Tutoring Session - Patterns of Development and Change (GGY 156)

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• Development “refers to the extent that a


country’s human and natural resources
have been brought into full productive
use”
• Development rates differ between
countries and within countries
• Development can also imply:
⚬ Economic growth
⚬ Modinisation
⚬ Cultural change
• Countries display different levels of development
⚬ First, Second, Third world countries
⚬ North and South
⚬ Developed and developing
• Continuum better reflects reality
⚬ Distinct graduation between countries at
different levels rather than clusters in distinct
groups
⚬ Developed, underdeveloped/less
developed/developing
⚬ Moderately, less, least developed
⚬ Newly industrializing countries (NIC), Middle
income countries, Emerging economy
01 Gross Domestic Product (GDP)

02 Gross National Income (GNI)

03 Purchasing Power Parity (PPP)


GDP GNI

• Total market value of all final • Adds to GDP the total foreign income
goods and services produced earned by citizens
annually within the borders of • For comparative purposes we:
a country ⚬ Convert each country’s currency
to a common measure ($)
⚬ Divide by the number of people
to get GNI per capita
⚬ Apply a PPP correction – to
account for price differences
• Doesn’t consider influence of
informal economy
• A method of measuring the relative purchasing
power (value) of different countries’ currencies
over the same type of goods and services.
• Because goods and services may cost more in
one country than in another, PPP allows us to
make more accurate comparisons of standards
of living across countries.
• Allows one to estimate what the exchange rate
between two currencies would have to be in
order for the exchange to be at par with the
purchasing power of the two countries'
currencies.
• GDP is only an index so it hides actual disparity
between people within the country.
• GDP does not take environmental cost into
account.
• GDP/GNI does not take social well being of the
country’s citizens into account.
• Goods and services that pass through the formal
market is well represented but the informal
market goods are not captured.
• Goods and services that pass through the illegal
market are also not captured.
MDGs SDGs

The United Nations Collection of 17 global goals


Millennium Declaration, designed to be a "blueprint to
signed in 2000, committed achieve a better and more
world leaders to combat sustainable future for all"
poverty, hunger, disease, Set in 2015 by the United
illiteracy, environmental Nations General Assembly and
degradation, and intended to be achieved by the
discrimination against women year 2030
This formed 8 goals that UN
Member States agreed to
achieve by 2015
• Latitudinal explanation: climate
• Resource poverty
• Overpopulation
• Landlocked countries
• History ‐ Former colonial status, slaves
• All countries follow a similar path through economic
development
• Modern societies: advanced technology, high standard
of living, democratic institutions, capitalist production.
• Rostow’s stages of economic growth:
⚬ Traditional societies – subsistence agriculture
⚬ Preconditions for takeoff – elite group initiates
innovation
⚬ Takeoff – rapid growth
⚬ The drive to maturity – international trade
⚬ The age of mass consumption
⚬ The post‐industrial stage

• Based on the observation that within many
spatial systems sharp territorial contrasts exists
in wealth, economic advancement and growth
between economic heartlands and outlying
subordinate zones
• National and International level
• Circular and cumulative causation – industries
expand leading to more innovation and growth •
• Regional income inequalities
⚬ Trickle down effects – spillover of wealth and
knowledge
⚬ Spread effects
Core Periphery

• Part of a country with most • Area of low and declining


economic activity and economic activity
development, • Poor regions
• Dominant players in global • Dependent on the core
economic game • Low standard of living
• Develop rapidly • Do not have much control over
• Most prosperous their own affairs
• High industrialization
• Positive characteristics of
globalization
• Development is always spatially uneven,
producing underdevelopment in other
regions
• Development of advanced core nations
depended upon the underdevelopment of
peripheral nations
• Development creates underdevelopment
• Drained of wealth, deprived of growth
through exporting raw materials and
importing manufactured goods
• Aid and donors
• Describes the global economy as divided
into core, semi‐peripheral, and peripheral
countries
• Western Europe, Japan, US as prosperous
cores
• Core controls global economy
• Growth comes at expense of exploited
peripheral zones
Energy consumption per capita

Percentage of workforce engaged in agriculture

Landlessness

Food security and nutrition

Safe drinking water and sanitation

Technology
Energy consumption per Percentage of workforce
capita engaged in agriculture

• Common measure of • High developed economies have


technological advancement less people in agriculture sector
• Industrialized countries use • Mechanization of agriculture to
10 times more energy than allow people to engage in urban
developing countries industrial and service
• Polluting, cheap, fossil fuels employment
• Poor countries rely on human
and animal labour
Safe drinking water
Food security and nutrition
and sanitation

• Access to food ultimate indicator • Safe drinking water and the


of economic well‐ being sanitary disposal of human waste
• Provision of sufficient quantities are particularly important in
of safe nutritious food maintaining human health
• In 2008 850 million people • Faecal contamination and
undernourished water‐borne diarrheal diseases
• Undernourishment has crippling • In 2008, about 900 million people
effect on individual & lacked safe water supply
development
Landlessness Technology

• Land ownership is critical to • Technology gap between cores


improving lives and peripheries
• Major cause of poverty in • Innovations: railroads, electrical
rural areas engineering, computers, etc
• One objective of development is
technology transfer

Education

Health

Aggregate Measures

Role of Women

Public Services
• Literate educated labour force necessary for
effective transfer of technology from developed to
developing regions
⚬ Teaching facilities
⚬ Availability of teachers
■ Rich countries same number of potential
pupils have 20 – 25 times more teachers
than poor countries
⚬ Poverty – denies funds sufficient for teachers,
classrooms, books, etc.
• Access to medical facilities and personnel
• Has profound implications for the health
and well‐ being of populations
• In developing world too few trained
professionals to serve needs of expanding
populations e.g Tanzania 50,000pp per
physician, whereas Cuba – 170 pp per
physician,
• Congregate in urban areas
• Rural clinics few in number and great
distances apart
• Brain drain
• 3 of 8 MDGs deal with child mortality,
maternal health and eradication of diseases

• No single figure accurately represents different facets


of development
• Composite measures can be made
⚬ Open to criticism
• Development considered to be more than
economic/physical
⚬ Individual & collective well‐being (Happiness Score)
⚬ Ethnocentricity?
• Value‐free measures
⚬ PQLI – Physical Quality of Life Index
⚬ HDI – Human Development Index

PQLI (Physical Quality of Life Index)
Measures the quality of life or well‐being of a country
Average of: Infant mortality, life expectancy at age one, basic literacy

HDI (Human Development Index)


Used by the UNDP
Life expectancy, adult literacy, GDP per capita
Very high, high, medium, low.

MPI (Multi‐dimensional Poverty Index)


Like development, poverty is multidimensional
International poverty measure
Identifies multiple deprivations at the individual level in health, education and standard of living
Includes ten poverty indicators, grouped into three dimensions. Most are related to the MDGs.
• Statistics tend to treat all members of a
society equally (e.g. GNI per capita)
⚬ Does not take into account age/sex
structure
• Gender inequality hampers the full
participation of women in economic and
political life
• Education and women empowerment
leads to many positive development
outcomes
• The quality of public services
and the creation of facilities to
assure the health of the labour
force are equally important
evidences of national
advancement.
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