Global Inequality in Development (Edexcel GCSE Geography B)
Revision Note
Written by: Jacque Cartwright
Reviewed by: Bridgette Barrett
Causes of Global Inequalities
There are environmental, historical, social, economic and political reasons for global inequalities
Environmental | Social |
|---|---|
Climate: Extreme weather hazards, such as tropical cyclones, may inhibit a country’s ability to develop due to the frequent devastation they can cause. Climate related diseases and pests such as malaria, affect the ability of the population to stay healthy enough to work. Locust swarms can decimate crops Topography: Countries with hostile landscapes, such as desert or mountains, may find it harder to develop, as it can be difficult to build transport infrastructure or produce enough food. Landlocked countries are cut-off from seaborne trade routes which are important to economic growth. Africa has some of the most landlocked countries on earth. E.g. Chad | Healthcare and education: Countries that have invested in education and healthcare are generally more developed. Demography: Lack of equality can mean that the overall productivity of a country is affected. Countries where birth rates have fallen the most, show the highest rates of growth Poverty: A lack of money in a country slows development because it prevents improvements to living standards, education, sanitation and infrastructure. Without these, development in agriculture and industry will be slow and the economy cannot get going. |
Political and Economic | Historical |
Water, food and energy security are particularly important to support a country's development Systems of governance: Many developing countries are not democracies and often have corrupt systems of governance. This makes getting rid of a government difficult and hinders development. International relations: Countries that have opened up to global trade have grown faster than countries that have put up barriers to globalisation. Corruption: Countries with corrupt or unstable governments develop more slowly, as investment in infrastructure, healthcare and education is inadequate. Profits from companies and even aid from other countries, are stolen and used to make the powerful richer. | Colonialism: Colonialism means acquiring political control over another country and economically exploiting it. Colonialism has led to the uneven development of some richer nations in comparison to the countries that they colonised. Neo-colonialism: Rich countries today still use their Trade: Wealthy regions, such as Asia, Europe and North America dominate trade because they export secondary (processed) goods which earn more income. As these countries accumulate wealth, they become more powerful. Which means they are able to dictate the terms of trade to their advantage, usually at the expense of LICs |
Examiner Tips and Tricks
Do not confuse modern-day neo-colonialism with historical colonialism.
Neo-colonialism is where control between countries has moved away from direct (hard power) control e.g. military invasion to 'soft power' control e.g. IGOs, aid, cultural power, TNC brands.
These can be just as, or even more powerful than direct control (colonialism).
Consequences of Global Inequalities
Cycle of wealth
One of the key consequences of development is the cycle of wealth
Economic development creates wealth and if a country has a stable and effective government this leads to development
As the economy grows, more people work and are earning more money:
The government can then collect more taxes and people have more disposable income to spend which increases business profits
The taxes collected and profits made by companies can then be invested in future growth as well as infrastructure, education, healthcare etc...
Income inequalities
There is an imbalance between the rich and poor (the haves and the have nots)
Some countries have lower levels of development and poorer quality of life than others
Imbalances also exist within countries
One way to show the scale of inequality between countries is to use income quintiles
These are calculated by the World Bank:
All 230 countries are put into order by their GDP per capita, the USA is at the top
The list is then divided into 5 equal groups of 46 countries with each group being called a quintile
The top quintile will contain the to richest 46 countries in the world - the top 20% who own 80% of the world's GDP
The bottom two quintiles will be the bottom 40% of countries that together own just 3% of all GDP
Consequences of Global Inequalities
Global Inequality can lead to migration
Migration is the movement of people from place to place which can be voluntary or forced
International migration is a consequence of uneven development, as people seek to improve their quality of life
Movement can be two ways: Poor wanting a better life or the rich not wanting to live near squatter settlements
Mexico an emerging country, borders the USA an HIC, every year over 130,000 Mexicans migrate to the USA legally, yet thousands enter illegally hoping for a better quality of life and paid jobs
There are economic, social, environmental and political reasons for international migration
Economic:
More than 3 billion people live on less than $2.50 per day
This affects living standards and quality of life
People migrate to countries with better pay and more opportunities
Developing countries frequently lack the ability to pay for food, agricultural innovation and investment in rural development
Social:
1 in 9 people in the world do not have clean water where they live
Without clean water or access to healthcare, millions of people do not reach their full potential
Many developing countries do not have the ability to combat the effect of HIV / AIDs
More than 775 million people in developing countries cannot read or write
Political:
Many people in developing countries want to live in safer countries with less corruption
Environmental:
Developing countries have increased vulnerability to natural disasters
They lack the capacity to adapt to climate-change-induced droughts
Poor farming practices lead to environmental degradation
Raw materials are exploited with providing limited economic benefit to developing countries and little concern for the environment
Rostow's Modernisation Theory
The Rostow model of the Stages of Economic Growth was developed in 1960
Based on the study of 15 European countries
Rostow suggested that all countries have the potential to break the cycle of poverty and develop through 5 linear stages:
Stage 1: Traditional society: economy based on bartering, subsidence farming and little investment
Stage 2: Pre-conditions for take off (transitional stage): surpluses are traded through improved infrastructure and shift to manufacturing
Stage 3: Take off: industrial and regional growth, investment and political change
Stage 4: Drive to maturity: growth is supported through technological innovation, diversification and investment
Stage 5 - High mass consumption: consumer orientated society, durable goods production, dominant service sector, higher disposable incomes
Criticisms
Model is outdated and too simple
Model assumes all countries start at the same point (same resources, population, climate etc.)
Capital is needed to advance from Stage 1
The model does not show how that capital is obtained: usually a development aid loan.
The debt repayments can delay or even prevent a country from reaching Stage 3 and take off
Colonialism, and the impact this had on the development of some countries, are not taken into account or are underestimated
Worked Example
Explain how Roster's modernisation theory can be used to understand how countries develop over time.
(3 marks)
Answer
Rostow states that countries begin with a traditional society which involves subsistence agriculture (1), countries then invest in technology which enables them to prepare for the take-off stage (1). This often involves rapid industrialisation and further increase in investment (1).
As countries develop, Rostow stated that rapid industrialisation occurs during the take-off stage (1), this is followed by an increase in the purchase of consumer goods as countries move through the drive to maturity (1) until eventually the age of high-massconsumption is reached where consumer good purchase is at its highest and the country at its wealthiest. (1).
Frank's Dependency Theory
Ander Frank's theory believes that countries are poor because of past relationships with other countries
Developed in opposition to Rostow's model
Frank believed development was through the core and its peripheries
Where powerful developed countries are represented as the core (Europe, North America etc.)
All 'other areas' are the peripheries which depend on the core for its market (developing nations; large parts of the African continent)
Essentially, the periphery produces and sells low-value raw materials to the core (coffee beans, sugar, cocoa etc)
The core processes them into high-value goods and become wealthier
Criticisms
Original model did not take into account emerging countries
Countries that were once a periphery or had been dependent on core development have achieved economic growth (China, Brazil and India)
Some countries which were never colonised lack infrastructure and are undeveloped - Afghanistan, Yemen
Aid dependency and internal corruption is a barrier to development
Other factors lead to lack of development: being land locked, civil conflict, lack of political will etc.
Small countries have difficulties in raising enough investment capital to be independent of the core
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