Devlopment and Globalisation

Development definition

The process of change that improves people’s quality of life measured by health, education and income.

Social development Indicators

Life expectancy, literacy rates, birth /death rate and Infant Mortality rate.

Economic development Indicators

GDP (overall value from value of goods/services in a country) and GDP per capita (one persons value)

GNI (overall income in a country) and GNI per capita (one persons income).

Limitations of Development Indicators

Not a true reflection as only measure one area either social/ economic not taking into account the other, it’s only an average so doesn’t measure extreme values to mask inequality, doesn’t take into account the informal economy.

Human Development Indicator (HDI)

Composite development indicator which gives countries score 0-1 measured by social (education/health) and economic indicators combined to show a more accurate quality of life/development.

Globalisation definition

The process of a how people/places/countries are more interconnected and interdependent economically, socially, environmentally and culturally.

Globalisation Drivers: Trade and Technology

Trade (importing and exporting goods/services)

Technology (access to instantaneous communication globally also development in transport for goods travelling cheaper/more efficiently).

Globalisation Drivers: Migration and Culture

Migration (movement of people from post accession labour/ colonial flows).

Cultural exchange (migration, trade, technology have influenced cultures to share same food, music, clothes).

Globalisation Drivers: Politics and Investment

Geopolitical links (connected through organisations e.g Trade blocs, NATO, UN, WTO)

Economic Investment from MNCs (as MNCs operate globally).

Development HIC Case Study: UK

GDP per capita is $45,000 and life expectancy is 82 years, Geopolitical links are NATO UN and WTO, Technology 98% access to internet, large number of migrants, London is a melting pot as extremely multi-cultural, Import low value goods e.g fruit + veg as not right climate and cheaper to import (when no tariffs) whilst export high value goods e.g cars + financial services to increase GDP and economic growth.

UK National Inequality: North/South Divide

Caused by MNCs investing in London so there’s higher wages which attract post-graduates move to south (rural-urban migration) for better job opportunities (brain drain) as well as more transport hubs compared to the North with a lack of skilled workforce so primary jobs and poor transport. MAIN CAUSE IS THE DIFFERENCE OF INVESTMENT.

MNC in HIC: Rolls-Royce HQ in UK

As there’s highly educated workforce with top universities, high research and development, have access to largest markets globally.

Positive Impacts of Globalisation: UK

Migrants fill in the unwanted ‘4Ds’ and highly skilled sectors e.g Filipino nurses so they pay tax to fund public services of Uk ageing population, diversified area as melting pot, international cooperation on global issues.

Negative Impacts of Globalisation: UK

Cheap imports from abroad cause deindustrialisation as local businesses cannot compete so unemployment, migrants have pressure on education and healthcare, housing shortages and increased rent with high demand.

Development NIC Case Study: China (Apple)

GDP per capita is $17,600 and life expectancy is 78 years, Geopolitical links are UN, G20 and WTO (high economic growth), Import high value goods e.g cars + financial services whilst exports a lot of manufactured goods e.g phones + textiles.

China National Inequality: Poor West vs Rich East

caused by MNCs outsourcing with FDI (foreign direct investment) to China (Apple move production abroad with externally sourced factories from FoxCon). SAME LINK STRANDS AS UK NORTH/SOUTH DIVIDE AS DIFFERENCE IN INVESTMENT HAS CAUSED THIS BUT OVERALL CHINA HAS BECOME AN ECONOMIC POWERHOUSE WITH THE FDI THOUGH.

Why Apple Outsources to China (NIC)

Cheap labour and lack of health + environmental regulation to maximise profits, high tech factories with good communication/transport, Access to a new and large market, Tax incentives as special economic zones located at east so no tariffs, Pacific rim so easy access to export to USA.

Positive Impacts of Globalisation: China

4.8 million jobs created in formal economy (more disposable income to spend on businesses) creating positive multiplier effect by Increasing GDP by $13 billion on tax so more developed (invest education + health to Improve living standard).

Negative Impacts of Globalisation: China

people working for FoxCon exploited with long hours + bad conditions in sweat shops (suicides committed), poor health safety regulation so workers poisoned by toxic chemicals, MNCs undercut local business so unemployment, Industrial growth means largest emitter of C02, factories discharge toxic metals into local water so impact wildlife + habitats.

Development LIC Case Study: Ghana

GDP per capita is $5,400 and life expectancy is 69 years, Import high value goods e.g cars + trucks and exports low value goods e.g oil + Cocoa.

Ghana National Inequality: North/South Divide

(due to its location + climate) as richer south has a coastline for access to imports + exports so more manufacturing jobs and near equator has better climate for cash crops to be grown for large profit commercial farming, compared to poor north is landlocked and drier climate so more malnourished + vulnerable to drought limited to subsistence farming.

MNC Investment Limitation in LICs

MNCs may only want to invest in LICs for natural resources to extract them for cheap e.g oil + gold.

Barriers to Development: Ghana

Lack of MNC investment due to low skilled/ educated workforce + diseases e.g HIV.

Relying on low value exports due to tariff escalation (higher taxes on finished/more processed goods) so selling raw Cocoa meaning less GDP to discourage industrialisation + secondary jobs also prices of Cocoa fluctuate so unstable income for Ghana.

Poor infrastructure e.g roads + telecommunication so goods cannot be transported efficiently also mountains land so factories cannot be built on it.

Unstable government with conflict/ corruption.

Strategy to Overcome Barriers: FairTrade

Where farmers receive a stable, regular payment regardless of fluctuation e.g Cocoa + banana to offer financial security.

Farmers may work as a cooperative and borrow money as a Loan from FairTrade for equipment e.g tractors.

May receive a FairTrade Premium a grant (don't pay back) for local community projects e.g schools, hospitals + water pumps this improves local health/education reducing development gap.

Aid definition

Aid is sending help from HICs (donor) to LICs (recipient) there are two types: Development Aid is long-term focusing on education, skills + economic growth whilst Emergency Aid is short-term focusing on resources following wars/ conflict + natural hazards.

Development Aid Case Study: Japan to Malawi Background

Malawi is a land locked country in South east Asia. Cause: Deforestation and heavy rainfall meant soil (splash) erosion causing leaching (washing away of nutrients).

Impact: Subsistence farming rely on crops for survival so losing soil meant less crop yield leading to starvation/ malnutrition, lower life expectancy further into cycle of poverty + deprivation.

Development Aid Case Study: Japan's COVAMS Project

Japans COVAMS project by using intermediate technology to teach local people skills using local materials to stop soil loss- built barriers across streams using bamboo + rock + wood protect soil loss from rain, trained Malawi villagers how to conserve soil + plant fast growing species of tree to speed up re-afforestation, trained farmers to plough around hillsides following contours instead of up + down to reduce surface run off.

Donor Country Benefits: Development aid

Diplomacy as strengthened political influence + good relations with recipient (Malawi), Tactics as gained votes + support for geopolitical links from recipient (Japan want to join UN Security Council so African countries can support), Economics as trade opportunities with recipient (Malawi has 5% economic growth yearly).

Emergency Aid Case Study: Cyclone Pam at Vanuatu

Cause: Category 5 cyclone struck Vanuatu in Pacific Ocean. Impact: Destroyed schools, hospitals, infrastructure, agriculture lowering the local economy. Response: Australia and other countries sent urgent supplies of safe drinking water, blankets + tarpaulin sheets also temporary schools and medical teams.

Donor Country Benefits: Emergency aid

Country perceived as humanitarian, improves international reputation for geopolitical links, good publicity for government of country, future economic links once recipient recovers.

Development Aid: Recipient advantages

Builds self-reliance. Teaches sustainable skills. Generates a positive multiplier. Passes down through generations.

Development Aid: Recipient disadvantages

Takes years to see results. Can be affected by corruption. Highly reliant on local cooperation.

Emergency Aid: Recipient advantages

Saves immediate lives. Provides food and medicine. Temporary shelter.

Emergency Aid: Recipient disadvantages

Can create a cycle of dependency. May fail to reach the poorest groups. Does not fix long-term poverty.