Module 3- Development and Disparities in

Development:

Part 1:
Development
Development refers to improvements in the quality of life and economic well-being of people. It
includes higher income, better health, education, infrastructure, and social equity.

Underdevelopment
This describes regions or countries with low living standards, weak infrastructure, poor health
and education services, and limited access to technology and capital.

Sustainable Development
Sustainable development meets present needs without compromising future generations. It
balances economic growth, environmental protection, and social inclusion. Example: Costa
Rica’s focus on renewable energy and eco-tourism.

Early Theories of Development

Early theories often focused on economic growth.
 Modernization Theory suggested all countries follow a linear path to development like
Western nations.
 Dependency Theory argued that underdevelopment is caused by exploitation from
developed countries, especially during colonialism.

Change in Definition of Development

The meaning of development has evolved from just economic growth to include health,
education, freedom, and environmental sustainability. The United Nations now promotes a
broader view through indicators like the Human Development Index (HDI).

More Economically Developed Countries (MECDs or MDCs)

Countries with high income levels, advanced infrastructure, and high standards of living.
Example: Germany, Canada.

Less Economically Developed Countries (LECDs or LDCs)

Countries with lower income, less industrialization, and poorer access to services. Example:
Haiti, Chad.
Economic Indicators of Development
Gross Domestic Product (GDP)- Total value of goods and services produced in a country.
Gross National Product (GNP)- GDP plus income earned abroad by nationals.
Purchasing Power Parity (PPP)- Adjusts income to reflect cost of living.
Energy Consumption- High levels usually indicate industrialization.
Human Development Index (HDI)- Composite index including life expectancy, education, and
income.
Percentage Employed in Agriculture- A high percentage may indicate a less developed
economy.

Strengths of Economic Indicators of Development

Provide measurable, comparable data across countries.
Show general levels of income and production.
Useful for tracking economic growth over time.

Weaknesses of Economic Indicators of Development

Do not reflect income distribution or inequality.
Ignore social, environmental, and cultural aspects of development.
Can be misleading in countries with large informal sectors.
GDP and GNP may not account for sustainability or quality of life.

Non-Economic Indicators of Development

 Literacy rates
 Life expectancy
 Infant mortality
 Access to clean water
 Gender equality
 Political freedom
 Environmental quality.

Strengths of Non-Economic Indicators of Development

Reflect quality of life more holistically (health, education, freedoms).
Highlight social progress and human well-being.
Capture environmental and gender-related issues.

Weaknesses of Non-Economic Indicators of Development

Can be harder to measure consistently across countries.
Data may be outdated or unavailable in some regions.
Subject to cultural interpretation (e.g., freedom or happiness).
Composite indicators like HDI may oversimplify complex realities.
Part 2:
Global Disparities in Development
These refer to the uneven distribution of wealth, opportunities, and living conditions across the
world, often between developed and developing regions.

Poverty
Poverty is the lack of access to basic resources such as food, shelter, and education. It affects
quality of life and limits opportunities for advancement.

Life Expectancy and Its Distribution

Life expectancy is generally higher in MDCs due to better healthcare, nutrition, and living
conditions. In contrast, LDCs often have lower life expectancy due to poor sanitation, disease,
and limited medical services.

Gender Poverty
Women are disproportionately affected by poverty due to limited access to education,
employment, and land ownership, particularly in rural and developing areas.

Gender Disparities
These include unequal access to education, healthcare, employment, and political representation.
In many LDCs, traditional roles and systemic barriers limit women’s advancement.

Education
Access to quality education is a key indicator of development. Disparities in education lead to
unequal opportunities, especially for women and rural populations.

Status of Women
The status of women varies widely across regions. In many LDCs, women face legal, social, and
economic restrictions. Improving their status is linked to better health, education, and economic
outcomes.

Colonialism and Its Legacy

Colonialism drained resources from colonies, imposed unequal trade, and created economies
dependent on raw material exports. Its legacy includes economic underdevelopment, weak
institutions, and political instability.

Industrial Capitalism
Industrialized nations gained wealth through manufacturing, trade, and capital investment.
Former colonies often remained suppliers of raw materials, reinforcing inequality.
Rostow’s Model of Development
Rostow’s Model, also known as the "Stages of Economic Growth", was proposed by American
economist Walt Whitman Rostow in 1960. It outlines five linear stages that countries supposedly
pass through as they develop economically.
1. Traditional Society
 Characterised by subsistence agriculture, limited technology, and a static economy.
 Most people work in farming with low productivity.
 Social structure is rigid and resistant to change.
Example: Many pre-industrial societies before the 18th century, such as feudal Europe.
2. Preconditions for Take-Off
 External influences (such as colonisation, trade, or investment) start to introduce new
ideas and technology.
 Development of infrastructure (e.g., roads, ports, power supplies).
 Emergence of entrepreneurial and political leadership that promotes change.
Example: 19th-century India under British influence, with railway expansion and
beginnings of industry.
3. Take-Off
 Rapid growth in a few sectors, such as textiles or heavy industry.
 Investment rates increase, and industrialisation begins.
 Urbanisation accelerates, and a manufacturing base is established.
Example: Britain during the Industrial Revolution; South Korea in the 1960s.
4. Drive to Maturity
 Economic growth spreads to more sectors.
 Modern technology is adopted widely.
 There is diversification of the economy and improvements in education and governance.
Example: Japan in the late 20th century as it moved beyond textiles and electronics to
become a global economic power.
5. Age of High Mass Consumption
 Economy shifts from production of goods to services.
 High income levels allow for widespread consumption of consumer goods.
 There is a welfare system and emphasis on health, education, and leisure.
Example: United States, Western Europe, and parts of East Asia like Japan and South
Korea today.
Strengths of the Model:
 Offers a simple, linear explanation of economic development.
 Useful for understanding how industrialisation can lead to long-term growth.
 Highlights the role of investment, innovation, and infrastructure.

Criticisms:
 Eurocentric and Western-biased: Assumes all countries follow the same development
path as Western nations.
 Ignores cultural and historical differences: Some countries may skip stages or follow
different trajectories.
 Assumes unlimited resources and linear progress: In reality, countries may experience
regression or stagnation.
 Underplays the role of external factors like colonialism, global trade inequalities,
and debt.

Dependency Theory
This theory argues that development in MDCs depends on the underdevelopment of LDCs.
Resources flow from the periphery (LDCs) to the core (MDCs), maintaining inequality.

Utility of Rostow’s Model, Colonialism, and Dependency Theory

Rostow's model is useful in showing internal growth processes but overlooks external constraints
like colonialism. Dependency theory better explains historical and economic links between
Britain and the Caribbean, including how trade and capital flows have limited Caribbean growth.

Small Island Developing States (SIDS)

Examples: Barbados, Jamaica, Saint Lucia
 Characteristics: Small size, limited resources, dependence on imports, tourism-based
economies
 Location: Mostly in the Caribbean, Pacific, and Indian Oceans
 Vulnerabilities: Prone to hurricanes, sea level rise, environmental degradation
 Debt Burden: High dependence on foreign loans to support development
 Utility: Helps explain why the Caribbean lags behind larger, more diversified economies
like Britain

Government Problems and Policy

Corruption, poor planning, and lack of investment in education and infrastructure hinder
development. Effective policies can improve health, education, and economic growth.

Technology
Access to technology can boost productivity, improve communication, and expand economic
opportunities. LDCs often struggle with outdated infrastructure and limited digital access.
Consequences of Global Disparities
Description:
Global disparities refer to the unequal distribution of resources, wealth, opportunities, and access
to services between and within countries. These disparities exist between developed (Global
North) and developing (Global South) nations and can lead to significant economic, social, and
environmental consequences.

Economic Consequences
 Poverty and Low Incomes:
In poorer countries, a large portion of the population may live below the poverty line due
to limited job opportunities, low wages, and weak economic growth.
Example: Many Sub-Saharan African countries experience widespread poverty due to
lack of industrialisation and dependence on primary products.
 Dependence on Aid and Loans:
Developing countries often rely on foreign aid or loans from organisations like the IMF
and World Bank, which can lead to long-term debt and economic dependency.
 Limited Infrastructure and Investment:
Global disparities result in underdeveloped transportation, healthcare, and education
systems in poorer regions, discouraging foreign investment and economic growth.

Social Consequences
 Inequality in Health and Education:
In wealthier countries, access to advanced healthcare and quality education is
widespread. In contrast, poorer countries struggle with high mortality rates, underfunded
schools, and low literacy levels.
Example: Maternal mortality is significantly higher in Chad than in the UK due to lack of
skilled medical care.
 Migration and Brain Drain:
Disparities cause people in poorer regions to migrate to richer countries in search of
better opportunities. This can result in the loss of skilled workers in the home country.
Example: Many healthcare professionals from Jamaica or Nigeria migrate to the UK or
USA for better pay and working conditions.
 Conflict and Instability:
High levels of poverty and inequality can lead to political unrest, civil wars, and social
instability.
Example: Economic marginalisation in parts of the Middle East has been linked to social
uprisings and political turmoil.
Environmental Consequences
 Overexploitation of Natural Resources:
Poorer countries may exploit forests, minerals, and fisheries unsustainably to generate
income, leading to long-term environmental degradation.
Example: Deforestation in the Congo Basin to sell timber or clear land for agriculture.
 Urban Overcrowding and Pollution:
Rapid and unmanaged urbanisation in developing countries due to rural-urban migration
can lead to slums, poor sanitation, and air and water pollution.
Example: Informal settlements in cities like Lagos or Mumbai suffer from severe
overcrowding and waste management issues.

Global Impacts
 Increased Global Migration Pressure:
Disparities drive mass migration, often resulting in political tensions and humanitarian
issues at borders.
Example: Refugee crises in Europe due to conflicts and economic hardships in Africa and
the Middle East.
 Unequal Climate Impact:
Poorer countries contribute the least to climate change but are the most vulnerable to its
effects, such as droughts, floods, and rising sea levels.
Example: Bangladesh faces severe flooding risks despite minimal carbon emissions.
Part 3:
Regional Disparities
These are differences in levels of development, wealth, and living standards between regions
within a country. They can arise due to geography, resource availability, policy focus, or
historical factors.

Myrdal’s Cumulative Causation Model

The Cumulative Causation Model was developed by Swedish economist Gunnar Myrdal.
Myrdal argued that economic growth is not naturally balanced across regions. Instead, growth in
one area often pulls resources and people away from less developed areas, causing inequality to
deepen over time. This is driven by two sets of forces:
1. Spread Effects (Positive)
These are the benefits of economic growth that may spread to surrounding regions, such as:
 Increased demand for raw materials or labour from nearby areas
 Transfer of technology and skills
 Infrastructure development that connects surrounding regions
2. Backwash Effects (Negative)
These are the harmful impacts on less developed areas caused by the growth of core regions:
 Loss of skilled workers (brain drain)
 Capital and investment flowing into already prosperous regions
 Weakening of local economies in peripheral areas
According to Myrdal, backwash effects tend to dominate, especially in the early stages of
development, leading to cumulative inequality.

Stages in the Process of Cumulative Causation:

 Initial Advantage: A region may benefit from better access to natural resources,
transport, markets, or technology.
 Increased Investment: Businesses and industries move to the region with the initial
advantage.
 Labour Migration: Skilled workers move to the growing region for better jobs and pay.
 Further Growth: The successful region grows further, attracting more development and
creating a self-reinforcing cycle.
 Decline of Other Regions: Less developed areas lose people, investment, and services,
becoming increasingly marginalised.
Strengths of the Model:
 Explains persistent regional inequalities.
 Highlights the importance of feedback loops in development.
 Stresses the role of historical and social factors, not just economics.
Criticisms:
 Assumes backwash effects always outweigh spread effects, which is not always true.
 May oversimplify complex development processes.
 Less applicable in countries with strong regional development policies.

Even Development
Refers to balanced economic growth across all regions. It helps prevent rural-urban migration
and reduces inequality.

Comparative Development
This is the analysis of different regions to understand why some develop faster than others. It
highlights disparities and potential for improvement.

Regional Concentration
Occurs when development is focused in a few areas, typically cities or regions with resources
and infrastructure, leading to uneven growth across the country.

State Intervention
Governments can reduce regional disparities through targeted investments, infrastructure
development, tax incentives, and decentralization of services and industries.
Example: Brazil's development programs for the Amazon region.

Spearman’s Rank Correlation Coefficient

A statistical method to measure the strength and direction of the relationship between two ranked
variables (e.g., income level and access to education across regions).

How to Use Spearman’s Rank Correlation

1. Rank each set of data (e.g., region by income and by literacy rate).
2. Find the difference (d) between ranks for each region.
3. Square each difference (d²).
4. Use the formula:
rs = 1 - [6 × Σd² / n(n² - 1)]
Where:
rs = Spearman’s rank correlation coefficient
Σd² = sum of squared differences
n = number of pairs
A result close to +1 means strong positive correlation, -1 means strong negative correlation, and
0 means no correlation.
Part 4:
Friedmann’s Core-Periphery Model
This model explains how development is spatially concentrated in a "core" region, while
surrounding "periphery" areas remain less developed.
 Core: Urban, economically advanced, with infrastructure, investment, and skilled labour.
 Periphery: Rural, underdeveloped, with limited services, often reliant on agriculture or
raw materials.
 Over time, the model suggests that development may spread from the core to the
periphery, but this is uneven and may require state intervention.
Four Stages of Development in the Model:
1. Pre-industrial: No clear core; development is scattered.
2. Transitional: Core emerges and grows rapidly, creating disparities.
3. Industrial: Growth spreads to semi-peripheries.
4. Post-industrial: Regional development becomes more balanced due to spread effects and
planning.
Part 5:
Forms of Aid
Grants: Non-repayable funds for development.
Advantage: No debt burden.
Disadvantage: May create dependency.
Programme/Long-Term Aid: Ongoing support for sectors like health or education.
Advantage: Helps with sustainable development.
Disadvantage: Can be poorly managed without local involvement.
Soft Loans: Loans with low interest or long repayment periods.
Advantage: Easier terms for poorer countries.
Disadvantage: Still increases national debt.
Foreign Aid: General term for aid from external countries or organizations.
Advantage: Supports development needs.
Disadvantage: May come with conditions.
Public/Official Development Assistance (ODA): Governmental aid.
Advantage: Often large-scale, formalized.
Disadvantage: Political motives may influence it.
Private Development Assistance: Aid from private sources or foundations.
Advantage: Flexible and targeted.
Disadvantage: Less oversight or coordination.
Bilateral Aid: Aid from one country directly to another.
Advantage: Direct support.
Disadvantage: May be politically or economically tied.
Food Aid: Direct supply of food during crises.
Advantage: Immediate relief.
Disadvantage: Can disrupt local agriculture.
Tied Aid: Aid given on the condition that goods or services are purchased from the donor
country.
Advantage: Benefits donor economy.
Disadvantage: Reduces recipient flexibility and may increase costs.
Multilateral Aid: Aid through international organizations (e.g., UN, World Bank).
Advantage: Coordinated and larger-scale.
Disadvantage: Bureaucratic delays.
Charity/Non-Governmental Aid: Given through NGOs or charities.
Advantage: Often locally tailored and quick to respond.
Disadvantage: Funding can be inconsistent.
Six Benefits of Aid
 Improves health and education
 Supports infrastructure development
 Provides emergency relief
 Builds institutional capacity
 Strengthens international relationships
 Encourages economic development
Six Disadvantages of Aid
 Can lead to dependency
 May support corrupt governments
 Can distort local markets
 Often tied to donor interests
 Can be mismanaged or misallocated
 May not reach the poorest groups

Organisations and Industries that Provide Aid (with Aims)

World Bank- Provide loans and development assistance for poverty reduction.
International Monetary Fund (IMF)- Promote financial stability and support economic
development.
United Nations Development Programme (UNDP)- Support sustainable development
and governance.
World Health Organization (WHO)- Improve global health.
UNICEF-Focus on children’s welfare, health, and education.
USAID- Provide American aid to promote development and democracy.
UK Foreign, Commonwealth & Development Office (FCDO)- Reduce global poverty
through British aid.
Red Cross/Red Crescent-Provide humanitarian aid in crises.
Oxfam- Tackle poverty and injustice.
Doctors Without Borders (MSF)- Offer medical care in emergencies.

Conditionalities
These are requirements placed on aid recipients, such as economic reforms or trade
liberalization.
Potential Problem: May prioritize donor goals over local needs.

Potential Problems with International Charities

 Lack of coordination with local governments
 Duplication of efforts
 Short-term focus
 Cultural insensitivity
 Funding inconsistency
 Limited long-term impact
Global Patterns of Aid
 Donors: US, UK, EU countries, Japan, Canada, Scandinavian nations
 Recipients: Sub-Saharan Africa, parts of Asia and the Caribbean, Latin America, and the
Middle East
 Bilateral aid is often politically motivated; multilateral aid focuses on global development
goals.

Impacts of Aid
When Effective
 Reduces poverty and inequality
 Improves health, education, and livelihoods
 Builds infrastructure and capacity
 Promotes peace and stability
When Ineffective
 Wasted or stolen funds
 Encourages corruption
 Increases debt
 Weakens local governance and institutions
 Creates aid dependency
Situations for Each
 Effective: Coordinated with recipient government, transparent use, long-term goals
 Ineffective: Poor governance, lack of monitoring, donor-driven agendas

Debt Relief
The cancellation or reduction of a country’s debt burden, often linked with development
progress.
Helps countries redirect funds to development instead of debt repayment.

Appropriate Technology
Technology that suits local conditions, resources, skills, and culture.