The Development Gap
It is equal to the total consumer, investment and government spending plus exports minus Imports. GNP = Gross national product. It Is the value of everything a country produces measured In us dollars. GNP measures the output generated by a country’s enterprises, whether physically located domestically or abroad, whereas GAP measures the total output produced within a country’s borders – whether produced by that country’s own firms or not. IN per capita = Gross national Income per capita. It is people’s average income in a country (US dollars).
Infant mortality rate = the number of babies (0-12 months) dying per 1000 live births. HID = Human development Index. Life expectancy, IN per capita and literacy rate are used to calculate it. Limitations of indicators However, each individual measure has its limitations. Each indicator is an average, and fails to account for differences/variations within the country. Also, some aspects of a country will develop faster than others, and using only one indicator will not show this. Some poorer countries may not show accurate figures, especially for economic sector, and these figures are not recorded by the government.
What factors make global development inequalities worse? Environmental factors Climate can be a huge obstacle to
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Natural hazards force countries to spend huge amounts of money rebuilding, which reduces the money available for development projects. It also reduces people’s quality of life. Few raw materials means the country has fewer products to sell, which means reduced income. This means there will be less money available for development projects. Some countries to have raw materials, but do not have sufficient technology to exploit them. Political factors Unstable governments may cause a lack of investment in healthcare and education, which slows development.
Corruption is a major factor that slows development. Corrupt politicians enrich themselves, which leaves less money available for developing the country, and infrastructure, education and health cannot be provided. Corrupt governments are also unstable, and this deters foreign investors and aid providers from investing in he country, as they cannot rely on the money reaching the target. Conflict (war) will cause the country to spend money on fighting rather than improving the economy. Equipment is expensive, infrastructure and buildings are destroyed and less people work as they are fighting.
Economic factors Poor trade links will reduce the value of exports, and it will make less money to spend on development. Debt also slows development. This is because any money the country makes will go towards paying the debt (and the interest), and cannot be used for development. Primary products reduce revenue, which slows development. Primary products have a low value as they require low levels of skills. Because they earn little money, the country is kept poor. Social factors Water availability is hugely important. If people do not have safe drinking water, there will be more spread of diseases like cholera and typhoid.
This reduces their quality of life. It also puts huge strain on medical facilities in the country, which are already limited. Money is wasted, as these diseases can be avoided if clean water is provided. Water related illnesses also cause children to miss school. If children there would be a more skilled workforce. 2 Women’s place in society affects development. If women are equal to men, then they are more likely to be educated and can work. Women who are educated and work have a better quality of life, and the country has more to spend on development as more people are contributing to the economy.
Child education levels affects development. More children attending school means they will get a better education, which will result in better Jobs. This improves their quality of life and it means the government has more money to spend on development. Water As well as mentioned above, a lack of water can force a country to import water, and imports reduce the GAP of the country and increase their debt. This will slow down development. Biodiversity can be affected – vegetation relies on water, but if it is not there, they will die. Desertification can also occur due to water scarcity, which could increase poverty levels.
HAITI CASE STUDY In 2010, Haiti experienced an earthquake which destroyed lots of infrastructure and killed about 300,000 people. Millions more people lost their homes and were forced into poverty. Haiti is the most corrupt government in the world. $1. 1 billion has been collected for Haiti for but only 2% of the money has been released. If all the money had been released, each displaced family could have been given $37,000. Increasing crime and spread of disease are concerns in the temporary camps. How can global inequality be reduced? Aid – There are many types of aid.
Development aid can be beneficial but needs to be managed carefully. Aid Short term aid Aid which is given to relieve a disaster situation Long term Aid Aid given over a longer period which aims to promote development. Voluntary Aid Non-government organizations give money. They are funded Disadvantages Example Helps to save lives. It is a lifeline for people in need. It is a short term solution. It does not help in the long term. Leads to development of education, agriculture and healthcare. Involves the community, and it is more likely to be sustainable. May result in tied aid.
Donor countries place restrictions on aid, which benefits them. Local people may not have training to operate senior posts e. G. Lack of money for fuel. Agricultural change may not be sustainable – too much technology. May not be enough to sustain hospitals/schools. Local people may lose land for development projects. Most Nags are very small and they face a huge challenge. Cyclone Side (Bangladesh) NOVO 2007 killed 500 and feet 5 million people without food. Aid helped Uganda – Community Youth Empowerment scheme. A water tank was built. Gave education, improved life skills and sexual health awareness.
Taught energy conservation methods. However, some locals can’t afford school fees. Aid is more effective as it works with local people. Money is not lost due to 3 by donations. They work with local communities and their aid is more effective. Bilateral Aid Aid given by one country to another. This is sometimes used for a long term project. Multilateral Aid Money from governments is given to international agencies e. G. World Bank. Money is used Top-down Aid Co-ordinate by government or international organizations. Giving to the government to improve infrastructure and effects will be passed down.
Bottom-up Aid MONGO aid. Aid is given to locals health and education. Corruption. Once it works, the project can expand due to the government. Sometimes used for large scale projects (e. G. Dams). A country gets advice and technology of a country. Lots of money can be given to fund large scale projects. Makes donor feel in control. Money is not lost to corruption. Aims to improve the country as a whole. Large projects improve infrastructure. Nags/landfills give to hearty; feel good factor. Feeling of direct link between donor and recipient. Appropriate technology is installed = sustainable.
Money not lost by Nags work with the communities, who have input. The aid given by MONGO fluctuates a lot as it relies on public donations. Donor countries can place restrictions on how the money is used (tied aid). Recipient countries may donor countries’ products, which mean the money comes back home. Many countries give aid for political reasons. Few countries meet the target of 0. 7% of IN. Sometimes criticized for being out of touch of the people’s needs. The Cohort Bass Dam in Macaque. It was set up by the Portuguese in the asses. However, it has not helped too many people. Has impacted fishing industry.
Projects use large amounts of money, and donors may feel it is wasted. Most ordinary people do not directly benefit. Money given to Iraq and Afghanistan. Charity funds may reduce during a recession. BILATERAL AID CASE STUDY – cohort sass Darn The Cohort Bass dam in Macaque is an example of bilateral aid. It was built by the Portuguese in asses, but civil war prevented completion of the However, only 1% of homes in Macaque have a direct electricity supply, and this HEAP scheme has not hanged this amount by very much. Most of the power is sold to South Africa, which boosts the economy but does not benefit citizens.
It could meet most of Mousiness’s power needs. Produce more than it currently does. Also, it does not benefit the citizens of the country. River flow is very low because water is being held in reservoirs. The local shrimp industry has been destroyed. The local residents have had their livelihoods destroyed and they have not gained at all from the project. 4 Small and medium scale projects are much more effective. They involve the local community, and money is not lost due to corruption. Arguments for and against giving aid For aid Against aid 0 Emergency aid saves lives.
Aid also helps to 0 Aid increases the dependency of Leeds on rebuild housing after disaster. Donor countries. Poor countries struggle to repay the money and get into debt. 0 Aid can improve healthcare and water, which leads to better quality of life. 0 Corruption means the money is kept by politicians. Aid does not reach people who 0 Aid allows industrial development, which need it most. Creates Jobs and improves infrastructure. 0 Large scale projects don’t benefit local people. Debt relief – some debt that poorer countries owe can be written off. This means they will have more money to spend on developing.
Conservation swap – this is an agreement where a poorer country’s debts are written off in exchange for undertaking environmental conservation projects. This can also bring in customize to the country, which mass many benefits to locals and the environment. Fair trade – this is where farmers in the developing world get paid a fair price for their goods. They also get some extra money to use more effective ways of growing crops, which has long term benefits, as production is maximized. This is a solution if reducing the levels of poverty around the world.
In Europe, there is a clear east/west divide between the countries. This is because many East European countries were part of the Soviet communist regime. This totally stalled economic growth, as communist policies are anti-capitalism. France is very developed because of early industrialization. It was one of the first countries to industrialized. Therefore, while the rest of the world (Romania) was still producing primary products, France was manufacturing secondary and tertiary products, which have a much higher value. This boosted the money generated from exports, which led to fast GAP growth. 5
Imperialism is another factor that aided France’s development in the past. France was able to exploit colonies, and gain resources and workers. The fact that France has been an EX. member for longer also shows why it is more developed. France has established better trade links earlier than Romania, and this is important for development. How has the EX. tried to reduce inequality? Common Agricultural Policy (CAP) – this subsidies EX. farmers to produce certain crops, so that there is enough food for the See’s population. It ensures a fair price for farmers, and ensures a good standard of living for them. However, with so many new retain goods.