( purchasing power parity)
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This shows what per capita income
will purchase with the cost of living taken into account.
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This value is purely economic
Exchange rates can change. This is too narrow of a measure, it does not
take all economic activity into consideration.
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4.
GNI (gross national income)
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Shows total economic activity, this includes
overseas as well.
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This is better than GDP as it encounters income from over sea such as
shares and earnings. It is not always measured in per capita which is bad.
There are no social factors considered.
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5.
BRANT LINE 1981
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Shows clear north south divide
Good visual representation
Easy to interpret
Good for people south of line to
understanding
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Australia is an exception to the line. It does not take the BRIC
countries into consideration. It is outdated 1981 and it is too simplistic.
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