wLevels of Development

Development is the progress that a country makes to improve the quality of life for its population and
make the country more independent

The quality of life includes subjective evaluations of life such as happiness

These different components are not independent of each other but linked - for example health and
environment are dependent on income and they in turn may impact happiness:

 Physical - Water supply, housing, power and heat, climate, diet and nutrition etc
 Social - Family and friends, education, health etc.
 Psychological - Happiness, security, freedom etc.
 Economic - Income, job security, standard of living, mobility etc

Development is not a smooth, continuous process

Development can occur for a number of reasons:

 Investment in agriculture (tractors, fertilisers etc.) improves food supplies, which improves the
health of people
 Improvements in supplies of power to rural areas
 Improvements in access to education for females and overall literacy rates

It can be slowed, halted and even reversed by:

 War/conflict
 Disease
 Disasters
 Economic recession

Indicators of development

- The traditional method of measuring wealth is through the country's GNP (gross national
product), GDP (gross domestic product) and GNI (gross national income)

- Gross Domestic Product (GDP) per capita is the total value of goods and services produced
within a country in a year divided by the population of the country

- There can be huge differences in GDP depending on the size and population of a country

- Dividing it by the population means that more meaningful comparisons can be made between
countries

- GDP per capita is an average this means that the variation in wealth is hidden
 - It is possible that two countries can have the same average GDP per capita but that one has a
few very wealthy people and lots of people living in poverty whereas the other has a more equal
distribution of the wealth

- There is no way of knowing what the GDP is spent on - for example, GDP increases after an
earthquake due to the rebuilding which is needed this does not mean that the country is more
developed or that everyone's quality of life has improved

- As countries have different numbers of people (population), then GNP per capita (per person) is
used. This allows comparison between countries where total population figures are different

- GNP of the UK is lower than India, but the GNP per capita of the UK is higher than India (India
has a higher population compared to the UK)

- However, GNP per capita does not take into account the cost-of-living in the country - $1 will go
further in Bangladesh than in the USA

- To even this discrepancy, the GNP per capita at Purchasing Power Parity (PPP) is calculated

Comparison between countries level of development is easy to see, but it fails to identify:

 How wealth is distributed around a country - the wealth gap

 Government investment in the country - Cuba has higher literacy rates, a lower infant mortality
rate, and similar life expectancy than America, despite Cuba's low GNP per capita but Cuba's
government has long prioritised social investment
 Levels of development vary on a local, national and international scale

There are differences between areas of the same city, the same country and between countries

These include:

 Literacy
 Life expectancy
 Infant mortality
 Doctors per 1000 people
 Energy consumption per capita
 Internet access
 Car ownership

Human development index

The Human Development Index (HDI) was developed by the UN in 1990 and is a measure of the
disparities between countries

The index takes into account four indicators of development:

  Life expectancy at birth
 Mean years of schooling for adults aged 25 years
 Expected years of schooling for children at school entering the age
 Gross National Income (GNI) per capita (PPP$)

Countries can be divided into four groups using HDI;

 Very High Human Development (VHHD)

 High Human Development (HHD)
 Medium Human Development (MHD)
 Low Human Development (LHD)
- HDI is scored from 0 to 1
- The higher the HDI the higher the level of development and quality of life
- Norway has the highest HDI at 0.957
- Niger has the lowest HDI at 0.394

Gini coefficient index

- GNP and HDI are unable to identify inequalities between countries

- The wealth gap in some countries is more significant than in others
- The Gini coefficient index is used to analyse the distribution of wealth and identify countries
where wealth distribution is the most unequal:
 Measured on a scale of 0 - 1.0 or as a percentage
 A low value means that the distribution of wealth is more equal - a
measurement of 0 would mean that wealth is distributed completely equally
 A high value means the distribution of wealth is unequal - a measurement of
1 would indicate maximum inequality
 The Gini coefficient index is usually between 0.24 and 0.63 or 24%-63%
- The highest inequality is currently in South Africa, Central Africa, Namibia, Zambia and Suriname
- The lowest inequality is in the Czech Republic and Croatia
Inequalities in Development

Stages of development

All countries move through the different stages of development

The UN identifies four main stages of development

The development gap

- The development gap is the difference in levels of development between the least developed
and most developed countries in the world
- There are many factors which lead to the differences in development
Factors Affecting Development and Human Welfare

1. Physical geography
- Landlocked countries find trade more difficult and so often develop more slowly
- Small countries develop more slowly due to have fewer human and natural resources
- Those countries with extreme climates develop more slowly
- The physical geography also impacts on the natural resources available
2. The natural resources are those things provided by the physical environment

Natural
Uses
resource

Water Domestic use, energy

Forests Timber, habitat, rubber, recreation, food, medicines

Fossil Fuels Fuel, energy

Soil Growing crops

Rocks Construction

Minerals Glass, jewellery, money

 Animals Food, skins

- Some countries are able to meet all their needs from the natural resources they have
- Many countries have to import some natural resources that are not available within
their borders
- When countries have to import natural resources, this means they do not have security
of supply as imports could be affected by war or political issues
- Water, food and energy security are particularly important to support a country's
development
3. Demography
- Is the population structure of a country
- The birth and death rates, as well as immigration, affect the available workforce
- Those countries where birth rates have fallen the most, show the highest rates of
growth
4. Technology
- Can help to increase water, food and energy security
- Mechanisation of farming increases yields and improved land surveying may reveal more energy
sources
- Technology can also mean that existing resources are used more efficiently
5. Social
- Levels of education affect the skills people have. The more educated a population is the more a
country will develop
- Healthcare affects how well people are which affects their ability to work
- Lack of equality can mean that the overall productivity of a country is affected
6. Government policies
- The stability and effectiveness of government can have a significant impact on development and
human welfare
- Development and human welfare are greatest where there is a democratically elected
government
- Corrupt governments do not invest in the country's development or in improving the quality of
life for the population
- A government's economic policy affect development and human welfare through:
- Open economy - where foreign investment is encouraged, which generates faster development
- Higher rates of saving and lower spending compared to GDP, results in further development

Disparitie/Differences within countries

As well as differences between countries there are also differences in development within countries:

- This can be seen in all countries whether they are developed, emerging or developing
- Often development is focused on particular regions
- Inequalities within countries are due to several factors

Cumulative causation theory is one explanation for regional differences:

 - Growth in the core region attracts skilled labour and capital
- Areas in the periphery suffer as skilled labour leaves and investment is focussed on the core
- The gap between the core and the periphery grows
- Eventually the growth of the core region may stimulate growth in the periphery due to the
demand for raw materials

There are three stages of regional inequality:

- Pre-industrial stage - regional differences are at their lowest

- Period of rapid economic growth - increasing regional differences
- Regional economic convergence- where wealth from the core spreads to other parts of the
country

Causes of regional inequalities

Residence - Urban areas generally attract greater levels of investment leading to increased business and
incomes:

There may also be inequality within the urban area

Ethnicity - Discrimination can result in ethnic groups having income levels significantly below the
dominant groups within a country. This reduces the opportunities open to these groups

Employment - The split between formal and informal employment impacts incomes. Formal jobs usually
have higher incomes and greater benefits, such as holidays and sick pay

Education - Those with higher levels of education usually gain higher paying employment

Land ownership -Inequalities in land ownership are strongly linked to inequalities in income