development dynamics + india case study

What is Rostow's Modernisation Theory?

• Traditional, preconditions for take off, take off, drive to maturity, mass consumption

• how a country changes over time (primary industry → quarternary)

• standards of living improve

• 5 stages

What is Frank's dependency theory?

• poorer countries stay poor because they are dependent on richer ones

• Richer countries exploit poorer ones through neo-colonialism through TNC's e.g. Apple, Nike etc

• Poor countries given loans to develop but this just puts them in debt to richer countries

• e.g. poor countries will sell things like wood to rich countries. rich countries take this wood, turn it into a table and sell it back to poor countries for a higher price

Globalisation

process of countries becoming more integrated

How are TNC's (transnational corporations) increasing globalisation?

• make products in one country and sell them in another e.g. Apple

• Link countries together through sale of goods

• They spread culture through foods, fashions etc

• nfluence what things people want to buy

economic liberalisation - How are governments increasing globalisation?

• Free trade - reducing tariffs on goods so its easier and cheaper to buy and sell things

• Investment - invest in education to attract TNC's with more skilled workers

• Privatisation - sell services (e.g. trains) to private companies to run

What are the positives of TNCs

• Provide jobs

• more tax for governments

• help develop a country with infrastructure e.g. roads, communication etc.

• better world relations,

• outsourcing,

• FDI

What are the negatives of TNCs

• profits often go back to the developed country (low taxes)

• environmental problems e.g. toxic waste,

• can leave at any time (leaving people jobless)

• have too much power over governments

• explotation

India’s location

• Its neighbours are Pakistan, Bangladesh and Sri Lanka (all poorer than India)

• It has 1000s of miles of coastline so has many ports

• deep harbours

• near Middle east (oil trade)

• its time difference (around 5 hours) makes it ideal for TNCs looking for a 24 hour operation

India’s history

• It was a British colony - many people speak English

Economy - changed since 1990

• wealthier

• Exports have changed from low value goods e.g. tea to high value goods e.g. machinery

• Large inequality - some very wealthy, some very poor

• shifted from primary → tertiary

globalisation impacts

• 50% of Indians now have a mobile phone

• Large TNC's e.g. Microsoft & Coca Cola have set up in India

• development

• cultural erasure

government impacts on developmnet

• 96% of kids now in compulsory education = more skilled workers

• Railways, ports and airports being upgraded to allow more visitors and easier access.

Maharashtra

• wealthy

• coastal (ME)

• half Mumbai’s factory workers make clothes

• 2nd largest port

• highest GDP

Bihar

• poorer area

• less money to afford food so health problems occur.

• Less money for education (millions trying to be educated) so people are less skilled. 47% literacy

• Lack of infrastructure. (59% electricity)

• Water only available for a few hours

• lowest GDP

• 2% reach KS5

development environmental impacts

• More factories and cars = more air pollution (affecting health)

• Increase in slums means 70% of sewage flows into rivers

• Increase in wealth leads to more energy demands, increasing burning of fossil fuels

India problems

• 300 million on less than a dollar

• Pakistan (Kashmir dispute)

• rich people avoid tax

• high population

• inequalities

• environment

Member of ____

G20, UN, World bank, BRICS. also wants a seat at the UN security council.