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Old 24th May 2009, 03:17 PM   #1 (permalink)
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[Geography A-level]: World Development

Geography A-level: World Development

Source taken from:http://www.s-cool.co.uk/alevel/geogr...velopment.html

Indicators of development

Indicators of development have several uses:

They allow us to use a figure for comparing different countries.
Countries can be ranked in an attempt to fairly allocate Aid payments.
Indicators give us an idea about what the country is like economically, socially even environmentally.
They do however have limitations that you should be aware of. These are discussed later.

You need to be able to define the main indicators, explain what they mean and discuss their strengths and weaknesses. You should be aware that this is not a complete list of all indicators as that would be impossible.

Did you know that one of the latest indicators is the Big Mac indicator?
Countries are ranked according to how long an average waged worker must work to be able to afford a Big Mac. I'm not sure what happens if they go to Burger King!

The main indicators

Gross Domestic Product (GDP) - this is the value of all goods and services produced within a country. It is usually measured in US$ and calculated per capita. This makes comparisons between different countries easier.

Alternatively you could be faced with Gross National Product (GNP). The difference is that GNP also includes goods and services produced by that country overseas.

GDP is probably the most widely used indicator. It implies a lot about the country. If the figure is high it suggests they have a large number of productive industries producing goods. It also suggests that the service industry is well developed. (Services include things such as hospital and schools. If the figure is low it suggests that the country has few industries and few services so therefore a poor standard of living.)

Advantages of using GDP/GNP as an indicator: Disadvantages of using GDP/GNP and an indicator:

A useful figure for comparing countries. Often used to rank countries to establish a fair system of aid payments. Can hide inequalities as it does not show the distribution of wealth.

Is a good indicator of the state of the economy and provision of services.
Can be manipulated by governments who want to appear poor to collect more aid.
Fairly easy to calculate from official government figures. Does not take into account subsistence or informal economies which are very important in less developed countries.
Infant mortality: this is the number of infants that die prematurely. You need to check the figures because it could be the numbers that die before they are one or five. It could be as a percentage of the births or a per thousand figure. Just check carefully before using.

This will tell us the state of the countries health service, food provision and water quality:

Advantages of using infant mortality as an indicator: Disadvantages of using infant mortality as an indicator:
Indicates quality of health care, water quality, food supply. Hard to get an accurate figure as many births in the less developed countries would be un-registered.
Very easy indicator to understand. Evidence from some countries that the level of enfant mortality is well above that disclosed.
Focuses on one of the most significant aspects of development. High infant mortality could be a result of social or political factors. For example in China the figure would be very high because of the countries one child policy.
Birth Rate: a simple one, the number of people born per thousand people per year. A high birth rate indicates a low level of development due to a lack of contraception or the need for large families. (See The Demographic Transition Model in the Population section.) A low birth rate indicates a high level of development.

Advantages of using birth rate as an indicator: Disadvantages of using birth rate as an indicator:
Clear indicator of a countries level of development. Can be affected by population policies such as China's one child policy.
Can be used for predicting the future situation and planning accordingly. Figures in less developed countries not necessarily accurate.

Death rate: this is number of people who die per thousand people per year. It will be a clear indicator of the level of health care, quality of water, sanitation, accommodation, and food supply.

Advantages of using death rate as an indicator: Disadvantages of using death rate as an indicator:
Indicates level of health care provision, water quality, sanitation, and living conditions. Does not actually tell us what is responsible for the high death rate. For example a high death rate could be a result of a natural disaster not poor health care.
An easy to use indicator. Very difficult to get accurate figure from the less developed world.

Literacy rates: this is the percentage of people that can read and write. Clear indication of the availability of education and also the extent to which people can get into education - for example in India many children cannot get in to school as they have to work to help support their families.

Advantages of using literacy rate as an indicator: Disadvantages of using literacy rate as an indicator:

Indicates the amount of education on offer. Takes no notice of other skills the people may have which are equally valuable - for example a good understanding of farming techniques.
Shows how many children could/couldn't attend school. When used on its own doesn't tell us whether the figure is a consequence of too few schools or the fact that children are having to work.
There are of course other indicators but these are the main ones. If you come across another just think about what it shows and why.

As you have seen each of these indicators have advantages and disadvantages. In an attempt to minimise these disadvantages composite indicators have been developed. Examples of these include the "Human suffering index" and the "Human development index". Each of these uses several indicators to try and avoid the disadvantages of one.

Human suffering index - The country is ranked from 0 to 10 for each of the following indicators (0 is very good, 10 very bad):

Life expectancy
Daily calorie supply
Access to clean water
Per capital income
Civil rights
Political freedom
Inflation
Communications
Percentage in secondary school
Immunisation of infants
The countries scores are totalled and then ranked accordingly. The worst a country could have is 100, the best 0.

Using this score the worst countries would be Mozambique, Somalia and Afghanistan whilst the best would be Denmark, The Netherlands and Belgium.

Human development index: This uses fewer indicators than the above. It simply uses wealth, health and education. It is calculated each year. The best country get "1" the worst "0". This score is compared to GDP tables. If a country is higher up the HDI table than the GDP table then it must be successfully investing in health and education. If it is below then there is room for improvement.

Currently, several countries including Pakistan, Vietnam and Cuba are doing well whilst Namibia, Morocco and Algeria poorly.

See the 'Question' section for possible ways in which you will have to use indicators of development.

Issues of development

As an intelligent A-level geographer you should also be aware of some of the issues surrounding these indicators.

All of these indicators come from a very Western point of view. The most frequently used (GDP) is directly linked to money. Is it fair to value all societies by this?

On the discovery of Aboriginals in Australia Captain Cooks men offered them gold in return for their digging sticks - potential souvenirs! No matter how much gold was offered the Aborigines would not part with their sticks. For them gold has no value. Is money held in such high regard around the world?


You must also remember that a high GDP does not necessarily mean there is fair distribution throughout the country.

With economic development comes stress. Cancer and heart disease is very rare in the developing world yet are the biggest killers in the Western World.

Development leads to destruction and pollution of the natural environment. In the last two centuries development has done more damage to our world than the thousands of years before.

You must use your own opinion on several matters especially when answering extended questions.

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Old 24th May 2009, 03:18 PM   #2 (permalink)
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Re: [Geography A-level]: World Development

A divided world

We can use a variety of these indicators to show us the general pattern of development around the world. You need to be able to explain why these differences exist:

Historic

There are three significant historical factors:

1. Coal

The UK was particularly fortunate to discover large quantities of high quality coal:

This coal was used in early industries such as iron smelting. This led to wealth that could then be spent on:

Education: meaning a more skilled and able workforce.

Experimentation: meaning innovating new technology. This included guns that could be used to secure new colonies. There was also significant investment in the armed forces.

Exploration: exploring the world and colonising much of it looking for new raw materials and markets to exploit.

2. Colonialism

This is the policy of obtaining and maintaining colonies. Basically, country A goes into country B and says we are now in charge! - Nice! Many European countries with greater armies and firepower were able to do this over most of Africa.

If you look at the historic reasons for colonialism you should start to appreciate how this hinders the development of some countries but promotes others. In the nineteenth century many countries from Europe went across to Africa to colonise them.

They wanted their raw materials to feed the industrial revolution that was taking place in their countries. This means that the materials from Africa were used to increase the wealth of the countries in Europe but obviously hindered the African countries chances of generating great wealth.


The industries that were developed in the colonies were extractive and road and rail networks were designed to bring products out of the countries rather than stimulate the economies.

3. The Slave Trade:

This took the strongest men and women from many African countries to work for European countries in strengthening their economies. Basically providing an incredibly cheap labour force to make them money. This again increased the wealth of the European countries and reduced the chance for African countries to develop.

Economic

1. Debt:

One of the greatest problems faced by less developing world countries is their level of foreign debt. By struggling to pay debt countries cannot invest in education, medical care, transport route and are often giving up more of their raw materials as pay off. Many countries particularly in Africa owe staggering amounts of money.

Ethiopia owes more than $10 billion. This is more than 13 times its foreign earnings. Ethiopia pays 4 times as much on debt repayment as it does on home expenditure. In the mean time 100 000 children die each year from diarrhoea.

You may have read about president Clinton put a system in place to write off debt. This is a good start and will be discussed in the reducing inequalities section.

2. The trade game:

Less developed countries are disadvantaged by the world-trading pattern. They primarily produce raw materials, which are sold to developed countries that manufacture a product. The profits on the raw material are very low whilst those on the manufacturing good are high.

Profits on the raw materials are kept low because so many countries are producing it. It is not unknown for that manufactured good to be sold back to the country that produced the raw material!


Coffee is a good example:

The UK imports 90% of its coffee as beans that it processes. On this it makes considerable profit. It prevents the developing world from setting up their own coffee processing plants by putting such a heavy tax on imported coffee that it would be unprofitable for them - i.e. it would be so highly priced because of the tax that no one would buy it.

3. Within the developing world the problems they face have often been made worse by political corruption:

In Zaire for example the late President Mobuto is reputed to have had a personal fortune of over £5 billion, much of which was money siphoned of loans from the World Bank.

In the time it took him to accrue this fortune the development of his country went into reverse. It was not even able to maintain the existing road networks.

4. When looking at the development of countries around the world it is always worthwhile considering the multiplier effect:

The simple principal is that if you have any investment in an area it will stimulate further investment. For example a new car plant in an area is likely to encourage linked industries to set up.

This could simply be the local catering van for the workers or textile industries making seat covers, engineering companies making shock absorbers or a new tyre plant. This gives more people work and therefore a wage that they will be inclined to spend so creating more jobs. The economy continues to grow.

Countries in the developed world have benefited significantly from this whilst those in the developing world have not.

Environmental

1. Many less developed countries are located on or about the tropics. This means that they are in a situation where they will be prone to hurricanes:

These can have a devastating effect on a countries attempt to develop. Hurricane, which recently hit Central America, put back the development of Honduras by approximately 30 years.


Their economy was left in ruin, as it was almost entirely dependent on single crop agriculture - bananas - for the export market. These were destroyed by high winds and flooding.

2. The discovery of coal as discussed earlier would also fall into this category.

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Old 24th May 2009, 03:18 PM   #3 (permalink)
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Re: [Geography A-level]: World Development

It would be wrong to class the entire developing world as being exactly the same. Differences exist within the countries and between the countries. Two of the significant groups are discussed below:

Oil rich nations

The 1970s saw huge increases in the price of oil as Arab countries withheld supply. This meant that any developing country with oil suddenly had a source of great wealth.


Those without faced a major disadvantage as they too had to pay the inflated price for fuel.

The consequence for countries with oil was that they could now invest money in trying to alleviate poverty and promote education and health.

Many also invested in industries that refined oil adding great value to their export. Additional profits were invested in overseas ventures or loaned to other countries. As a consequence many of these countries found great wealth.

The average wage of a person in Kuwait is the highest in the world! (The Sheik who controls the country's oil is one of the richest people in the world taking 50% of all oil profits - this will obviously have some effect on the average income calculations.)

Kuwait has about 699 people per doctor - the UK has 619. It also has 100% access to clean water and 94% primary school enrolment. (Figure for 1989, from Collins Longman Atlas.)

Newly industrialised countries

Newly industrialised countries are those that have recently had substantial growth in their manufacturing output and consequently exports. They include South Korea, Singapore, Taiwan and Hong Kong.


Many have followed a similar system. Firstly the country invests in industries that can produce goods they would normally import and supports these new industries by putting extra taxes on imported goods to make them un-competitive.

Then when these industries are established they look to replicate many of the products in the world export market. They concentrate on high technology industries, first mimicking existing products then improving them. Their economy typically grows by about 6-8% a year.

South Korea, for example, took advantage of its links with the USA. The USA, Japan and Europe provided the country with significant aid payments that it invested in Iron, Steel, Shipbuilding, textiles and chemicals so it no longer had to import these.

It also imported raw cotton and developed a textile industry. Once these were all established it invested in industries that would export products such as computers, televisions and microwaves.

As a consequence, South Korea has full primary school enrolment and a growing GDP. In 1989, it was $4081 per person. (Collins Longman Atlas).

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Re: [Geography A-level]: World Development

It would be wrong to class the entire developing world as being exactly the same. Differences exist within the countries and between the countries. Two of the significant groups are discussed below:

Oil rich nations

The 1970s saw huge increases in the price of oil as Arab countries withheld supply. This meant that any developing country with oil suddenly had a source of great wealth.


Those without faced a major disadvantage as they too had to pay the inflated price for fuel.

The consequence for countries with oil was that they could now invest money in trying to alleviate poverty and promote education and health.

Many also invested in industries that refined oil adding great value to their export. Additional profits were invested in overseas ventures or loaned to other countries. As a consequence many of these countries found great wealth.

The average wage of a person in Kuwait is the highest in the world! (The Sheik who controls the country's oil is one of the richest people in the world taking 50% of all oil profits - this will obviously have some effect on the average income calculations.)

Kuwait has about 699 people per doctor - the UK has 619. It also has 100% access to clean water and 94% primary school enrolment. (Figure for 1989, from Collins Longman Atlas.)

Newly industrialised countries

Newly industrialised countries are those that have recently had substantial growth in their manufacturing output and consequently exports. They include South Korea, Singapore, Taiwan and Hong Kong.


Many have followed a similar system. Firstly the country invests in industries that can produce goods they would normally import and supports these new industries by putting extra taxes on imported goods to make them un-competitive.

Then when these industries are established they look to replicate many of the products in the world export market. They concentrate on high technology industries, first mimicking existing products then improving them. Their economy typically grows by about 6-8% a year.

South Korea, for example, took advantage of its links with the USA. The USA, Japan and Europe provided the country with significant aid payments that it invested in Iron, Steel, Shipbuilding, textiles and chemicals so it no longer had to import these.

It also imported raw cotton and developed a textile industry. Once these were all established it invested in industries that would export products such as computers, televisions and microwaves.

As a consequence, South Korea has full primary school enrolment and a growing GDP. In 1989, it was $4081 per person. (Collins Longman Atlas).

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Re: [Geography A-level]: World Development

Debt relief

There has been much made recently of the proposals for debt relief in the less developed world. The impression you would get in much of the press was that president Clinton had simply wiped out debt. This was not strictly the case.

The Basics


Arguments for:

If it happens it will probably be the biggest step ever in tackling the problems of the developing world.
The announcement has led to much debate between world leaders with the purpose of reducing world debt.
A reduction in world debt will allow these countries to address their problems such as water supply, health care and education.
Gordon Brown's proposals to link speedier debt relief to those countries that abandon war and conflict has been well received by most world leaders.
Whilst most must see this as a great opportunity there are criticisms:

People are questioning the speed with which action is being taken. In fact every day that goes buy see those in debt paying about £60 million pounds in debt payments.
Little has so far been done. Ironically when the world leaders met again in Japan to discuss the progress £500million was spent hosting the conference. This is more than Japan's contribution to reducing developing world debt! (The Guardian 21/07/2000.)
This is just a brief introduction to the possibilities of debt relief and implications. It is worth reading around this subject as it is a huge world development and therefore a possible exam question. One good source is:

www.guardianunlimited.co.uk

The International Monetary Fund and World Bank are already involved in 'Debt management'. Often if a country responds to certain repayment plans then some of its debt will be wiped out. What has happened in Guyana is a cautionary tale:

CASE STUDY

Debt Relief, IMF (International Monetary Fund)

As mentioned earlier, there are already processes of debt relief in place but these have received considerable criticism. The IMF (International Monetary Fund) is often criticised for the way in which it offers help to indebted countries.

In Guyana, for example, the IMF insisted that they sell off their natural resources to cover debts. These included wood, gold and bauxite - this of course greatly hinders the countries chances of generating future wealth.

The country was told it could just pay off the interest on its debts and if necessary borrow more to do this! In a great struggle to meet repayment targets and have some debt written off, the country has suffered greatly.

Forty-five percent of all earnings go to pay off debt.

This means that the country can barely afford to pay teachers or doctors. As a consequence, the country has fewer than 250 doctors and untrained teachers staff schools. Trained nurses are emigrating because the wages are so terrible. In fact, just 15% of public expenditure goes on education, health and welfare.

In many areas, such as Tiger Bay, residents live in complete squalor. Water supplies are available for just a few hours a day, there is no sewage system and drug abuse and prostitution are common.

The situation for many is getting worse and all they are doing is paying off the interest and a little of their debt!


The politics of aid

Many people often ask why we don't simply give these poor countries more money in aid payments. The reality is not as simple. Firstly, it is difficult to make sure that the money is going to the needy not the corrupt. Alternatively, if we were to provide food aid, we may jeopardise local market stalls and farmers who have to sell their food.

There are three main ways to give aid:

A country can give directly to another. This is called bilateral aid.

Alternatively, multi-lateral aid is that which is given to several countries from an international organisation like the World Bank.

Finally, there are non-governmental organisations that we refer to as charities. These try to direct the money generated by charity at the needs of the poor, local communities or environment.


Each of these has advantages and disadvantages that are outlined in the table:

Type of aid: Advantages: Disadvantages:
Bilateral: The recipient country can get a substantial sum of money to invest in their country. Can be used to set up exploitative trade deals. For example the UK insists that several of the countries we give aid to purchase our arms.
Can set up advantages for the industries in both countries as the donor becomes a market place for products from the recipient. Alternatively encouraging the developing country to purchase machinery creates future demand for spares or experts which the country would have to purchase from the donor.
Multi-lateral: Can lead to the establishment of stable industry. For example India's dairy industry that supplies most of the country was set up using powdered milk donations from the European Union. Governments in some developing countries tamper with their indicators of development to make them appear poorer than they are so they receive extra aid payments.
Money can and has been used to improve schools, health care and the economy. Projects encouraged are often inappropriate to the needs of the most needy e.g. a new international airport.
The amount of money is substantial and can be used to finance development the country could otherwise not afford. Debt repayments can massively outweigh any aid received.
Donating food is not always a good idea. If you donate a substantial quantity of any food to a country you will massively reduce that foods market value which could destroy farming economies making the country even more dependant on aid.
Non-governmental: More responsive to the immediate needs of the population. Work at a smaller scale using technology more appropriate to the skills and needs of the locals. There are concerns about countries becoming too dependant on aid handouts rather than looking to establish their own economies.
Are very quick to response during times of crisis (e.g. Famine or natural disasters) getting aid quickly to many of the most needy. Unless they can have a greater influence on the policy makers then they will only ever provide 'stop-gap' measures.
Good at setting up initiatives at local levels so that the community can develop their own industries - see 'Appropriate technology'.
Appropriate technology

Appropriate technology refers to the industries that have grown up (or are being encouraged) in developing world countries where local people use local materials and skills to make a product for local people. Examples include making roof tiles, cooking stoves and pots and, batik clothing. On occasion, the success of this local small-scale industry can be such that it is expanded and uses new machinery and technology. This is called intermediate technology.

The advantages of these two are that it is the local people who are making the decisions, benefiting from employment, purchasing cheap products that they actually need, they are using local resources and skills. If the machinery or tools of production break down they will be able to fix it. In addition, it is unlikely that they will have accrued much - if any - debt.


Over the past few years several trading partnerships have been established which promote fair trade with less developed countries. The "Fair Trade" organisation imports chocolate, tea, coffee, and gives the farmers/workers a much fairer price for their product. This is often more than double what they used to receive.

In other instances, shops have developed unique relationships with villages in the less developed world selling local arts and crafts to a Western market and encouraging the development of appropriate and intermediate technology.

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