14.1 National Development Flashcards
(52 cards)
Explain the stages of the Clark fisher model
- pre-industrial stage is dominated by primary sector employment such as agriculture, fishing, mining + other activities involving the extraction of raw materials
- the industrial stage revolves around a large manufacturing industry after experiencing a decline in the agriculture sector generally
- post industrial stage is dominated by the tertiary sector which involves the provision of services such as tourism, education + healthcare - development into this stage was facilitated by an increase in incomes so govt had greater tax revenue to invest in development of education + healthcare = creates a highly skilled workforce
Give an example for the pre-industrial stage
- Mali
- agriculture is still their largest economic sector, with crops such as maize + cotton being grown to be exported
- the pre-industrial stage is usually found in LICs due to their primary product dependency
Give an example for the industrial stage
- agricultural revolution in the UK caused a shift from primary to secondary employment
- mechanisation meant less workers were required in the farming industry, thereby encouraging rural-urban migration as employment moved towards the manufacturing sector with the Industrial Revolution
- china in 1980s experienced rapid economic growth from industrialisation + its successful manufacturing sector led to continued development into the tertiary sector but it still remains the biggest manufacturing nation in the world
Give an example for the post-industrial stage?
- the uk is one of the largest economies in the world with London being ranked as the most competitive financial centre
- the quaternary sector is growing at a fast rate in the UK, with the country having the highest share of global pharmaceutical research + development
Evaluation of the Clark fisher model
- some countries fit well e.g. UK experienced the changes displaced by the model + is now in the final stage of its quaternary sector growth
- BUT some countries have not undergone the ‘industrial stage’ of the model but their tertiary sector is still bigger than primary + secondary e.g. Jamaica
- model doesn’t consider globalisation = FDI from TNCs acts a catalyst for development rather than mechanisation + NICs are getting technology more than HICs that have already gone through the process
- model doesn’t consider impact of high levels of debt = LICs lack the money to invest in their infrastructure = limits FDI + development through stages
What’s a reason for the change in employment structure in HICs?
- outsourcing —> companies did this to save money by moving work abroad where labour costs are lower e.g. many British + American companies have outsourced their call centres to India
- it has been the revolution in information + communications technology that has enabled outsourcing to develop so rapidly
What is development?
- improvements in people’s quality of life, seen through factors such as wealth, health, education etc.
- seen in LICs when local food supply improves due to investment in farm machinery + fertiliser, electricity in rural areas, improvements in literacy rates etc.
What is the Brandt report?
- made 1890 to display the global differences in development
- claims there is the ‘rich north’ above the equator + ‘poor south’
- BUT = model deemed too simplistic due to there being many stages of development + country’s develop at different speeds
What are the different levels of economic development
- LDCs = 45 countries today
- LICs
- MICs
- HICs
What are the economic indicators of development?
- GDP/GDP per capita
- GNP
- GNI
- GNI PPP
What is GDP + GDP/capita?
- total value of goods + services produced by the country
- /capita = divided by the population
What is GNP?
- the total value of all goods and services produced by a country’s citizens in a given financial year, irrespective of their location
What is GNI?
- total value of goods + services produced by the country + income from other countries
What is GNI PPP?
- purchasing power parity
- converted to US dollars to make it comparable + then adjusted to the country’s cost of living to allow comparison between standards of living
What are the strengths of GNI PPP?
- facilitates comparison of standards of living between countries
- data collected over time so changes are taken into account
Limitations of GNI PPP
- it is an average = masks extremes of income inequality within a country
- e.g. Saudi Arabia has a high GNI due to having a few extremely wealthy people but the figure hides the large amounts of poverty that also exists
- e.g. Cuba has a low GNI ($7,879 in 2021) but a higher HDI (0.764) compared to others with the same GNI because of their communist govt which invests heavily in health + education = doesn’t take into account how govts invest the money
- doesn’t include informal sector or unpaid contributions to the economy
Strengths of GDP per capita
Limitations of GDP per capita
What is the Human Development Index?
way of measuring development using three indicators:
- life expectancy at birth (health)
- educational attainment (mean years of schooling for adults / expected years of schooling for children of entering age)
- GNI per person PPP (income)
What is the Human Development report?
- launched by the UN in 1990
- explores challenges including poverty, gender, democracy, human rights, globalisation, water scarcity etc,
- contains the HDI which displays the health, education + income levels of all countries
Strengths of the HDI?
- composite index (health, education + income) = combines social + economic data to calculate a figure to represent the level of development + therefore considers quality of life as well as just income
- produced annually by the UN as party of the HDR so it can be used to track changes in countries over time
Weakness of the HDI
- statistics are based on averages = hides wealth + quality of life distributions between people + regions
- e.g. Brazil = more development in SE (São Paulo) due to greater educational attainment than rural north
- doesn’t identify the quality of education in each country
- fails to consider rural + urban differences, as well as gender inequality —> e.g. Peru 95% of men + 84% women are literate in urban areas, compared to 88% men + 63% women in rural areas
What is the multidimensional poverty index?
- an international measure of multidimensional poverty that focuses on over 100 developing countries
- uses 10 indicators that covers health, education + living standards
- health = nutrition, child mortality
- education = years of schooling, school attendance
- living standards = cooking fuel, sanitation, drinking water, electricity, housing, assets
Strengths of the MPI
- provides very detailed data for the poorest countries = enables comparisons to be made both between countries + within countries
- allows areas that need focus on for funding be identified = able to design policies to meet the country’s needs