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UNIT 7: DEVELOPMENT

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  1. UNIT 7: DEVELOPMENT

  2. Contents • Whatisdevelopment? • The causes of economicunderdevelopment • Types of inequality • Overcomingunderdevelopment • Poverty and exclusion in Spain

  3. Keywords • Genderinequality: desigualdad de género (hombres/mujeres). • Foodconsumption: consumo alimentario. • Energyconsumption: consumo energético. • Childexploitation: explotacion infantil. • UN (UnitedNations): Naciones Unidas. • IMF (International MonetaryFund): Fondo Monetario Internal. • NGO (Non-governamentalorganisation): ONG. • WTO (WorldTradeOrganisation): Organización Mundial del Comercio). • Customduties: impuestos aduaneros. • Fairtrade: comercio justo. • Fairprice: precio justo. • HDI (Human DevelopmentIndex), IDH (Índice de Desarrollo Humano). • Lifeexpectancy: esperanza de vida. • Adultilliteracyrate: tasa de analfabetismo adulto. • Stardard of living: calidad de vida. • Emergingcountries: países emergentes. • Technological gap: diferencia/desfase tecnológico. • Famine: hambruna. • Externaldebt: deuda externa. • GDP (GrossDomesticProduct): PIB (producto interior bruto). • Infantmortality: mortalidad infantil.

  4. 1. Whatisdevelopment • Less developed countries have a low per capita income and low levels of consumption. Infrastructures and services are acarce and unavailable to most of the inhabitants. Life expectancy and educational levels are low. The prospects for economic development in the near future are low. Most of these countries are in Sub-Saharan Africa. How do we measure human development? The development of a country is calculated by taking into account its wealth, and other factors like life expectancy, the population’s access to health care and the literacy rate. It can be measured in different ways: • HDI (Human Development Index (HDI): developed by the United Nations, it evaluates human development in a scale from 0 to 1. • HPI (Human Poverty Index): it measures social deprivation in three areas: life expectancy, adult literacy rate and decent standard of living. Conuntries according to their development • Developed countries, have a high per capita income which favours the consumption and economic growth. They have also advanced industries, modern infrastructures and quality services. • Emerging countries: infrastructures and services are still deficient and educational levels low but they are acquiring a level of production and wealth for joining developed.

  5. 2. The causes of underdevelopment • The colonial legacy • Manylessdevelopedcountrieswerecolonies of theEuropeanpowers. Followingindependence, manyexcoloniesstillhadfinancial, industrial and technologicaldependenceonrichcountries. TheirecnomieswereunderdevelopedbecauseEuropeanswereonlyinterested in rawmaterials and cheaplabour. The new statesalsofacedpoliticalproblems: corruption, authoritarian rule, instability and armedconflicts. • Thetechnological gap • Lessdevelopedcountries do nothavetheirowntechnology. In adittionthey are unabletomakeeffective use of thetechnology of developedcountries. Thismakethemuncompetitive in theworldmarket. • Population • In lessdevelopedcountries, thepopulationgrows at a fasterratethanresources (demographicexplosion). Thismeansthatincomeisinsufficienttosatisfythebasicneeds of thepopulation. In adittion, disease and faminehave a seriouslong-termimpact. • Externaldebt • Externaldebtisthemoneythat a country owestoanother country orinternationalinstitutions. Lessdevelopedcountrieshavelessexternaldebtthandevelopedcountries, buttheyfindit more difficulttorepaytheirdebt. In consequence: • Theyaskfor new credicts, whichincreasestheirdebt. • They reduces investment in themodernisation of theireconomies. • Theyoverexploittheir natural resources in ordertoincreaseexports. • They reduces publicspendingonbasicserviceslikehealth and education. • Armedconflicts • Economicinterests (such as control of natural resources) and ethnic and religiousdifferenceshaveledtoarmedconflicts. Some of themhavelastedformanyyeras and weredevastating.

  6. https://www.economist.com/content/global_debt_clock

  7. 3. Types of inequality • Unequaldistribution of wealth • GDPisoftenusedtomeasure a country’sdevelpment. GDP per capitaisthevalue of goods. Lessdevelopedcountries do nothavetheirowntechnology. In adittionthey are unabletomakeeffective use of theandservices produce in a country in a yeardividedbythenumber of inhabitants. • GDP per capita shows thewealth of a country’speoplebutnotthediffrencesamongthem. Thesedifferences are greater in countrieswhichnotredistributetheirwealth; forexample in Brazilisgreaterthan UK. • Contrasts in consumption • Whilethereisconsumerism in richsocieties, poorsocietieslivenearsubsistencelevels. Thisisreflected in consumption of food, consumergoods and energy. • Foodconsumption, in developedcountriespeople consume many more calories, and somecountriessufferfromanepidemic of obesity; in contrast, in lessdevelpedcountries a largeproportion of thepopulationsuffersfrommalnutrition. Thesedifferences are evengreater in theconsumption of goods, services and energy. • Inequality in healthcare • Illnesses. In lessdevelopedcountries, millions of people die everyyearfromillnesses (like AIDS or malaria) whichcould be preventedorcured. • Maternal mortality. In lessdevelopedcountries, manywomen die fromcomplicationsduringpregnancy and birth • Infantmortality. Since 1990, therate of global infantmortality has fallen from 50 deaths per thousandinhabitantsto 42 in 2011. Even so, 7 millionchildrenunder 5 die everyyear.

  8. Social inequality • Genderinequality. Inequalitybetweenmen and women has majorconsequences in emerging and lessdevelopedcountries. In someparts of Asia and Africa, discriminationagainstwomendeprivesthem of legal rights and basic human rights. Womenoftenhavebadlypaidjobs. • Educationalopportunities. 84% of world’spopulation of 15 years and overisliterate, thatis, abletoread and write. However, in lessdevelopedregions, there are countrieswithmuchlowerliteracyrates. • Childexploitation. There are 215 millionchildren in theworldwhoworkinstead of goingtoschool. Most of thesechildren do unpaidagriculturalworktohelptheirfamilies.

  9. World map of countries shaded according to the literacy rate for all people aged 15 and over (2015)

  10. 4. Overcomingunderdevelopment • ForeignAid • Lessdevelopedcountriesreceiveforeingaidfromthreemainsources: internationalorganisations, developedcountries and NGOs. • International organisationsliketheUnitedNations (UN)and theOrganisationforEconomicCooperation and Development (OECD)contributetoworlddevelopment. Theyprovidecredits at lowinterest and donations. The International MonetaryFund (IMF) provideloansforcountries in deep crisis but in returncountries are oftenrequiredto reduce governmentspending as a conditionforreceivingloans. • Directaidfromdevelopedcountries: In 1980 themostadvancedcountriesagreedtodonate 0,7% of their GDP toforeignaid. So far, onlyDenmark, theNetherlands, Luxembourg, Norway and Swedenhavemetthis target. • AidthroughNGOs: Non-gubernamental organisations (OXFAM) are private non-profitorganisationswhichorganiszehumanitarianaid and developmentprojects in thepoorestcountries. • Governmentmanagement • Governmentmanagementshould be transparent and accountable. Effectivegovernmentaladministrationattractsforeignaid and investments. Thispromoteseconomicgrowth. TheWorld Bank and theEuropeanUnion base theiraidsonreformstogovernment. Theygrantaidif a country reduces corruption, ensures free competition, respectsprivateproperty and freedom of information and establisheseffectiveadministration. • Fairtrade • TheWorldTradeOrganisationestablishesthe rules forinternationaltrade. Theglobalisation of theeconomy has ledtotheliberalisation of internationalmarkets, which has had a negativeeffectonlessdevelopedcountries:

  11. Thedevelooped and emergingcountriessell more rawmaterials and agriculturalproductsthanlessdevelpedcountriesbecausetheirproductionsystems are more efficient. Consequetly, salaries staylow in lessdevelopedcountries, causingdeprivation. • Many of theexports of lessdevelped are in thehands of multinationalcompaniesbased in developedcountries. As a result, lessdevelopedcountriesfailtobefnefitdirectlyfromtheirown natural resources. • International agreementstoprotecttheenvironment, such as Kyoto, commitcountriestoreducingpollution, respectingbiodiversity and exploitingresources in a sustainableway. Howeves, thisaffectslessdevelopedcountriesto compete becauseproductioncosts are increased.

  12. Developedcountriesneedtochangethe rules tomaketradefairer, and allowpoorercountriestoachieveeffectivedevelopment, theyneedto: • Eliminatehighcustomdutiesonproductsfromlessdevelopedcountries. • Reduce subsidies ontheirownagriculturalproducts, and so makeitpossibleforlessdevelopedcountriesto compete. • Pay a fairpriceforbasicproducts (coffe, cotton, sugar) whichworkers in lessdevelopedcountriesdependon.

  13. 5. Poverty and exclusion in Spain Povetty and social exclusion Povertyisnotfoundexclusively in lessdevelopedand emergingcountries. In wealthycountries, too, manypeoplelive in poverty and social exclusion, whichmeansthey are deprived of basicrighslikehousing, employment and helathcare. In Spain, 20’4% of thepopulationlivebelowthepoverty line, withincomeswhichputthem at risk of social exclusion. Povertyisworse in someareasthanothers (CanaryIslands, Extremadura, Andalusia and Castile-La Mancha). However, extreme povertyisnotwidespread in Spain. TheStateprovidesmanypeoplewiththemeanstomeettheirbasicneeds.

  14. Theeffects of theeconomic crisis • Therewas a increase in poverty in Spainfollowingthebeggining of theeconomiccrisis in 2007. • Unemploymentgrew and salaries fellorstayed at thesamelevel. As a result, theincome of Spanishfamiliesfell. • TheStatereducedspending in ordertomeetitsdebts. Thisledto a marketfall in expenditureor social services. • Whois at risk of poverty? • In Spain, unemployedpeople and immigrantsfromoutsidetheEuropeanUnion are especially at risk of poverty.The at-risk-povertyrateis more than 47% in thelattergroup. • The at-risk-povertyrateamongpeopleover 65 fellfrom 22% in 2011 to 13% in 2013. Ontheotherhand, thisrategrewfrom 19’3% to 20’3% amongpeoplebetween 16 and 64 • The at-risk-povertyrateisalsolinkedtopeople’seducationallevel.

  15. HOMEWORK!!! • Define: development, extreme poverty, externaldebt, foreignaid, maternal mortality, infantmortality, childexploitation, genderinequality. • Describe in yourownwordsexternaldebt. Whyis so important? • Whatisthe HDI? Explainitclearly and giveexamples. • Explainbrieflythe causes of underdevelopment? • Make a mindmap of the causes of underdevelopment. • Explainbrieflyexternaldebt. • Explainbrieflyforeingmaid. • Whatisfairtrade? Giveexamples of fairtrade. • Describe poverty and exclusion in Spain and giveyourviewpointaboutit. • Explainmapon page 16. • Explainmapon page 21.

  16. Made by Francisco Javier AbadesAnsián History teacher at Castilla y León (Spain) Feel free to study or share this presentation