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Terminologies
Characteristics of Development
Advantages Disadvantages
Serves as a useful guide for Fails to explain rapid growth rates of 4 Asian Tigers
development plans
Spread effect shows potential diffusion Some periphery countries still depend on core
of economic pull to periphery countries for trade and investments (eg Phillipines on
USA), indicating limitations of spread effect.
Can be applied for planning between Failed to give indication of possible financial
core and periphery eg. Transportation meltdown in core (eg. Collapse in demand for
Decentralisation from core to periphery Singapore-produced electronic products in core
stimulates growth of periphery , closing (USA) contraction of Singapore’s trade by 35% in
income gap enhances equitable Jan 2009)
wealth distribution
Advantages and Disadvantages of HDI
Advantages Disadvantages
Used by United Nations Development In LDCs, especially in rural areas, data is not
Programme to measure development level available easily, estimates of people’s income
of a country (High HDI = 0.800 – 1.000, due to informal activities may cause
Medium HDI = 0.500 – 0.799, Low HDI = inaccuracies and distortions in the final HDI
0.499 & below) value.
Useful as it is a comprehensive indicator Fails to take into account immeasurable
talking into account economic wealth, aspects of development reflecting quality of life
standard of living and quality of life, thus like religious freedom, freedom of speech,
being a more balanced measurement human rights and sense of security
talking into account most aspects of
development
Time lag Takes about 2 years to collect and
publish data, so date becomes outdated, giving
an inaccurate picture of the present
development level
Measurements of Development
Advantages Disadvantages
Can be used to measure It is just an average figure and does not show individual and
the development of a regional income differences; does not reflect income gap
country
Can be used to measure Does not take into account cost of living (eg. Cost of living in
the economic Malaysia cheaper than that of Singapore); Inflation is not
development of a country considered
Does not reflect informal economic activities like baby-sitting,
home tuition
Does not take into account social and environmental costs
brought by economic growth
Economic Indicators
Heath Indicators
Educational Indicator
CHAPTER 2 : REASONS FOR VARIATIONS IN DEVELOPMENT
Historical Factors
Physical Factors
Raw Countries rich in raw materials like timber, minerals and oil tend to
materials develop much faster than countries with limited resources as they are
able to earn money from the sale of raw materials which is channelled to
improving infrastructure like schools, roads, water treatment plants etc
Eg. Norway which is rich in timber and crude oil has GDP per capita of
US$ 95600 and the highest HDI value in the world
Eg. Oil-rich Briunei has a GDP per capita about US$37,100
Exceptions
Singapore has no resources but her success in industrialisation and port
development was due to her strategic locations, so it has a high HDI
value and GDP of US$37,100
Nigeria which is rich in crude oil is a less developed country because oil
wealth is mismanaged by leaders for personal enrichment, developed of
urban areas instead of poor rural areas, environmental damaged due to
exploration of oil resulting in contamination of water
Climate Climate : pattern in the condition of the atmosphere over a period of 30
years
Temperate countries tend to have a higher HDI value and rank
Tropical Sub-Saharan African countries tend to have very low HDI value
and rank
However, with tech advancement, temperate crops can also be grown in
tropical countries as temperature and water amt can be controlled in
glasshouses eg. In Singapore. But this is usually done on a small scale
Many less developed countries do not have the funds to invest in
modern farming technology
Sub-Saharan African countries like Ethiopia vulnerable to droughts
resulting in crop failure and loss of income. Slow development GDP per
capita of US$324
Not all countries can afford flood management and drought management
measures
China’s Three Gorges Dam effective in reducing occurrence of floods
which can destroy properties, infrastructure, life and crops
Countries which are prone to floods have low GDP per capita due to
restoration efforts eg. Bangladesh (US$506)
Climatic conditions can be overcome using technology given that the
country has enough funds to invest leading to a greater level of
development
Economic factors
Environmental Factors
Natural natural disasters like earthquakes, floods and droughts cause great
Disasters damage to a country
However, responses differ greatly between DCs and LDCs
DCs : have resources and manpower to deal with and help victims
recover quickly eg. Hurricane Kartrina hit USA in 2005, USA responded
without external assistance
LDCs : Need external help as they do only have limited resources and
manpower (eg. During volcano eruptions and earthquakes near
Yogyakarta, Indonesia, foreign aid was needed, with UN planning a 6-
month relief effort as well as World Bank pledging US$60 million)
Eg. 2004 Indian Ocean Tsunami: Relief efforts poured into Sumatra for
relief efforts including Singapore, funds still being used for reconstruction
efforts despite economic develop.
Eg. Bangladesh (floods), Ethiopia/Somalia (droughts) : limited funds
have to be diverted to relief efforts, further diminishing funds, hindering
development process
Exception
Although Indonesia suffers from volcanic eruptions, the fertile volcanic
ash boosts its agricultural productivity.
Low-lying Mekong floodplains subject to floods but they replenish fertile
alluvium, increase productivity and thus income of farmers.
Social Factors
Education Assess the literacy rate of a country
DCs : high adult literacy rate wealth accumulation as ppl are engaged
mostly in tertiary industry (high-paying technological, managerial and
entrepreneurial positions) eg. Japan/UK/ Germany with a literacy rate of
99.9% with a high GDP per capita
LDCs : low literacy rate low revenue as large proportion of the people
are engaged in primary industries (low-paying jobs that do not require
much expertise eg. Agriculture / mining)
eg. Sierra Leone has literacy rate of about 30% generating low income
as children are regarded as farm hands (lack of funds to build schools)
as well as civil war GDP/capita of US$330
Low education level hinders acquisition of technological skills and
employment in high-paying jobs shortage of skilled labour hinders
industrialisation
trend : more women are literate and are able to emphasise the need to
bring up healthy children who are educated stronger influence on
development level
Population LDCs like Sub-Saharan African countries believe in superiority of men
rapid population increase in countries like Kenya, Ethiopia, Nigeria and
Bangladesh with an average of about 2.7-2.8% causing overpopulation
and strain on resources
Large population and high birth rate hinder development as resources
are channelled for basic necessities like food, medicine and housing,
resulting in limited resources for economic development
DCs : low population growth rate like Norway, Japan, Italy due to higher
cost of living, demands of bringing up children, career-minded parents
and change in lifestyle
Low growth rates can cause problems with development as ageing
population may result due to reduction in availability of workforce,
limiting progress in industrialisation
Ageing population : strain on working population as resources have to
be channelled to geriatric care instead of economic development eg.
Sweden, Germany, France, Japan, S’pore
Political factors
Conflict usually in the form of war due to political issues which cause political
instability
Cambodian civil war between the Sihanouk govt and Cambodian
communist movement; attempt to form Communist peasant farming
society cause economy to suffer; business disrupted as urban dwellers
force to migrate to rural areas; death of about 1.7 million Cambodians
under communist regime; Cambodia-ward torn and Angkor Wat in ruins,
prevent tourists from visiting the country reducing development
(tourism industry and economy)
Pakistan/Afghanistan : political instability due to being prone to terror
tactics with low GDP per capita of lesser than US$1000
Sweden political stability and peace : very high GDP/capita : US$67,380
Leadership Leadership defined as goal of the government of a country eg.
Implementing policies
DCs tend to have a more stable and efficient government
Eg. Norway with high GDP per capita of US$95,000/capita has a stable,
perceptive and forward-looking leadership which enforces the sharing of
the country’s oil wealth with citizens from imposing a profit ceiling on oil
producers
Eg. China’s modernisation programme in late 1970s under effective
leadership of Deng Xioping as well as ‘open door policy’ that attracted
foreign trade and investments; China-Singapore Suzhou Industrial park
LDCs : corrupt leaders in public administration with mis-management of
funds for personal gain; shooing foreign investors away, hampering
industrial development
Eg. Nigeria, largest oil producer in Africa undeveloped with low SOL and
QOL with GNP/capita of only US$1405
Eg. Corrupt and non-transparent administration in Myanmar as ruling
military Junta is also politically corrupt GDP/capita : US$ 462
CHAPTER 3 : STRATEGIES TO ALLEVIATE UNEVEN DEVELOPMENT