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Chapt 8: Variations in Development in the World
What is Development?Has many aspects:What is Standard of Living? The living conditions of the peopleeg access to education, health care , recreation etc infrastructure Employment opportunities, types of employment Equated with economic growth (refers to the level of wealth that the
people in the country has achieved.)
What is Quality of life ? (refers to the well being of the people and their satisfaction with their lives Characteristics of Development:1. It is a continuous process
There is no maximum growth for development2. The success and rate of development for each country is uncertain3. Development can have positive and negative impacts
Model of the Development ProcessDifferences between core & periphery countries
Core Country• Higher concentration of
people and wealth• Higher standard of living
•More employment opportunities•More schools, shopping
centres,•Better housing
• Better transport
Periphery Country• Fewer jobs
•Mainly agricultural activities•Limited services
•Poor infrastructure likeroads or piped water supply
What is the relationship between them?
Core CountryDeveloped countries
-Develops because of natural Advantage like good location
Natural resources.-gains reputation
-attracts investment-continues to grow
Periphery Country• Fewer jobs
• lack skills and technology To manufacture goods.
-lose people and resources-become dependent on core
For goods
Raw materials are sold to core country at low prices
People migrate to look for jobs
Core countries processed raw materials into finished products. Sells back to periphery at higher cost
Flow of people
looking for jobs
Model of the Development ProcessCore-Periphery ModelThe Spread Effect
Development may spread from the core to the peripheryInequalities between the two are gradually reduced.
The Backwash effectSometimes, the wealth and development may be concentrated only in the core. Labour and raw materials are drained from the periphery.This negative effect is called the backwash.
Model of the Development ProcessCore-Periphery ModelLimitations of the Model
It failed to explain the rapid growth rates of some East Asian economies like Singapore and Taiwan.These periphery countries were colonised by core countries and are still highly dependent on them for trade and investment even after independence.Yet they achieved high growth rates of about 8% to 10% annually (except between 1997 and 1998) and a high living standard comparable with some core countries.
Indicators of Development
Economic Indicators:
• GNP per capita
•Employment Structure
Demographic Indicators:
• population structure
• life expectancy
• infant mortality rate
• Urban population
Social Indicators:
• access to water and sanitation
• adult literacy rate
Economic Indicators: GNP
GNP = A + (B – C)
A =total value of goods & services produced by citizens
and non citizens in the country B= income earned by citizens working
overseas C =income earned by non-citizens working in
the country
Economic Indicators: GNP
As the GNP is affected by size of the population, a better way to ensure accuracy is to use an average figure.
GNP is divided by total population eg. GNP = GNP per capita Total Pop The general guidelines to classify economies are:US $10 726 & above- high income economiesUS $876-10 725 – middle income economiesUS 875 & below – low income economies
Employment StructurePrimary Industries: Primary Industries involves extracting raw materials, rearing animals and growing
crops. Eg. Farming involves growing crops and rearing animals, providing food Mining and quarrying involves extracting raw materials - oil and coal, Fishing involves catching sea life. Secondary Industries: Processing raw materials (from the primary sector), such as refining oil into petrol. Manufacturing - making products from raw materials (such as cars. Construction - for example, using raw materials, such as wood and stone, to build houses. Textiles - making clothing products from raw materials, such as wood, or man-made
materials, such as plastics. Tertiary sector Eg: Retail is selling goods produced by the secondary sector in shops. Tourism is providing services to people who are travelling for fun. Education is teaching people new skills in schools and colleges. Health is providing services to ill people. Banking is providing financial services, such as lending people money and helping them
invest their money.
Employment Structure
Less Economically Developed
Countries• High primary (farming)
• Little mechanisation on farms (low technology)
• Little manufacturing
• In early stages of economic development
• Informal service sector in the cities is quite strong
More Economically Developed Countries
• Farming mechanised
• Automation of manufacturing or transfer of manufacturing to NICs
• Very strong tertiary sector with large numbers employed in health, education and tourism
• Growth of jobs in the knowledge economy based on the processing of knowledge and information using telecommunications
Primary sector (in %)
To find the % of the labour force in primary sector, place a ruler on the base line (0%) of the primary sector axis
move it parallel to the base until it reaches the dot.
Read the value on the primary sector axis.
The answer is 50%
Sec sector (in %)Do the same thing to find % in
secondary sector.
Place a ruler parallel to the 0% line of the secondary sector axis (pink) and move it up (follow arrow) until it reaches the dot
Read the value on the axis
Answer: 35%
Interpreting individual graphs
Country A is represented by the dot
Demographic Indicators
Population Structure (by age groups) Life Expectancy Infant Mortality Urban Population
Demographic Indicators: Population Structure
We can interpret a population pyramid by looking at:
1. The Base of the pyramid• This shows the proportion of young people (aged 15 yrs
and below).• It tells us about the birth rate of the country.• It tells us about the rate of population growth.
2. The Peak of the pyramid• This shows the proportion of elderly (aged 60 yrs and
above).• It tells us about the life expectancy of the population. • If this proportion is small, this means people do not live
long.• Death rate is likely to be high. It shows a developing
country
Demographic Indicators: Population Structure
• The 3 bars at the base of the pyramid are the longest in the graph. They represent the number of people below 14 years of age. These 3 bars make up almost half the population.
• This country has a young population. It shows high birth rate and a rapidly growing population. It is likely to be overpopulated.
• This is a developing country.
Dependent young
In DCs,
• dependent young is small• dependent aged is larger
In LDCs,
• dependent young is large• dependent aged is small
Demographic Indicators: Population Structure
Look at the peak of the pyramid.
• The bars are short, especially aged 60 and above. All these bars add up to a small percentage of the total population.• This tells us that the people do not live long. Life Expectancy in this country is low. There are few elderly in the country. The medical and healthcare services may not be adequate.• This is characteristic of a developing country.
Elderly/aged
Demographic Indicators: Population Structure
Economically active
population
The middle portion shows the working population, aged 19 to 60. This group contributes to the economy and helps to support the young and aged.• In this diagram, this group makes up slightly less than half the total population.• This tells us that the burden on this group is high. Dependency Ratio is high.• This is characteristic of a developing country.
Demographic Indicators: Life Expectancy
Reasons for high life expectancy:
• better health care• more accessible health facilities (enough clinics, doctors, hospitals)• people can afford better diets
Reasons for low life expectancy:
• inadequate health facilities• few doctors, clinics• poor hygiene & sanitation
It refers to the average number of years that a person can expect to live in a particular country.
Demographic Indicators: Fertility Rates
Refers to number of live births a year per 1000 women between ages of 15 to 44.
MEDCs Low Fertility RateWhy?
• higher education, more concerned with careers• knowledge of contraception and birth control• aware of advantages of small families
LDCsHigher Fertility ratesWhy?
• lack knowledge of birth control• sees children as assets on their farms and work• cultural /traditional thinking eg preference for males
Demographic Indicators: Infant Mortality Rate
LDCs (Ethiopia - 100 per 1000 live births)High Infant MortalityWhy?
Reasons: • war & political instability• drought • famine and starvation• poor diet & nutrition• no access to medical care (doctors, hospitals)
MEDCs (Singapore - 2 per 1000 live births)Low Infant mortalityWhy?
Reasons:• good health care system• good diet & nutrition good std of hygiene & clean water• high income - can afford proper health care
Refers to the rate at which babies less than 1 years old dies, for every 1000live births, in a year
Demographic Indicators: Urban Population
This refers to the percentage living in an urban area.
MEDCs
Higher % living in cities
Why?
•have the financial resources to develop cities with modern infrastructure.
• a large proportion of the people are engaged in secondary & tertiary industries which are located there.
• have the technology to build facilities like roads, hospitals, housing, skyscrapers
LDCs
Lower % living in cities
Why?
• less resources for city infrastructure.
• more people engaged in primary industries which are in rural areas.
Urban Population - Recent Changes
Urban population no longer accurate. Why? Trend of counter-urbanisation (urban population
relocating to suburbs because of increasing congestion and pollution).
Quality of life in cities is not necessarily better than rural areas. More people migrating to cities have resulted in poor housing conditions like slums and squatters (cramped, makeshift houses, no water and electricity, dirty). An aerial view of one of the biggest
slums in Sao Paulo, Brazil
Social Indicator: Access to Clean Water
• Early deaths have been caused by contaminated water and infectious diseases caused by poor sanitation.
LDCs:Lack Access To Clean Water
MEDCs High Access To Clean Water
•Due to the lack of new advance technology to treat water.•Lack of water system to connect the whole country with a efficient water network. They have to walk long distance to collect water.
•Have new technology like reverse osmosis to help treat waste water into portable water.•Good network of water pipes to bring water to everyone.
Social Indicators: Adult Literacy Rate
This refers to the percentage of population aged 15 and above who can read, write and understand simple statements.
MEDCsHigher literacy rate.Why? • government has financial resources to invest in education.• government builds schools, trains teachers, subsidizes cost of education.• people can afford to send children to schools.
LDCsLower literacy rate.Why?• not enough schools.• parents cannot afford to pay for schooling.• children needed on farms.• social customs such as restricting females from attending schools.
Immeasurable Aspects of Development
While economic , demographic and social indicators can be measured in numbers and figures, other indicators of development
cannot, such as: safe working conditions freedom to choose jobs, practice religion freedom of speech and movement freedom from violence, oppression sense of satisfaction and belonging etc.
How is overall development measured?
The Human Development Index It combines 3 important indicators: GDP per capita (economic indicator) Adult literacy rate (social indicator) Life Expectancy (demographic indicator)
The average scores of the 3 indicators are calculated and compared.
The index considers economic wealth as well as quality of life (education and health).
The Human Development Index
Limitations of the Human Development Index (HDI): Generally a higher GDP per capita leads to a
higher HDI value. However, it is only an average figure. It does not show the distribution of wealth in the country.
For instance, the GDP per capita of Canada is the lowest but its HDI is ranked 2nd. This suggests that a rich country may distribute its wealth fairly to improve the quality of life for all the people in that country.
The Human Development Index
Limitations of the Human Development Index (HDI) (cont’d): It is only accurate if data can be obtained. For
example, in places where the majority of the economy relies on informal trading, income is only an estimate.
On the other hand, some countries may not be as wealthy but the level of human development may be higher.