REGIONAL INEQUALITIES AND DEVELOPMENT

Definitions

 Region : an area with homogeneous characteristics which makes it different

from other areas

 Regional boundaries : physical or imagined zones separating regions from each

other

 regional development : a process of transforming regions as a way of creating

better lives for the region's inhabitants (advance people's lives)

or

a process of transforming the economic and socio-political variables within or between

regions to better the lives of people.

 regional development planning : a process of designing strategies which will

lead to social, economic and political developments of sub-national regions.

 regional inequalities : is the uneven distribution of development variables

between regions. The variables can be in the form of access to services, economic
opportunities,life expectancy etc

 Economic growth : is the increase in wealth in a country. It has to do with the

production level e.g. economic growth rate,per capita income (GNP/GDP).

 Economic development : encompasses investment in infrastructure, welfare and

even attitude towards work. This has to do with changes in socio -economic
structures of a country.

 Gross National Product (GNP) : Net value of all goods produced and all services
(optional) rendered in one year in a particular country including the value of
exports minus the value of imports.
 agglomeration : the concentration of economic activities in an area for mutual
benefit
INDICATORS OF ECONOMIC DEVELOPMENT

QUESTION JUNE 2019

b) Examine factors that result in different levels of economic development around the
world(12)

c) Assess attempts to reduce regional inequalities.( 7)

Factors can be classified into four main domains namely physical, economic,
demographic and political.

Physical

-landlockedness

-relief variations

-natural resource endowment

-natural hazards / vulnerability to hazards

-remoteness/ inaccessibility

Economic

-Standard of living- household’s purchasing power

- Distribution of wealth-(poverty and inequalities)

-GNP/ GDP- average annual growth rates

-energy consumption per head

-economic policies

-foreign investment

-economic structures

-inflation levels
-trade balance

-international debt levels

-service provision

-level of technological innovation

Social

-literacy levels/ teacher to pupil ratio

-doctor to patient ratio

-calorie in take as % of daily needs

-energy consumption per head

-human development index

-access to services

Political

-Individual freedoms and human rights

-Political freedoms and democracy

-governance (political will/ representations)

-political sanctions

-political stability/instability

Demographic factors

-infant mortality rate(per 1000 live births)

-life expectancy at birth

-maternal mortality rate

-demographic structure

-fertility levels

Physical factors

Landlockedness

-Landlocked countries have generally developed more slowly than coastal ones.

-Small island countries face considerable disadvantages in development because they

are isolated

Natural resource endowment

-Variations in natural resource endowment has resulted in differential levels of

development across regions.

-Areas naturally endowed by exploitable resources have developed at the expense of

those without exploitable resources. Therefore, limited allocation of natural resources
has retarded economic growth in a number of countries especially LEDCs.

etc

Economic Factors

 Economic policies

-Open economies that welcomed and encouraged foreign investment have developed
faster than closed economies.

-Fast growing countries tend to have high rates of saving and low spending relative to
GDP

-Governments free of corruption generally have higher rates of economic growth.

  Trade balance-The balance of trade is the difference between the monetary
value of exports and imports of output in an economy over a certain period. It is
the relationship between a nation’s imports and exports.

-A positive or favourable balance of trade is known as a trade surplus if it consists of

exporting more than is imported

- a negative or unfavourable balance is referred to as a trade deficit or, informally, a

trade gap.

-However, measuring the balance of trade can be problematic because of problems with
recording and collecting data. The discrepancy is widely believed to be explained by
transactions intended to launder money or evade taxes, smuggling and other visibility
problems. Nevertheless, for developed countries, accuracy is likely.

 Inflation

-It measures how much the prices of goods, services and wages increase each year. High
inflation can be a bad thing, and suggests a government lacks control over the economy.

-Regions with high inflationary environments tent to lag behind in terms of

development while stable economies promote rapid economic development.

 National debt

-National debt is the total outstanding borrowing of a country’s government (usually

including national and local government).

-Certainly, debt incurred by one generation may become a heavy burden for later
generations, especially if the money borrowed is not invested wisely.

 Economic structure

-It shows the division of a country’s economy between primary, secondary and tertiary
industries.
-regions with high levels of economic development have the greatest % of people
employed in the tertiary sector with little in primary sector

-regions with low levels of economic development are characterised by high levels of
employment in the primary sector with the least in tertiary sector.

 Distribution of wealth

This is a comparison of the wealth of various members or groups in a society. It differs

from the distribution of income in that it looks at the distribution of ownership of the
assets in a society, rather than then current income of members of that society. Wealth
is a person’s net worth, expressed as:

Wealth = assets – liabilities.

The word ‘wealth’ is often confused with ‘income’. These two terms describe different
but related things. Wealth consists of those items of economic value that an individual
owns, while income is an inflow of items of economic value.

etc

Demographic factors

 demographic structure

-This study the population growth and structure. It compares birth rates to death rates,
life expectancy and urban-rural ratios.

-Many LEDCs have a younger, faster growing population than MEDCs, with more people
living in the countryside than in towns. The birth rate in the UK is 11 per 1000, whereas
Kenya it is 40.

-Progress through demographic transition is a significant factor, with the highest rates
of economic growth experienced by those nations where the birth rate has fallen the
most.

 Life expectancy
-refers to the average number of years a person is expected to live in a given
environment. Regions with high life expectancy tend to be associated with high
levels of economic development whilst those with low life expectancy are associated
with poor health services,high doctor to patient ratio and poor provision of social
amenities.

THE CORE-PERIPHERY CONCEPT

Core region /Developed region

-this is the most developed region or the most prosperous region both socially and
economically developed.

-usually develops around the capital city,an industrial town, port or mining town.

-the core is the most economically active region that captures most of the local and
foreign investments.

-has the following characteristics :

 highest living standards

 highest level of technology

 advanced health ie low doctor to patient ratio, good hospitals and clinics

 very good educational facilities ie nurseries, schools,qualified teachers,higher

educational facilities such as Universities and colleges

 housing is of better standards

 relatively low unemployment

 High economically active population- etc

Periphery region/ Underdeveloped region

-It refers to a region that is actually declining. The term denotes a disadvantaged area
which is least economically developed

-usually found in the outskirts of developed regions

-has the following characteristics:

 lower standards of living

 low levels of technology

 fewer jobs

 poor health services

 depends on core for administration

 source of raw materials

 labour source

 remote and poor

 stagnant growth

 low educational levels

 poor social amenities

 poor infrastructure

The Core – Periphery relationship

-It is the relationship that exist between the core and the periphery

-It is the comparison between two or more regions, in terms of services, skills and
economic activities that bring about inequalities.

Question
Describe the Core Periphery Model? (12)

-It was developed in 1963 by John Friedmann.

-The core periphery model shows spatially how economic, political, and cultural
authority is dispersed in core or dominant regions and the surrounding peripheral and
semi-peripheral regions

-It helps explain why some inner city areas enjoy considerable prosperity, whilst others
display all the signs of urban deprivation and poverty.

-The core-periphery model works on many scales, from towns and cities, to a global
scale.

-John Friedman proposed that the world can be divided into different regions. These are;

 Core regions

 Upward transition regions

 Resource frontier regions

 Downward transition regions

 Special problem regions

Core regions

-Core regions refer to centres which are usually a metropolitan metropolitan.

-These centres typically have a high potential for innovation (improvement) and growth.

- In Zimbabwe, Harareand Bulawayo constitute the core region.

Upward transition regions

-These are areas of growth, which spread over small centers, rather than at the core.
Although there is increased economic growth and high population growth,the rate of
urbanisation is low.
-In Zimbabwe, Zvishavane, Gweru, Shurugwi, Kwekwe, Mutare, Masvingo, Marondera
falls within this bracket.

Resource frontier regions

-This refers to a newly colonized region at the periphery of a country, which is brought
into production for the first time.

-These are regions known for and developing due to the availability of some resource or
crop. -Such regions have a potential of becoming core regions although they are located
in remote areas.

-These are zones of new settlement in which virgin territory is occupied and made
productive eg Chiredzi, Hwange,Victoria Falls.

Downward transition regions

-These are regions on the periphery characterized by decaying economy or depleted

resources, low agricultural productivity or by outdated industry.

-Most districts of the downward transition have severe population pressure over
resources.

-Downward Transition zone can be used to refer to any rural area whose economic
development is stagnant.

-Several examples include Kamativi, Mhangura, Empress in Kadoma

Special Problem Region

-These need a special strategy to develop and usually are located along the national
boundaries. Examples from Zimbabwe would include Binga, Plumtree, Beitbridge and
Mudzi.

Explanation of the model

-Services, investment and jobs are concentrated in the core.

-Accessible surrounding peripheral areas benefit from a trickle down of wealth from the
core. .

-The core also provides employment for the residents of the peripheral areas and this
enables development to diffuse from the core to the periphery (spread effects) there by
stimulating development in the periphery.

-Less accessible peripheral areas experience backwash effect (process that helps to
concentrate resources into the core region), while investment that occurs in the core,
widens the poverty-wealth gap between the core and the periphery.
Case study 2 Brazil

-A great example of core and periphery is Brazil with the 'golden triangle' at its core and
the Amazon being its main peripheral area.

-There are reasons why the core area is developed and not other areas. Sao Paulo
developed because of it coffee industry.

-Rio de Janeiro developed because it's a port and became big with imports and exports.

-In contrast, the peripheral areas haven't developed because of the lack of accessibility
to the area or a lack in human and physical resources

-Within cities like Sao Paulo, Belo Horizonte and Rio de Janeiro, overheating has become
a serious problem. Large amounts of people from the peripheral areas within Brazil
move to the core area. This causes many problems such as:

 Overcrowding.

 Lack of housing.

 And sometimes the formation of favelas (squatter settlement

-On the other hand the peripheral areas are also effected.

-A large majority of the people who are moving into the core area are young adults. The
peripheral areas are then therefore loosing young, potentially educated, adults.

Case study 3 Venezuela

Factors contributing to regional variations in Venezuela

Physical factors

-Northern parts of Venezuela represent the Core Region

-Furthermore oil has been found to occur in the Northern region.

-However the South, East and West do not have these .

-Guyana Highlands gives a rugged terrain and this has negatively affected agriculture
and if agriculture is practised it gives rise to massive erosion.

-Other areas besides the South have poor drainage and this led to the development of
marshes thus the area is prone to malaria and hinders development.

Historical factors

-Venezuela was once colonised by Spain which was a champion in mercantile capitalism.

-Caracas the capital city developed as a result of mercantile capitalism. Therefore

development started in Caracas where the materials were being siphoned from all other
countries in the interior

-Settlers had settled in Caracas and as a result development started there.

Cumulative causation

-Existence of an initial advantage in the form of an exploitable natural resource

triggered development in the North i.e oil while the South there is nothing.

-Oil was discovered in Caracas and further discoveries were found in the belt that
extended to Maracaibo.

-Commercial extraction of oil attracted all those interested in investing in oil extraction
thus creating a pool of employment in the North.

-When they gained prosperity these oil extraction industries decided to subcontract
some other industries and this encouraged the emergence of new industries like iron
and steel, Heavy engineering etc (backwash linkages).

-Petro-chemical and heavy engineering ,automobile also took advantage of the raw
material (oil) as their initial advantage.

-the flow line diagram below illustrates how the initial advantage attracts development
into the area
 Initial advantage

attraction of basic industry

establishment of linkages

creation of more jobs

(immigration)

increased demand for services

(multiplier effect)

creation of employment

(ripple effect)

-In the end many industries which are not related to with the initial advantage
mushroomed in the area.

-This is how the North (Caracas) of Venezuela developed

-All this led to the differences between the North and South of Venezuela
Mitigation to reduce the gap between the core and the periphery in Venezuela

-The first step was the identification of the underdeveloped regions and the nature of
their needs. -They had to formulate relevant measures

-Underdeveloped regions are Orinoco plains and Guyana Highlands

Orinoco plains

-were prone to flooding

-drainage of marshes and malarial elimination was done to make the area suitable for
human habitation.

-In addition they had to plough and remove acidic grass and regrassed with good grass
to allow for cattle rearing to be carried out. Cattle and beef production meant
development.

-Exploration started and minerals were also found although in very little amounts and
this development had to be centered on South East.

Guyana highlands

-characterised by rugged terrain

-development of a city in the region called Santo -Tome De Guyana was intiated. A
board was set up to look at the channeling of investment into the Guyana Region.

-a dam was built between Orinoco and Guyana highland and this promoted the
production of hydroelectric power.

-rail road networks were developed to transport raw materials such as iron ore into the
region.

Question

1. Describe regional inequalities in Zim, Africa and world (12)

2. Account for regional disparities / inequalities in Zimbabwe (12)

The causes of regional inequalities / disparities are as follows:

 Low capital base/equipment

 Selective and incomplete opening of territories through colonialism

 Climate variations

 Relief variation

 Uneven distribution of resources eg soils

 Access to international trade

 Uneven distribution of transport network

 Variations in economic activities

 Multiplier effect in the already development areas

 Backwash effect on the under developed area (periphery)

 Skewed government policies on development of certain regions

 Income variations

 Growth point policy

 Colonialism

Examples of disparities to note

-Urban/rural inequalities

-Intra-urban inequalities

-Inter-urban inequalities

-Intra-rural and inter-rural disparities

Impact of regional disparities

 Unemployment:

-The under developed regions where little or no economic investment is available

usually suffer acute shortage of jobs for the inhabitants.

-This development further leads to low standard of living and increases poverty-
stricken population.

-The resultant effects of this are increase in crime rate and out migration.

 Weakness of development potentials:

-The selective out flows of capital and skilled man power resources from the poor to the
prosperous regions create acute shortage of labour for agricultural development and
reduce population threshold that can support economic investments in the former.

Therefore, the ability of the poor regions to attract economic investments and basic
infrastructural facilities to compete for development are greatly weakened due to the
massive out migration of the able bodied people.

 Over- population of the developed regions:

-The inflow of human resources from the poor regions to the rich regions will greatly
increase the population sizes of the latter, thereby creating complex socio-economic
problems of unemployment, overcrowding, lack residential accommodation and undue
pressure on transport networks, electricity and so on

 Varying per capital income:

-Economically depressed regions experience low per capital income, while the more
prosperously buoyant regions have relatively high per capital income.

-The accompanied effects on the former are low standard of living, limited opportunities
for self-development and widespread poverty.

 Environmental degradation:
-The environment of undeveloped regions is usually unplanned, untidy and unattractive.
These often result in outbreak of diseases, low productivity and out migration of the
inhabitants.

 Under-utilization of resources:

-Regional inequalities lead to under-utilization of both natural (minerals, fertile soils,

forests, watersheds and river basins) and human resources (cheap labour and skilled
labour).

 Pressure on infrastructural facilities:

-The influx of labour migrants to Harare and Bulawayo results in congestion leading to
shortage of housing facilities, high cost of maintaining road networks, water, electricity
and host of other infrastructural facilities.

Solutions to the regional disparities in Zimbabwe

-In order to address the nightmare of regional inequalities and imbalances in Zimbabwe,
government most especially needs to take holistic measures and exhibits higher degree
of sincerity in carrying out policies as they affect regional development without
prejudice.

Reasons why governments try to reduce inequalities

-to avoid tensions and conflicts within the country

-lessen migration from the periphery to the core-periphery

-reduce unemployment -utilise resources equally

-raise productivity in the peripheral areas

-improve the quality of life in the peripheral areas

Measures to lessen regional inequalities

 The growth pole strategy

-Zimbabwe established several growth points after independence in almost each rural
area

-However, the strategy failed to yield

-To make the growth pole strategy in Zimbabwe more effective, certain resource-based
and agro-based industries suitable for particular growth points must be encouraged.

-The saw milling and furniture industries could, for example, flourish at growth points
such as Tsholotsho in Matebeleland north and Nyanga in the eastern highlands of the
country where there are a lot of timber available.

-Agro-based industries, including food processing industries and cotton processing, may
be suitable for some rural growth points where specific agricultural resources are
available.

Question

To what extent has the growth point strategy successful in addressing regional
inequalities

 The basic needs approach

-a basic needs strategy should give attention to specific human problems such as
malnutrition, disease, shelter, access to land and basic human needs.

-In Zimbabwe, there are problems surrounding the provision of basic needs such as
corruption, lack of capital, economic instability,inaccessibility of some areas.

-One way to alleviate these problems is through the improvement of agriculture by

applying green revolution methods and practising land reform

-An improvement in the provision of housing (shelter), especially in urban areas has
also aided greatly in alleviating housing challenges

 Employment creation strategy

The country has got high unemployment rates

-The country can attempt to address this problem by establishing and promoting labour
intensive industries

-It can also promote the expansion of the informal sector

 Industrial decentralization

-Colonial rule in this country resulted in disparity in levels of development between

rural and urban areas

-Rural areas have few industries, thus stagnating development

-rural industrialization can bring about political or social equity in development

between the urban and rural areas

-dispersion of industries from Harare and Bulawayo is accompanied by the

development of supporting infrastructure and marketing services

-Government must offer support such as subsidies and tax concessions.

 Good implementation of regional planning policies:

- This policy sees to equity in the distribution of resources into the various regions that
make up the country.

-In this case, all regions are seen as an entity that should enjoy overall development
rather than being selective.

 Adoption of legislative measures:

-Legislative pronouncements such as fiscal and monetary policies can be used as

instruments to redistribute economic investments across regions.

-Payment of heavy taxes on industrial site and activities can be used to discourage
further concentration of investments in the prosperous regions,

-tax reliefs and other incentives can also be granted investors in the rural and poorly
developed regions to accelerate developments.
  Shifting of States and Local Government Headquarters:

-Government should evolve a policy as an experiment where, from time to time,

administrative headquarters (capitals) are shifted from city to city or town to town with
the hope of redistributing the benefits of socioeconomic development and
modernization.

 Evolvement of Urban Development Planning:

-Deliberate planning and development of new urban centers in under developed and
neglected regions will open up new areas, with more infrastructural facilities such as
good roads, piped water and electricity among others. Resultantly, massive investments
find their way into the area.

GLOBALISATION

Definition

-Globalisation refers to the speedup of movements and exchanges of human beings,

goods and services, capital, technologies or cultural practices) all over the planet.

or

-Increased interconnections and interdependence of peoples and countries

or

-the set of processes (economic, social,cultural, technological,institutional) that

contribute to the relationship between societies and individuals around the world .

Advantages of globalization / Role of globalization in socioeconomic developments

 allows nations to pull resources together

-nations work together to fund common goals, such that more money becomes useful
for people's needs, thus resources are used as one planet instead of one nation.

-helps the world to focus on progress.

-making an effort to create a smaller world helps to alleviate poverty and raise
standards of living for individual countries.

 reduces labour exploitation issues

-when borders become less restrictive around the world, people tend to move to
locations where their best opportunities exist.

-people live,work or go where they please with fewer restrictions, making it easier to
chase their dreams

-globalization tend to equalise wages,which would create positive impacts for everyone

 reduces the prospects of tyranny

-ability to shift towards a global – centric society instead of a nation-centric one issues
has helped in reducing dictatorship

-globalization prevents governments from creating repressive legislation, thus reducing

conflicts across the globe.

 improves communication access

-by reducing border restrictions, communication access is improved.

-no longer restricting the movements and actions of people on a per nation basis.

-globalization has eased communication among nations with the use of internet.

 remove tax havens for wealthy individuals and business

-tax havens are defined as independent area where taxation levies are at low rates. They
offer foreign businesses and individuals an opportunity to keep their profits in local
institutions with little or no liability
-globalization eliminates administrative structures which allow the wealthy to hide
their funds from being taxed. Greater transparency leads better funding of social
programs, which will eventually reduce poverty and food insecurity.
  Help in accelerating socioeconomic development in less developed regions

-reduction of border restrictions creating common payment formats and opening

product access by reducing export barriers, more people could improve their way of life.

-higher incomes in turn lead to lower maternal and infant mortality rates thus saving
people's lives.

 creates more employment opportunities

-fewer barriers to the import / export market result in reduced cost of producing goods
or offering services .

-consumers benefit from lower prices, and consume more and create additional job
opportunities around the world.

-people can find meaningful employment that pays better by having access to online
resources.

 encourages free trade

-borders create restrictions to free flow of goods and services thus removal of border
restrictions has promoted free trading activities.

-globalization has created more opportunities for trade as every individual has more
access to the unique goods and services that are available in various regions of the
globe.

 reduce currency manipulation problems

-there are three primary currencies traded in the world today: the US Dollar, the Euro
and the Pound sterling

-when a nation offers access to a weaker currency, those with stronger currencies buy
and sell more often with them
-globalization would reduce the efforts made to build weakness or strength into these
currencies to influence local markets.

-therefore globalization helps to stabilize global currencies to create an equal playing

field.

Disadvantages

 benefit the wealthy more than the poor

-people have the power to dictate policy would reap the most significant rewards

-those with money to invest would see their bank accounts continue to rise

 encourages disease transfer

-easing of global travel restrictions has resulted in the spreading of communicable

diseases, influenza strains and tuberculosis. Currently its the corona virus.

 reduce social safety net programs

-nations today offer those in extreme poverty access to safety net programs for basic
supplies

 create a new system of politics

 unable to prevent inequitable resource consumption

-the goal of globalization is to equalise patterns of consumption for populations around

the world. However, this is not attaining as wealthiest nations still consume the most
resources.

 make it easier for people to cheat

-the statistics of consumption show that those in power take the majority of resources
away from general population.

 unable to fix lack of skills

-with no meaningful skills to a globalised economy, there could be a higher
unemployment rate if border restrictions reduce because only those in the developed
world would be the first to be trained for the new skills such as programming, robotics
and artificial intelligence.

 changes how humans would identify themselves

-globalisation result in loss of a piece of our culture, ethnicity, or family heritage.People

identify themselves based on their history

 negatively impact the environment

-regions which have gone through the industrial revolution have created issues of
greenhouse gas emissions which have given rise to global warming.

-as trade increases globally, the amount of pollution generated increases as well

-global economic growth and industrial productivity are both the driving force and
consequences of globalisation.

-they are bid environmental consequences as they contribute to the depletion of natural
resources, deforestation,destruction of ecosystems and loss of biodiversity, plastic
pollution

QUESTION

Describe the role played by the primary, secondary and tertiary sector in economic
development (12)