1.4 Strategies for 1.4 Strategies for National developmentNational development

1.

Economic strategies2.

Demographic strategies

3.

Social strategies

1.

Economic development strategies–

Agricultural development

–

Industrial development–

Case study: •

Industrial development in S. Korea•

KALAHI project in Philippines 20012.

Demographic development strategies–

Population growth

–

Case study: •

Population policy in China3.

Social development strategies–

Healthcare services and education

–

Case study: •

Healthcare services & education in Singapore•

Parivartan Slum Networking Programme (mid 1990s) in Gujarat, India,

•

Hill Tribe Education Project (1998) in Thailand

In the following, we will learn:

1. What are the policies that can bring about development?

2. How does each policy work?3. What are some real-life examples?4. How successful are the policies?

1. Economic Development Strategies

to bring about Development

1. ECONOMIC DEVELOPMENT STRATEGIES

• Measured by increase in GDP/ GNP per capita.

• To increase GNP, countries need to develop both agricultural and industrial sector -> improve both quality and quantity of goods.

1.Agricultural development2.Industrial development

1.1 AGRICULTURAL DEVELOPMENT

•

Low agricultural technology low productivity

•

Falling food prices look for high paying jobs in urban areas result in labourshortages in the farms

Low productivity → low yield → economic development will be affected

1.1 AGRICULTURAL DEVELOPMENT

What can be done ?•

Develop the agricultural sector in rural areas so that farmers will stay

•

Government help farmers to increase productivity

1.1 AGRICULTURAL DEVELOPMENT

GREEN REVOLUTION (1960s)•

Modern farming technology and scientific research to develop high-yielding seedlings

•

Genetically engineered high yielding crop varieties (HYVs) e.g. rice & corn

•

Better irrigation method and use of chemical fertilisers

•

Used in India, Indonesia and Philippines

GREEN REVOLUTIONSUCCESSSUCCESS•

Increase in crop production increase agricultural productivity

LIMITATIONSLIMITATIONS•

More expensive –

Set up irrigation system

–

Large amount of pesticides needed as seedlings are more vulnerable to pests and disease

•

Need more water & chemical fertilisers

to grow well

In the end, only rich farmers benefit and did not bring about large scale

economic development

1.2 INDUSTRIAL DEVELOPMENT

•

Goal of many LDCS to change from an agricultural economy

to industrial economy

•

Problems faced:

Lack of skilled workers, financial resources and strong competition from other DCs

•

LDCs

sell off their raw materials to DCs

to be processed, at low prices

•

DCs

sell back to the LDCs

the final products, at higher prices What model/ theory

does it remind you of?

Core-Periphery Model

1.2 Industrial Development•

What can be done?– Efficient air, land & sea transport

network E.g. port of Singapore, Changi International Airport

– Reliable power & water supplies– Good telecommunications systems– Sound financial & banking institutions– E.g. Jurong

Town Corporation (JTC) set

up in 1968 to manage industrial estates

Case Study 1: Industrial Development in South Korea

INDUSTRIAL DEVELOPMENT IN SOUTH KOREA

•

GNP grew from US$100 in 1963 to US$22,045 in 2005

•

Relies largely on exports

to improve economic growth. E.g. cars, ships, electronics etc

Reasons for SUCCESS:1.Good geographical location to attain raw

materials2.Receiving financial & technical aids from Japan

and USA3.Skilled & cheap labour

–

Reduce dependency from foreigners through skill development

Key to succeed in Industrial Development is Skills & Technology transfer. Once you have the skills & technology, you don’t have to sell your raw materials to DCs for processing. You can process & sell your own finished products

Case Study 2: KALAHI project in Philippines 2001

Job Creation & Financial Assistance

•

UNDP 2000 noted that:–

4.3 million poor families

–

75% of poor are indigenous people/ poor rural farmers

–

Wide rich-poor gap•

KALAHI project 2001–

Aim to improve SOL of poor

KALANI PROJECT 2001•

Develop informal sector, i.e. sale of hand-

made products•

Pro-poor policies implemented:–

Microfinance (i.e. small loans) for entrepreneurs

–

Interest-free loans for ultra-poor–

Private organisations provide financial aid

–

Training & advice •

Skills training

•

Leadership and self-employment training

Success LimitationsBenefited ~ 3 million people

600 000 agricultural jobs created

Provided jobs to about 1.7 million unemployed.

Wide income gap still persists

Current market is too small. Need to diversify products & skills of poor to reach bigger markets.

Insufficient volunteers to offer microfinance & train poor people.

2. Demographic Development Strategies

to bring about Development

2. DEMOGRAPHIC DEVELOPMENT STRATEGIES

Focus on overcoming problems of rapid population growth

Population Control Policies

2. POPULATION GROWTH

•

Rapid population increase –

strains government & country’s natural resources

•

Limited resources left to improve quality of life, income & living conditions

Hence, LDCs

need to control their rate of population growth

HOW TO DECREASE POPULATION GROWTH?

•

Family planningeducate couples of having fewer children, contraception

•

Improve healthcareIn LDCs, couple tend to have more children so that some may survive to adulthoodReduced infant mortality rate lower birthrates

•

Educate the womenMore career-minded marry later less children

World Population

Source: http://en.wikipedia.org/wiki/World_population

CHINA

INDIA

Case Study 3: One-child Policy in China

POPULATION POLICY IN CHINA

•

One-child policy in 1979•

Incentives:–

free education,

–

better employment and –

more priority in purchasing house

•

Raised marriageable age for men to 22 and women to 20. –

Ask permission from authority when they want to get married or have children

*Policy have been relaxed to allow 2 children per family

Success LimitationsFertility rate reduced from 6 in 1970s to 1.8 in 2006.

Difficult to implement in rural areas.

Traditional mindsets preferring sons to daughters. Couples continue to bear children until they get a son.

Rise in social problems due to issues like infanticide.

3. Social Development Strategies

to bring about development

3. SOCIAL DEVELOPMENT STRATEGIES

• Impact on the quality of life of people in the country

• 2 major aspects are

1.Health care2.Education

2.1 HEALTHCARE

•

In LDCs

–

poor healthcare due to lack of well-trained doctors & nurse

•

Most doctors are in urban areas

•

Recall: Good health is determined by…–

Clean water & sanitation

–

Availability of healthcare services–

Balanced diet

Case Study 4: Parivartan Slum Networking Programme (mid

1990s) in Gujarat, India.

Improving water supplies & sanitation facilities

Parivartan Slum Networking Programme (mid 1990s)

•

41% of population in Ahmedabad, state of Gujarat live in slums and squatters.

•

> 25% of population have not toilet facilities

•

Widespread extreme poverty

What was done?

•

Collaboration between government (plan) & local banks (finance $$$)

•

Basic infrastructure built in slums. I.e. access to clean water, underground sewerage, & individual toilets & solid waste collection

•

Monthly monitoring meetings to review work progress & discuss future plans

•

People taught proper usage of new facilities

Results

Improve supply of clean water, sanitation, food supply healthier workers increase productivity increase income

higher standard of living & quality of life Development

Success LimitationsReduction in spread of diseases caused by bacteria in waste and contaminated water.

Benefited over 56 000 people in over 40 slums. Has been expanded to 59 more slums.

Decline in death rate from 6.9 to 3.7 per 1000 people

Improved SOL and brought development.

Many LDCs

lack the financial resources to build the basic infrastructure.

2.2 EDUCATION

Better education → greater career opportunity for young people → higher income level → better standard of living →more development in country

Case Study 5: Hill Tribe Education Project (1998) in

Thailand

Improving Education Standards

Hill Tribe Education Project (1998)

•

Hill tribes make up about 1 million people•

Most have no formal education & live in extreme poverty

What was done?

•

Goal of “Education for All”•

Formal and informal education programmes

•

Volunteer teachers came from more developed regions to live & teach hill community

•

Community learning centre built in each village

•

Learn sustainable farming methods, Mathematics, etc.

Success LimitationsAgricultural production increased

Able to find employment in cities

Gain income Better living conditions

Difficult to reach masses as geographical location of hill tribe communities not easily accessible.

Communication barriers between hill tribes & volunteers & government organisations.

Strategies:•

Economic development Demographic development

• Social development

Case study 6: Singapore The Little Red Dot

1. Economic Strategies

•

Industrial Development in Singapore –

Economic Development Board (EDB) set up in 1961

–

Attract foreign investors, human & financial capital

–

Set up branches in major cities of Asia, Europe, USA

1960s•

Labor-

intensive industries •

Garment &

textile, toy manufacturing

1970s & 1980s•

capital-intensive

industries•

electrical & electronic

industries, semi- conductors & integrated

chips

1990s•

knowledge-

based industries•

IT,

pharmaceutical & life sciences

More skilled labor

needed>> increase in

vocational institutions

to provide training

More skilled labor

needed>> increase in

vocational institutions

to provide training

•

EDB set up technological

institutions with governments of

Jap, Germany, France

•

Skills Development Fund

•

R&D facilities & incentives

•

Overseas ventures e.g.

Singapore-Suzhou

Industrial Park

in China

•

FTAs

•

EDB set up technological

institutions with governments of

Jap, Germany, France

• Skills Development Fund

• R&D facilities & incentives

•

Overseas ventures e.g.

Singapore-Suzhou

Industrial Park

in China

• FTAs

Today

•

Develop secondary & tertiary industries such as tourism, healthcare, education

2. Demographic & 3. Social

Development Strategies

Improving Healthcare

servicesImproving

education standards

Population Growth

Housing

2. Demographic Development Strategy

•

Population growth–

‘Stop at Two’

campaign in 1966

–

Liberalised

abortion in both public & private clinics

–

Voluntary sterilisation–

Incentives to encourage small family size. E.g. priority in school admissions, reimbursement of delivery fees

–

Disincentives to big families. E.g. increase delivery fees

1960s: Fertility

rate: 2.5%1975:

Fertility Rate: 2.1%

Year1966

1982

“Stop At Two”

Policy Three of more if

you can afford it

Foreign Talent Policy

3. Social Development Strategies

•

Education–

1960s, bilingual education policy introduced

–

English as compulsory subject and used as medium for instruction for all subjects

–

Benefits: •

Common language for communication between different races

•

Attracted international trade and commerce–

Subsidized education to raised literacy rate

–

Increase government spending on improving education standards

•

Healthcare services–

Government-built public hospitals & clinics to provide affordable healthcare

–

Well-being of workforce affects productivity–

Insurance plans and medical savings schemes (Medishield, Medisave) linked to compulsory savings scheme for all working adults, Central Provident Fund (CPF).

•

Housing–

Late 1960s and early 1970s: Public housing Programme

–

Aimed to replace slums with affordable housing complete with basic amenities to ensure basic living conditions are met

–

New towns planned are self-contained and well-linked to rest of the island by roads and expressways

Recall…

National Development Strategies:1.

Economic development

2.

Demographic development3.

Social development