PowerPoint-Pr

1
What is development?
Which criteria can we use to measure development?
Criteria for development
GDP
education
life expectancy
health
urbanisation
income distribution
industrialization
literacy
infant mortality
sector employment
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Classifications
1950s
First World
Western Europe, North America, Australia, New
Zealand, Japan
Second World
Communist countries like the former USSR
Rest of the world
Third World
Less Developed Countries
1960s/70s
Developed Countries
did not include social and political development
too simple
1980s
North (developed world)
South (less developed world)
still too simple
oil rich countries?
South Korea?
3
since the 1990s
- Economically More Developed Countries (EMDCs)
e.g. Europe, USA
high standard of living
- Economically Less Developed Countries (ELDCs)
lower quality of life
- Centrally Planned Economies (CPEs)
- Oil Rich Countries (ORCs)
e.g. Saudi Arabia, Lybia
without oil, many of these countries would be
ELDCs
- Newly Industrializing Countries (NICs)
rapid industrial, social and economic growth in
the last few decades
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Measuring development
most common
GDP
per capita
in
but
does not take into account
- wealth and income distribution
- local costs of living
- health, e.g. life expectancy
- education literacy, schooling
- social and environmental
standards
- regional variations (regional disparities)
- informal (unregistered) economy
World Bank
Purchasing Power Parity (PPP) instead of GDP in
level of GDP adjusted to local costs of living
5
United Nations
Human Development Index
includes 3 indices of well-being
- life expectancy
- literacy and schooling
- GDP(PPP)
not included
- access to drinking water - infrastructure -
human rights - environmental standards - internet
access - arable land - .......
6
Characteristics of ELDCs (developing countries)
- large proportion of the workforce engaged in
primary industries (esp. rural sector)
- large proportion of the live in rural areas
- rapid population growth
- low standard of living (low PPP/head)
- low life expectancy
- high infant mortality rate
- low manufacturing production
- child labour
- high illiteracy rates
- bad governance
7
Development strategies
e.g. India 1947
Nehru
Ghandi
Prime Minister in 1947
aim
self-sufficiency in rural villages in food,
clothing and housing
large-scale industrial development
belief
spinning-wheel!
benefits of growth would trickle down to rural
areas
(e.g. through more demand for
agricultural products)
this did not happen!
8
from the 1970s
series of Rural Development Programmes
very limited success because of centralized,
large-scale planning
better approach
de-centralized planning which takes into
account the needs, ideas and resources of the
local people and environment
from the 1990s
liberalization of the economy
attraction og FDI (foreign direct investment)
successful
high growth rates
but still
little improvement for the poor
9
Why do certain regions prosper?
Natural advantages
- water, fertile land and other natural resources
(oil, ore etc)
- location
market access
(e.g. sea ports)
- labour supply
Acquired advantages
- infrastructure, also good suppliers
- skilled workforce
- state support (subsidies, tax incentives etc.)
attraction of more and more investment
"growth poles"
hope for "spread effects"
core area stimulates growth in surrounding areas
but
such "growth poles" do not benefit rural areas
with low population density
10
Characteristics of NICs
- high growth rates in manufacturing production
- increasing proportion of the workforce work in
manufacturing industries
- improvement in social infrastructure (schools,
hospitals etc.)
higher life expectancy
decreasing illiteracy rate/increasing rate of
university students
- increasing exports of manufacturing goods
- increasing use of technical devices in
households (e.g. electrcal appliances, PCs,
internet)
- increasing productivity, but still low
wages/bad working conditions
- still low environmental standards
Main groups of NICs
- Asian "Tigers" such as Hong Kong, Singapore,
South Korea, Taiwan
- Latin American NICs such as Brazil and Mexico
- China, India
11
India an NIC or still an ELDC?
ELDC
NIC
- more imports than exports
- growing manufacturing and service sector
(agricultural sector declining)
- big gaps between rich and poor
- very large agricultural sector
- migration from rural to urban areas
- 60 of the population are illiterate
- high growth of GDP per capita
- birth rate exceeds death rate
- improving standards of education
- insufficient/unjust pension system
- death rates much lower than birth rates
stage II of DTM
- use of new technology (e.g. wind turbines)
- internet ratio 18/1,000 (increasing)