Development and Globalisation

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Development and Globalisation

Development

A process of social and economic advancement in terms of the quality of human life.

Development can involve can involve economic, demographic, social political and cultural changes.

Development is a term that can be used in many different contexts whether it is social, economical, political etc. However generally development refers to an improvement in certain areas:

• Economic

o An increase in the country’s economy with a shift from secondary to tertiary industry which becomes less dependent on FDI.

• Demographic

o An increase in population and a more ageing population as standard of living increases. Birth rates and death rates drop as life expectancy increases.

• Social

o An increase in the range of services, increased land prices and a more multicultural society. Greater access to education, health care and communication

• Political

o More democratic and more influence on the ‘global stage’. Stable government, no dictatorship.

• Cultural development

o Greater equality for women and better race relations in multicultural societies.

Measuring Development

GDP- Gross Domestic Product – the value of all the goods and services produced in a country in a year, in $US, usually expressed as “per capita” (per person). PPP (purchasing power parity)* figures are more useful.

*Adjusted for loss of living

GNP- The total value of goods and services produced by one country in a year, plus all net income earned from overseas sources, in $US.

HDI- Human Development Index:

It is a summary composite index that measures a country’s average achievements in three basic aspects of human development: health, knowledge, and a decent standard of living.

• Life Expectancy

• Literacy Rate

• Standard of Living (measured in GDP per capita)

It gives a more complete picture of development of a country than GDP alone as it considers social factors and not just economic factors.

Development Continuum

Originally there were three groupings that made up the development continuum, they were:

• First World (those developed countries that had a democratic government and a strong economy)

• Second World (communist countries)

• Third World (UN developed countries)

However as time has gone on newer economies have started to develop caused by different development patterns and speeds.

The Development gap

• The gap between rich and poor countries

• Most commonly, the gap is thought of in terms of income/economics

• It also social, environmental and even political aspects

There was a suggested North/South divide originating from the Brandt report in 1980, where the north accounted for 80% of GDP but only 20% of the population; however this too requires some artistic licence and is a very general way of dividing countries. There are more accurate ways of grouping countries as listed below and as countries move through the development continuum countries pass from one category to another:

• Developed (MDC’s – the most well developed countries eg. UK)

• Developing (Countries which are undergoing development – arguably they all are. Eg. Malaysia)

• LDC’s (Least Developed Countries – eg. Ethiopia)

• NIC’s (Newly Industrialised Countries – Have just finished development (10 years or so) Eg. China)

• RIC’s (Recently Industrialised Countries – Further behind than the NIC’s eg. Dubai)

• Centrally Planned Economies (The few remaining communist countries eg. North Korea)

• Oil Rich Countries (Countries rich in oil eg. Saudi Arabia)

Causes for the Development Gap

• Colonialisation – colonial powers took resources from poorer countries

• Price of commodities is often controlled by TNCs ensuring high profits for MEDC firms and low prices paid to...
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