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1.3 REASONS FOR UNEVEN DEVELOPMENT
WHY ARE SOME COUNTRIES RICH & OTHERS POOR?
S.H.E.E.P MODEL
Social
HistoricalEnvironmental
Economic
Political
Social
HistoricalEnvironmental
Economic
Political
Social
HistoricalEnvironmental
Economic
Political
1. Social Reason1.1. Rate of Population Growth
In
LDCs (E.g. Ethiopia, Nigeria, India): – Traditional mindsets: Large families seen as sign of
prosperity
– High Mortality due to poor healthcare have more to ensure some live to adulthood
– Largely farming community: Need more hands to help in fields
– High birth rate high population growth overpopulation insufficient food & housing Low Standard of Living
1. Social Reason
1.1. Rate of Population Growth
In
DCs (E.g. Norway, Japan, Singapore):– Women more educated; more career‐minded later marriages lower birth rate
– High Costs of Living deters large families
– Lower Population Growth more resources freed up for development higher SOL
– Problem: Aging Population
1. Social Reason
1.2 Education
In
LDCs: – Little Wealth to spend on education
– Majority of workforce in primary industries (i.e. farming)
Low income + No schooling opportunities
– Low
Standard of Living Low levels of Development
– E.g. Sierra Leone has low GDP per capita of US$548 & low literacy rate of 29.6%
1. Social Reason
1.2 Education
In
DCs: – More Wealth
to build Schools
& train Teachers
– Higher literacy rate More employment in Secondary & Tertiary Industries (higher skilled jobs = higher salaries) higher Standard of Living Brings about Development
– E.g. Italy has a GDP per capita of US$27 119 and a high literacy rate of 98.5%.
2. Historical Reason
• Colonialism
is the domination of a more powerful country over another country.
• Dominated country: Colony
• More powerful country: Colonial power
• Reasons for Colonialism:1.
Raw materials. I.e. Angola
2.
Gain control of important trade routes. I.e. Singapore
2005 UNDP Human Development Report
HDI Rank
Country HDI Value GDP per capita (US$)
012015027
NetherlandsUnited KingdomPortugal
0.9430.9390.904
29 37127 14718 126
110127
IndonesiaIndia
0.6970.602
3 3612 892
160 Angola 0.445 2 344
Former Colonial Powers
Former Colonies
2.1 Historical ReasonColonisation for Raw materials (Case Study: Angola)
• Colonised by Portugal in the 15th
C • Climate & soil conditions suitable
for growing cash crops (i.e. cotton, coffee & cocoa)
• Workers in colonies harvest cash crops exported to colonial
powers for processing processed goods sold at high price
• E.g. cotton clothing
View YouTube Video: Blood Diamond
Recall: Core‐Periphery Model
ColoniesColonial
Powers
Low‐value raw materials E.g. Cotton,
Coffee, Cocoa Little Profit
Core helped develop infrastructure
such as roads & railways to enable
transport of raw materials but not
education
Technology
to process raw
materials Sold at Higher Profit Economy grows
Core: Portugal
Periphery: Angola
• How a country becomes RICH? Cumulative Causation
3. Economic Reason
More income
Increase in profit & wagesIncrease Wealth
Cumulative Causation
Multiplier Effect:Initial development of CORE results in benefits that drive its further development
3. Economic Reason
• SO how does UNEVEN Development happen?
COREPeripher
yBrain‐drain
- Raw materials- Labour
-Finished Products-Little investment
Backwash Effect
3. Economic ReasonBackwash Effect
1.CORE grows: Attracts labour from Periphery
• Brain‐drain
in Periphery country; hinders development
2.Profits controlled in the hands of rich, little wealth redistributed to the rest of the
population
• Backwash Effect: Flow of labour & raw materials from the periphery to the core,
leaving the periphery at a disadvantage
Core periphery development can have + Positive or ‐
Negative
effects on development
+ Positive(Spread)
‐Negative(Backwash)
3. Economic ReasonSpread Effect
1.Spread of wealth and knowledge from core to periphery
2.Benefits reaped by companies are distributed to the rest of the population
3.Happens with strong governance
• Spread Effect: Benefits of development spread from CORE to the PERIPHERY narrow
inequalities between CORE & PERIPHERY Known as Centrifugal Growth
3. Economic Reason
Illustrating Spread Effect (Centrifugal Growth)
Case Study of Thailand’s Automobile Industry:
In 1990s,
• Rising car manufacturing costs in Japan
• Relocate factories to Thailand• Created jobs for locals in Thailand• Transfer of skills and knowledge in automobile
manufacturing from Japan counterparts
Japanese car manufacturers benefitted from
cheaper labour & operating costs
Thailand benefitted from the investment:1.Jobs creation2.Transfer skills and knowledge
Illustrating Spread Effect (Centrifugal Growth)Case Study of Thailand’s Automobile Industry:
4. Environment Reason
4. 1 Presence of raw materials– Money made from the sale of raw materials
– Used to improve infrastructure and develop the country
– E.g. Norway (Timber: Furniture, Crude Oil: Petrol)
– Limitations: Not all countries with natural resources are rich
– E.g. Nigeria
Case Study: Crude Oil in Nigeria– Nigeria still poor despite having extracted & sold
crude oil for large sums of money.
– Reasons:– Money used to develop urban areas & not rural areas
– Lack of good governance
Negative impacts:
– Environmental degradation– Environment damaged from oil exploration
– Local water supplies contaminated by oil spillages &
pollution
– Poor health due to pollution– Low SOL and QOL
4. Environmental Reason
4.2 Climate– Climate determines the type of natural vegetation
that can be grown.
– Top 10 DCs located in Temperate Climate Zone– Low to moderate temperatures (below 00C to 340C)
– Moderate rainfall (300 –
1000mm)
– Bottom 10 LDCs located in Tropical Climate Zone (esp. tropical grassland regions of Africa)
– High temperatures
– Low seasonal rainfall
4. Environmental ReasonWhy?• Cool moist climate: Suitable for growing important
crops, E.g. Canada
• Large scale sale & export of crops allows country to make profit Brings development
• Dry and arid climate: Droughts make it difficult to grow crops, E.g. Mali, Ethiopia
• Seasonal rainfall: Floods destroy homes & farmlands;
• LDCs lack money to rebuild lives & livelihoods unlike DCs Remain Poor. E.g. Rural areas along major
rivers in China
Technology
can be used to overcome environmental constraints. But, only the RICH
can afford prevention & reconstruction whereas the POOR countries
continues to
poor with low standards of living.
4. Environmental Reason
Case Study: Zuider Zee Project in Netherlands
• Flat and low‐lying• Prone to flooding• Flood management strategy: Zuider Zee Project
– Land reclamation from an inland sea (i.e. polders)
– Building of dykes and a dam• Solved flooding issue• Polders used for farming & building settlements
5. Political Reason
• Development is affected by:• Political Conflict
• Wars and political instability • Loss of properties and lives • Deters foreign investors
• Leadership
1.
Political Conflicts– Civil War in Sierra Leone since early 1990s
caused it to be one of the poorest & least developed country (ranked 2nd
last in HDI)
– Civil War in Cambodia (in 1970s)
One the other hand, – Switzerland: high GDP of US$30 552 attributed
to long history of political stability and peace (ranked top 7th
in HDI)
5. Political Reason
5. Political Reason
2. Leadership:
• Good leadership sets directions, motivate people into action towards a common goal
• Good governance: Fair, just & honest government
• stable and peaceful environment that attracts foreign investors (i.e. MNCs) to set to business in the
country
• Efficient and development‐oriented
• E.g. Norway (Profit cap for petroleum co.s), Singapore,
China
View YouTube
video: Blood Diamonds (National Geographic)
1.
What are some of the reasons why Sierra Leone is so poor despite having so much
natural resources?
2.
How has having diamonds as a natural resource worked against Sierra Leone?
3.
Suggest ways in which they can overcome poverty and develop.
THE END
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