Transcript Is the development gap widening or becoming narrower

Is the development gap widening or
becoming narrower – what do you
think?
Remember....the development gap is :
.. is the difference in levels of social well-being and
economic development between the poorest and
the richest people on the planet
... is the divide between rich and poor or the ‘haves’
and the ‘have-nots’
... can exist on different scales
... involves social and economic differences
Using Worldmapper 2
Map 171 – Wealth Growth
Territory size shows the proportion of worldwide growth in wealth that
occurred there between 1975 and 2002
Source: © Copyright 2006 SASI Group (University of
Sheffield) and Mark Newman (University of Michigan)
Map 172 – Wealth Decline
Using Worldmapper 3
Territory size shows the proportion of worldwide decline in wealth that
occurred there between 1975 and 2002
Source: © Copyright 2006 SASI Group (University of
Sheffield) and Mark Newman (University of Michigan)
Map 173 – Human Development
Using Worldmapper 4
Territory size shows the proportion of worldwide human development of the
total world population (population multiplied by Human Development
Index), found there.
Source: © Copyright 2006 SASI Group (University of
Sheffield) and Mark Newman (University of Michigan)
Map 175– Development Increase
Using Worldmapper 5
Territory size shows the proportion of worldwide human development that
occurred there between 1975 and 2002 (calculated by multiplying human
development index by population)
Source: © Copyright 2006 SASI Group (University of
Sheffield) and Mark Newman (University of Michigan)
Using Worldmapper 6
Map 176 – Development Decrease
Territory size shows the proportion of worldwide human un-development
that occurred there between 1975 and 2002 (calculated as the fall in Human
Development Index multiplied by population)
Source: © Copyright 2006 SASI Group (University of
Sheffield) and Mark Newman (University of Michigan)
Is the development gap widening or
becoming narrower – what do you
think?
Yes – the development gap is narrowing, the
world is becoming a better place
No – the development gap is widening and the
world is not becoming a better place
Both – the development gap is widening and
narrowing at the same time; it is different in
different places
The development gap – the evidence
Narrowing
 There has
been global
development,
particularly in
Asia
 Many poorer
countries, like
China and
India, are
industrialising
Widening
 Development in much of Africa has
lagged behind, although the percentage
of people in poverty has decreased
actual numbers have increased as
population has grown
 Worldwide, one billion people live on
less than US$1 dollar a day
 There is an urban–rural divide in many
countries, like Mexico
 Economic growth is increasing the divide
between extreme wealth and poverty in
some countries, like Brazil
 The gap between rich and poor people
living in both richer and poorer countries
is growing
The development gap has narrowed for some
people but not for others
The Development Gap
Why does it exist?
Causes of the Development Gap Economic
• 1. Trade
• 2. Level of Savings
• 3. Fiscal Trap and Debt
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Other causes
3. Political – Corruption
4. Environmental - Physical Environment
5. Social - Demographic Trap
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Trade and
Trade is important to development,
development
because it generates income.
Least developed countries play a
limited role in trade:
LDCs tend not to be part of trade
blocs, so their exports are subject to
tariffs
LDCs often export commodities, the
price of which fluctuates wildly (see
graph)
Cheap commodity export earn few
Dollars, but Dollars have to be used to
import manufactured good – this
creates poor terms of trade (see
picture)
Much of the value of the products we
buy is added outside the country
which supplied the raw materials
The 49 least
developed
countries
account for only
0.9% of world
trade, but have
over 700 million
people
1. Trade
• Some countries benefit more from free trade than others.
• Dependency Theory – Development of MEDCs promotes the
underdevelopment of LEDCs and LLEDCs
• This is because the value of most goods, products and services are
added in MEDCs – means less wealth in developing countries
• Seen with production of cocoa in Ghana and the Ivory Coast farmers only received 40-50% of the market value of unprocessed
cocoa beans, a tiny amount compared to the final price sold for in
MEDCs
• MEDCs can also use their financial power to negatively influence
trade in developing countries. For example, US cotton subsidies
keep the global price 6-14% lower, without this, West African
farmers would earn additional income enough to cover the
healthcare costs of 6-10 people for a year
Core – Periphery theory
Dependency theory
Where do most primary
products come from and
where do they end up?
How might this be changing recently in
terms of
- manufacturing locations
- Geographical trade flow changes
Trade and investment
Terms of trade
Page 146 handout
1. What are terms of trade and how are they changing?
2. What does this mean for
a. the income of a poor exporting country?
b. Local people needing primary products in that country?
Coffee – example of trade pattern
1.
2.
3.
Why is it known as black gold?
Which players benefit and which lose out from the current trade
pattern?
Draw two coffee cups, one full of environmental impacts the
fluctuation in prices has led to. The other social impacts.
Recap
• How does trade affect the development gap
T
R
A
D
E
2. Level of Savings
• Can have significant impact
on potential for sustained
economic growth
• Those in poverty cannot
save as they need income to
sustain life (subsistence)
• World Bank figures show
that those in the least
developed countries only
save 10 % of their income
compared to 25 % in the
most developed countries.
3. Fiscal Trap (Debt)
• Governments can lack finance to pay for
improvements in services and infrastructure due
to need to repay debt.
• In Malawi 9.6 % of countries GDP goes towards
repaying debt compared to 4.6 % on healthcare.
• This discourages FDI which further prevents
economic growth. Furthermore, SAPs emplaced
by the IMF to counter debt can tend to
negatively impact other areas – leading some to
claim that they harm more than help
What is this showing us?
How is it linked to
development?
Starter:
Which of the following countries are
HIPC (Highly Indebted Poor Countries)
Iraq
Senegal
Kenya
Egypt
Madagascar
Thailand
Mongolia
St. Lucia
Bolivia
Zambia
Kyrgyzstan
Ghana
Libya
Afghanistan
Peru
Tanzania
Honduras
Indonesia
The Gambia
Botswana
Starter:
Which of the following countries are
HIPC (Heavily Indebted Poor
Senegal Countries)
Kenya
Madagascar
Bolivia
St. Lucia
Zambia
Kyrgyzstan
Afghanistan
Honduras
Ghana
Tanzania
The Gambia
Geofile – 3rd World debt
1. What are HIPCs?
2. Explain why they have ended up in so much debt using
a flow diagram
http://www.youtube.com/watch?v=WKKh6Hr5xlY
4. Politics
• Government can fail to invest in
infrastructure or allows corruption to rise to
levels that impair economic activity.
• Zimbabwe political corruption left the
economy in deep crisis with rapid inflation
deindustrialisation and shortages of fuel
and food. This has led life expectancy to fall
from 60 in 1990 to 39 in 2008.
5. Physical Environment
• Can pose specific problems to people and act as
catalysts to other factors which generate poverty.
• Climate change offers serious threat to
developing countries are less able to respond
such as Bangladesh where climate change is
predicted to have devastating impact on crops
with yields falling by up to 30 %. Serious threat to
people’s livelihoods and food security
• Sudan – severe drought has put pressure on
people’s ability to subsist and survive
6. Demographic Trap
• High fertility and rapid population growth can put
a strain on infrastructure and services. This often
occurs in areas of high levels of poverty due to
high infant mortality, lack of state welfare and
low levels of education.
• Bangladesh 3 Million added to the population
each year which has put great strain on the
resources and of the economy to meet the need
of the rising number of people, 50 % below
poverty line.
In conclusion…
• Combination of factors, yet those relating to
economics hold more importance.
• This is because it is economics that impacts upon
all aspects of development –it is needed to
ensure good social development i.e. in healthcare
and education
• Also, the non-economic factors tend to see
importance in their ability to impact upon
economics i.e. issues in the physical environment
or with demographics limit successful economic
growth
A2 Geography
The development gap in Uganda
Understanding the reasons why
Uganda is really poor
17/07/2015
Indicator
UK
Uganda
Population
61 million
31 million
Area
244,820 km sq
236,040 km sq
Resources
Coal, gas, oil
Copper, cobalt, H.E.P, fertile
volcanic soil
GDP (PPP)
$33238
$1454
Life expectancy
79
49.7
Access to safe water
100%
60%
Fertility rates
1.8
6.8
Secondary education
(girls)
100%
17%
HDI
0.946
0.505
Reasons for poverty in Uganda:
• Economic:
Economy
Debt
• Political:
Government
• Social:
Health
Education
• 1) Economy –
What is the Ugandan economy based on? (pg 184)
(why is this a problem?)
• 2) Debt –
How did Uganda end up in so much debt? (pg 186)
• 3) Government –
What is the history of government in Uganda? (pg 186)
• 4) Health –
What is the quality of health in Uganda? (pg 184)
How does this effect Ugandan development?
• 5) Education –
What is the level of education like in Uganda? (pg 185)
How does this effect Ugandan development?
Plenary:
Rank the five main reasons in order from 1 to 5
1 being the main reason for Ugandan poverty,
5 being the least important reason
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•
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•
•
1
2
3
4
5
Justify your ranking
Peer mark essay using template sheet
Using examples, explain the causes of the
development gap (15)
Using Uganda as an example - Causes:
• Environmental factors – diseases and climate issues
• Government history (colonialism and Idi Amin)
• Type of economy based on primary products and exports *
• Health care factors including HIV/AIDS *
• Educational standards *
• Debt and SAPs *
* Denotes self reinforcing cycle
Peer mark essay using template sheet
Using examples, explain the causes of the
development gap (15)
Level
Descriptor
4
13-15
Well- Balanced Carefully structured. Genuine assessment with supporting
evidence; cogent discussion of the issue. Explanations are always clear.
Geographical terminology is used with accuracy. Grammar, punctuation and
spelling errors are very rare.
A
3
9-12
B-C
2
6-8
D-E
1
1-5
1-4
U
Balanced. Structure is good. Varied ideas and examples provided. Sound
understanding of the issue; some terminology present in an account which uses
some examples effectively; implied assessment. Descriptive language is precise.
Explanations are always clear. Geographical terminology is used with accuracy.
Grammar, punctuation and spelling errors are rare.
Poorly balanced. Structure is satisfactory.; likely to agree with the statement
and provide some evidence to support it, but limited depth Descriptive language
generally accurate. Explanations are clear, but there are areas of less clarity.
Geographical terminology is used with some accuracy. There are some grammar,
punctuation and spelling errors.
Un-balanced. Structure is poor or absent. A few ideas only; a basic
understanding of the question and a few examples mentioned briefly.
Generalised. Descriptive language is basic. Explanations are over simplified and
lack clarity. Geographical terminology is rarely used with accuracy. There are
frequent grammar, punctuation and spelling errors.