chapt 8-variations in development in the world

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


• 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


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


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.

chapt 8-variations in development in the world

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