Notes on Development

1. Name a few countries that you think are developed and a few others that are less developed. Developed countries include: USA, Canada, UK, Italy, Germany, France, and Japan.
Less developed countries include: African countries e.g. Sudan, Ethiopia, Ghana; Asian countries e.g. Vietnam, Myanmar, Nepal; Pacific Island nations e.g. Solomon Islands, Samoa and Fiji.
2. Why would you classify Singapore as a developed or less developed country? Why? Singapore is a developed country. Reasons include:
There is little physical environment left e.g. seas and coastal areas.
The landscape is mainly made up of concrete high-rise buildings e.g. offices, residences and tarred roads.
Planned development has taken place — the country is well-organised.
Few rural activities and urban activities dominate — commercial and financial activities carried out in these tall buildings; services e.g beauty and hair salons in low-rise buildings earmarked for urban conservation.
Quality urban environment — roads are kept clean daily by road sweepers.

3. What is meant by ‘development’?
Development refers to ‘progressive process aimed at achieving economic growth and as a result, a conducive environment for individuals to enjoy a decent standard of living and quality of life”.

4. Why is development a complex issue?
Difficult to define in the first place due to the following reasons:
Different view points. People have different ideas of what development means. For example, an economist defines it according to the economic growth or the accumulation of wealth; a sociologist may equate development with social progress in a society such as the increasing literacy rate of a population; a political scientist may look at development as a process in political change e.g. when more people are able and willing to vote; a geographer may focus on how development as a process has spread from one region to another, and how it has positively and negatively affected the physical environment.

Development is a continuous process. A country has to plan a series of short-term (five years and below) and long-term (five to ten years or more) goals to reach its targeted level. The success or failure to reach these goals within the time frame decided upon will help the country determine whether it is progressing towards being more developed.

Development is dependent on several factors. The rate at which a country develops differs and some countries seem to be able to develop faster than others. It is possible for a country to move forward or slip backward after reaching a particular level of development. However, success or failure is never simply dependent on one or two factors. A failure in reaching development goals can be due to factors such as political instability or a major environmental disaster e.g. the 2004 Indian Ocean tsunami destroyed a large part of Banda Aceh, Indonesia. Success in development may be due to the presence of resources and the effective implementation of the development goals by government.

Wide range of measurements used to measure development. Development is measured according to many different standards within a society. E.g. economic standards such as income and purchasing power, that is, the amount of goods and services a given amount of money can buy. Other standards include social standards such as levels of technology, education, health, and political standards such as freedom of speech and women's rights.

Positive and negative impact of development. The result of development can be positive or negative or both. Positive results include clean water supply, an efficient transportation system which can benefit the majority of the population. Negative results include an increase in air pollution because people can afford to drive cars, or the removal of forests and farmlands to make way for the development of golf courses - these developments benefit only a minority of the population and can bring more harm than good in the long term.

Development is an emotional issue. To determine which countries are developed or which countries are not requires comparisons to be made. This involves labeling countries according to their levels of development. This is a sensitive issue as no country would appreciate being regarded as `under developed' or `backward'.

5. How can countries be classified according to their levels of development?
At present, countries are classified according to Developed Countries (DCs) or Less Developed Countries (LDCs), the latter which are countries at the early stages of development with lower standards of living and a lower quality of life. DCs include USA, Japan, Switzerland and Italy. LDCs include Cambodia, Peru, Ethiopia.
As the classifications can be too general, DCs and LDCs can further be divided according to:
• The old industrialised countries e.g. UK, Germany, France.
• The newly industrialised countries e.g. Singapore, South Korea, Taiwan. • The oil-rich countries e.g. Brunei, Saudi Arabia.
• The centrally-planned economies e.g. North Korea, the former Soviet Union.

6. Define the terms GNP, GDP, Adult literacy rate, Infant mortality rate, urban population and human development index. · Gross National product(GNP)-Total value of goods and services produced by the citizens of a country in a given year. It includes both the contributions made by the citizens working and investing in the country and the income received by the citizens of that country working and investing overseas.
· Gross Domestic Product (GDP)-Total value of goods and services produced by the citizens and non citizens in the country.
· Adult literacy rate-Percentage of the population aged 15 and above who are able to read, write and understand simple statements.
· Infant mortality rate-The number of deaths of children under the age of one per 1000 live births in a year.
· Life expectancy -Average number of years that a person can expect to live in a particular country.
· Urban population- Percentage of people living in an urban area.
· Human development index (HDI) - A measurement of human progress, which is derived from a combination of indicators — GDP per capita, adult literacy and life expectancy.

7. Describe the three main types of development indicators.
Economic indicators
· GNP is the most common measure. It refers to the total value of goods and services produced by the citizens of the country in a given year and includes both contributions made by the citizens working and investing in the country and the income received by citizens of that country who are
working and investing overseas. It excludes the earnings by non-citizens who worked or invested in the country as this does not stay in the country and thus does not contribute to its development.
Calculated using GNP = A + (B - C) where A is the Gross Domestic Product or the total value of goods and services produced by the citizens and non-citizens in the country.
As the contribution of GNP is affected by population size, a country with a higher population is likely to have larger GNP. In order to ensure accuracy, GNP per capita (per person) is a better measurement;

High-income economies (US$ 10 726 or more)
Middle-income economies (US$ 876 - $ 10 725)
Low-income economies (US$ 875 or less)

· Employment structure
With development, a higher percentage of the population will be employed in the secondary and tertiary industries instead of the primary industries

Demographic indicators
Population structure - A LDC usually has a relatively young population — a higher proportion of its population is below 15 years (e.g. India with 36 per cent compared to only 14 per cent in Japan) and a small percentage of population above 65 years (e.g. India with about 4 per cent compared to 20 per cent in Japan).
· Life expectancy - Refers to the number of years that a person can expect to live in a particular country. It reflects the level of and access to healthcare and medical facilities in a country so people in the DCs are expected to live longer than those in the LDCs (e.g. 82 years in Japan compared to 48 years in Ethiopia).
· Infant mortality rate - Refers to the number of deaths of children under the age of one per 1000 live births in a year. Good sanitation facilities, healthcare systems and easy accessibility to hospitals and doctors have contributed to a lower infant mortality rates in the DCs e.g. two per 1000 live births in Singapore.
· Size of urban population - The percentage of people living in an urban area. A large urban population usually indicates that more people are living in towns and cities where most of the secondary and tertiary industries are located. In countries with large primary sectors, most people are likely to live in rural areas.

Social indicators
Access to water and sanitation - The percentage of people who have access to safe drinking water and proper sanitation in the LDCs is generally low.
Adult literacy rate - Refers to the percentage of population aged 15 and above who are able to read, write and understand simple statements. With good education, people can earn higher income and afford to send their children to school to be educated.

Assessing development using HDI

•Human Development Index [HDI]
-An index used by the United Nations Development Programme [UNDP] to measure the level of development in a country.

•Human Development Index [HDI]
-3 considerations – economic well-being, health and education.

•Human Development Index [HDI]
-computed by assigning a value between 0 and 1 to each country
-the closer the index to 1, the higher the level of development

Limitations of HDI.
•More difficult to obtain information from LDCs than DCs due to large informal sector.
•Fails to consider human rights and freedom.
•Time lag between time of publishing and year of data published.

8. With reference to the development indicators, describe the characteristics of uneven development between the DCs and LDCs.
Uneven development between the DCs and LDCs are reflected by the three sets of indicators:

DCs will have higher GNP per capita (more than US$10 726) because the DCs usually have a higher proportion of secondary and tertiary industries that bring in a higher amount of income compared to LDCs that have predominantly large primary sectors with primary goods e.g. timber, iron ore and rice generating less profit compared to manufactured goods and services.
Hence, the employment structure in the DCs shows a higher proportion of the population in the secondary and tertiary industries instead of the primary industries e.g. Japan, a DC — 70 per cent of the population are working in the tertiary industries, 25 per cent in the secondary industries and only 5 per cent are employed in the primary industries compared to an LDC such as Nigeria where 70 per cent of the population are engaged in primary industries, and 10 per cent and 20 per cent in the secondary and tertiary industries respectively.

Demographic indicators
· A DC has a relatively older population compared to a LDC e.g. almost 20 per cent of the population in Japan are above 65 years compared to 4 per cent in India; 14 per cent of the population in Japan are below 15 years compared with 36 per cent of population in India.
· Life expectancy — people in the DCs generally live much longer than those in the LDCs due to better healthcare and medical facilities e.g. the average Japanese can expect to live to about 82 years compared to the Ethiopians (48 yrs) and the Cambodians (56 yrs).
· Infant mortality rate — good sanitation facilities, comprehensive healthcare systems and easy accessibility to hospitals and doctors have all contributed to lower infant mortality rates in the DCs e.g. two per 1000 live births in Singapore compared to 100 per 1000 live births in Ethiopia.
· Size of urban population — usually higher in the DCs than in LDCs, with the exception of an emerging trend in some of the DCs where people who used to live in the cities are relocating to the suburbs due to an increase in private car ownership or increasing congestion and levels of pollution in cities; in the LDCs, expectations of better employment opportunities and higher standards of living have also contributed to rapid growth in urban populations, giving rise to slums and squatter settlements. These settlements are often sited next to open sewers and piles of garbage.

Social indicators · Lack of safe drinking water and poor sanitation (including garbage and wastewater disposal) are leading causes of deaths in LDCs. DCs like USA and Japan have 100 per cent access to safe drinking water and good sanitation, unlike Nigeria where only 39 per cent of the population has access to safe drinking water and 36 per cent with access to proper sanitation.
· Adult literacy rate — refers to the percentage of population aged 15 and above who are able to read, write and understand simple statements. A high literacy rate means people are more likely to be employed in the secondary and tertiary industries, which translates into higher GNP per capita. The DCs usually have higher literacy rate compared to the LDCs e.g. 99.8 per cent in USA, Japan and UK compared to 52.2 per cent in India and 48 per cent in Laos, with the exception of countries such as Vietnam that has a high literacy rate of 94 per cent.
9. Discuss the differences in the quality of life and standard of living between the DCs and LDCs. Quality of life and standard of living can be measured using the Human Development Index (HDI), where three indicators — economic (GDP per capita), social (e.g. adult literacy rate) and demographic (e.g. life expectancy) are used. Economic wealth (GDP per capita) reflects the standard of living while quality of life is reflected by the educational achievements and health data. The average scores of individual countries for each of the three indicators are calculated and compared.

The HDI ranges from zero to one and is divided into three categories — high (0.800 to 1.000), medium (0.500 — 0.799) and low (0.499 and below). Generally a high GDP per capita would contribute to a higher HDI e.g. DCs such as France, the Netherlands and Britain have high GDP per capita of over US$ 26 000 and high HDIs of between 0.93 and 0.95.

On the other hand, LDCs such as Laos and Myanmar have low GDP per capita of US$ 1720 and US$1027 and low medium HDIs of 0.534 and 0.551 respectively. DCs have very good access to clean water (100 per cent for France, the Netherlands and Britain), a very high literacy rate of 99 per cent, and high life expectancy of more than 78 years compared to LDCs.

LDCs have low access to clean water (between 34 and 84 per cent), low literacy rates e.g. 39 per cent for India (with the exception of Vietnam and Myanmar), and a low life expectancy e.g. 54 years for Cambodia.

A country may be rich in terms of GDP per capita but the accumulated wealth does not necessarily improve the quality of life of all the people living in the country e.g. USA has the highest GDP per capita (US$ 37 800) in.2003 compared to Canada (US$ 29 700) but its world ranking in terms of HDI was 8th compared to Canada's 4th position. Some countries may not be as wealthy as others but their level of human development may be higher e.g. among the five countries with medium and low levels of human development (Malaysia, Russia, Brazil,

Indonesia and Bolivia), Russia may have a slightly lower GDP per capita than Malaysia but its HDI is ranked higher. For the LDCs in Africa, such as Niger, Ethiopia, Zambia, Nigeria and Tanzania, low GDP per capita corresponds to low HDI too.
10. Explain how the Core-Periphery Model accounts for the different levels of development between countries and within countries. The Core-Periphery Model was developed in the 1960s to attempt to explain the differences in regional development between countries and within countries. According to the theory, core countries or regions refer to countries or regions that are richer and more developed; periphery countries or regions refer to countries or regions that are poorer and less developed (can also refer to countries that have been colonised by the core countries).
Unequal development between countries
The theory proposes that:
• Development was initially brought about by natural advantages such as the presence of natural resources, a good natural harbour and plentiful of cheap labour. These advantages stimulate the development process.
• Over time, they reinforce the region's reputation, which, in turn, attracts more and more investments until a core country is formed.
• Equipped with all the acquired advantages, the core country generally has better infrastructure, more skilled labour and higher income compared to periphery countries.
• Periphery countries have the natural and human resources that core countries need.
• Hence, the core countries which possess military and economic advantages can take control of the periphery countries through different ways e.g. war, colonisation and unfair trading rules.
• The periphery countries which lack the advantages to challenge the core countries become dependent on them for trade and development. Their economic growth is slowed down or stagnated by continued exploitation while the core countries continue to grow at their expense and enjoy much higher income and better standard of living than the periphery countries.

Unequal development within countries
• The Core-Periphery Model can also be found within a country.
• Generally it is more obvious in less developed countries than in developed countries.
• The periphery regions supply raw materials or cheap labour to the core, which are usually the high growth urban areas within the country.
• The core grows at the expense of the periphery and becomes the spatial concentration of wealth in the country. The result is a great increase in the standard of living.
• As the country develops, the core may expand and stimulate the growth in the periphery region (spread effect).
• This may benefit the periphery reducing inequalities in terms of income or standard of living between the core and the periphery.
• However, the core's growth may have a negative impact on the periphery (backwash effect). Negative effects, such as the draining of investment, labour and raw materials from the periphery, may outweigh the benefits produced by the spread effect, causing the periphery region to suffer.
• An example of how the Core-Periphery Model has operated within a country is China and the results are evident in the great disparity in income level and standard of living between the thriving cities located on the eastern coastal region (core) and the villages in the interior of mainland China (periphery).
11. Explain the limitations of the Core-Periphery Model Like all theories, the model has its limitations. The main limitation is its failure to explain the rapid growth rates of some East Asian and Southeast Asian economies, such as Hong Kong and Singapore, which were once colonies of core countries. These economies were able to achieve high growth rates of about 8 to 10 per cent annually and a high standard of living comparable with some of the core countries.

12. Explain the factors affecting development.
Development is often the result of a combination of factors over a long period of time. Such factors include:

Social and cultural factors • These affect the level of education of the population, fertility rate and birth control, work ethics, the provision and accessibility of healthcare services and medical facilities.
• Social norms and cultural beliefs strongly affect people's attitudes towards birth rate and family size. In LDCs, high birth rates and large family sizes are the norm.
• A large population and a high birth rate hinder development as resources have to be spent on providing health and medical care, food and education for the population. Fewer resources
are channeled to improve or develop the quality of life of the general population.
• In the LDCS, the children lack opportunities for education as their parents cannot afford to send them to school. Besides, the number of schools may be limited due to the lack of properly trained teachers and facilities in rural areas, leading to low literacy rates e.g. Laos and India have low literacy rates of 48.7 per cent and 52.2 per cent respectively.
• A low literacy rate has a negative impact on economic development — people with little education face difficulties in learning new skills and embracing modern technology. This
leads to a shortage of skilled labour, which hinders development of secondary and tertiary industries in the country.

Environmental factors
• Natural disasters e.g. hurricanes, droughts and earthquakes can strike any country regardless of its level of development .
• However, responses to these natural disasters differ greatly between the DCs and LDCs. The DCs usually have the resources and manpower to deal with natural disasters effectively and help those affected by it to recover quickly. E.g. the hurricane that hit New Orleans in 2005 flooded most of the city, displacing hundreds of thousands of residents; USA could respond without any assistance from other countries.
• In Indonesia, however, the volcanic eruptions and earthquakes in May 2006 near Yogyakarta brought widespread economic hardship to the residents because the country did not have the necessary manpower nor the resources to deal with the disaster — foreign aid was needed - the Asian Development Bank pledged US$ 60 million in loans and the United Nations planned a six-month relief effort.
• Many LDCs are agricultural countries; natural disasters can ruin their harvest and income. E.g. India and Bangladesh experience severe monsoon floods almost annually; prolonged droughts in Ethiopia and Somalia are common.
• The already limited funds for development in the LDCs are diverted to relief efforts, further hindering the development process in these countries.
• Man-made disasters can also hinder development e.g. overgrazing, deforestation and poor land management can lead to severe soil erosion, loss of soil fertility and desertification.
• Construction of expensive irrigation system or the use of chemical fertilisers may now be necessary to restore soil fertility, so that the land can support crops or natural vegetation.

Historical factors
• Many LDCs were former colonies and become dependent on their colonial governments both economically and politically. • Examples — India, Malaysia and Singapore were ruled by the British, Indonesia was a Dutch colony and Vietnam was under French rule.
• The colonial governments did help to develop their colonies by building basic infrastructure e.g. railway system in India, introducing rubber plantations and developing tin mines in Malaysia. However, helping their colonies develop was not the main purpose of colonisation.
• Colonial governments wanted natural resources that could be used for their own industrialisation and development. The outflow of resources from the colonies resulted in these colonies unable to fully develop their own economies.

Economic factors
• Presence of natural resources (e.g. oil, iron ore, coal) in the country helps in its development
• Many LDCs have rich mineral resources, however, this natural advantage does not benefit
the country because the mining industries tend to be controlled by a few large companies.
• While these companies reap the profits, little of the wealth is distributed to the rest of the population, hence, the country remains underdeveloped with poor infrastructure.
• In the DCs, e.g. Britain, much of its early economic development stemmed from the presence of coal in South Wales, northern England and central Scotland. The wealth from the mining industry was invested to develop the country and raise its standard of living.
• The quality of labour can hinder development. In the LDCs, with low literacy rates, workers earn low wages.
• Most of the wages will be spent on basic necessities, such as food, clothing and housing, and they are left with little or no savings.
• With little savings, there is little or no money left for education. This results in a vicious cycle of poverty in the country.
• A way to break out of the poverty cycle is through cumulative causation.

Political factors
• Government can set development goals, which include economic growth and how economic benefits can be more evenly distributed to improve the quality of life of the population. These goals can be reviewed after a period of time and new ones set so that development is continuous.
• To achieve these goals, government must be effective, well-organised, accountable and transparent in policy-making and implementation, free from corruption and seen to be both fair and just to its people.
• Government should ensure political stability so there is a stable and peaceful environment for businesses to develop and carry out their operations, which in turn attracts foreign investors.
• Government should implement sound policies e.g. investing in education to provide a skilled workforce for the economy and implementing a comprehensive industrial policy that provides incentives, such as infrastructure and tax relief, that encourages investment.
• Grassroots and non-governmental organisations (e.g. cooperatives, labour unions, women's groups) must be drawn into public debate and involved in policy-making, with the aim of developing a strong civil society participating in public affairs.

13. What are some steps a government can adopt to promote development?

• The government must be effectively organised, accountable and transparent in policy-making and implementation, free from corruption and actively promotes justice. A fair and just government gives investors confidence that their investments are used to develop businesses and not siphoned off due to corruption.
• The government can ensure political stability in the country — a stable and peaceful environment is thus created for businesses to develop and carry out their operations. This will attract foreign investments.
• The government can implement good policies, such as investing in education, so that its population is equipped with skills that are attractive to investors. It is also beneficial to have a comprehensive industrial policy that provides incentives, such as infrastructure and tax relief, to encourage investment.
• The government must involve grassroots and non-governmental organisations (e.g. labour unions, women's groups, cooperatives) in public debate and in policy-making with the aim of developing a civil society participating in public affairs.
• Bothshort term (five year or less) and long term (five to ten years or more) development goals can be set. These must be reviewed and new goals put in place to ensure continuity in the development process. By owning their homes (e.g. 80 per cent of Singaporeans own subsidised HDB flats).
• By having sufficient finances (CPF, savings and investments) to continue to live a reasonably good life.
• Be healthy and fit right into old age.
• Putting in place medical insurance schemes e.g. Medisave and Medishield to take care of medical care.

14. State how the development strategies promote national development.


• Economically affordable so that the development benefits all farmers and not just the rich minority.
• Economically feasible so that a balance is struck between the use of mechanisation to increase productivity and maintaining employment, so farmers are not forced to look for work in towns and cities. Rural-urban migration puts pressure on urban areas in the country.
• Technologically feasible — suitable technology chosen to suit land conditions.
• Socially acceptable - helping farmers who do not own land or own very small plots to organise themselves into cooperatives to share resources so that the farms can be worked more efficiently.

§ Changing from a predominantly agricultural-based economy to an industrialised one, which provides more employment opportunities and higher and more stable income for the workers.
§ Ensuring easy access to raw materials so manufacturing industries can add value to raw materials by processing them into finished products. Sale of these finished products will help the country earn foreign currency crucial to economic development.
§ Providing or improving infrastructure essential for industrial development e.g. water and power supply, efficient transport and communication systems and port facilities which benefit the whole country.
§ Building up a well-trained and skilled labour force needed in secondary and tertiary industries.
§ Implementing sound economic policies for the expansion of the consumer markets for finished products.

Population Growth

Rapid population increase (due to high birth rates) must be controlled so that resources can be channelled into areas, such as education and healthcare, which in turn improves quality of life, living conditions and income levels.
Educating couples on family planning and the benefits of having small families will help to reduce birth rates.
Improving healthcare so that the infant mortality rate is reduced, thereby reducing high birth rates.
Giving women greater access to education will help to raise their social status, give them freedom to decide when they will get married and allow them to choose between using birth control and having more children. With education, women are more likely to have career aspirations.

Healthcare services and Education
§ Improve standard of living by providing safe drinking water, good sanitation, good housing, sufficient food, good access to healthcare services etc. to reduce death rates in a country.
§ Investment in healthcare and education can help create greater career opportunities for the people to increase their income levels. An educated workforce is crucial for effective transfer of technology and skills.

15. Describe and evaluate strategies used to promote national development in Singapore
For the development of Singapore, strategies used include:
• Setting up infrastructure for industrialisation since the 1960s — roads, power supply, water supply, port.
• Setting up the Economic Development Board to promote the country and to attract foreign investors.
• Improving the business environment e.g. providing tax incentives for foreign investors.
• Promoting the use of English as a functional language in school and the work place — it attracts both foreign investments and foreign talents.
• Investing in education for both men and women to provide for a skilled work force, which can be trained and retrained for future industries, thus opening up more career opportunities for young Singaporeans.

The factors above bring about economic development which translates into higher revenues that can be used for national development.

• Providing a clean and hygienic environment for all Singaporeans and for businesses to operate.
• Ensuring affordable healthcare and adequate medical facilities and services such as hospitals, clinics.
• Ensuring that clean, safe drinking water is available to all households.
• Setting up good waste disposal facilities and services to improve the well-being of Singaporeans.

The factors above ensure that the work force is in good health. Good health brings about increased productivity and efficiency at the work place.

Demographically, the government is trying to encourage Singaporean couples to give birth to more children to slow down the onset of an ageing population. Measures used include providing tax rebates, longer childcare leave, childcare centre subsidies and encouraging the immigration of young professional couples to boost the skilled work force.
In order to reduce the social and financial burden of the country in having to look after the elderly, Singaporeans are urged to plan for their old age:
• By owning their homes (e.g. 80 per cent of Singaporeans own subsidised HDB flats).
• By having sufficient finances (CPF, savings and investments) to continue to live a reasonably good life.
• Be healthy and fit right into old age.
• Putting in place medical insurance schemes e.g. Medisave and Medishield to take care of medical care.

16. Discuss the efforts made to alleviate uneven development at the international level.
• To alleviate uneven development between the DCs and LDCs, it is imperative for the LDCs to be given financial aid (through loans, guarantees), skilled professionals and relevant technology (technical assistance especially for specific projects and programmes) after they have gained political independence.
• International organisations, such as the Asian Development Bank and World Bank, focus not only on economic development but also on social and human development in the LDCs.
• For example:
- Asian Development Bank — conducts research and provides funds for countries in the Asia-Pacific region — it focuses on eradicating poverty, improving the status of women and managing the environment e.g. in 2005, it provided an US$ 1 million grant to improve urban living conditions in the central region of Vietnam. Drainage channels were developed and water supply and sanitation systems improved.
- World Bank — provides financial and technical assistance to the LDCs, plays a supportive role in its mission to eradicate global poverty, improve standards of living and provides loans for projects on improving healthcare and education e.g. between 1996 and 2005, the World Bank provided over 60 per cent of the total cost of a project to develop villages in northeast Brazil, where infrastructure (e.g. water and electricity facilities) is put in place and mechanisation for agriculture provided, thus improving the
lives of 7.5 million villagers.
- However, many of these LDCs e.g. African countries have been receiving foreign aid (e.g. from USA) for many years and yet their economic and human development remain low or even declined in some countries. One reason is that the foreign aid is given in the form of loans to be repaid over a number of years and these LDCs usually spend most of their earnings repaying interests on these loans. Often, the aid does not reach the people who really need it. Some of this aid may end up in the hands of corrupt officials or were invested in military equipment because of ongoing civil war. E.g. Ethiopia received US$ 1 billion in aid between 1982 and 1985 and yet its GDP per capita remained very low at US$ 94 in 2003 because almost 90 per cent of loan was spent on military development.
- Under the Millennium Goals 2005, foreign aid is also provided for relief and emergency assistance, as well as repayment of foreign debts. A more open, rule-based nondiscriminatory trade and financial system has allowed more duty-free goods from the LDCs to enter DCs, which helps the LDCs earn foreign currency. Between 1990 and 2002, the average total income of the world increased by 21 per cent, average life expectancy was raised from 63 to 65 years and the number of people living in extreme poverty has declined by 130 million.

17. With reference to studies you have made, explain how the government and social practices can affect the levels of development in a country.

Social practices:
• Determine the birth rate and family size in a country.
• In the LDCs, social norms favour high birth rates and large families. Both hinder development in the country as resources are mainly channelled to support a young population and less for the general population.
• With large families, children are less likely to have educational opportunities, leading to low literacy rates in the country (e.g. Laos with 48.7 per cent and India with 52.2 per cent).
• Leading to a workforce with low skills.
• A hindrance to the development of secondary and tertiary industries, which can help to increase the wages and encourage savings and investment (both needed for economic development to take place).

• Arrest high population growth through the implementation of population control policies such as encouraging the sterilisation of women (India) or the one-child policy in China.
• Reduces infant mortality rates so more children can grow to maturity, thus reducing the high birth rates.
• Have education policies which encourage women to be educated so they can have career aspirations and become independent economically.
• Set up schools, especially in rural areas, so children can become literate adults thus increasing the literacy rate of the country. Literate adults can acquire skills needed for the industries, which in turn help them earn higher wages and break out of the poverty cycle.
• Nurture a skilled work force — Singapore has a bilingual policy, where English is the medium of instruction for all subjects except Mother Tongue. English is used for international trade and commerce and hence promoting its use is a pragmatic andeffective strategy to attract foreign investment and foreign talents — both vital for achieving a high level of economic development in the country.
• With increased wages, incomes will rise, providing more money for investment in economic development, as well for raising the standard of living in a country.
• Reinvest the revenue in infrastructure to support the industries and attract more investments.
• Ensure political stability in the country so a safe business environment is created for day-to-day activities to be carried out.

18. Describe two ways in which international organisations can help to promote the development of the LDCs.
International organisations can help them:
• By providing loans to build healthcare and medical facilities to reduce the very high infant mortality rate of 33 per 1000 live births.
• By granting foreign aid which can be used to provide safe drinking water or build proper sanitation systems so the countries have clean and hygienic environment.
• By providing education or training of teachers to raise the literacy rate. With education, more career opportunities will be available for the people.
Multinational companies can be attracted to set up secondary and tertiary industries in the countries.

19. Evaluate the following strategies to promote national development with named examples:
•Improving water supply and sanitation facilities in less developed regions
•Improving education standards in less developed regions
•Population control in less developed regions
•Job creation & financial assistance for people in less developed regions

Improving water supply and sanitation facilities in less developed regions
- key to achieving development
- Case of Ahmedabad in Gujarat, India
41% of 3.5 million people live in slums and squatters
25% live without toilet facilities
Extreme poverty widespread
Improving water supply and sanitation facilities in less developed regions

Parivartan Slum Networking Programme

  • Aims to help region develop by improving lives of slum dwellers

  • Provision of basic infrastructure: water supply and underground sewerage

  • Supported by local government, funded by local banks

  • Monthly monitoring meetings, future planning sessions

  • Training sessions on proper use of facilities

  • Success?
    ØBenefited 56,000 people in >40 slums
    ØExpanded to include 59 more slums
    ØDeath rates declined from 6.9 per 1,000 people to 3.7 per 1,000 people
    ØFewer people falling ill
    ØIncreased standard of living
    ØHelped region to develop

    •Improving education standards in less developed regions
    - Education is key to seeking employment
    - Training and development programmes would enhance chances

    Case of Hill Tribes in Thailand Most live in extreme poverty
    Lack formal education, low standard of living
    • Improving education standards in less developed regions

    Hill Tribe Education Project

    • Established in 1998 under government’s policy to provide, ‘Education for All’

    • Formal and non-formal education programmes developed to suit needs of communities

    • Academic subjects and life skills taught

    • Volunteer teachers from more developed region teach in community learning centre

    • Sustainable farming methods taught to local farmers

    Success? ØMany are able to obtain employment in cities
    ØAgricultural production increased
    ØGeneral increase in income
    Challenges? ØGeographical isolation inhibits government outreach
    ØCommunication barriers between volunteers and hill tribes

    Population control in less developed regions - Booming population stresses limited resources
    - Impacts availability of jobs, housing and access to education
    - Drastic measures implemented in some countries

    Case of China: population boom in 1970s 1979 ‘One Child’ Policy to reduce birth rate
    Volunteers recruited to promote late marriage, late childbearing and the use of contraception
    Challenges? ØMore effective in urban than in rural areas
    ØRural dwellers were mainly farmers who needed additional help on farms
    ØGender ration imbalance as Chinese favour males to females

    §Current measures:
    ØAttempts to balance gender ratio announced in December 2006
    Ø‘One Child’ Policy amended to ensure there will be sufficient people to support elderly in the future
    •Job creation & financial assistance for people in less developed regions
    - high rate of unemployment indicates many are unable to meet basic needs
    - governments play a key role in creating more job opportunities for people
    - success of which would increase standard of living

    Case of The Philippines

    § Most of the poor lack formal education or skills training
    § Difficult to gain employment in formal jobs
    § Most end up working in the informal sector
    § Little attention paid to this group
    § Kapit-Bitsig Laban sa Kahiraopan [KALAHI],
    or, ‘Linking Arms Against Poverty’
    § Aims to increase employment rate and income of the poor
    § Resources provided to informal sector
    § Government works with NGOs to assess viability to business ventures before loans are offered
    § Microfinance, or small loans, were given to small businesses
    § Ultra-poor given interest free loans
    § Programme supported by several other NGOs and private organisations
    § Poor given training and advice to run businesses effectively

    § 600,000 agricultural jobs created in rural areas
    § 3 million businesses assisted
    § 1.7 million provided employment through job placement schemes

    § Reduce income gap between rich and poor
    § Poor need to increase market access to boost their businesses
    § More volunteers needed in outreach programmes

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