1.3 global perspective on development issues

LIC

Low income country

NIC

newly industrialized country

development

improvement in human well-being through economic advancement

Gross Domestic Product (GDP)

The sum total of the value of all the goods and services produced in a nation

low in LIC

high in NIC

infant mortality

Number of infant deaths per thousand live births.

high in LIC

adult literacy rates

The percentage of adults who can read and write

low in LIC

life expectancy

the average age a person can expect to live

low in LIC

Human Development Index (HDI)

-Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

-scores 0-1, closer to 1 the more developed

strengths of using economic data

-easy to rank countries

-simple to calculate

-to see trends

weaknesses of using economic data

-average overview

-can be manipulated to receive more aid

-doesnt take into account informal economies

-hides inequalities

GNI (Gross National Income)

The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country

measuring development through wealth

world bank measures the wealth by gross income per capita

globalisation

process that makes our world more interconnected and interdependent

what drives globalisation

trade

MNCs

culture

communication

migration

how does trade drive globalisation

increases access to other resources i.e food

how does culture drive globalisation

shares fashion and languages

how does MNCS drive globalisation

operates in multiple countries

how does communication drive globalisation

technology allows connections worldwide

how does migration drive globalisation

sharing of culture and tradition

how is UK connected to other countries through globalisation?

-have factories and offices in other countries

-trade with countries around world in many LICs and NICs

-population is diverse

impacts of globalisation in UK

-benefits businesses wit more skill sets

-migrants helps contribute to taxes

-builds friendships and cultural impacts on lifestyle

common features of NICs

-large pop

-strong political leadership

-strong education system

globalisation effects on India- NIC example

-unemployment decreases

-not all areas developed

-infant mortality decreases

-employment of women increase

-education improvements

why has Indias economy grown

-increased spending on infrastructure

-increase accessibility

-decrease health costs so more money on infrastructure

trade

Exchange of goods and services

import

goods to carry into the country

export

goods to carry out of the country

fair trade

trade in which fair prices are paid to producers in developing countries.

trading bloc

consists of those countries that have signed a particular trade agreement

uk imports

food

pharmaceuticals

uk exports

• Banking and Finance

• Pharmaceuticals

• Cars

india imports

ivory

india exports

Cotton, cinnamon, gems, and salt

uneven development

development of core regions at the expense of those on the periphery

Malawi-LIC uneven development

-3rd poorest country

-70% pop below national poverty line

-70% live on less than $1.90 a day

India-NIC uneven development

-22% poverty average compared to 18% rest of world

-centre is most deprived

-coastal areas least deprived

UK-HIC uneven development

-centre is most deprived

-coastal areas least deprived

-london most deprived

-jaywick most deprived neighbourhood

-greater london rich(330 mill)but isle of man poorer(4mill)

consequences of uneven development

-LICs+NICs have more people living in slums

-HICs-urbanisation which increases rent+pricing

-economy becomes reliant on certain areas

-conflict if huge imbalance

solutions to uneven development

-improve transport links

-aid

-loans

-improve services

multi-national corporations

a company that operates in more than one country to increase profits

why do MNCs build factories in LICs?

-cheaper labour

-cheaper land

-less health laws

-less environment laws

advantages for LICs with MNCs

-more taxes paid from workers

-improved transport links

-improves worker quality of life

impacts on UK globalisation-HIC

+increases trade

+increases awareness of cultures

+brings jobs in

-more competition to make stuff cheaper

-more migration

-rise of discrimination

impacts on India globalisation-NIC

+more stable jobs

+access to more goods

+increase in traditional housing

-loss of local foods

-health risks due to dietary changes

-air pollution from factories + cars

impacts on Malawi globalisation-LIC

+slow increase in wealth and QOL

+better transport links to export crops

-competition for lands

-loss of tradition and culture

-dietary risks

advantages for donor e.g UK

-changes how country is perceived-more influence

-helps form strong relationships with other countries

-can boost employment in donor industries

advantages for recipient i.e Malawi

-emergency aid in time of disaster saves lives

-aid helps rebuild livelihood and housing

-provision of medical help can help health and standard of living

-projects can develop clean water for improved health

criticism from donor

-can create aid dependancy

-upset money is spent abroad on domestic issues

-creates conflicted between donor countries e.g over military aid

criticism from recipient

-local solutions are better

-aid is not always appropiate

-may keep them connected to HIC in negative way

-creates powerlessness and expectations