Development and the Development Gap
Measuring Development
Development is the progress of a country in terms of economic growth and quality of life for its people. Countries are classified as:
- HICs (High Income Countries) — e.g. UK, USA, Japan, Germany
- NEEs (Newly Emerging Economies) — e.g. Nigeria, China, Brazil, India
- LICs (Low Income Countries) — e.g. Chad, Ethiopia, Afghanistan, Malawi
Development Indicators
| Indicator | What it measures | Limitation |
|---|---|---|
| GNI per capita | Average income per person per year | Hides inequality — a few very rich people can skew the average |
| Life expectancy | Average number of years a person is expected to live | Doesn't show quality of life or disease burden |
| Literacy rate | Percentage of adults who can read and write | Doesn't measure quality of education |
| Infant mortality rate | Deaths of children under 1 per 1,000 live births | Influenced by specific health issues, not overall development |
| HDI (Human Development Index) | Composite: GNI + life expectancy + education (scored 0–1) | Best single measure but still an average; hides regional inequality within a country |
| Birth rate / Death rate | Births/deaths per 1,000 population | Doesn't explain causes |
| People per doctor | Access to healthcare | Doesn't show quality of care or distribution |
The Demographic Transition Model (DTM) shows how a country's population structure changes as it develops through 5 stages — from high birth and death rates (Stage 1) to low birth and death rates (Stages 4/5).
The Development Gap
The development gap is the difference in levels of development between the world's richest and poorest countries. The gap is wide: the richest 10% of the world's population earn ~52% of global income while the poorest 50% earn just ~8%.
Causes of Uneven Development
Physical factors:
- Climate — extreme heat, drought, or flooding reduces agricultural productivity and health
- Natural hazards — frequent earthquakes, cyclones, or volcanic eruptions destroy infrastructure and divert resources to recovery
- Landlocked location — no coastline limits trade access (e.g. Chad, Nepal)
- Limited natural resources — or resources controlled by foreign companies
Human factors:
- Colonial history — exploitation of resources and people; borders drawn without regard for ethnic groups; economic structures set up to benefit colonial powers
- Conflict and political instability — war destroys infrastructure, displaces people, deters investment (e.g. Syria, South Sudan)
- Corruption — diverts aid and tax revenue away from public services
- Debt — many LICs owe large debts to HICs and international organisations; repayments consume money that could fund development
- Trade disadvantages — LICs often export cheap raw materials and import expensive manufactured goods (unfavourable terms of trade)
Strategies to Reduce the Development Gap
Aid
- Bilateral aid — government to government (can come with conditions/strings attached)
- Multilateral aid — via organisations like the World Bank or UN
- NGO aid — charities like Oxfam, WaterAid (often more targeted and effective)
- Emergency/short-term aid — disaster relief (food, shelter, medicine)
- Development/long-term aid — building infrastructure, training, education
- Criticism: can create dependency; may be tied to donor's interests; can prop up corrupt governments
Trade
- Fair trade — guarantees farmers a minimum price (e.g. Fairtrade coffee in Kenya/Ethiopia); provides a social premium for community projects
- Trading blocs — regional agreements reduce tariffs (e.g. EU, ECOWAS, ASEAN)
- Criticism: HIC subsidies on agriculture undercut LIC farmers; trade rules often favour HICs
Debt Relief
- HIPC (Heavily Indebted Poor Countries) Initiative — IMF/World Bank programme that reduced debt for qualifying countries (e.g. Tanzania's debt reduced by $6 billion, freeing funds for education and healthcare)
Microfinance
- Small loans to individuals (especially women) to start businesses (e.g. Grameen Bank in Bangladesh — over 9 million borrowers, 97% women; repayment rate ~97%)
- Empowers individuals; but interest rates can be high
Technology Transfer
- Sharing or adopting technology from HICs (e.g. mobile banking — M-Pesa in Kenya; solar panels for off-grid communities; improved agricultural techniques)
- Intermediate (appropriate) technology — simple, affordable, maintainable solutions suited to local conditions (e.g. hand pumps, clay pot irrigation, bicycle ambulances)