Year 4 Geography Development Resource Use (Part I) Enduring Understandings Development is instrumental in improving the standard of living and enhancing the quality of life of the people across the globe. To sustain, a balance must be struck between economic growth, societal well-being and environmental protection. Resources must be effectively and efficiently exploited and managed to ensure its sustainability in order to achieve the goals of. Page 1
A. Definition of Development Development is essentially a measurement of a country s economic growth and social well-being. There can be 3 broad types of - social, economic and political. It is about realizing the natural and resource potential of a country as well. Development is an improvement of (1) the Standard of Living, and (2) the Quality of Life. Aspects of such as education, access to basic needs, economic growth are indicators which measure the standard of living. Other aspects such as recreation, happiness, and freedom of religious practice are indicators which define the quality of life in a country. The difference here is that the quality of life is more intangible and subjective; whereas the standard of living is more concrete and tangible, and is made up of aspects that are also more measurable and easily qualified. However, it is undeniable that the quality of life can be a reflection of the standard of living in a country. For example, if we take happiness as an indicator, the happiness can stem from employment; if they are employed they are happy. Employment shows that the country has the ability to create many jobs, and shows their economic well-being, which also indicates a high standard of living and thus, high levels of. Why is it so hard to define what is? (FA5 Question 2) 1. Development is a continuous, progressive process. The rate of differs and an interplay of factors influence its movement along the continuum. 2. Development is also made up of so many contributing factors and aspects. It is measured according to the angle of assessment or the many different standards within a society e.g. economic (purchasing power), social (level of education), or political (freedom of speech) 3. The definition of is not uniform, being made up of so many differing opinions. Different people have different ideas of what means. 4. The impacts of can be positive or negative, or a combination of both. 5. Development is an emotional issue. Comparisons are made, and no country would appreciate being regarded as underdeveloped or backward. In addition, there are questions about the rights of particular countries (e.g. the developed) to label others. 6. It is hard to set a definite value for each of these indicators of that countries have to reach for them to be defined as that of developed. For example, what value of GDP must a country reach to be considered as developed? It can be argued that China is in fact, more developed than that of Malaysia in terms of its economy, however its GDP is lower than that of Malaysia (US$700 and US$3500 respectively), most likely due to its large population. 7. Patterns that are meant for indicating and defining it always have exceptions. For example, a general pattern like that of developed countries will more % of GDP on healthcare is easily challenged by that of Singapore, who spends only 1.1%, as compared to the rest of the highly developed countries (e.g. the USA, UK, and Australia), who spend above 6.6% of their GDP on healthcare. Singapore bucks the trend - but it is still considered as developed. 8. How important an indicator of is over another is debatable. It is open to interpretation what are the most important indicators that contribute to - is it that of economic in terms of the GDP, or that of social in terms of literacy/gender equality/healthcare? 9. Development, especially economic is subjected to currency fluctuations. Since the standard of living and economic is directly influenced by that of its currency, it makes economic indicators such as GDP/GNP very vulnerable to such currency shifts. Page 2
B. Aims of Development For MEDCs, the aims of are to improve the quality of life for its citizens, the assumption here is that the basic high standards of living have already been met. For LEDCs, the aim is to improve the standard of living, to have economic (raise incomes by expanding or improving economic activities) and social (providing people with essential services) Development aims for improvement in? 1. Literacy, education, and skills This leads to the provision of opportunities for all members of society to increase their capacities, which can lead to a more sophisticated workforce, higher economic and higher incomes, thus allowing for a high level of. The availability and level of education contributes to increased individual and social choice, and is a prerequisite for better democracy and governance. 2. Health Physical health and well-being are basic requirements of stable population growth and the ability to function more effectively on a regular basis. With quality healthcare, there will be an improvement in the standard of living and the quality of life, thus leading to high. 3. Income and economic welfare Personal savings and investment support structural change, and boosts the country s economy. It is undeniable that money is of the essence in improving the standard of living in a country. 4. Choice, democracy, and participation Participation denotes participation in social and economic affairs, with fair economic rewards, the availability of reasonable choice, and participation in the democratic process. The political process can enable or inhibit. The importance of good government and appropriate democratic institutions to articulate social goals cannot be over emphasized. This is a more QOL based target; though it can be argued that a good government is essential to that of the improvement in the standard of living 5. Technology (the capacity to develop technological innovations and to make technological choices. Few countries are capable of radical innovation as R&D becomes more expensive and complicated. For such countries, the capacity, in terms of know-how and wealth, to make the appropriate choice between competing technologies and to develop or adapt technology to fit their own needs, should be recognized. Millennium Development Goals 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDS, malaria and other diseases 7. Ensure environmental sustainability 8. Develop a global partnership for Page 3
C. Indicators of Development The world recognizes that GDP on its own is inadequate to assess the level of of a country as it is: (1) An average figure, it does not show individual and regional differences e.g. USA has a high GNP per capita, but 12% of its population live in poverty (2) Does not take into account the cost of living/the purchasing power of the people s money (3) Does not reflect the informal economic activities that are not registered with the government (4) It understates incomes in poor countries where many farmers grow crops for subsistence living Hence, there are various indexes, such as the Human Development Index (HDI) that give a more holistic and composite measure of a country s level of, as it takes into account economic wealth as well as the quality of life. However, the indicators, and the weightage they hold are still subjected to much debate. Standard of Living Indicators 1. Social --- (a) Health: % of GDP spent on healthcare, number of people per doctor, nutritional levels, infant mortality rate, life expectancy (b) Infrastructure: % of quality housing, number of transport networks, % of home ownership (c) Access to basic needs: % access to clean water and sanitation 2. Economy --- (a) Income: GDP, GDP per capita, GNP, GNP per capita (b) Employment structure: % of labour force employed in the primary, secondary, and tertiary sectors & the amount of wealth each industry contributes to the total GNP; availability of natural resources, amount of energy consumed, car ownership, tv ownership, phone ownership, imports/exports 3. Demographic --- (a) Population growth rate, poverty rate, literacy rate, life expectancy at birth, infant mortality rate, % of young dependent population and old dependents, level of urbanization Quality of Life Indicators 1. Happiness -- e.g. Bhutan believes in the inadequacy of economic activity as a measurement of success, they treat happiness as an important indicator of. It is very hard to quantify though. 2. Gender equality -- it is something more for MEDCs to tackle. It looks after social well-being and the quality of life, involving concepts like women s rights, freedom, and social empowerment, all of which are intangible concepts that are hard to be measured. Key Concepts to link back to for Indicators of Development 1. Lack of Capital It is undeniable that a lack of capital will affect that of many indicators of, such as for healthcare, literacy rate etc. All these need money to improve their currently systems; and for some countries, due to their lack of economic profit, have a lack of capital to invest in improving the standard of living in these aspects. For example, a low life expectancy shows a lack of affordable healthcare services and basic needs in the country, which is the government is unable to provide due to a lack of capital for healthcare investment; hence the country level of is low. 2. Government Policies Governments definitely hold a lot of weight in the country, and make many decisions on behalf of the population. Hence, government policies that they issue, and the running of the government (i.e. whether the government is corrupt, unstable political situation) will definitely have an impact on that of the indicators of. Page 4
For example, if the poverty rate is high despite having a high GNP, this can mean that there are not enough jobs created and there is high income inequality, showing that governmental policies ineffective in terms of social security and creating employment opportunities, thus the country would have a lower level of. In another example, we see how North Korea has a Songun (Military First) Policy, where a high % of GDP is spent on acquiring military equipment, instead of channeling it to providing food for its people for example. Hence, it comes as no surprise that there is widespread famine in the country, and there is a notable % of people living below the poverty line. 3. Combination of both! For example, low home ownership can mean that there are not enough homes, and that the government has not enough resources to build houses, as well as a lack of capital to acquire resources; which can show an inefficient & ineffective government. Classification of Countries These indicators of give rise to how countries are classified in the world today: (1) More Economically Developed Countries (MEDCs) High standard of living and supposedly high quality of life (2) Less Economically Developed Countries (LEDCs) Low standard of living, at a lower stage of and have a lower quality of life (3) Income Economies Categorized according to GNI per capita (4) Centrally Planned Economies Examples are the socialist countries such as North Korea, which are strictly controlled by the government. The standards of living are higher than in the LEDCs although freedom of speech is limited. (5) Oil-rich Countries They are very rich in terms of GNP per head but spatial inequality in income distribution is prevalent. (6) Newly Industrialized Economies Examples are Singapore South Korea, Taiwan and Hong Kong, which experienced rapid industrial, social and economic growth since 1960. Why are indicators of unreliable? (1) Size of the country affects the collection of accurate data (2) Data can be manipulated by governments, who are the ones who choose to release these information to the world. (3) Indicators lean towards assessing the standard of living, and not the quality of life (4) Not all indicators can be applied to a country (5) Does not take into account the informal sector, which is especially important for LEDCs. Page 5
F. Trends of Development Spatial Variations in Development Development tends to be unbalanced and heterogenous geographically. Hence, there are spatial variations in, and we see al gaps in different geographic regions. For example, the North-South Line divides economic in spatial terms. The general trends are that: (1) There are more MEDCs in the North than in the South (2) Countries in the North are usually high/middle-income economies with a higher GDP, whereas countries in South are usually low/middle-income economies with a lower GDP. However, it is not as accurate - as with every trend, there are exceptions. For example Singapore (GDP: $59936) and the United Arab Emirates (GDP: $48500) are classified in the South, but have high income economies and are considered MEDCs. Global Income Disparity There is a global income disparity between rich and poor countries. This may be a cause of the Core-Periphery Theory: as general prosperity grows worldwide, the majority of that growth is enjoyed by a 'core' region of wealthy countries despite being severely outnumbered in population by those in a 'periphery' that are ignored. The disparity of wealth between core and periphery countries is staggering, with 15% of the global population enjoying 75% of the world's annual income. The Core consists of the top twenty countries ranked by the United Nations Human Development Index; within this region is where most of the positive characteristics of globalization typically occur: transnational links, modern (i.e. higher wages, access to healthcare, adequate food/water/shelter), scientific innovation, and increasing economic prosperity. These countries also tend to be highly industrialized and have a rapidly-growing service (tertiary sector) are all in the core. The opportunities created by these advantages perpetuate a world driven by individuals in the core. The Periphery consists of the countries in the rest of the world. Although some parts of this area exhibit positive, it is generally characterized by extreme poverty and a low standard of living. Health care is non-existent in many places, there is less access to potable water than in the industrialized core, and poor infrastructure engenders slum conditions. Population is skyrocketing in the periphery, and the majority of population growth around the world is occurring in the periphery. There is high rural-to-urban migration and high birth rates in the periphery. Page 6
Major Indicator Trends Indicator High Development (MEDCs) Low Development (LEDCs) Annual Population Growth (%) Low % High % GDP per capita High Low Life expectancy at birth Large number Small number Adult Literacy Rate High Low Employment by Economic Activity Low % of Primary Industry High % of Tertiary Industry High % of Primary Industry Low % of Tertiary Industry Access to Safe Water High % Low % Foreign Debt (in b) Large Small % of GDP spent on healthcare *is debatable High % Low % As always, there are exceptions: 1. Annual Population Growth Countries like the UAE, which is highly developed, still sustain a high annual population growth rate of 3.99% (based on Resource File 3). 2. GDP per capita Use the example of China, whose GDP is low, but in terms of cannot be considered a LEDC. 3. Life Expectancy at Birth/Infant Mortality Rate Should not have an exception here; from trends you do see how the trend follows 4. Adult Literacy Rate India, whose adult literacy rate is 48.3%, is considered one of the world s fastest developing economies still. :) 5. Employment by Economic Activity Same for India! Primary Industry employment is 60%. 6. Foreign Debt Singapore does not have a large foreign debt ($24.36b) in comparison with countries like Canada ($684.7b) 7. % of GDP Spent on Healthcare Debatable! However, a good example you can use is that of Singapore - we are so developed, but we spend only 1.1% of our GDP on healthcare. Page 7
C. Factors Influencing Development 1. HISTORICAL (a) Colonialism According to the Dependency Theory, colonies became dependent on their colonial governments both economically and politically as colonialism has caused the powerful countries (MEDCs) to exploit the natural resources of the weaker colonies to support their own industrialization programs and. As such, for a country to develop, the country must be self-reliant and not be dependent on others which are politically and economically more powerful. However, colonialism can also put structures in place that can help the country develop post-independence. 2. POLITICAL (a) Governmental Policies and Mindset The mindset of the government affects how the country will develop; an example is that of North Korea, as previously mentioned. Many governments in LEDCs do not use their incomes to benefit the people. Governments which embrace the concept of capitalism (such as China, to some extent), globalization and modernization will also see some increase in their al status in the world today. (b) Good Governance A stable government with good continuity in leadership attracts foreign direct investments while a fair and just government creates a stable and peaceful environment for businesses to develop and carry out their operations. An honest, incorruptible government inspires confidence among investors, both local and foreign, as additional costs of production, in the form of bribes, need not be incurred. An effective and efficient government will mean that positive change can be brought about when implementing economic (e.g. industrial) and social (e.g. education) policies. (c) Political stability Civil wars destroy essential infrastructure and disrupted food production and create influx of refugees e.g. the civil wars in Somalia, Sudan, Rwanda in the 1990s. 3. DEMOGRAPHIC (a) Population size For many LEDCs, population growth exceeds economic growth and millions are caught in the cycle of poverty; where there are now fewer resources per person. Extreme poverty is experienced by a substantial proportion of the world s population (between one and two billion) and is exacerbated by the rapid population growth of the world. The population size will affect the country s GDP, and the distribution of resources among the country. It also poses problems for effective governance due to the large population and difficulty in control. It also affects the talent pool/labour force. 4. SOCIO-CULTURAL Mindset and Aspirations: Social norms and cultural beliefs strongly affect people s attitudes towards the level of education of the population, fertility rate and birth control, work ethics, as well as the provision and accessibility of healthcare services and medical facilities. (a) Education Beliefs are responsible for low literacy rates, leading to a pool of lowly skilled and uneducated workforce that slows down. The lack of education reduces the purchasing power of the people s money, and increases the fertility rate -- lack of education about contraceptives for example, and their various cultural beliefs. With education, there can be a reduction in overpopulation which relieves the strain on the country s resources. (b) Gender Beliefs are responsible for the low status accorded to women; in LEDCs we see low levels of literacy among women. A lack of education for women reduces the choice of employment and the Page 8
chance of reducing poverty. This also affects workforce participation (some cultures believe that women should not go to school, or work). Education empowers women, in areas where women are literate, infant mortality rate is lower, families are smaller and children have better health. 5. PHYSICAL/GEOGRAPHICAL (a) Geographical Characteristics Landlocked countries-- e.g. Laos and 15 African states are isolated from international trade as they do not have a coastline. Their physical isolation contributes to their lack of. Extreme climate in the tropics-- there are more devastating floods, droughts and tropical storms (natural climatic hazards), which slows down. The climate also supports the breeding of more diseases. (b) Resource Endowment If a country has more natural resources, such as oil, it is likely to utilize these resources to attain a high level of as these resources are profitable in the world today. It indicates a country s potential for future. (c) Basic Needs Food scarcity -- Many people in LEDCs consume less than 2500kilocalories per day, causing undernourishment, and malnutrition. Millions of people in LEDCs do have a reliable food supply but little food security as they have a lack of income to buy it; this shows the lack of in the standard of living of a country. Access to water -- Around two billion people have no access to clean water (water quality) and rapid population growth, industrial etc. increased the demand for water, leading to water shortages, and this acts as a brake on (d) Vulnerability to: Natural Hazards -- Natural Hazards slow down. E.g. the geologic hazards in Yogyakarta in May 2006 brought economic hardship to the residents and the Indonesian government had to reply on foreign aid. Pests -- a big problem for largely agricultural-based economies; many of these economies exist in countries that have a lack of capital to buy pesticides, improve farming techniques Man-made environmental problems-- e.g. soil erosion, loss of soil fertility, desertification 6. ECONOMIC (a) Industrialization (productivity/investments) A country that has gone through industrialization is more likely to be developed; as profits from that can be channeled to improve the standard of living. (b) Trade The export of primary products and import of manufactured goods creates 2 problems - the price of primary products fluctuate widely on world markets, and the price of primary products falls consistently behind that of manufactured goods. Hence, poorer countries get less and less for their exports and have to pay more from their imports, making their export industry less profitable. (c) Availability of Investment Capital and Borrowings Capital and credit are needed to exploit natural resources, improve agriculture, develop new industries and pay of infrastructure and physical facilities. The capital can come from 2 sources - loans for governments and banks in MEDCs, and inward investments from TNCs (Trans-National Corporations - the profits from TNCs flow from LE/DCs) This is a major economic obstacle to, along with that of debts that the country incurs from borrowing. (d) Quality of labour in the country Whether the population is trained and highly educated will affect the type of economy the country possesses and its overall level of. Page 9
A. Definition of Natural Resources A natural resource is anything people can use which comes from nature. People do not make natural resources, but gather them from the earth. Natural Resources Non-Renewable Fossil Fuels e.g. Oil, Natural Gas, Coal Renewable if carefully managed e.g. Forests and Soil Flow types: e.g. Crops, water Renewable Continuous types: e.g. wind and solar power Flow types are continually available, but can be exhausted by over-exploitation. B. Factors influencing Choice of Energy Resource used by a country 1. Cost of energy resource (amount of capital needed to import material, to build infrastructure, to harness the energy etc.) 2. Space available in the country 3. Current resources at hand (availability) 4. Sustainability of resource for future use 5. Environmental Concerns 6. Climatic Factors 7. Profit margins, cost efficiency 8. Geographical Considerations (e.g. if you are a landlocked country, you can t use tidal power) 9. Diplomacy and Regional Concerns (e.g. using nuclear power plants) C. Trends for Resources The supply and availability of natural resources does affect the pace and level of, but the link is not so clear. 4 scenarios can result from this: Little Resources Many Resources High Low High Low Reasons: 1. Good governance 2. Investment in Human Resource 3. Prime location e.g. Singapore 4. Positioning itself a as a trading hub Reasons: 1. Lack of resources for industrial 2. Lack of capital earned from economy for Reasons: 1. Development of industries due to resources 2. Revenue earned channeled to improving standard of living Reasons: 1. Exploitation by MEDCs 2. Lack of skills to use resources 3. Large population size 4. Ineffective government Ultimately, we see that it is whether the country has the capability to exploit the resources that will determine how much of an impact resource endowment has on its level of. :) We cannot deny the fact that having natural resources gives an added advantage to a country s economic. Page 10
Also, no one can dispute the trend that there is an increasing demand for resources, but a diminishing supply. The distribution of resources is also unequal (look at core-periphery theory again), the richer countries have control over much of the world s resources. There is also a profit-oriented handling of natural resources. Reasons for such trends: (Look at Development Notes! Some reasons cross over) (a) Affluent Society Being an affluent society affects the individual s lifestyle choices. We see rampant consumerism, car ownership increases, phone ownership, internet connectivity -- all these consume energy and resources. (b) Industrialization Industrialization uses up much resources, especially like that of fossil fuels, with mechanization etc. The increasing rate of industrialization in developing economies drives up the demand for resources; however, supply has already been diminished by developed economies who have industrialized :( (c) Population size The world s population is growing - and this drives up the demand for resources. (pretty obviously) *** We didn t really cover much for resources, and other trends for resource use are mostly quite repeated. So just use a bit of good old common sense for this topic :) Bring in the concept of resource use requiring management and control; the main point is not really that of whether the supply is/isn t enough (personal opinion). Page 11