developing dynamics

Development Indicators

  • Definition of Development:

    • Access to safe drinking water: Percentage of population with piped water supply.

    • Literacy Rate: Percentage of population aged over 15 who can read and write.

Measuring Development - Social

  • Human Development Index (HDI):

    • Reliable indicator showcasing a country's development level.

    • Ranges from 0 to 1 (closer to 1 is better).

    • Calculated using:

    • Average life expectancy

    • Literacy rate

    • Average length of schooling

    • GDP per capita

Measuring Development - Political

  • Corruption Perceptions Index:

    • Ranks 180 countries by perceived levels of public sector corruption.

Measuring Development - Economic

  • Gross Domestic Product (GDP) per capita:

    • Total value of goods and services produced by a country per year (in US$) per person.

    • Measures inequality and wealth distribution among the population.

Globalisation

  • Definition:

    • Increasing interconnectedness and interdependence of the world (economically, culturally, politically).

Trans-National Corporations (TNCs)

  • Companies operating in multiple countries (e.g., McDonald's).

  • Headquarters usually in High-Income Countries (HICs) and factories in Newly Emerging Economies (NEEs) and Low-Income Countries (LICs).

  • Advantages: Improved job opportunities.

  • Disadvantages: Often pay low wages.

Development Strategies

  • Bottom-up strategies:

    • Run by NGOs (e.g., charities or universities).

    • Work with communities to address their needs, assisting decisions to improve situations.

  • Top-down strategies:

    • Controlled by governments or TNCs, benefiting specific countries/groups more, leading to increased inequality.

The Clark-Fisher Model

  • Stages of economic development:

    • LICs: Mainly in the primary sector (farming, mining).

    • NEEs: Focus on secondary sector (manufacturing).

    • HICs: Concentrated in tertiary and quaternary sectors (services, technology).

India as a Newly Emerging Economy (NEE)

  • Status: Predicted to be the 2nd largest economy by 2050.

  • Economic Growth: 7% annual growth since 1997 (compared to UK’s 2%).

  • Geographical Advantages: Located between Middle East and South-East Asia (fast-growing economies).

BT as an Example of a TNC

  • Headquarters in New Delhi, software development in Bangalore.

  • Outsourced services to India for cheaper labor.

  • Advantages: Multiplier effect from employment.

  • Disadvantages: Harsh working conditions.

Significance of India

  • Social: Second largest population.

  • Political: Significant contributor to UN peacekeeping troops.

  • Environmental: Home to many endangered species (e.g., Bengal Tigers).

  • Cultural: Diverse population with various religions.

Economic Change and Rapid Growth

  • Factors:

    • Economic liberalization: Support for market-based economy.

    • Improved transport: Enhanced shipping, containerization, and aircraft technology.

    • Foreign Direct Investment (FDI): Investments from TNCs improving services.

Effects of Globalization on India

  • Growth in GDP: Increased exports by 20 times, leading to a 500% rise in GDP per capita.

Demographic and Social Changes in India

  • Decline in birth rates due to economic changes and improved education.

  • Increased life expectancy due to advancements in medical care.

  • Urbanization: Shift towards city living and new apartment construction.

Environmental Impacts

  • 275 rivers are polluted.

  • Third-largest emitter of carbon dioxide due to coal burning.

  • Contaminated water sources from industrial waste and agricultural runoff.

Economic Challenges

  • Significant poverty: Billions remain poor.

  • Clothing industry GDP was $300 billion in 2015.

  • Low wages: Minimum wage 87% lower than UK; average of £35 for 100 hours of work.

  • Environmental degradation: Deforestation causing flooding and soil erosion.

Different Levels of Development

  • Developing Country: Low-income country (LIC) with low HDI.

  • Emerging Economy: Newly Emerging Economy (NEE) with rapid growth and improving HDI.

  • Developed Country: High-Income Country (HIC) with high HDI.

Implications of Development

  • As countries develop:

    • Increased GDP per capita leads to enhanced health, education, and reduced death/birth rates.

    • Changes in population structure favor working-age individuals.

Frank's Dependency Theory

  • Development involves core and peripheral regions.

  • Core nations benefit from processing peripheral countries' raw materials.

Rostow's Modernization Theory

  • Describes stages of economic growth:

    • Not all countries follow this exact path; flexibility in development is needed.

Causes of Inequality

  • Physical/Environmental Factors: Dry climates, extreme weather, landlocked regions.

  • Economic Factors: Export reliance on low-value primary products.

  • Historical Factors: Colonialism hindered developmental progress in many countries.