T6 - Dynamic Development

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

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70 Terms

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

Development

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LIDCs

Low Income Developing Countries

Poor countries that have a narrow range of jobs and services

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EDCs

Emerging & Developing Countries

Countries transitioning from a LIDC to an AC

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ACs

Advanced Countries

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

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Countries are classified according to…

  • Wealth

  • Trade Links

  • Development Levels

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Development around the world is…

  • Uneven

  • Constantly Changing

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4 Types of Industry

  1. Primary

  2. Secondary

  3. Tertiary

  4. Quaternary

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Social Development

Improvement in human welfare

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Economic Development

Increase in total goods and services produced

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Environmental Development

Investment into infrastructure and green spaces

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Economic Indicators

  • Gross Domestic Product (GDP)

  • Gross National Income (GNI)

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Social Indicators

  • Literacy Rate

  • Doctors per 1000 people

  • Life expectancy

  • Malnutrition

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HDI

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

  • Life expectancy (S)

  • Education (S)

  • GNI (E)

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Human factors impacting development (Historical & Political)

  • Industrialisation (Historical)

  • War & Conflict (Political)

  • Colonisation (Historical)

  • Global Links (Political)

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Physical factors impacting development

  • Resources for trade

  • Rainfall Reliability

  • Tourism

  • Terrain

  • Natural Disasters

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Why are LIDCs more vulnerable to uneven development?

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

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Poverty

  • Hunger

  • Lack of shelter

  • Unemployed

  • Ill, and unable to afford a doctor

  • Illiterate

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Obstacles to development

  • Debt

  • Trade

  • Political Unrest

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Political Unrest

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

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Location of DRC

  • Central Africa

  • Almost landlocked

  • Borders Angola, Tanzania, Uganda etc…

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HDI of DRC

0.37 as of 2022

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DRC’s main industry is…

Primary (Mining)

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What resources does the DRC have?

Minerals, such as copper, cobalt, tin and diamonds

Fossil fuels, like oil and coal

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As a result of exploitation, miners in the DRC…

  • Face economic hardship

  • Barely make a living

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Colonisation in DRC

  • Belgium (1885-1960)

  • Forced 450 groups into 1 state. 10m deaths

  • Ended in 1960

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Corruption in DRC

  • Mobutu (1965-1997)

  • Hindered development

  • Stole ~$6bn in aid

  • Overthrown in 1997

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Historical corruption in DRC caused:

  • Lack of funding

  • Displaced workforce

  • Exploitation of resources

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Present day in DRC:

  • Kabila (to 2019)

  • Felix Tshisekedi

  • Slight economic growth

  • Debt has reduced

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The DRC is Stage … on the Rostow Model

Stage 2

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Stage 3 of Rostow Model

Take off

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Stage 4 of Rostow Model

Drive to Maturity

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Rostow’s Model

Predicts a country’s level of economic development over time

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Traditional Society

  • Subsistence farming, fishing and forestry

  • Little to no trade

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Pre-conditions for Take Off

  • Manufacturing starts

  • Infrastructure develops

  • Trading begins

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Take off

  • Rapid growth

  • Industrialisation

  • Increasing wealth

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Drive to Maturity

  • Economic growth continues

  • Improved standards of living

  • Tertiary & Quaternary industry develops

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High Mass Consumption

  • Lots of trade

  • High levels of consumption

  • Quaternary industry develops further

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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

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MDG 1

Eradicate extreme poverty and hunger

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MDG 3

Promote gender equality and empower women

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MDG 4

Reduce child mortality

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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

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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

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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

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Export

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

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Import

Goods and services brought into a country

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Trade surplus

More exports than imports. Leads to economic growth

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Trade deficit

More imports than exports

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DRC’s main exports

  • Copper

  • Base metals

  • Ores, slag and ash

  • Mineral fuels

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DRC’s main exporters

  • China (20-50%)

  • South Africa, Zambia (10-20%)

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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

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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

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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)

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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

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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

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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

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Banro’s Operations in the DRC

4 mines: Namoya, Twangiza, Kamituga, Lugushwa

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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

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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

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Aid

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

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Top-down Aid

Governments or organisations decide the aid should be spent/distributed

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Bottom-up Aid

Aid given directly to the locals

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Short-term Aid

Aid given to help cope with emergencies

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Long-term Aid

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

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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

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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

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Obstacles to aid in the DRC

  • Corruption and mismanagement of resources

  • Poor transport links and networks

  • Exploitation of resources, hindering economic development

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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

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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

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Action Aid

  • International NGO helping women and girls in poverty

  • Helps escape child marriage and violence

  • Improves education and inequality