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The development gap between countries and regions The development gap between countries and regions The factors that affect economic development The factors that affect economic development A developed economy A developed economy A region of industrial decline A region of industrial decline A comparison of two regions with uneven A comparison of two regions with uneven distribution of economic activities distribution of economic activities A developing economy and the impact of colonialism A developing economy and the impact of colonialism on its economic development on its economic development Global injustice Global injustice 2 2 Levels of Economic Development Levels of Economic Development

The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

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Page 1: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

The development gap between countries and The development gap between countries and regions regions

The factors that affect economic development The factors that affect economic development

A developed economy A developed economy

A region of industrial decline A region of industrial decline

A comparison of two regions with uneven A comparison of two regions with uneven

distribution of economic activities distribution of economic activities

A developing economy and the impact of A developing economy and the impact of colonialismcolonialism

on its economic development on its economic development

Global injustice Global injustice

2 2 Levels of Economic DevelopmentLevels of Economic Development2 2 Levels of Economic DevelopmentLevels of Economic Development

Page 2: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

Factors that affect economic development:

Physical: location, raw materials, and landscape and climate Social and cultural: education, migration and standard of living Political: political instability, EU policy and national policy

Chapter 2: Levels of Economic Development

Page 3: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

France

A developed economy:

One of world’s wealthiest and most developed economies

Population over 65 million

High standard of living

Scores highly on the HDI

2010 scored 0.872, 14th position

High human development, literacy

and life expectancy rates

Chapter 2: Levels of Economic Development

Page 4: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

France

Footloose industries: Peripheral regions Science parks (technopoles) Provence-Alpe-Cote-d’Azur (PACA): telecommunications, electronics,

computer software, healthcare Factors: transport, telecommunications, education, hydro-power

Chapter 2: Levels of Economic Development

Page 5: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

France

Mass tourism: Developed in the 1960s World’s most popular tourist destination 77 million visitors in 2010 6 per cent income Major employer

Attractions: cultural cities, mountain ranges, Mediterranean coastlines, skiing, religious sites

Paris: most visited city in the world Attractions: Eiffel Tower, Louvre Museum, Palace of Versailles,

Disneyland Paris

Chapter 2: Levels of Economic Development

Page 6: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

France

Industrial decline – Nord-Pas-de-Calais:

19th century: major industrial region

Coal supplies valuable resource

Coal mining, steel mills and textile industries developed

From 1960s: rapid economic decline

Coal mines closed, iron and steel industries declined and textile

industry declined

High unemployment and outward migration

Since 1990s: government and EU funding

Transport networks and new growth industries

Chapter 2: Levels of Economic Development

Page 7: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

Sambre-Meuse Valley – An area of industrial decline:

Core region Now area of industrial decline Factors: physical, social, cultural and political Rapid development: large coalfields, markets, accessible, migrant

workers Industrial decline: coal supplies exhausted, cheaper coal, oil and

gas, productivity fell, costs increased, new technologies, heavy

industries declined Result: Jobs losses, high unemployment, outward migration,

pollution Economic revival: local and EU investment, infrastructure,

communications, industrial estates, retraining, landscape cleaned

Chapter 2: Levels of Economic Development

Page 8: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

Colonialism

15th century: modern colonialism 16th and 19th centuries: colonies in Africa, Asia and the Americas Main colonial empires: France and Britain Others: Spain, Portugal, Germany and the Netherlands

Chapter 2: Levels of Economic Development

Page 9: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

Colonialism (continued)

Features of colonialism: Raw materials exploited Exports: local industry and manufacturing run down Plantation crops: low prices, replaced local produce Not self-sufficient, became dependent

Chapter 2: Levels of Economic Development

Page 10: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

Chapter 2: Levels of Economic Development

Colonialism (continued)

Colonial powers: wealthy Colonies: poor and under-developed Following colonialism:

Neo-colonialism still economically reliant Economic development affected

Page 11: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

India

Before colonialism: Rich raw materials Craft industries, e.g. textiles Self-sufficient, economically independent, well-developed internal

trade network 1700: share of world income

was 22.6 per cent 1952: share of world income

was 3.8 per cent

Chapter 2: Levels of Economic Development

Page 12: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

India

Impact of colonialism: Plantation crops replaced local crops Exports: tea, cotton, spices and jute Local industries suppressed British exports: high prices High taxes Economic growth concentrated

in port cities, e.g. Madras

Chapter 2: Levels of Economic Development

Page 13: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

India

Post-colonial India Independence 1947: Rebuild economy Domestic policy: protect the Indian economy Replace imports with domestic production Economic intervention, regulation, central planning

Chapter 2: Levels of Economic Development

Page 14: The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison

India

Five-year plans 1990s: tax reforms, free trade policy Foreign investment: pharmaceuticals, manufacturing, IT Low-cost, well-educated workforce Multi-national corporations (MNCs) Exports of goods and services Challenges: uneven distribution, income inequalities,

unemployment, extreme poverty

Chapter 2: Levels of Economic Development