development pt 1

topics: development until core-periphery

economic indicators

economic indicators

1. income per capita

2. employment structure

demographic indicators

1. LE

2. IMR

3. urban population

social indicators

1. access to clean water and sanitation

2. ALR

explain core-periphery model

context

explains the process of development

development was initially brought about by natural advantages (natural resources/favourable climate)

stimulates development and attracts investments

describing

• as core country develops → require more raw materials and human labour - found in periphery countries

  • core countries take control of the resources → through war, colonisation and unfair trading rules

• periphery countries lack advantages to challenge core countries - dependent on core countries for development, their economic growth has slowed down

• core countries sell finished product to periphery country at a cheaper price due to the lower costs of production in core countries

• backwash effect:

  • the flow of labour and raw materials from periphery to core → leaves periphery at disadvantage

  • periphery has ↓ natural resources and ↓ manpower → less economic growth for periphery

• spread effect:

  • spread of wealth and knowledge from core to periphery → ↑ economic development

  • labour and raw materials not brought over → core countries bring investments, skills and tech to periphery and set up factories there - cheaper labour

  • beneficial for periphery → ↓unemployment rate and ↑economic growth

income per capita

pros:

• good indicator of state of economy and provision of services

• easy to calculate from official government figures

• standard unit of measurement

• track growth of countries

cons:

• average figure and does not reflect differences between individuals/regions - extreme outliers

• does not consider informal economic activities (e.g. tuition)

• does not consider social and environmental cost

employment structure

pros:

• indicates greater amt of income earned - higher % of secondary and tertiary industries

• shows money to be spent in other sectors → develop country

cons:

• does not provide information on number of ppl in industries or amt of revenue generated - misleading

• narrow indicator - does not consider the social and health devt of country

triangular graph

pros:

• show relative importance of specific industrial sectors - determine level of devt in terms of economic growth

• shows dominant industry of countries

• easy to compare due to standard measure - compare between multiple sets of data

cons:

• fails to recognise and capture other industrial sectors

• unable to capture trends

• does not reveal exact values

• distort scale

life expectancy

pros:

• can be used to predict future situations and plan accordingly (aging population)

• clear indication of a country’s level of devt

cons:

• only average figure

• does not show distribution of healthcare and food consumption

• data from LDCs may not necessarily be accurate

IMR

pros:

• can be used to predict future situations and plan accordingly

• clear indication of country’s level of devt

cons:

• hard to get an accurate figure as many births in the LDCs - unregistered

• high IMR could be a result of social or political factors like population policies - one child policy

urban population

pros:

• shows the amt of resources available to provide goods and services & build infrastructure

cons:

• DCs:

  • emerging counter-urbanisation trend

  • city people relocating to suburbs due to congestion & pollution in cities

• LDCs:

  • more people are moving to cities - urbanisation

  • move to get better employment opportunites → rapid growth in urban population

• thus not accurate measure of devt of country - just because high urban population does not mean well developed

access to water and sanitation

pros:

• shows level of hygiene available for ppl → higher LE

cons:

• varying levels of sanitation in different parts of countries - urban vs rural

ALR

pros:

• indicates amt of education on offer

• shows proportion of children attending school → more skills

cons:

• takes no notice of other skills that may be equally valuable - understanding of farming techniques → not educated but contributing to GDP and devt

• consequences of too few schools or the fact that children are having to work

• conservative countries - girls dont go to school - still contribute at home

HDI

consists of:

• GDP per capita (economic)

• LE (demographic)

• ALR (social)

pros:

• comprehensive method of taking into account of economic wealth and QOL

• standard measurement between countries

cons:

• drawbacks of GDP - does not take into account SOL between regions/individuals

• unable to measure intangibles - ergo human rights & freedom

• has time lag of 1-2 years → countries could have developed very fast in that period of time

• lacks accuracy in certain places where data may be unavailable

how to describe core-periphery theory

1. identify core & periphery

   1. core countries have natural advantages

   2. periphery countries lack natural advantages

2. core continues development → require more raw materials

3. backwash effect - how core country takes control & resources

4. core processing and selling it back to periphery

5. talk about spread effect (optional)