What is development? Which criteria can we use to measure development? Criteria for development: GDP life expectancy health education urbanisation income distribution industrialization literacy infant mortality sector employment

Classifications 1950s:First World: Western Europe, North America, Australia, New Zealand, Japan Second World:Communist countries like the former USSR Third World: Rest of the world 1980s:North (developed world)South (less developed world) still too simpleoil rich countries? South Korea? 1960s/70s: Less Developed Countries Developed Countries too simple did not include social and political development

since the 1990s: - Economically More Developed Countries (EMDCs) - Economically Less Developed Countries (ELDCs) e.g. Europe, USAhigh standard of living lower quality of life - Centrally Planned Economies (CPEs) - Oil Rich Countries (ORCs) e.g. Saudi Arabia, Lybia without oil, many of these countries would be ELDCs - Newly Industrializing Countries (NICs) rapid industrial, social and economic growth in the last few decades

Measuring development most common:GDPper capitain $ but:does not take into account: - wealth and income distribution - local costs of living - health, e.g. life expectancy - education: literacy, schooling - social and environmental standards - regional variations (regional disparities) - informal (unregistered) economy World Bank:Purchasing Power Parity (PPP) instead of GDP in $ level of GDP adjusted to local costs of living

United Nations:Human Development Index includes 3 indices of well-being: - life expectancy - literacy and schooling - GDP(PPP) not included: - access to drinking water - infrastructure - human rights - environmental standards - internet access - arable land

Characteristics of ELDCs (developing countries) - large proportion of the workforce engaged in primary industries (esp. rural sector) - rapid population growth - large proportion of the live in rural areas - low standard of living (low PPP/head) - low life expectancy - high infant mortality rate - low manufacturing production - child labour - high illiteracy rates - bad governance

Development strategies e.g. India 1947 Nehru Ghandi Prime Minister in 1947 large-scale industrial development belief: benefits of growth would trickle down to rural areas (e.g. through more demand for agricultural products) this did not happen! aim: self-sufficiency in rural villages in food, clothing and housing spinning-wheel!

from the 1970s:series of Rural Development Programmes very limited success because of centralized, large-scale planning better approach: de-centralized planning which takes into account the needs, ideas and resources of the local people and environment from the 1990s:liberalization of the economy attraction og FDI (foreign direct investment) successfulhigh growth rates but still:little improvement for the poor

Why do certain regions prosper? Natural advantages: - water, fertile land and other natural resources (oil, ore etc) - locationmarket access(e.g. sea ports) - labour supply Acquired advantages: - infrastructure, also: good suppliers - skilled workforce - state support (subsidies, tax incentives etc.) attraction of more and more investment"growth poles" hope for "spread effects" core area stimulates growth in surrounding areas but:such "growth poles" do not benefit rural areas with low population density

Characteristics of NICs - high growth rates in manufacturing production - increasing proportion of the workforce work in manufacturing industries - improvement in social infrastructure (schools, hospitals etc.) higher life expectancy decreasing illiteracy rate/increasing rate of university students - increasing exports of manufacturing goods - increasing use of technical devices in households (e.g. electrcal appliances, PCs, internet) - increasing productivity, but still low wages/bad working conditions - still low environmental standards Main groups of NICs: - Asian "Tigers" such as Hong Kong, Singapore, South Korea, Taiwan - Latin American NICs such as Brazil and Mexico - China, India

India: an NIC or still an ELDC? NIC ELDC - growing manufacturing and service sector (agricultural sector declining) - migration from rural to urban areas - high growth of GDP per capita - improving standards of education - death rates much lower than birth rates stage II of DTM - use of new technology (e.g. wind turbines) - internet ratio 18/1,000 (increasing) - more imports than exports - big gaps between rich and poor - very large agricultural sector - 60% of the population are illiterate - birth rate exceeds death rate - insufficient/unjust pension system