Jul 29, 2010 23:15
i figured, that if i were to type main points here, i might remember better.
Core-periphery theory
the core country imports raw materials from the periphery country. as these materials are not processed, they're sold to the core country at low prices. the core country processes the raw materials into useful products, adding value to it.
the finished products are then sold to the periphery country at higher prices, thus making profit.
many people in the periphery country purchase the finished products from the core country because it is cheaper than buying the same products produced in their own country. this is because the production cost is cheaper in core countries since their government is wealthy enough to provide subsidies for manufacture costs.
periphery countries cannot compete with the core country, thus, unable to make much profit to contribute to their economic growth. meanwhile, the core countries continue to develop quickly, creating an increasing disparity between them.
Assessing the levels of development
Human Development Index (HDI) takes into consideration: employment structure, life expectancy, literacy rates.
Limitations: inaccurate for LDCs, where it is more difficult to obtain data. does not measure human rights and freedom.
Development Indicators
income per capita
-average income each worker in a country receives in a year
-measured from Gross Domestic Product (GDP), the total income generated by a country in a year
-GDP per capita, the economic wealth of a country measured in terms of total value of the good and services produced by each person of a country, is used to compare the wealth of different countries (population different).
employment structure
-primary industry contributes relatively little to a country's wealth as they do not generate much income.
-a country with more of its population in the secondary and tertiary industries is usually wealthier and more developed as compared to a country with a larger work force in the primary industry.
employment opportunities
-availability of jobs in a country
- more opportunities >> more people able to find jobs >> income per capita increases
-people able to afford more goods and services
-standard of living + quality of life increases.
-demand for goods and services will also increase as people want to improve their living conditions
-more jobs will be created!
-tertiary and secondary industry expands.
-in LDCs, there is little demand for goods and services as they cannot afford them.
-people in LDCs tend to find jobs in DCs, draining the periphery countries of their workforce. DCs will in turn benefit from the additional talent on their workforce, generating more wealth.
-however, the cost of setting up factories in LDCs is cheaper than in DCs, thus, many businesses are setting up factories in LDCs, creating jobs for the people in LDCs.
Life expectancy
-as a country develops, people have enough food to eat
-live in a clean environment and better access to healthcare
-poor health lowers the productivity of the workforce, affecting the production of goods and services.
-hence lowering the country's GDP.
-goverment is unable to set up proper publicj health care system with the lack of national income.
-LDCs unable to improve health conditions of their population.
eg. Sierra Leone
Infant mortality rate
- the rate at which the number of babies less than a year old dies for every 1000 live births.
- DCs have proper health care amenities (clinics, hospitals and medical research centres)
Water supply
-provision of clean and drinkable water for the people.
-essential for survival, cooking, farming, manufacturing.
-in DCs, clean drinking water is supplied by pipes to homes.
-water is treated at water treatment plants to ensure that bacteria and impurities are removed.
-many people in LDCs lack access to clean water a they cannot afford water piped to their homes.
-water is unsafe for drinking when not treated properly.
-lack of clean water supply >> poor standard of living and quality of life
-many are prone to water-borne diseases (cholera, polio)
sanitation
-access to sanitation allows people to dispose of human waste hygienically
-proper sanitation facilities >> toilets with proper flushing and waste disposal systems
-when human waste is left on open ground, people are exposed to bacteria in the waste.
-it contaminates the environment and water >> causing widespread diseases (dysentery)
-waste may seep into ground and contaminate groundwater or be washed by rain into rivers, contaminating them.
-people relying on these water sources have risks.
literacy rate
-percentage of adults (above 15) in a country who can read and write
-important to be efficient in using technology (computers) >> secondary & tertiary industries >>$$$ >>standard of living improves
-enables people to enjoy literature and fine arts >> quality of life improves.
-in LDCs, people do not have proper knowledge and skills to contribute to the economic development of the country.
-workforce not as technologically savvy.
-lesser wealth generated for the country.
factors for uneven development
(historical)
colonialism
-the domination of a more powerful country over another.
-colonial powers wanted to obtain raw materials that cannot be found or grown in their own country.
-raw materials can be used to manufacture useful products >> valuable $$
eg. portuguese and angola.
-portuguese set up plantations to exploit physical conditions and availability of labour there.
-climate and soil conditions in Angola was suitable for growing cash crops like cotton, coffee and cocoa.
-cash crops are highly valuable and were exported to Europe for sale.
-strong trading relationship between them
-with advancements in technology, portugal was able to add value to these raw materials by converting them into useful products
e.g cotton manufactured into clothing and sold at a higher price.
-colonial powers became richer, expanding and developing their economy.
-colonies developed slowly as they continued to export low value raw materials, gaining little profit.
*disparity in development continued when they continued to developed their technology and industrialise further.
(physical)
Presence of raw materials
-natural resources use to manufacture products
-in general, countries with plenty of raw materials develop faster as money earned from selling the raw materials can be spent on projects to develop the country. (improve infrastructure - roads,housing,water treatment plants, sewage systems)
-however, it is not a guarantee.
e.g Nigeria
-discovered crude oil and was sold at high prices.
-yet, majority of the people in rural areas remain poor because money earned from oil exports was mainly used to develop urban areas instead of improving the lives of the poor.
climate
-influences the type of natural vegetation that grows in a particular place.
-cool and moist climate in canada and US is suitable for growing wheat and oat.
*grow for sale in their countries and exports
-advancements in technology overcame limitations of climate.
-possible to control the physical conditions of the greenhouse and nurseries of crops
*sunlight, tempertature,water
-not all countries have access to modern technology (LDCs)
-Droughts in Mali - insufficient water for agricultural activites that could be a source of income
-Floods in China, every year along yellow river
-LDCs lack money and resources to control floods and rebuild areas damaged by floods.
- take a longer time to recover, development slowed down.
-mainly occurs in rural areas, destroying homes and farms.
these people have to constantly rebuild their lives and livelihoods>>low standard of living
(economic)
cumulative causation
-how the movement of people and resources from the periphery area increases the wealth of core area.
-core recieves investment, allowing development >> development attracts workers from periphery >> demand for goods and services increase with more people >> encourages further investment >> expansion of new businesses and economy >> infrastructure and services expand to meet needs >> increase in general wealth of people.
-periphery drained of labour >> development hindered
(backwash effect)
-benefits gained from development will spread from core to periphery.
-when governments deliberately encourage investments that bring about economic developement to periphery
(spread effect)
e.g. automoblie industry in thailand.
(social)
education
population growth rate
-when a country's population increases quickly, people tend to face insufficient food and housing.
-e.g kenyam nigeria (LDCs)
-in DCs, married couples have fewer children and tend to spend more time and energy to advance int heir careers >> economy grows.
(political)
Political conflict
e.g cambodia
cambodia's economy suffered greatly due to a civil war.
-business disrupted (people forced out of major cities and towns to live in the countryside), many innocent people were killed, those who survived had little possessions so start their lives all over again, touritsts avoided the country.
-lack of political stability deters investors from setting up businesses.
e.g switzerland
-long history of political stability peace.
-many local businesses flourished, overseas investors.
leadership
-process of setting directions, motivating people into action and working towards a common goal.
-good leadership = important
-countries with well economic, health and education sectors are run by governments made up of capable people who are efficient and development orientated.
-dedicated to meet needs and aspirations of people.
e.g norway
-government cares for economic development and well being of its people.
-petroleum, major source of income for norway.
government realised that this can benefit not only the petroleum companies but also the citizens.
-set a profit cap for petroleum producers. rest of the money goes to the people of norway.
-ensured that wealth generated is shared among its citizens.