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L/O: To understand what the development gap is.
To investigate the methods for measuring development and
        the advantages and disadvantages of these.
Using your mini whiteboards suggest the following:

 What is the development gap?


 How do we measure development?


 What indicators can we use?
What is Development?
Not just the difference between the developed, rich and
  powerful countries and those less developed. Within
   each country there are differing levels of prosperity
                     and development
               What is it measured by?
                          GNP
         HDI – Human development Index 0-1,
1 being best – uses income per capita, adult literacy, life
                        expectancy.
                Development Indicators
Definition of development
Economic growth – Increase in total value of goods and services
produced. (measured by GDP)

Development – Improvement in human welfare, quality of life,
social well being. Satisfying the population’s needs and wants.
(measured using a range of socio-economic indicators)

Sustainable development – “Sustainable development is
development that meets the needs of the present without
compromising the ability of future generations to meet their own
needs." (Measured using indicators of environmental quality)
Sort the cards according to the development level of the
countries.
http://www.gapminder.org/world/#$major
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 A study of 15 countries
 mainly in Europe
 suggested that all
 countries had the
 potential to break the
 cycle of poverty and
 develop through 5 stages
 Stage 1 – Traditional Society
Subsistence economy based on farming with limited technology or capital
  to develop

 Stage 2 – Preconditions to take-off
Often an injection of external help – industries develop and growth of
  infrastructure. Often single industry will dominate

 Stage 3 – Take off
Manu industries grow, airports and roads are built. Political and social
 changes. Farming will decline. Investment or borrowing increases

 Stage 4 – Drive to maturity
Growth should be self-sustaining. Often multiplier effects in similar
  industry types. Rapid urbanisation

 Stage 5 – High mass consumption
Rapid expansion of tertiary services, employment in service industries
  grow but decline in manufacturing
 Model assumes that all countries start off at the same
  level
 Although capital is needed to advance from a
  traditional society it often brings debt repayments
  which stop a country developing
 Underestimates the extent and impact of colonialism
 Predicts too short a timescale between the beginning
  of growth and becoming self-sustaining
 Shows how some areas
 become more
 economically developed
 than others and why
 some regions are more
 wealthier than others
 Stage 1 (Pre-industrial). The agricultural society, with localized
  economies and a small scale settlement structure. Fairly isolated,
  dispersed and low mobility.

 Stage 2 (Transitional). The concentration of the economy in
  the core begins due to capital and industrial growth. Trade and
  mobility increase

 Stage 3 (Industrial). Due to economic growth other growth
  centres appear. The main reasons for this are increasing
  production costs (mainly labour and land) in the core area.

 Stage 4 (Post-industrial). The urban system becomes fully
  integrated and inequalities are reduced significantly.
 Some countries remain
  largely unconnected to the
  modern globalised world.
 This is especially true in
  Sub-Saharan Africa , which
  remains very much part of
  the global periphery (see
  map)
 Other peripheral regions
  include north South Asia,
  the Andean region, parts of
  East and Central Asia.
 Growth areas (upward             Sub-Saharan Africa has a range of factors which make
  transition) are much better     development very challenging; these include debt levels,
                                 landlocked states, conflict, corruption, Aids/ HIV, malaria,
  connected to the global core   lack of infrastructure and communications, low education
  areas.                                       levels, drought and many others
Views on Development
           The Development Cable
 Development is like an
  electric cable – the
  power to drive countries
  from primitive to more
  advanced states.
 Core is economic
  growth, technology and
  enterprise.
 The Outer is many
  different aspects of
  development growth.
•At its core is economic development, but to
achieve real progress social, political,
environmental and personal development is
also needed.
•Recognising the complex nature of development
is why development is often measured using an
index, which combines a range of data
•Indices are considered more accurate than single
data points such as GDP per capita.
Views on Development
The Development Pathway
               Development can
                also be seen as a
                pathway.
               Countries develop at
                different speeds and
                may cluster at
                different places
               What could hinder
                development?
1)  Economic Wealth
Measured as Gross Domestic Product (GDP) per capita = dividing the monetary
    value of all the goods and services provided in a country by its total
    population

Gross National Income (GNI) – includes income from overseas investments

GDP – preferred by the EU
GNI by the UN and USA

X    Only useful in countries which have many economic transactions i.e. ‘market
     economies’
X    Hides extremes and uneven distribution of income between regions or
     socio-economic groupings

Purchasing Power Parity (PPI)
Shows what per capita income will purchase when the cost of living is taken into
    account. E.g. In China the cost of living is low so $100 will buy far more there
    than in the USA
Brandt Commission in 1981
2) Social, cultural and welfare criteria
Human Development Index (HDI) gives a country a score between 0
     and 1 and is based on life expectancy, education and income.

     Enables anomalies to be spotted and identifies where poverty is
      greatest
X     No measure of human rights or freedom. There is a separate Human
      Freedom Index in 1991 but has not been done since.


   Birth rates
   Death rate
   Infant mortality rate
   Lack of clean water
   % rural population
   Types of employment
   Level of literacy
 HDI (Human Development Index)
  -     a summary measure of basic human
  development
 GDI (Gender-related Development Index)
   - the HDI adjusted for gender inequality
 GEM (Gender Empowerment Measure)
   - Measures gender equality in economic and
  political life, participation and decision making
 HPI (Human Poverty Index)
  - Captures the level of human deprivation in
  country

                                                19
Advantages
 Summarises complex statistics
 Attract public interest, support policy-makers

Disadvantages
 Too simplistic
 Could be misleading




                                            20
Exam Questions:

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Bdgpart1

  • 1. L/O: To understand what the development gap is. To investigate the methods for measuring development and the advantages and disadvantages of these.
  • 2. Using your mini whiteboards suggest the following:  What is the development gap?  How do we measure development?  What indicators can we use?
  • 3. What is Development? Not just the difference between the developed, rich and powerful countries and those less developed. Within each country there are differing levels of prosperity and development What is it measured by? GNP HDI – Human development Index 0-1, 1 being best – uses income per capita, adult literacy, life expectancy. Development Indicators
  • 4. Definition of development Economic growth – Increase in total value of goods and services produced. (measured by GDP) Development – Improvement in human welfare, quality of life, social well being. Satisfying the population’s needs and wants. (measured using a range of socio-economic indicators) Sustainable development – “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs." (Measured using indicators of environmental quality)
  • 5. Sort the cards according to the development level of the countries.
  • 7.  A study of 15 countries mainly in Europe suggested that all countries had the potential to break the cycle of poverty and develop through 5 stages
  • 8.  Stage 1 – Traditional Society Subsistence economy based on farming with limited technology or capital to develop  Stage 2 – Preconditions to take-off Often an injection of external help – industries develop and growth of infrastructure. Often single industry will dominate  Stage 3 – Take off Manu industries grow, airports and roads are built. Political and social changes. Farming will decline. Investment or borrowing increases  Stage 4 – Drive to maturity Growth should be self-sustaining. Often multiplier effects in similar industry types. Rapid urbanisation  Stage 5 – High mass consumption Rapid expansion of tertiary services, employment in service industries grow but decline in manufacturing
  • 9.  Model assumes that all countries start off at the same level  Although capital is needed to advance from a traditional society it often brings debt repayments which stop a country developing  Underestimates the extent and impact of colonialism  Predicts too short a timescale between the beginning of growth and becoming self-sustaining
  • 10.  Shows how some areas become more economically developed than others and why some regions are more wealthier than others
  • 11.  Stage 1 (Pre-industrial). The agricultural society, with localized economies and a small scale settlement structure. Fairly isolated, dispersed and low mobility.  Stage 2 (Transitional). The concentration of the economy in the core begins due to capital and industrial growth. Trade and mobility increase  Stage 3 (Industrial). Due to economic growth other growth centres appear. The main reasons for this are increasing production costs (mainly labour and land) in the core area.  Stage 4 (Post-industrial). The urban system becomes fully integrated and inequalities are reduced significantly.
  • 12.  Some countries remain largely unconnected to the modern globalised world.  This is especially true in Sub-Saharan Africa , which remains very much part of the global periphery (see map)  Other peripheral regions include north South Asia, the Andean region, parts of East and Central Asia.  Growth areas (upward Sub-Saharan Africa has a range of factors which make transition) are much better development very challenging; these include debt levels, landlocked states, conflict, corruption, Aids/ HIV, malaria, connected to the global core lack of infrastructure and communications, low education areas. levels, drought and many others
  • 13. Views on Development The Development Cable  Development is like an electric cable – the power to drive countries from primitive to more advanced states.  Core is economic growth, technology and enterprise.  The Outer is many different aspects of development growth.
  • 14. •At its core is economic development, but to achieve real progress social, political, environmental and personal development is also needed. •Recognising the complex nature of development is why development is often measured using an index, which combines a range of data •Indices are considered more accurate than single data points such as GDP per capita.
  • 15. Views on Development The Development Pathway  Development can also be seen as a pathway.  Countries develop at different speeds and may cluster at different places  What could hinder development?
  • 16. 1) Economic Wealth Measured as Gross Domestic Product (GDP) per capita = dividing the monetary value of all the goods and services provided in a country by its total population Gross National Income (GNI) – includes income from overseas investments GDP – preferred by the EU GNI by the UN and USA X Only useful in countries which have many economic transactions i.e. ‘market economies’ X Hides extremes and uneven distribution of income between regions or socio-economic groupings Purchasing Power Parity (PPI) Shows what per capita income will purchase when the cost of living is taken into account. E.g. In China the cost of living is low so $100 will buy far more there than in the USA
  • 18. 2) Social, cultural and welfare criteria Human Development Index (HDI) gives a country a score between 0 and 1 and is based on life expectancy, education and income.  Enables anomalies to be spotted and identifies where poverty is greatest X No measure of human rights or freedom. There is a separate Human Freedom Index in 1991 but has not been done since.  Birth rates  Death rate  Infant mortality rate  Lack of clean water  % rural population  Types of employment  Level of literacy
  • 19.  HDI (Human Development Index) - a summary measure of basic human development  GDI (Gender-related Development Index) - the HDI adjusted for gender inequality  GEM (Gender Empowerment Measure) - Measures gender equality in economic and political life, participation and decision making  HPI (Human Poverty Index) - Captures the level of human deprivation in country 19
  • 20. Advantages  Summarises complex statistics  Attract public interest, support policy-makers Disadvantages  Too simplistic  Could be misleading 20