T6 - Dynamic Development

Flashcards covering: Development & Uneven Development DRC Case Study (Rostow Model, MDGs, TNCs & Banro Corporation, Aid)

An improvement in standards of living and quality of life through better use of resources

An improvement in standards of living and quality of life through better use of resources

Development

LIDCs

Low Income Developing Countries

Poor countries that have a narrow range of jobs and services

EDCs

Emerging & Developing Countries

Countries transitioning from a LIDC to an AC

ACs

Advanced Countries

Wealthy countries that have a wide range of jobs and many services

Countries are classified according to…

• Wealth

• Trade Links

• Development Levels

Development around the world is…

• Uneven

• Constantly Changing

4 Types of Industry

1. Primary

2. Secondary

3. Tertiary

4. Quaternary

Social Development

Improvement in human welfare

Economic Development

Increase in total goods and services produced

Environmental Development

Investment into infrastructure and green spaces

Economic Indicators

• Gross Domestic Product (GDP)

• Gross National Income (GNI)

Social Indicators

• Literacy Rate

• Doctors per 1000 people

• Life expectancy

• Malnutrition

HDI

Composite indicator with a scale of 0-1, taking into account:

• Life expectancy (S)

• Education (S)

• GNI (E)

Human factors impacting development (Historical & Political)

• Industrialisation (Historical)

• War & Conflict (Political)

• Colonisation (Historical)

• Global Links (Political)

Physical factors impacting development

• Resources for trade

• Rainfall Reliability

• Tourism

• Terrain

• Natural Disasters

Why are LIDCs more vulnerable to uneven development?

They are located in areas often affected by negative human and physical factors.

Poverty

• Hunger

• Lack of shelter

• Unemployed

• Ill, and unable to afford a doctor

• Illiterate

Obstacles to development

• Debt

• Trade

• Political Unrest

Political Unrest

Dissatisfaction with current governments, potentially leading to conflict, protests and strikes

Location of DRC

• Central Africa

• Almost landlocked

• Borders Angola, Tanzania, Uganda etc…

HDI of DRC

0.37 as of 2022

DRC’s main industry is…

Primary (Mining)

What resources does the DRC have?

Minerals, such as copper, cobalt, tin and diamonds

Fossil fuels, like oil and coal

As a result of exploitation, miners in the DRC…

• Face economic hardship

• Barely make a living

Colonisation in DRC

• Belgium (1885-1960)

• Forced 450 groups into 1 state. 10m deaths

• Ended in 1960

Corruption in DRC

• Mobutu (1965-1997)

• Hindered development

• Stole ~$6bn in aid

• Overthrown in 1997

Historical corruption in DRC caused:

• Lack of funding

• Displaced workforce

• Exploitation of resources

Present day in DRC:

• Kabila (to 2019)

• Felix Tshisekedi

• Slight economic growth

• Debt has reduced

The DRC is Stage … on the Rostow Model

Stage 2

Stage 3 of Rostow Model

Take off

Stage 4 of Rostow Model

Drive to Maturity

Rostow’s Model

Predicts a country’s level of economic development over time

Traditional Society

• Subsistence farming, fishing and forestry

• Little to no trade

Pre-conditions for Take Off

• Manufacturing starts

• Infrastructure develops

• Trading begins

Take off

• Rapid growth

• Industrialisation

• Increasing wealth

Drive to Maturity

• Economic growth continues

• Improved standards of living

• Tertiary & Quaternary industry develops

High Mass Consumption

• Lots of trade

• High levels of consumption

• Quaternary industry develops further

Limitations of Rostow Model

Doesn’t always take into account:

• Human factors, like colonisation, political unrest

• Physical factors, like location and climate

• Uneven development in countries and regions

MDG 1

Eradicate extreme poverty and hunger

MDG 3

Promote gender equality and empower women

MDG 4

Reduce child mortality

DRC’s progress on ‘Reducing extreme poverty and hunger’ (MDG 1)

• Poverty decreased (71→ 63%)

• Malnutrition increased (51→66%)

• 60m live on $1.90 a day (73% of DRC)

• Food is expensive, and wages are low

DRC’s progress on ‘Promoting gender equality’ (MDG 3)

• Girls finishing primary school doubled (32→65%)

• Recruitment of 28 women lawyers

• Inequality increased. Men earn more in jobs

• More than 50% of pregnant women are malnourished

• 14% considered underweight

DRC’s progress on ‘Reducing child mortality’ (MDG 4)

• Death rate of < fives decreased (176→120 per thousand)

• Increased number of measles vaccinations (20→70%)

• Better protection against childhood illnesses

• Projects were regional, so success varied due to different funding

Export

Goods and services sold/traded with other countries for a profit

Import

Goods and services brought into a country

Trade surplus

More exports than imports. Leads to economic growth

Trade deficit

More imports than exports

DRC’s main exports

• Copper

• Base metals

• Ores, slag and ash

• Mineral fuels

DRC’s main exporters

• China (20-50%)

• South Africa, Zambia (10-20%)

DRC’s trade status

• Until recently, trade deficit - Weakens economy

• Exports mainly primary goods

• Imports mainly machinery and electronics

• Conflict minerals and human rights violations

China’s investment into DRC

• $9bn deal w/ mining companies (2007)

• $6bn for infrastructure, like roads, schools, hospitals

• $3bn into mining operations

• Trade balance -$783m → +$208m

Downsides of trade in DRC

• Vulnerable to falling global prices (Raw material reliance)

• Dependency on China (90% of mining plants are Chinese)

• Environmental issues - Deforestation and pollution

• Uncontrolled exploitation of resources (Due to demand)

Benefits of trade in DRC

• Removed $12.5bn worth of debt

• Economic growth (+7%)

• Establishes trade links, attracting more trade and TNC investment - Improves QoL and wealth

TNCs

Trans-national Corporations

• Involved with international production of goods or services.

• Invests in many countries. Factories are often in LIDCs or EDCs

• HQ often in ACs

Banro Corporation

• Canadian Mining TNC, HQ in the Cayman Islands

• Invested in DRC since 2004 due to its rich mineral resources

• First gold mine opened in 2011 - 45km SW of Bukavu

Banro’s Operations in the DRC

4 mines: Namoya, Twangiza, Kamituga, Lugushwa

Positive Impacts of the Banro Corporation

• Employs 2700 Congolese

• Offers apprenticeships

• Supports farming and road building projects

• Provided money for road maintenance and construction

• Donated ambulances to hospitals and cows to local people

Negative Impacts of the Banro Corporation

• Miners have to use manual tools

• Locals forced out of homes and fertile land

• Some people promised jobs have not received one

• No stable access to food or drinking water

• Protests and conflicts are common

• Government and Banro are focusing on profits, not the locals

Aid

Any form of needed assistance by countries, institutions or charities to another. Includes money, or resources like food and medical

Top-down Aid

Governments or organisations decide the aid should be spent/distributed

Bottom-up Aid

Aid given directly to the locals

Short-term Aid

Aid given to help cope with emergencies

Long-term Aid

Aid give over a long period from governments or organisations to increase development

Positive impacts of aid in the DRC

• Promotes industry and economy growth

• Provides better education, so they can get better jobs

• Funds projects to improve QoL

• Emergency programmes have provided essentials for those affected

Negative impacts of aid in the DRC

• Some aid were weapons; did not help citizens

• Corrupt officials can and have taken aid for themselves

• China’s $9bn aid had to be used for mining and infrastructure

• Aid might not benefit those who live in rural areas

• Could become dependent on aid

Obstacles to aid in the DRC

• Corruption and mismanagement of resources

• Poor transport links and networks

• Exploitation of resources, hindering economic development

Example of long-term, bottom up aid in the DRC

Goat aid

• Provided goats to women to improve diets; cheese and milk

• They can sell products or offspring for income; reduce poverty

• Small scale; only benefits a few women

• Cause land degradation if overgrazing occurs

Top-down development in the DRC

Inga Dam

• West DRC, costing $80bn

• Produces sustainable and renewable electricity equal to 20 nuclear power stations

• Electricity can be exported, increasing income

• Regulates water flow

• Expensive and takes a long time to build

• Destroys habitats and farmland; causes relocation

• Can cause flooding

Action Aid

• International NGO helping women and girls in poverty

• Helps escape child marriage and violence

• Improves education and inequality