Development
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What is development
Development is the progress of a country in terms of economic growth and quality of life for its people.
Development is multi-dimensional — a country can be economically wealthy but still have poor healthcare or education.
What is development — Key Knowledge
- Development improvement in living standards and quality of life
- Not just about wealth includes health, education, freedom, equality
- Uneven globally some countries are far more developed than others
Economic indicators
Measures of a country's wealth and economic output.
GNP/GDP per capita are widely used but hide inequality — a high average can mask extreme poverty.
Economic indicators — Key Knowledge
- GNP per capita Gross National Product divided by population — total value of goods and services produced including income from abroad
- GDP per capita Gross Domestic Product — only counts domestic production
- Measured in US dollars for international comparison
Social indicators
Measures of quality of life beyond just wealth.
Social indicators often reveal more about daily life than economic ones — a country with high GNP but poor healthcare still has problems.
Social indicators — Key Knowledge
- Life expectancy average number of years a person is expected to live
- Literacy rate percentage of adults who can read and write
- Infant mortality rate number of babies per 1,000 who die before their first birthday
- Access to clean water percentage of population with safe drinking water
Human Development Index
A composite measure combining several indicators into a single score.
HDI is considered more reliable than GNP alone because it measures quality of life, not just economic output.
Human Development Index — Key Knowledge
- HDI combines life expectancy, education — mean and expected years of schooling, income — GNI per capita
- Scored 0 to 1 closer to 1 = more developed
- Advantages more balanced than a single indicator; accounts for health, education and wealth
- Limitations still an average — hides inequality within a country
Inequalities between countries
There are significant differences in development between countries globally.
The reasons for the development gap are complex — historical (colonialism), geographical (climate, resources), political (governance, conflict) and economic (trade, debt).
Inequalities between countries — Key Knowledge
- Development gap difference in wealth and quality of life between the richest and poorest countries
- North-south divide general pattern — more developed countries tend to be in the "north", less developed in the "south"; this is a simplification with many exceptions
Inequalities within countries
Even within a single country, there can be large differences in wealth and development.
National averages hide internal inequalities — important to look at the distribution of wealth and services.
Inequalities within countries — Key Knowledge
- Urban-rural divide cities often more developed than rural areas
- Regional inequality some regions have more investment, jobs and services
- Social inequality gaps between rich and poor within the same city or country
Economic sectors
All jobs can be classified into one of four economic sectors.
The balance between sectors tells you a lot about a country's level of development.
Economic sectors — Key Knowledge
- Primary sector extracting raw materials — farming, fishing, mining, forestry
- Secondary sector manufacturing — processing raw materials into products, construction
- Tertiary sector services — shops, schools, hospitals, transport, banking
- Quaternary sector knowledge and research — IT, scientific research, media, consultancy
Employment structure and development
The proportion of workers in each sector changes as a country develops.
Employment structure models show this shift — but not all countries follow the same path at the same speed.
Employment structure and development — Key Knowledge
- LEDCs majority in primary sector — farming, mining
- Industrialising countries growing secondary sector — factory work, construction
- MEDCs majority in tertiary and quaternary sectors — services, IT, research
- As development increases primary shrinks due to mechanisation; secondary grows then shrinks; tertiary and quaternary dominate
Globalisation
The increasing connections and interdependence between countries worldwide.
Globalisation means what happens in one country increasingly affects others — economically, culturally and environmentally.
Globalisation — Key Knowledge
- Globalisation the process by which the world is becoming more interconnected through trade, communication, culture and travel
- Causes improved transport — containerisation, cheaper flights; improved communication — internet, mobile phones; free trade agreements; transnational corporations operating across borders
Transnational corporations
Companies that operate in more than one country, usually with headquarters in a developed country.
TNCs are a major driver of globalisation — they link economies across the world but the benefits are not always equally shared.
Transnational corporations — Key Knowledge
- TNC a company with operations in multiple countries — e.g. Nike, Apple, Shell, Unilever
- Advantages for host country creates jobs, investment, infrastructure, tax revenue, technology transfer
- Disadvantages for host country profits sent abroad, low wages, poor working conditions, environmental damage, local businesses can't compete
Case study required
The spec requires a named TNC example.
The case study should show both positive and negative impacts with specific detail.
Case study required — Key Knowledge
- A transnational corporation and its global links where it operates, what it produces, benefits and disadvantages for host countries