Economic Transition

Development

Development means positive change that makes things better. It usually means that people’s standard of living and quality of life has improved.

Clark Fisher Model Critiques

• Eurocentric

• Not the same for everyone

  • Some countries faster, some with different levels of employment, can go backwards and forwards

• Describes, doesn’t explain

Changes to work in HICs

• Shorter working week

• More interconnectivity

• Longer annual holidays

• Development of the internet

• Flexibility (hours, location etc)

Outsourcing

Companies do this to save money. Work is sent out of the company and can be sent abroad - e.g. BT having a call centre in India

Teleworking

Due to advances in ICT, there is a greater opportunity to work from home

Public Sector (working)

People working in the public sector are employed by national, regional or local government (e.g. nurses, doctors, teachers, social workers etc)

Private Sector (working)

People working in the private sector are either self-employed or work for a larger company or organisation, not owned by the government (e.g. manufacturing, shops, design, engineering, building, farming, forestry etc)

What can Infant Mortality Rates of a country suggest?

Infant mortality rates (IMR) is indicative of a country’s health services, sanitation and standard of living, as they all contribute to the IMR of a country.

IMR is regarded as one of the most sensitive indicators of socio-economic progress because it is an important measure of health equity, both between and within countries. The highest rates are concentrated in Africa and Southern Asia. IMR generally compares well with other indicators of development.

“Canaries down the mine”

Why are IMR hard to estimate?

IMR are hard to establish accurate figures because many early deaths go unreported or are wrongly classified, so the statistics are an estimation.

Neonatal mortality has been decreasing worldwide, however progress is slow and unequal in different countries

Education

Education is key to socio-economic development within a country. It is one of the key components of the HDI, examining: adult literacy, school enrolment and mean years in school.

Women literacy rates are increasing (decreasing fertility rates, leading to economic boosts and health benefits) within many countries. Female education is one of the World Bank’s largest aims and the UN sees education as vital in its efforts of achieving sustainable development.

Nutrition

Nourishment is an important indicator because it can affect peoples ability to work, get educated and fight disease.

However, this is not used as much because calorie intake is increasing in HICs, leading to obesity (USA, UK).

Gross Domestic Product (GDP)

GDP is the total value of goods and services produced by a country in a year.

Gross National Income (GNI)

GNI comprises the total value of goods and services produced within a country, together with its income received from other countries (notably interest and dividends), less similar payments made to other countries.

GNI at Purchasing Power Parity

GNI at PPP involves converting the GNI of a country into US $ on the basis of how the value of the currency compares with that of other countries.

Problems and Limitations of Development Indicators

• Countrywide statistics disguise intra-country variations (China is a lot richer in the west)

• In many countries, data is inaccurate or incomplete. Some countries refuse to release certain pieces of information or data

• Most development indicators (except HDI) only focus on one aspect of development

• Most indicators use averages, neglecting or highlighting sectors of the population that are always marginalised

• Indicators are always out of date - once information has been collected, analysed, presented and published, a lot of things could have changed (for better or worse)

• Development indicators can be manipulated, used or ignored to suit peoples needs

Human Development Index

HDI was devised by the UN in 1990, containing 3 variables:

1. Life expectancy

2. Educational attainment

3. GDP per capita (PPP$)

GDP critiques

• Not a measure of human wellbeing

• Does not reflect the value of productive activities performed within the home

• Fails to account for the loss of environmental assets

• Does not engage sufficiently with issues of inequality and deprivation

Gini Coefficient

It is typically used as a measure of income inequality, but it can be used to measure the inequality of any distribution – such as the distribution of wealth, or even life expectancy.

It measures inequality on a scale from 0 to 1.

Lorenz Curve

The Lorenz curve is a graphical representation of income inequality or wealth inequality developed.

Spread Effect

The filtering of wealth from central, prosperous areas, to peripheral, needier areas.

Back wash

A ‘growing point’ established by the location of a factory, or any other expansional move, will attract other businesses, skilled labour, and capital. However, it will also have backwash effects that keep down, or even impoverish, out-regions.

Core areas

Core areas are described as the engines of economic growth and are characterized by modern, technologically advanced production methods as well as highly skilled and high-wage labour.

Periphery areas

Areas using low-technology production methods accompanied by low skill and low-wage labour.