Development: a broad idea linked to improving Indicators
people’s quality of life (socially and politically) and
Human Development Index (HDI):
standard of living (economically)
A composite statistic of life expectancy, education and per capita
Indicators:
income used to rank countries into 4 tiers. The higher the HDI score i.e.
Economic the closest to one, the more developed a country is.
o GDP per capita
GINI Coefficient:
o GINI coefficient
Social A measure of income distribution of a nation’s residents – the most
o Death rate commonly used measure of inequality. The lower the score i.e. the
o Birth rate closest to zero, the more evenly distributed a country’s wealth is.
o Life expectancy
Corruption Perceptions Index (CPI):
o Adult literacy rate
o People per doctor A ranking of countries by their ‘perceived levels of corruption’ (the
Political misuse of public power for private benefit) based on data and public
o Democracy score opinion surveys and on a scale from 100 (very clean) to 0 (highly corrupt)
o Corruption perceptions index
Consequences of global inequality
Factors affecting global inequality
Lack of availability to pay for food, water and medicine
Physical environment o Poor health and sanitation leading to a low life
o Having access to the sea, landlocked, expectancy and a high death rate
mountainous - affects trade routes Lack of ability to invest in agriculture or industry
o Climate – tropical countries have o Food supply doesn’t keep pace with pop. – famine?
more diseases o Low number of exports limits economic growth
o Being prone to natural hazards – Lack of availability to invest in infrastructure, healthcare or
constantly coping with crisis education
(Neo) colonialism o Low standard of living
o Rich countries exploit poor countries o Limited productivity stifles economic growth
for their natural resources – creating Inability to read and write
unequal trade relationships o Low GDP due to lack of people working high level
Political and economic policies jobs
o Open economies – countries which o Lack of job opportunity – poverty
encourage investment from foreign Inability to access sanitation, contraception and other
countries – develop faster than closed healthcare needs
economies o Large population, bad healthcare and disease
o Foreign investment
Military conflict between or within nations
Creates jobs o Refugees leave country
Increases tax revenue
o Investment in weapons and not education and health
Encourages infrastructure
Vulnerability to natural disasters
development
o Dependence on foreign aid which stifles economic
o Political mismanagement and
growth
corruption lead to slower
Corrupt governments/businesses exploiting the most
development (like in Angola)
vulnerable
Social investment
o Rich - poor gap grows
o Nations which develop in healthcare
o Human rights infringed
and education develop quicker than
Environmental degradation through poor farming practices or
those that don’t (i.e. Sierra Leone)
resources exploitation
o A healthy, well educated workforce
o Air pollution impacts on health
would attract foreign investment and
o Food production decreases - famine
accelerate development
What’s Foreign Direct Investment (FDI)?
When a business in 1 country invests in another country. It’s a measure of how well the country’s economy is performing as
businesses are only likely to invest in a country if they believe they will make a profit and if the government offers incentives e.g.
lower tax levels.
India has seen a large increase in FDI since 1990 and Indian businesses are starting to undertake their own FDI in foreign countries.
, Examples of inequality Development theories
GDP per capita: Capitalism: an economic system whereby trade and industry are controlled by
private owners with the aim of making profit
Countries with the highest GDP per capita
(>$35 392) include USA, Canada, UK, Japan Socialism: an economic system whereby trade and industry are controlled by
the government with the aims of bringing benefits to all members of society
Countries with the lowest GDP per capita
(<$935) include India, Malaysia and lots of Colonialism: the practice of gaining control of another country and exploiting its
Africa due to the lack of technology and the resources for economic gain
exploitation of power Neo-colonialism: the modern-day practice of using economic pressures to
control another country, often with the aim of exploiting its resources
GINI Coefficient:
Countries closest to being equal include
Rostow’s Modernisation Theory
Scandinavia and Kazakhstan
Made by Walt Rostow who identified 5 stages of economic development. He
Countries with the biggest gap in wealth
stated that developing and emerging countries would all pass through these 5
include South Africa and Zambia which could
stages and explained that there was inequality because different countries were
be largely due to corruption at different stages of the model. He thought that capitalism was essential for
Wealth Distribution: economic development.
1. Traditional society
In Brazil, over 50% of the income is held by the
Limited technology
top 20% meaning that wealth isn’t evenly
Most people work in primary industry and in rural areas
distribution 2. Pre – conditions for take – off
The UK’s income is slightly more evenly A few low technology industries
Transport infrastructure is created
distribution but the bottom 20% still hold less
3. Take – off
than 10% of the income
Rapid growth of secondary industry
Hunger Map: Better infrastructure
Steady growth in economy
Countries with less than 5% of the population Banking and trade develop to support growth
undernourished includes most countries 4. Drive to maturity
above the Brandt line New industries develop to replace old, outdated ones
Economic growth extends to all parts of the economy
Countries with more than 35% of the 5. High mass consumption
population undernourished includes North The economy is self – sustaining because people buy lots of
Korea, Haiti and Zambia due to a lack of products and services which keep businesses going
natural resources or rationing Welfare is fully developed
Trade continues to expand
Water withdrawals per person:
Countries who withdraw the least water
Frank’s dependency theory
include central Africa and Papua New Guinea
Frank believed socialism was a fairer system than capitalism - because
Countries who withdraw the most water
developed countries benefitted more as they buy raw materials from developing
include USA, Australia, Canada and the middle
countries at low prices and sell manufactured goods at high prices – and
east
colonialism – because he thought its caused poverty in developing countries due
Global Peace Index: to developed countries exploiting their natural resources
Countries with the highest global peace index Rostow’s theory Frank’s theory
include countries in Northern Europe, Japan,
Australia and Canada Assumes that all countries Some countries which were
start with the same never colonised remained poor
Countries with the lowest global peace index resources e.g. Ethiopia
include Russia, Sudan and Central African Assumes there’s only one Some countries that adopted
Republic set path to development socialism remained poor e.g.
‘take off’ stage has proved Tanzania
very difficult to achieve Some poor countries have
managed to develop e.g. South
Korea
people’s quality of life (socially and politically) and
Human Development Index (HDI):
standard of living (economically)
A composite statistic of life expectancy, education and per capita
Indicators:
income used to rank countries into 4 tiers. The higher the HDI score i.e.
Economic the closest to one, the more developed a country is.
o GDP per capita
GINI Coefficient:
o GINI coefficient
Social A measure of income distribution of a nation’s residents – the most
o Death rate commonly used measure of inequality. The lower the score i.e. the
o Birth rate closest to zero, the more evenly distributed a country’s wealth is.
o Life expectancy
Corruption Perceptions Index (CPI):
o Adult literacy rate
o People per doctor A ranking of countries by their ‘perceived levels of corruption’ (the
Political misuse of public power for private benefit) based on data and public
o Democracy score opinion surveys and on a scale from 100 (very clean) to 0 (highly corrupt)
o Corruption perceptions index
Consequences of global inequality
Factors affecting global inequality
Lack of availability to pay for food, water and medicine
Physical environment o Poor health and sanitation leading to a low life
o Having access to the sea, landlocked, expectancy and a high death rate
mountainous - affects trade routes Lack of ability to invest in agriculture or industry
o Climate – tropical countries have o Food supply doesn’t keep pace with pop. – famine?
more diseases o Low number of exports limits economic growth
o Being prone to natural hazards – Lack of availability to invest in infrastructure, healthcare or
constantly coping with crisis education
(Neo) colonialism o Low standard of living
o Rich countries exploit poor countries o Limited productivity stifles economic growth
for their natural resources – creating Inability to read and write
unequal trade relationships o Low GDP due to lack of people working high level
Political and economic policies jobs
o Open economies – countries which o Lack of job opportunity – poverty
encourage investment from foreign Inability to access sanitation, contraception and other
countries – develop faster than closed healthcare needs
economies o Large population, bad healthcare and disease
o Foreign investment
Military conflict between or within nations
Creates jobs o Refugees leave country
Increases tax revenue
o Investment in weapons and not education and health
Encourages infrastructure
Vulnerability to natural disasters
development
o Dependence on foreign aid which stifles economic
o Political mismanagement and
growth
corruption lead to slower
Corrupt governments/businesses exploiting the most
development (like in Angola)
vulnerable
Social investment
o Rich - poor gap grows
o Nations which develop in healthcare
o Human rights infringed
and education develop quicker than
Environmental degradation through poor farming practices or
those that don’t (i.e. Sierra Leone)
resources exploitation
o A healthy, well educated workforce
o Air pollution impacts on health
would attract foreign investment and
o Food production decreases - famine
accelerate development
What’s Foreign Direct Investment (FDI)?
When a business in 1 country invests in another country. It’s a measure of how well the country’s economy is performing as
businesses are only likely to invest in a country if they believe they will make a profit and if the government offers incentives e.g.
lower tax levels.
India has seen a large increase in FDI since 1990 and Indian businesses are starting to undertake their own FDI in foreign countries.
, Examples of inequality Development theories
GDP per capita: Capitalism: an economic system whereby trade and industry are controlled by
private owners with the aim of making profit
Countries with the highest GDP per capita
(>$35 392) include USA, Canada, UK, Japan Socialism: an economic system whereby trade and industry are controlled by
the government with the aims of bringing benefits to all members of society
Countries with the lowest GDP per capita
(<$935) include India, Malaysia and lots of Colonialism: the practice of gaining control of another country and exploiting its
Africa due to the lack of technology and the resources for economic gain
exploitation of power Neo-colonialism: the modern-day practice of using economic pressures to
control another country, often with the aim of exploiting its resources
GINI Coefficient:
Countries closest to being equal include
Rostow’s Modernisation Theory
Scandinavia and Kazakhstan
Made by Walt Rostow who identified 5 stages of economic development. He
Countries with the biggest gap in wealth
stated that developing and emerging countries would all pass through these 5
include South Africa and Zambia which could
stages and explained that there was inequality because different countries were
be largely due to corruption at different stages of the model. He thought that capitalism was essential for
Wealth Distribution: economic development.
1. Traditional society
In Brazil, over 50% of the income is held by the
Limited technology
top 20% meaning that wealth isn’t evenly
Most people work in primary industry and in rural areas
distribution 2. Pre – conditions for take – off
The UK’s income is slightly more evenly A few low technology industries
Transport infrastructure is created
distribution but the bottom 20% still hold less
3. Take – off
than 10% of the income
Rapid growth of secondary industry
Hunger Map: Better infrastructure
Steady growth in economy
Countries with less than 5% of the population Banking and trade develop to support growth
undernourished includes most countries 4. Drive to maturity
above the Brandt line New industries develop to replace old, outdated ones
Economic growth extends to all parts of the economy
Countries with more than 35% of the 5. High mass consumption
population undernourished includes North The economy is self – sustaining because people buy lots of
Korea, Haiti and Zambia due to a lack of products and services which keep businesses going
natural resources or rationing Welfare is fully developed
Trade continues to expand
Water withdrawals per person:
Countries who withdraw the least water
Frank’s dependency theory
include central Africa and Papua New Guinea
Frank believed socialism was a fairer system than capitalism - because
Countries who withdraw the most water
developed countries benefitted more as they buy raw materials from developing
include USA, Australia, Canada and the middle
countries at low prices and sell manufactured goods at high prices – and
east
colonialism – because he thought its caused poverty in developing countries due
Global Peace Index: to developed countries exploiting their natural resources
Countries with the highest global peace index Rostow’s theory Frank’s theory
include countries in Northern Europe, Japan,
Australia and Canada Assumes that all countries Some countries which were
start with the same never colonised remained poor
Countries with the lowest global peace index resources e.g. Ethiopia
include Russia, Sudan and Central African Assumes there’s only one Some countries that adopted
Republic set path to development socialism remained poor e.g.
‘take off’ stage has proved Tanzania
very difficult to achieve Some poor countries have
managed to develop e.g. South
Korea
