Approaches to Development (Edexcel GCSE Geography B)
Revision Note
Written by: Jacque Cartwright
Reviewed by: Bridgette Barrett
Top Down Development Strategies
Various approaches to tackling the problems of low and widening development gap
These are seen at both large and small scales and involve individual or multiple organisations (global players such as Trans National Corporations (TNCs), IGOs (International Governmental Organisations) and governments
They can be an economic or holistic approach but both have advantages and disadvantages and aim to have a multiplier effect
Top down strategies are aimed more at an economic level and include large projects which hope to improve incomes for people through developing industry
A high level of technical support is usually needed with funding from foreign loans and IGOs such as the IMF and World Bank
Examples include:
Major roads, bridges, and railways
New airports and ports
Hydroelectric power dams
Freetrade:
This approach is where countries do not charge tariffs and quotas between themselves, this encourages trading which is free of taxes and charges
This can be beneficial to developing and emerging countries
Investment:
Where countries and TNCs invest money in developing countries which provide employment and income
Example: Chinese companies investing in Africa (mainly energy, mining, construction and manufacturing)
Industrial development:
Brings employment, higher incomes and opportunities to invest in housing, education and infrastructure
This has a multiplier effect
Example: China’s move away from agriculture to manufacturing made it one of the fastest growing economies in the world
Tourism:
Some countries have become tourist destinations
Which leads to investment and increased income
Infrastructure is improved and direct and indirect jobs created
Tourism can become vulnerable during a recession
Debt relief:
Many developing countries borrowed money to develop their economies during the 1970s and 1980s
Some of these countries have fallen into serious debt and are unable to pay back these loans because of the high rates of interest
In 2006, the International Monetary Fund (IMF) agreed to cancel the debts of 19 of the world’s poorest countries
This money saved in debt can now be used for development projects such as industry, resources and infrastructure
But corrupt governments may keep money
Example: Ugandan government has spent money to provide safe water to over 2 million people
Bottom-Up Development Strategies
Bottom-up strategies are aimed at social development, with smaller community projects that are aimed at improving health, education, or food supplies at a local level
Examples include:
Wells and water pumps
Schools and health clinics
Training for farmers
Aid:
Countries or non-governmental organisations (NGOs such as Oxfam) donate resources to a country to help or improve people’s lives
Aid can take the form of money, emergency supplies, food or technology, specialist skills
Helps reduce the development gap through investing in development projects
Focus is usually on health care, education and services
Example: Goat Aid helps families buy goats, which produce milk and meat
Intermediate technology:
This is where suitable, appropriate and sustainable projects, equipment and ideas are used
These are tailored to the needs and wealth of a local community
Example: Micro-hydro for the remote villages of Nepal which the community build and maintains
Provides enough electricity to improve life for the villagers: enables children to study at night, families to watch TV and use mobile phones and the internet
Fairtrade:
International movement that helps producers in poor countries get a fair deal by setting standards for trade
Farming is done in an environmentally friendly way
Product has a better position in the global market
Part of the end price is invested back into the local community and future development projects
Example: Over 90% of small coffee farmers in eastern Uganda have joined the Gumutindo Coffee Cooperative, which allows the coffee to be milled before roasting, which adds value to the coffee and increases the farmer's income
Microfinance loans:
Small-scale financial support for small start-up businesses is usually aimed at women to help them become more self-sufficient
Example: Grameen Bank, Bangladesh, was set up in 1976 to help local women use their skills to develop small businesses. Initially, the bank lent women money to buy mobile phones, which the women then charged villagers to use, giving them a small profit, but also enough to repay the loan
Examiner Tips and Tricks
Both NGO-led intermediate technology and IGO-funded large infrastructure have pros and cons.
IGOs fund large infrastructure developments that can benefit large numbers of people.
NGOs target intermediate technology at the specific needs of local people (a grassroots approach).
Advantages & Disadvantages of Development Approaches
Globalisation and development
Globalisation has played a significant role in development through trade
Countries trade because one country has something that another country does not
There are many processes and players (transnational corporations (TNCs), governments) that have contributed to globalisation, with some countries benefitting more than others from this
Countries that have embraced globalisation have seen more progress than those that remain 'switched off'
Rise in the internet and mobile communications making data transfer cheaper, faster and easier than ever before
Goods are moved around the globe cheaply and in bulk on container ships
People travel easier and cheaper around the world on aircraft etc.
Developments in technology have encouraged many TNCs to invest in emerging countries such as India and China, by shifting the production of goods and moving data processing, call centres and administrative functions overseas
This shift has benefitted emerging countries by creating new jobs and improving income levels and a better quality of life for some
Emerging countries have made it easier for TNCs to locate and offer incentives for investments through:
Creating special economic zones (SEZs) and export processing zones (EPZs) which have no, or very low taxes
Restricting workers' rights, banning workers from joining unions and having no, or very low minimum wage
Limiting environmental, pollution, health and safety laws, to reduce costs for new factories and offices
Examples of Advantages and Disadvantages of Globalisation on Development
China | USA |
---|---|
Foxconn workers earn approx. £180 a month making iPads and iPhones for Apple. Most live in dormitories within the factory compound and can work up to 60 hours or more of overtime a month on top of their normal working hours Pay is higher than in the rural areas and this attracts many internal migrant workers | Major car industries have closed their factories in cities such as Detroit and moved them to Brazil and Mexico. Thousands of male, well-paid workers lost their jobs as labour costs were cheaper elsewhere. This has left many cities without a main employer and a cycle of decline to begin |
Bangladesh | Sub-Saharan Africa |
Low-priced, throwaway clothes are made in Bangladesh by women working for up to 80 hours a week but earning as little as £12. Accidents are frequents and factory fires and exploitation are common. | Globalisation has had little impact on Sub-Saharan Africa despite continued attempts. This is partly due to poor infrastructure, power and water supplies but also the physical features of the land (tropical rainforest, mountains etc.) Education and skill levels are low and governments are often corrupt, which discourages large-scale TNC investments. |
Bottom-up vs top-down
Table to show Advantages and Disadvantages to Development Strategies
| Bottom-up NGO-led social | Top-down IGO-funded investment |
---|---|---|
Advantages | Targets specific needs of local people and creates local jobs | There is access to large sums of money from IGOs such as the IMF and World Bank Large infrastructure developments are beneficial to many people |
Disadvantages | Governments can often rely on NGOs rather than developing their own systems to help their people | Lack of education and training means that high-tech investments are costly to maintain Local people may not benefit at all |
Worked Example
Explain the disadvantage of TNC investment in developing or emerging countries.
(2 marks)
Answer
TNCs will locate elsewhere if it is to their advantage or for profit (1)
Poorer working conditions compared to similar factories in developed countries (1)
Higher level jobs (management and technical skills etc.) are usually allocated to the TNC country, (1) leaving the developing country as the resource extractors and producers (1)
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