Development and human welfare

Definitions of development and human welfare vary, as do attempts to measure it

• Development means improvement in the standard of living and quality of life for people within a country.

• It includes social progress, economic growth, political stability, environmental protection, and access to opportunities.

• Human welfare focuses on how well people’s basic needs are met—such as housing, food, healthcare, education, and freedom.

• While development can be measured economically, human welfare includes emotional and social well-being.

Different ways of defining development

• Economic definitions

  • Based on wealth and industrialisation.

  • Common indicators: GDP (Gross Domestic Product) and GNI (Gross National Income) per capita.

  • Useful for comparing countries, but they ignore inequalities and informal economies.

• Social definitions

  • Consider the quality of people’s lives: literacy rates, healthcare, equality, and access to services.

  • Example: a country may have high income levels but poor healthcare or education (e.g., some oil-rich states).

• Political definitions

  • Focus on human rights, political freedom, and corruption levels.

  • Democracies often allow more citizen participation and accountability, helping sustainable growth.

• Environmental and cultural dimensions

  • Sustainable resource use and protection of ecosystems are essential for long-term development.

  • Respect for cultural traditions and identity can support community cohesion and welfare.

Factors contributing to development and human welfare

• Economic

  • Strong trade links, diverse industries, stable currency, and job opportunities encourage growth.

  • Infrastructure such as roads, energy, and ports enables productivity.

  • Foreign Direct Investment (FDI) brings capital and technology but may lead to exploitation.

• Social

  • Good education increases employment opportunities and innovation.

  • Access to healthcare improves productivity and lowers mortality.

  • Gender equality ensures more people contribute to the economy.

• Technological

  • Internet access supports education, banking, and e-commerce.

  • Transport systems improve mobility and connect remote areas to markets.

• Cultural

  • Attitudes towards women’s rights, religion, or education can affect participation in society.

  • Open-minded, inclusive cultures tend to develop more rapidly.

• Food and water security

  • Reliable access reduces disease and malnutrition.

  • Shortages can cause political instability, poverty, and migration.

• Political stability and good governance

  • Corruption, war, or poor management slow development.

  • Countries with stable governments attract more investment and tourism.

Strands of development:

Social Development

• Definition: The improvement made by a country in the quality of life of its people.

• How this could be achieved:

  • Improving literacy levels through access to education

  • Expanding healthcare services

  • Increasing life expectancy

Economic Development

• Definition: The improvement in a country’s wealth and economic activities.

• How this could be achieved:

  • Increasing the value of goods and services produced

  • Expanding job opportunities in primary, secondary, tertiary, and quaternary sectors

Environmental Development

• Definition: Recognising the importance of protecting and improving the natural world.

• How this could be achieved:

  • Monitoring and reducing greenhouse gas emissions (improving air quality)

  • Taking action to improve water quality

Sustainable Development

• Definition: Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

• How this could be achieved:

  • Using renewable energy sources instead of depleting fossil fuels like oil and gas

  • Protecting natural environments and resources

Development and the UN 

• The United Nations Development Programme (UNDP) works to eradicate poverty and supports countries in achieving the UN Sustainable Development Goals (SDG).  

  • Development gives people more freedom to make choices 

  • Support countries and people in the long term 

  • Balancing all aspects of development 

Measuring development

• GDP per capita

  • Total economic output divided by the population.

  • Advantages: simple, widely available, easy comparison.

  • Disadvantages: hides inequality, ignores quality of life and environmental damage.

• GNI per capita

  • Includes money earned abroad (remittances, overseas business).

  • Reflects true wealth but still ignores inequality.

• Human Development Index (HDI)

  • It is a composite index developed by the United nations development programme (UNDP) to measure and compare levels of human development across countries

  • It combines 3 key dimensions:

    • Health, measure by life expectancy at birth

    • Education, measured by mean years of schooling and expected years of schooling

    • Standard of living, measured by gross national income (GNI)

  • Developed by the UN to compare social and economic progress.

  • HDI values range from 0-1

    • Closer to 1 means higher human development

    • Closer to 0 means lower human development

  • Countries are grouped into 4 categories

    • Very high human development

    • High human development

    • Medium human development

    • Low human development

  • Why it matters:

    • Easier to identify where a country sits as there are 4 categories

    • Also more accurate as it takes in account more than one factor

  • Limitations:

    • Doesn’t measure inequality - 2 countries with the same HDI could have very different income distributions

      • (UNDP now publishes the IHDI which is the inequality adjusted HDI to address this)

    • Ignores environmental sustainability and political freedoms

    • Data quality can vary, especially in developing countries

    • Doesn’t reflect short term changes

• Measures of inequality

  • Gini coefficient: shows income inequality (0 = equal, 1 = very unequal).

  • One of the lead issues with economic indicators is that they usually look at an average, and don’t factor in wealth distribution. To mitigate this, we can use the Gini coefficient to show the extent of income inequality in a country 

  • 0 = completely equal 

  • 1 = completely unequal

  • South Africa has one of the highest Gini scores (~0.63), reflecting extreme wealth gaps.

• Indices of political corruption

  • Measured by Transparency International’s Corruption Perceptions Index (CPI).

  • Low corruption countries like Denmark rank high, whereas Somalia ranks low due to instability.

  • The CPI is an annual index that ranks countries based on perceived levels of public sector corruption

  • Why it matters:

  • Corruption affects economic growth, investment and public trust

  • It undermines education healthcare and infrastructure by diverting resources

  • Countries with high corruption often struggle to attract foreign aid and investment

  • Limitations:

  • Subjectivity: based on perceptions high can be influenced by media politics or recent scandals

  • Focus on public sector: doesn’t measure private sector corruption or informal practises

  • Compatibility issues: cultural difference in defining corruption can affect rankings

  • No detail: doesn’t show where corruption occurs (e.g. police, judiciary, procurement)

• Poverty level:

  • What people lack primarily through absolute poverty, a fixed minimum standard of basic needs, and relative poverty, which measures deprivation compared to a society's average

  • They are closely linked to a country's overall economic stability, social progress, public health, and environmental vulnerability

  • Often rely too narrowly on income, fail to capture non-monetary deprivations like health or education access, are affected by data collection issues, and struggle with the complex, subjective nature of poverty itself

Marginalisation:

Marginalisation refers to the process by which individuals, communities, or regions are excluded from meaningful participation in economic activity, often due to structural, spatial, social, or political barriers. 

Key Characteristics of Economic Marginalisation: 

• Limited access to employment opportunities or formal labour markets. 

• Exclusion from infrastructure such as transport, digital connectivity, or financial services. 

• Underinvestment in education, healthcare, and skills development. 

• Geographical isolation, such as remote rural areas or informal urban settlements. 

• Discrimination based on ethnicity, gender, disability, or migration status. 

The level of development and human welfare varies globally and has had a range of consequences

Key terms:

• Fertility rate

  • The average number of births a woman will have in her lifetime

• Death rate

  • The number of deaths/1000 per year

• Natural increase

  • Difference between birth rate and death rate

• Infant mortality rate

  • The number of babies who die before their first birthday/1000 per year

Global pattern of uneven development

• The world is divided into HICs (High-Income Countries), NEEs (Newly Emerging Economies), and LICs (Low-Income Countries).

• Most HICs are found in the Northern Hemisphere (North America, Europe, Japan), while many LICs are in Africa and South Asia.

• A lot of low income countries in Africa

• A lot of high income countries in North America

• The whole of Europe can be seen to be high income countries

• Australia is the main high income country in the southern hemisphere

• Uneven development is visible between and within countries (e.g., rich urban centres vs poor rural areas).

Core/periphery model:

• Core regions often have big advantages such as:

  • Fertile soil

  • Close to important markets (trade)

  • Good communication links

  • Easy access to energy supplies

  • Healthy climate, warm climate

  • River/sea ports; important trade routes

• Periphery regions sometimes have disadvantages:

  • Poor soil, difficult relief (mountains)

  • They are a long way from the core and its advantages

  • Communications may be difficult (especially by road)

  • Lack of energy resources

  • Diseases may be common (malaria)

  • Climate hazards (droughts, floods)

Factors affecting uneven development:

Social investments:

• Investment in a country is key to increasing its trade

• Some developing countries have increased their trade over recent year such as china, India, Brazil and Mexico

• Emergence of NICs has been a major success of globalisation. Although 2bn people live in countries who trade has fallen in relation to GNI

• Sometimes when developing countries increase their volume of exports, revenues actually decline due to saturate markets

• Prioritising education and healthcare investments has generally led to faster development

• Can be hindered by pandemic

• Key to dropping fertility is female literacy rate

  • Improved knowledge of birth control

  • Greater social awareness

  • Employment opportunities

Trade and investment: 

• Uneven development

  • Poorer nations export cheap raw goods, import expensive manufactured goods.

  • Creates trade deficits and dependence.

  • FDI (foreign direct investment) flows mostly to stable, wealthier countries.

• Example:

  • Ghana exports cocoa cheaply, Europe profits from chocolate.

  • China → huge FDI inflows; Chad → little investment.

• Future solutions:

  • Develop local industries to add value (e.g. process cocoa locally).

  • Diversify exports beyond primary goods.

  • Special economic zones to attract investors.

  • Negotiate fairer trade agreements.

 Technology

• Uneven development

  • Advanced tech = rapid industrialisation, modern farming, better healthcare + education.

  • Lack of tech = outdated farming, weak communication, limited industry.

  • Creates a digital divide where poorer countries miss out on global markets.

• Example:

  • South Korea → almost universal high-speed internet, strong global firms (Samsung).

  • Sub-Saharan Africa → millions without electricity/internet → reduced opportunities.

• Future solutions:

  • Technology transfer between nations.

  • Aid/subsidies for ICT + energy infrastructure.

  • Train local people to maintain tech.

  • Encourage home-grown innovations (e.g. African solar startups).

Colonialism

• Uneven development

  • Colonies exploited for raw materials.

  • Infrastructure built for exports, not local growth.

  • Artificial borders → ethnic divisions → instability.

  • Former colonies inherited weak economies + industries.

• Example:

  • India under British rule → textiles restricted, railways mainly for exports.

  • Nigeria exploited for palm oil → fragile economy after independence.

• Future solutions:

  • Rebuild infrastructure for local benefit.

  • Diversify economies beyond raw materials.

  • Debt relief, reparations, and fair trade systems.

Neocolonialism

• Uneven development

  • Poor countries remain dependent on rich ones.

  • Control through debt, trade agreements, or foreign corporations.

  • Profits leave poorer countries instead of being reinvested.

• Example:

  • IMF/World Bank loans → strict conditions (e.g. cutting social spending).

  • Zambia → foreign copper companies profit, little left for locals.

• Future solutions:

  • Diversify economies + reduce reliance on single exports.

  • Regional cooperation (e.g. African Union).

  • Negotiate fairer contracts with multinationals.

  • Debt relief + international regulation of corporations.

Political and Economic factors

• Poor access to global trade markets restricts exports and economic growth.

• Dependence on single commodities makes economies vulnerable to price changes (e.g., oil in Nigeria, copper in Zambia).

• Some countries have limited access to sea routes or resources (landlocked countries like Chad).

• Uneven development

  • Poor governance = corruption, weak institutions, instability.

  • Bad policies (e.g. excessive borrowing, protectionism) → economic collapse.

  • Good governance = investment, fair distribution of resources, stable planning.

• Example:

  • Zimbabwe under Mugabe → hyperinflation + economic collapse.

  • Singapore → anti-corruption + long-term planning → rapid growth.

• Future solutions:

  • Strengthen institutions + democracy.

  • Enforce anti-corruption laws.

  • International support + training in governance.

  • Media + civil society holding leaders accountable.

Social factors

• Rapid population growth increases pressure on housing, jobs, and food.

• Poor healthcare systems cause low life expectancy and productivity.

• Education inequality limits social mobility and skills development.

Environmental factors

• Frequent droughts, floods, or natural disasters damage agriculture and infrastructure.

• Climate change impacts developing nations most severely, deepening poverty cycles.

Open vs closed economies:

• Open economies (e.g. UK and Singapore), which encourage FDI, have developed faster 

• Multiplier effect 

• Closed economies (e.g. North Korea) engage with limited trading and their development suffers as a result 

• Some closed countries do then open up more (e.g. India in the 1990s) 

Impact of uneven development on welfare and quality of life Case Study - India:

• India has areas of rapid economic growth (Mumbai, Bangalore) and extreme poverty (Bihar, Uttar Pradesh).

• Poverty: over 200 million people live below the national poverty line.

• Unemployment: many rely on informal or seasonal jobs without security.

• Inadequate housing: slums like Dharavi house over 1 million people in unsafe conditions.

• Infrastructure gaps: rural areas lack electricity, clean water, and healthcare facilities.

• Education inequality: literacy is around 90% in urban areas but only 65% in rural states.

• Uneven development has created regional migration as people move to cities for better opportunities.

Case studies on uneven birth rates:

South Korea: Extremely Low Birth Rate (0.72 in 2023)

Circumstances

• Economic development: Highly developed, urbanised, and technologically advanced economy.

• Fertility rate: The lowest in the world, far below replacement level (2.1).

• Aging population: Rapidly aging society with a shrinking labor force.

• Gender equality gap: The largest gender pay gap among OECD countries; women face workplace discrimination and unequal childcare expectations.

• Social change: Declining marriage rates, very few births outside marriage, and a rising feminist movement rejecting traditional family roles (the “4B movement”).

• Education and housing costs: Extremely high cost of education and housing, especially in Seoul, discouraging childbearing.

• Work culture: Long working hours, limited flexibility, and pressure discourage both men and women from taking parental leave.

Government Response and Challenges

• Pronatalist policies: Government offers cash incentives, parental leave, and housing support to encourage births.

• Limited impact: Financial incentives have shown minimal long-term effect on increasing fertility—many births would have happened anyway.

• Structural issues: Deep-rooted cultural and economic barriers—work stress, high cost of living, gender inequality—are harder to fix than financial aid.

• Demographic pressure: Aging population threatens pension systems, healthcare funding, and economic dynamism.

• Policy recommendation: Experts call for gender equality, affordable childcare, workplace reform, and immigration openness to sustain the population.

Niger: Extremely High Birth Rate (6.6 in 2022)

Circumstances

• Economic situation: One of the poorest countries in the world, with a per capita income of about $600/year.

• Fertility rate: The highest in the world — 6.6 children per woman.

• Population growth: Set to triple by 2050 (from 24 million to 68 million).

• Social norms: Large families and polygamy are culturally valued and tied to religion and social prestige.

• Religion and tradition: 98% of the population is Muslim; early marriage is common (77% of girls married before 18).

• Education and healthcare: Limited access to education—especially for girls—and poor healthcare contribute to high fertility and maternal mortality.

• Poverty cycle: Families have more children to compensate for high child mortality and to gain labor or dowries, which in turn perpetuates poverty.

• Security issues: Insurgencies and instability make schooling (especially for girls) difficult.

Government Response and Challenges

• Reform efforts: President Bazoum promotes girls’ education, delays in marriage, and even criticised polygamy—a politically sensitive move.

• Religious and cultural resistance: Some men view population control as an imposition of Western values; religious beliefs stress that “God will provide.”

• Early progress: Slight declines in teenage pregnancies and more acceptance of contraception among religious leaders and men.

• Developmental risks: High fertility threatens food security, education, employment, and stability; too many young people and too few jobs increase risk of poverty and extremism.

• Policy recommendation: Focus on education (especially for girls), women’s empowerment, access to contraception, and changing cultural norms.

Differences in demographic data between countries

• Developed countries have low fertility and ageing populations, creating strain on pensions and healthcare.

• Developing countries have youthful populations, which can create opportunities (large workforce) but also pressure on education and jobs.

A range of sustainable strategies is required to address uneven levels of development and human welfare

International strategies to reduce uneven development

• Aid

  • Short-term aid: provides immediate help after disasters, e.g., UK emergency aid to Nepal (2015 earthquake).

  • Long-term aid: aims to improve infrastructure, education, and healthcare, e.g., UK aid to Africa for malaria prevention.

  • Reduces suffering and improves productivity, but aid can create dependency or be misused by corrupt officials.

• Fair Trade

  • Ensures producers in developing countries receive fair prices and safe working conditions.

  • Supports local community projects such as schools or clean water.

  • Example: cocoa farmers in Ghana benefit from higher income and training through the Fairtrade Foundation.

• Debt relief

  • Cancelling or restructuring loans allows governments to invest in welfare and development.

  • Example: 2005 G8 agreement cancelled $40 billion of debt owed by 18 poor countries.

• Intergovernmental agreements

  • The Paris Climate Agreement (2015) encourages sustainable, low-carbon growth.

  • The UN’s Sustainable Development Goals (SDGs) set 17 global targets for 2030 (e.g., ending poverty, gender equality, clean energy).

Different types of aid:

• Most aid comes from governments in the form of grants or cheap loans 

• Most developing countries keen to accept foreign aid because: 

  • Many lack the hard currency to pay for vital imports 

  • Many have sufficient savings to invest into industry and infrastructure 

  • Many lack important technological skills 

• Multilateral:

  • When a government donates aid to an international organisation who then distributes it around the world

• Bilateral:

  • When a government gives aid directly to another government

• Voluntary

  • When Non-governmental organisations (NGOs) distribute aid around the world

• Top-down

  • Where decisions are made by politicians or organisations

• Bottom-up:

  • Where decisions are made by the groups of people who are to receive the aid

Who gives aid:

• Unites nations agencies (multi-lateral)

  • World bank

  • UNICEF (Children)

  • UNHCR (refugees)

  • UNDP(development)

• National governments (Bi-lateral)

  • UK foreign

  • Commonwealth and development office (FCDO)

• NGOs

  • Oxfam

  • Save the children

Issues with aid:

• Corruption – poor decision making, stealing of money 

• Tied aid – where conditions are attached to aid, usually bilateral 

• Inappropriate – often involving technology of too high a level for the people involved 

• Slow to respond – emergencies often require people on the ground, not always the case with big multilateral organizations 

• Dependency – free food after an emergency can put farmers out of business, making long term issues worse 

 Dependency theory:

• How does the relationship between core and periphery work? 
  The core are able to give goods out to the periphery and the periphery in turns provides resources that the core has to source from outside of their country, the core often gets to decide cheaper prices for the resources and also can put countries and factories in competition with each other. 

• Who benefits the most? 
  The core as they are benefiting the most from all of resources of the periphery and are also in control of trade and prices between them and well  

• Does aid help to reduce this dependency? 
  Yes as aid is able to provide goods that the periphery needs from the core to reduce demand and break the cycle. Aid can also make it worse if a country from the core provides resources to the periphery such as loans etc and then request precious resources in the future at a cheaper price

Appropriate aid:

• Aid matched to the technology needs and skills of the people who are being helped

• It is best if the community is involved (bottom-up) in saying what they want and in developing the solutions themselves

Technology:

Many examples of bilateral aid in the 1970s-1990s involved inappropriate technology 

Examples include: 

Hydroelectric Power Station in Mozambique 

Danish tractors to India 

Immediate technology:

• This is technology that is half way between that of the donor country and the recipient country 

• It is a lower level of technology that is more accessible and useful to the people of a developing country

• It should not require either a high level training or the presence of foreign experts

Case study of immediate technology (Practical action):

What Practical Action does:

Practical Action is an international charity that helps people living in poverty use simple, sustainable technologies to improve their lives. They focus on clean energy, farming, water and sanitation, and helping communities adapt to climate change. Their goal is to use intermediate technology—tools and systems that are affordable, easy to use, and can be maintained by local people.

Example 1: Turning Water into Work (Zimbabwe)

Practical Action helped farmers in dry areas of Zimbabwe by installing solar-powered irrigation systems and building sand dams to store water. They trained local people to manage and repair the systems and taught eco-friendly farming methods. This allowed families to grow more food and earn money all year round.

Example 2: Waste and Sanitation in Bangladesh

In Bangladeshi cities, Practical Action improved waste and sanitation systems by introducing simple machines like the “gulper,” which lets workers clean pits safely from outside. They also helped turn waste into compost and recycling businesses. This created jobs, improved health, and reduced pollution

The development gap:

• The development gap refers to the significant disparity in economic, social, and infrastructural development between countries or regions. 

• This gap results from historical, geographic, political, and economic factors.  

  • Colonialism often left former colonies with weak institutions and economies.  

  • Geographic factors, such as access to resources or natural barriers as well as climate influence a region's development potential.  

  • Political instability and poor governance hinder sustainable growth, while global economic systems can exacerbate inequality by favoring wealthier nations.  

• The gap is further widened by differences in education, healthcare, technology access, and investment, leading to unequal opportunities and living standards across the globe. 

Different views on tackling the development gap

• Individuals

  • Support ethical shopping (Fairtrade), reduce waste, donate to charities.

  • Example: consumers buying Fairtrade coffee or clothing from sustainable brands.

• NGOs

  • Focus on long-term community-based development.

  • Example: WaterAid builds wells and toilets, reducing waterborne diseases.

  • Example: Oxfam funds education and women’s empowerment programmes.

• Governments

  • Developed governments (like the UK) invest in overseas aid and partnerships to promote stability and trade.

  • Emerging countries (like China) provide infrastructure loans and trade deals through initiatives such as the Belt and Road Initiative.

  • Some critics argue Chinese investment helps infrastructure but can create debt dependency.

• Intergovernmental organisations

  • The World Bank funds infrastructure projects to encourage economic growth.

  • The IMF provides loans to stabilise economies but often requires austerity measures that can reduce welfare spending.

Debt relief:

• Debt relief frees up funds for social spending as it eliminates unserviceable interest 

• Issues with debt relief:

  • Corruption

  • Military dictatorships

  • Poor decision-making

  • Unrealistic ideas of profit

  • Inappropriate technologies

  • Interest rates

  • All lead to increasing debt

  • Eventually many countries began to ‘default’

Expanded issues on debt relief:

Purpose

• Launched 1996 by IMF & World Bank to help poor countries manage unsustainable debt.

• Supplemented by Multilateral Debt Relief Initiative (2005) → 100% debt relief from IMF, World Bank & African Development Fund.

• 2007: Inter-American Development Bank added extra (“beyond HIPC”) relief for 5 Western Hemisphere countries.

Countries need to qualify

• Be eligible for IDA (World Bank) & PRGT (IMF) loans.

• Have unsustainable debt not fixable by normal means.

• Show track record of reforms under IMF/World Bank programs.

• Create a Poverty Reduction Strategy Paper (PRSP) through public participation.

Process

1. Decision Point - IMF & World Bank approve eligibility; interim debt relief begins.

2. Completion Point - Full debt relief granted when country:

   • Maintains good performance.

   • Implements agreed reforms.

   • Applies PRSP for ≥1 year.

39 eligible countries, 36 completed and now receive full relief. 

Impact

• Freed funds for health, education & social services.

• Before HIPC: more spent on debt than on social services.

• After HIPC: spending on social sectors is 5× higher than on debt.

• Debt service fell -1.5% of GDP (2001–2015); still below pre-HIPC levels. 

Funding

• IMF share from:

  • Bilateral contributions.

  • Investment income from 1999 gold sales - PRGT-HIPC Trust.

• Somalia & Sudan reached decision point but need extra funding (plans approved 2019 & 2021).

• Eritrea eligible but owes nothing to IMF.

Current Challenges

• Some creditors not fully participating (participation is voluntary).

• IMF & World Bank continue to urge all creditors to deliver full relief.

Fair trade:

• Fair trade is all about getting fair prices for goods produced in poorer countries e.g. coffee

• Companies who want to sell produce labeled as fair trade haste to pay producers a fair price

• Buyers also pay extra on top of fair price to help develop the area where the goods come from e.g. to build schools or health centres

• Only producers that treat their employees well can take part in the scheme

• E.g. pruners aren’t allows to discriminate based on sex or race and the employees must have a safe working environment. This improves quality of life for the employees

Microcredit:

• Microcredit is a common form of microfinance that involves an extremely small loan given to an individual to help them become self-employed or grow a small business. 

• Biggest beneficiaries tend to be women 

• Issues: 

  • High interest rates 

  • Recipients often misuse loans for consumption rather than to set up a new business 

Why trade isn’t fair:

Reasons for variations in development between countries: