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14.1 - National development - content
14.1 - National development - content
The nature of the primary, secondary, tertiary and quaternary sectors and their roles in economic development.
The nature, causes (physical and human) and distribution of global inequalities in social and economic wellbeing.
Candidates should be able to critically evaluate some of the measures and indices of social and economic inequality.
The Development Gap
The Development Gap
The development gap refers to the widening gap between the most developed and least developed countries of the world. Development in this sense can be referred to as either economic development where the county has an increase in wealth, or human development where quality of life is improved for the people who live there.
Hans Rosling's video only deals with data up to 2009. Use the gapminder website he developed to determine the current state of the development gap.
What trends do you see?
What constitutes a HIC, a MIC and a LIC?
Rostow developed his Stages of Economic Growth model in 1960. Understandably, therefore, it fails to account for many of the technological changes evident today. It presented five steps through which all countries must pass to become developed. The model asserted that all countries exist somewhere on this linear spectrum, and climb upward through each stage in the development process:
Stage 1 - Traditional Society: This stage is characterised by a subsistent, agricultural-based economy, with intensive labour. trade occurs at a low level, and the populace have a limited scientific perspective on the world and technology.
Stage 2 - Preconditions to Take-off: Manufacturing begins to develop, and a more national/international, as opposed to regional, outlook becomes evident.
Stage 3 - Take-off: During this stage a short but intensive period of growth occurs, during which industrialisation begins to occur. Typically workers and institutions become concentrated around these new industries.
Stage 4 - Drive to Maturity: This stage takes place over a long period of time, as standards of living rise, use of technology increases, and the national economy grows and diversifies.
Stage 5 - Age of High Mass Consumption: At the time of writing, Rostow believed that "Western countries", most notably the United States, occupied this last "developed" stage. Here, a country's economy flourishes in a capitalist system, characterised by mass production and consumerism.
What are the BRICS?
What are the BRICS?
What is the G7?
What is the G7?
What are the MINT nations?
What are the MINT nations?
Global Inequality - Essential Reading
Global Inequality - Essential Reading
Today’s global inequality is the consequence of two centuries of unequal progress. Some places have seen dramatic improvements, while others have not. It is on us today to even the odds and give everyone – no matter where they are born – the chance of a good life. This is not only right, but, as we will see below, is also realistic. Our hope for giving the next generations the chance to live a good life lies in broad development that makes possible for everyone what is only attainable for few today.
It strikes many people as inherently unfair that some people are able to enjoy healthy, wealthy, happy lives whilst others continue to live in ill-health, poverty and sorrow. For them it is the inequality in the outcomes of people’s lives that matters. For others it is the inequality in opportunity – the opportunity to achieve good outcomes – that is unfair.
GDP per capita - How useful is it?
GDP per capita - How useful is it?
Why GDP is a useful measure of development:
Economic growth drives other types of development
Advances in health and life expectancy can only be delivered by economic growth
Limitations of GDP as an indicator
The concept of development needs to consider social factors such as improving well-being and agency. As such indicators of health, education, human rights and environmental stewardship must also be considered to effectively assess quality of life and contentment. Traditional indicators such as life expectancy, infant and maternal mortality, literacy and healthcare are also very important.
GDP increases don't specifically include 'human development', though many argue it can be causal.
The relationship between income and life satisfaction is complex.
Life satisfaction increases rapidly with wealth when incomes are low to begin with.
When a medium level of income is reached, satisfaction increases only very slowly with additional income.
Some people are much more satisfied than their income would suggest whereas others are much less satisfied.
Self reported life satisfaction survey results, 2018 (scale of 1-10):
3.61 - Haiti (GDP per capita (2019), $2,905)
4.04 - Zambia (GDP per capita (2019), $3,470)
6.55 - Mexico (GDP per capita (2019), $19,796)
7.14 - Costa Rica (GDP per capita (2019), $19,642)
5.79 - Japan (GDP per capita (2019), $41, 429)
5.84 - South Korea (GDP per capita (2019), $42, 765)
Ghanaian, Pakistani and Japanese people have similar levels of life satisfaction despite having vastly different income levels. (between 82.5 and 86.4% of people identified as happy or rather happy 2014)
Other issues with GDP per capita as an indicator
Economic growth exploits natural resources, which negatively impacts environmental quality (which is part of development)
GDP gives a crude average which skews the income distribution. The majority of incomes could fall well below the mean, and a very wealthy minority raise the average. The degree of inequality can be determined using the Gini Coefficient.
The informal economy is not included in GDP or most economic measures - yet in Uganda this is estimated to produce 60% of GDP.
Countries which similar GDP may vary in life expectancy. E.g. Tajikistan 72.2 years, Lesotho 61.1
Human Development Index Map
Human Development Index Map
Winter 19 - Paper 42
Winter 19 - Paper 42
‘The best way of measuring inequality is the human development index (HDI).’
How far do you agree? [20]
Summer 15 - Paper 31
Summer 15 - Paper 31
Explain the causes of global inequalities in social and economic wellbeing and assess which causes are the most important. [15]
Summer 18 - Paper 42
Summer 18 - Paper 42
Evaluate the view that economic inequality is easier to measure than social inequality. [20]
1. Write down all the key words you would use to answer one of these questions
2. Outline any examples you would use to support your answer
3. Sketch any diagrams you would consider using
4. Write a conclusion
5. Check the mark scheme, and add any ideas you missed to your plan
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