ECONOMIC GEOGRAPHY 2

Introduction to Geographies of
Development
 MEANING OF DEVELOPMENT
1.Process of becoming modern – progress in
standards of living from old pre-historic
traditional societies to global, diverse, complex
and technologically based new societies
2. Attaining the experiences and lifestyle of the
USA and Western European Societies and
economies
3. Encompassing industrialization, urbanization
and increased standards of living in relation
to health, education and housing
4. Sustained mobility or elevation of an individual or
a social group from conditions that are
unsatisfactory to conditions that are better off
5. Change (usually positive change) over time
 DEVELOPMENT GEOGRAPHY
• Is a branch of Geography that focuses on the
standards of living and the quality of life of earth’s
inhabitants.
• Geographers understand that at times, the
process of development brings undesirable
outcomes among earth’s inhabitants
 For example: for the environment or often for poor people

• These geographers therefore try to understand

the causes and consequences of development
threats and provide better development options
• Geographers endeavour to ensure that the
process of development is not:

o At odds with global ecology objectives – promote

sustainable development
o Marginalising people - resulting in unfair trade or
unfair production conditions
o Widening the gap between the rich and the poor, but
rather narrow down the gap through redistribution
of wealth
 GEOGRAPHICAL PATTERNS OF THE WORLD
• The rate of development among countries has
been different due to different contextual issues
prevalent within these countries
• Different terms are used to describe countries
depending on their levels of development. The
terms include:
i. Developed/Underdeveloped countries
ii. Developed/Undeveloped countries
– The use of the terms undeveloped and underdeveloped is
discouraged – ‘stigma issues’
iii.Developed/Developing countries
iv.More/Less Developed Countries
• There are different systems to divide the level of
development

• Most prosperous nations are in the Northern part

of the globe while the less prosperous nations are
in the south
The North-South Divide
 The North-South Divide of the world

• But Australia and New Zealand belong to the MEDCs and are
part of the North even though geographically, they are in the
global South
The North-South Divide
• Distinction in LEDCs and MEDCs
• This is very imprecise
• the individual countries are not described
The three worlds
• The most prosperous nations correspond to the capitalist
industrial countries of the USA, Western Europe,
Australia, Japan and Canada
 commonly known as the first world
• Most countries that were aligned to the former
communist USSR (Union of Soviet Socialist Republics) are
in transition to industrial capitalism (progressing towards
the status of more developed countries)
 the second world
• The remaining countries of Africa, Asia and South
America are still developing
 the third word
The Three Worlds
 RECENT TRENDS IN DEVELOPMENT
• Recent maps of the three worlds have depicted countries
such as South Africa and Brazil as belonging to the
second world because of the progress they have made so
far
 for example: more industrialisation, more urbanisation

• There is an emerging group of countries known as the

Newly Industrialised Countries (NICs). These countries
have moved away from the developing status in that
they have achieved a considerable level of
industrialisation.
Newly Industrialised Countries (NICs)
Reasons for rapid development in NICs:
i. Encouraged the processing of primary products in
order to add value to their exports
ii. Heavily invested in manufacturing industry like
shipbuilding and steel industry
iii.Encouraged transnational firms to locate within their
boundaries through tax incentives
iv.Had a dedicated workforce which was initially
prepared to work for long hours for little pay
v. Developed a long-term industrial plan - a central plan
with observable and measurable goals
vi.Grouping together to promote trade relations and
economic growth e.g., ASEAN Free Trade Area (AFTA)
and BRICS
COMMON CHARACTERISTICS OF
DEVELOPING COUNTRIES
SEVEN CHARACTERISTICS – according to Todaro
1. Low Standards of Living
• The majority of the population experiences low
standards of living.
• The main indicators of these low living standards
are high poverty levels (i.e very low incomes),
high levels of inequality, very poor housing, low
standards of health, high infant mortality rates,
high levels of malnutrition and a lack of
education.
2. Low Levels of Productivity (output per person)
 The main causes are:
• low education standards within the countries,
• attitudes toward self-improvement,
• poor nutrition,
• the low level of health among workers,
• lack of investment in physical capital and
• lack of access to technology e.t.c.
• brain drain
3. High Rates of Population Growth &
Dependency Burdens
• Developing countries tend to have crude birth
rates that are on average more than double the
rates in developed countries.
• The crude birth rate is the annual number of live
births per 1,000 of the population.
• The world average crude birth rate in 2012 was
19.15, but in Niger it was at 51.26 births per
1,000 people while Malawi at 40 births per 1,000
people
• The high crude birth rates result into high
dependency ratios….. How?
• The high crude birth rate means that there are a
lot of young people under the age of 15 in
developing countries.
• Those of working age, usually assumed to be 15
to 64, have to support a much larger proportion
of these children under the age of 15 .
• Dependency Burden is usually expressed in terms
of Dependency Ratio
Dependency Ratio
• The dependency ratio is the percentage of those
who are non-productive, usually those who are
under 15 and over 64, expressed as a percentage
of those of working age, usually 15 to 64.
• The equation would be:
Dependency Ratio =
(% of population under 15) + (% of population over 64)
(% of population 15 to 64)
4. High & Rising Levels of Unemployment &
Underemployment
• Developing countries tend to have relatively high
levels of unemployment, typically between 9%
and 16% of the labour force.
• In addition, to the official unemployment
statistics, there are three more groups that need
to be considered:
(a) Hard Core: Those that have been unemployed
for so long that they have given up searching for
a job and no longer appear as unemployed.
(b). Hidden Unemployed : - those who work for a
few hours a day on the family farm or in a
family business or trade.
(c). Underemployed: Those who would like full-
time work but are only able to get part- time
employment, often on an informal basis
• It is when all the groups previously mentioned
are put together that the full extent of
unemployment in developing countries can be
really understood.
• It is impossible to be accurate, but it would be
fair to say that in many developing countries, the
true rate of unemployment is over 40%.
5. Substantial Dependence on Agricultural
Production & Primary Product Exports
• The majority of the population directly or
indirectly depends on agricultural sector – mainly
backward agriculture.
• Over 80% of Malawians
• Agriculture sector is back ward due to old and
traditional methods of cultivation, farmers
largely depend on credit facilities, existence of
unorganized agricultural markets etc.
• The primary and agricultural products are the
main exports of these countries.
6. Prevalence of Imperfect Markets & Limited
Information
• The trend in developing countries in the last 20
years has been towards a more market-oriented
approach to growth.
• This has sometimes been promoted or
encouraged by international bodies such as the
IMF and the World Bank.
• However, this is possibly problematic, since,
while market-based approaches may work well
in economies that are efficiently functioning ,
many developing countries face imperfect
markets and imperfect knowledge.
• Developing countries may lack many of the necessary
factors that enable markets to work efficiently.
• They may lack a functioning banking system, which
enables and encourages savings and then investment.
• They lack a developed legal system, which ensures
fairness in the market place.
• They lack adequate infrastructure – e.g., in terms of
transport to move raw materials, semi-finished
products and final goods efficiently and at low cost.
• They lack accurate information systems for both
producers and consumers, which often leads to
imperfect information, the misallocation of resources
and misinformed purchasing decisions.
7. Dominance, dependence & vulnerability in
International Relations
• In almost all cases, developing countries are
dominated by developed countries because of
the economic and political power of the
developed countries.
• In addition, they are dependent upon them for
many things, such as trade, access to technology,
aid and investment
• It is not really possible for economically small,
developing countries to isolate themselves from
world markets.
• Developing countries are vulnerable on the
international stage, and are dominated by, and
often harmed by the decisions of developed
countries over which they have no control.
• Some have argued that what is needed is for the
developing countries to act as a bloc, to gain
more power in trade negotiations – but they
don’t have resources to stand on their own
Other general characteristics
(a)Indebtedness
• To fund massive projects, poor countries borrow
from the rich (neocolonialism)
(b) Control of Government
• Wealthy persons, landlords and elite class not
only control the Government but also they have
full control over all the major sectors of the
economy. This rich class is not interested to solve
the problems of the poor for their welfare but
make government policies for their own
improvement.
(c) Social Aspects
• Under developed countries have some factors
such as joint family system, caste system, cultural
and religious views, beliefs and values that badly
affect their economic development.
(d) Political Instability
• Characterised by power struggles and civil wars
resulting into lack of investments due to security
fears, mass displacement of people, outbreak of
diseases
NOTE: Know diversities that exist among
developing nations
 MEASUREMENT OF DEVELOPMENT
• Measured through three indicators:
 MEASUREMENT OF DEVELOPMENT
A. Social indicators include:
I. Social justice
II.Health
III.Wellbeing
IV.Education
V.Freedom
VI.Political Democracy
VII.National Unity

 Problem: scoring for some indicators is subjective

B. Demographic Indicators include:
• Existence of nuclear families
• Mortality Rates
• Birth Rates
• Fertility Rates
• Life Expectancy
• Structure of the Population
• Natural Increase

 Problem: data used for calculation, especially

from developing countries is unreliable
C. Economic indicators include:
1. GDP (Gross Domestic Product) per capita
2. GNP (Gross National Product) per capita [GNI]
3. Purchasing Power Parity per capita (PPP)
4. Energy Consumption
5. Workforce engaged in Agriculture /
Manufacturing / Service Sectors
6. Human Development Index (HDI)
7. International Human Suffering Index (HSI)
1. GDP (Gross Domestic Product) per capita
• Value of goods and services produced within a country
within a given year, calculated per a certain population
• Calculated in US dollars to allow comparisons between
and among countries
• Limits are set to GDPpc Scores to separate countries
into
- Low
- lower-middle
- upper-middle
- high income countries
2. Gross National Product per capita [GNP pc]
• also known as the Gross National Income per capita
[GNIpc]
• Value of goods and services produced by citizens of a
country (whether at home or in a foreign country) within
a given year, calculated per a certain population
• Just as the GDPpc, GNPpc is also calculated in US dollars
to allow comparisons between and among countries
• Limits are set to GNPpc Scores to separate countries into
- Low
- lower-middle
- upper-middle
- high income countries
GDP and GNP
3. Purchasing Power Parity (PPP)
• Different countries have different price levels. The
same amount of money in a low-price country has
greater purchasing power than in a high-price
country.
• Therefore, PPP converts currencies by taking into
account price level differences.
• It makes buying power of all currencies equal to
the buying power of US $ 1.
3. Purchasing Power Parity (PPP)
4. Energy Consumption
• Is a common economic measure of development
that predicts the degree of industrialisation of a
country
• Industrialised countries use more (up to 10 times)
energy than non industrialised countries
• Measured in kilowatt hours of electricity per
capita
• Coal usage is also converted to give a true
measure of total energy consumption
5. Workforce engaged in Agriculture /
Manufacturing /Service Sectors
• The percentage of the population engaged in
each of the sectors of employment give an
indication of levels of development – after the
Clarke-Fisher model:
 LDCs have a large percentage of people employed in
the primary sector, particularly farming
 NICs have higher percentage of people employed in
the secondary or manufacturing sectors
 MDC’s have higher percentage of people employed
in the service/tertiary sectors
5. Workforce engaged in Agriculture/ Manufacturing/
Service Sectors
The Clarke-Fisher model:
5. Workforce engaged in Agriculture/ Manufacturing/
Service Sectors
The Clarke-Fisher model:

• This model works well for westernised countries as well as

the south
• Some people believe that Globalisation speeds this process
up and can change the sequence
• Tourism growth could mean a by-pass of the industrial phase
• Whether it fulfils the destiny of every country remains to be
seen
• There is debate over whether some countries could develop
further
• The speed of development is by no means the same for
everyone
WEAKNESSES OF SOME ECONOMIC INDICATORS
• Measure value of goods at market place only -
subsistence farming and barter activity ignored
• Fail to take into account contribution of
clandestine economic activities (like drug dealing
or black/informal economy)
• Fail to show the actual distribution of wealth
• Require use of singe currency for easy
comparisons – conversion to US$ or International
Dollar is problematic because currency fluctuates
• Indicators fail to measure changes in the quality
of life
• Data collected in many countries that is used for
calculation of the indicators is unreliable
• Non-paid work is not considered - charity work,
housework, etc. contribute to the development of
a country
6. Human Development Index
What does Human Development mean?
6. Human Development Index (HDI)
• Devised by the United Nations after realizing that income
growth/ economic measures were not good indicators of
development
• Tries to measure all the three dimensions of development:
demographic, social, and economic
 A long and healthy life
as measured by LIFE EXPECTANCY at birth
(demographic factor)
 Knowledge
as measured by the ADULT LITERACY RATE and the
combined primary, secondary, and tertiary GROSS
ENROLLMENT INDEX (social factor)
A decent standard of living
as measured by GNIpc at PURCHASING POWER PARITY
(PPP) (economic factor)
Human Development Index
• Each country receives an HDI value from 0 to 1
• Countries are ranked according to their HDI
values wherein the lower the HDI score implies
lower development level and vice versa
6. Human Development Index
6. Human Development Index
Africa:
6. Human Development Index 2014

The highest ranked country: Norway (1)

0.944 HDI
The lowest ranked country: Niger (187)
0.348 HDI
Malawi (174)
0.445 HDI
The HDI is published every year by the United
Nations Development Programme.
7. International Human Suffering Index (HSI)
• Scores from 0 to 100 - the lower the score the better
o GNP per capita
o Rate of inflation
o Growth of labour force
o Urban population growth rate
o Infant Mortality Rate
o Daily calorie supply as a percentage of requirements
o Access to clean drinking water
o Energy consumption per capita
o Adult literacy rate
o Personal freedom
 RESOURCES AND DEVELOPMENT
• We need to study this link because quite often,
development implies you have enough resources
• Resources are categorised as
 natural
 human (capital) resources
• Natural resources are the unchanged raw
materials obtained from the land, water, and air
• On the other hand ……
• human (capital) resources
 knowledge, habits, social and personality
attributes
• used to exploit the natural resources to create
wealth
• There is a debate among geographers as to the
relationship between
 occurrence of natural resources
 and levels of development of a country

• Some argue that there is a poor association while

others argue that there is a positive association
• Those that support the poor association cite
Africa as an example:
Africa in general has large quantities
of untapped natural resources
but many of its countries are failing to develop

• On the other hand, poorly resourced countries of

Japan and Switzerland are amongst the world’s
most developed countries
• Proponents of the positive association argue that natural resources are very
significant especially in the early stages of development as they are a major
source of capital and foreign exchange
South Africa Zambia Kuwait, Saudi Arabia,
Nigeria, Libya

gold, diamonds copper oil

• Only that, the potential of natural resources is limited by their geographical

location and nature
• Many developing countries have a steady supply
of human resources
• However, the quality of this human resource is
inferior in that it lacks the necessary wellbeing,
education and skills
• Some geographers have attributed the inferiority
in human resource to other external and internal
constraints or deficiencies in the production
processes
• The deficiencies in natural and human resources
have been linked to underdevelopment among
individuals and countries in general
• This linkage is normally demonstrated through
the vicious cycle of poverty
 THE VICIOUS CYCLE OF POVERTY – INDIVIDUAL LEVEL

and is unable to be efficient As result, he will be unable

in his production (D) to earn much money (E)

weakness (C) In the end, he will be trapped

in a cycle of poverty

At an individual level, a person (A) cannot

pay for an adequate supply of food (B)
 THE VICIOUS CYCLE OF POVERTY – ECONOMIC SYSTEM LEVEL
the level of an economic
system, such as a country

Result: there will be

which eventually leads to low
capital shortages (E)
savings and development (C)

which eventually prevent the

effective utilization of resources
low productivity (A) and blockage of productivity (F)
leads to low income (B)

This process will trap

an economic system in
a cycle of poverty.
Weaknesses of these models of cycle of poverty:
• They assume that the state is the sole cause of
continued poverty
• They wrongly imply that societies in LCDs are
static, they ignore the social conditions of these
countries
• They assume that all LCDs are at the same stage
of development. However, there are variation
among and within developing countries
Millennium Development Goals
• WHAT ARE THE MILLENNIUM DEVELOPMENT
GOALS?
• MDGs are an ambitious agenda for:
 reducing poverty
 improving lives

• world leaders agreed on at the Millennium Summit in

September 2000

• For each goal one or more targets were set, most

for 2015, using 1990 as a benchmark.
WHAT ARE THE MILLENNIUM DEVELOPMENT
GOALS?
• Actors: United Nations,

• World Bank,

• Development Assistance Committee of the OECD

(Organisation for Economic Co-operation and
Development )
• Participants: 189 countries
• Result: Millennium Declaration
• 8 international development goals

•Implementation with the help of 21

measurable and time-bound targets
•Over 60 indicators to monitor the
development
 Millennium Development 8 Goals
1) Eradicate extreme poverty and hunger
Target for 2015: Halve the proportion of
people living on less than a dollar a day and
those who suffer from hunger

Conclusion: - the MDG-1 target has been met,

poverty rates have been halved
between 1990 and 2010
- but 1.2 billion people still live in
extreme poverty
 Millennium Development 8 Goals
2) Achieve universal primary education

Target for 2015: Ensure that all boys and girls

complete primary school

Result: - All regions show successes

- Primary school education raised from 83 to
90 %
- High drop-out rates

Conclusion: - Progress is visible

- target not reached
 Millennium Development 8 Goals
3) Promote gender equality and
empower women

Targets for 2005 and 2015: Eliminate gender

disparities in primary and secondary education
preferably by 2005, and at all levels by 2015
Result: - 2012: achieved gender parity in primary
education completely or almost
- Women are assuming more power in the
world’s parliaments, boosted by quota systems
Conclusion: - Target achieved: regarding the differences
in primary education enrollment
- Gender disparities persist
 Millennium Development 8 Goals

4) Reduce child mortality

Target for 2015: Reduce by two-thirds the

mortality rate among children under five

Result: - There is a substantial progress in reducing

child mortality
- However, the world is still falling short of
the MDG child mortality target
 Millennium Development 8 Goals
4) Reduce child mortality
 Millennium Development 8 Goals
4) Reasons for Child Mortality in Niger 2010(%)
 Millennium Development 8 Goals
5) Improve maternal health
Target for 2015: Reduce by three-quarters the
ratio of women dying in childbirth

- Much more still needs to be done to reduce

maternal mortality
- Poverty and lack of education perpetuate
high adolescent birth rates
 Millennium Development 8 Goals
6) Combat HIV/AIDS, malaria and other
diseases
Target for 2015: Halt and begin to reverse the spread
of HIV/AIDS and the incidence of malaria and other
major diseases
good progress
average
progress
barely progress
There are still too many new
Infections: cases of HIV infection
7. Ensure environmental sustainability
• Targets: Integrate the principles of
sustainable development into country policies
and programmes and reverse the loss of
environmental resources.
• By 2015, reduce by half the proportion of
people without access to safe drinking water
• By 2020 achieve significant improvement in the
lives of at least 100 million slum dwellers
7. Ensure environmental sustainability

billion people gained of developing billion people still increase in the

access to clean countries are on lack access to number of
drinking water from track to hit the improved protected
1990 to 2010 drinkable water sanitation areas since
target 1990

!
- Millions of hectares of forest are lost every year, threatening
this valuable asset
- Global greenhouse gas emissions continue their upward
trend
7. Ensure environmental sustainability
8. Develop a global partnership for
development

Targets:
• Develop further an open trading and financial system
that includes a commitment to good governance,
development and poverty reduction nationally and
internationally. Address the least developed countries
special needs, and the special needs of landlocked and
small island developing States
• Deal comprehensively with developing countries debt
problems
8. Develop a global partnership for
development

Targets:
• Develop decent and productive work for youth
• In cooperation with pharmaceutical companies,
provide access to affordable essential drugs in
developing countries
• In cooperation with the private sector, make available
the benefits of new technologies especially
information and communications technologies
 8. Develop a global partnership for
development

billion in HIPC* debt billion mobile

of revenues were contraction in
relief had been cellular
used for poverty- global trade in
committed by June subscriptions
reducing 2009
2010 to 36 countries, worldwide by
expenditures in
of which 30 the end of 2011
HIPCs in 2009, up
countries have
10% from 2001
received an
additional $45.8
billion under the
MDRI*
*Heavily Indebted Poor Countries, *Multilateral Debt Relief Initiative
 How MDGs Worked (Brought about the Change)
1. Instilled political will among leaders
2. Provided the much-needed sense of direction to
national plans. MDGs have provided a useful
framework for national development strategies
3. Provided the much-needed sense of direction to
international cooperation
4. Provided measurable results / goals
5. NGOs were called into the playing field
6. Mobilized support for this urgent global priority -
of poverty reduction “AID-BOOM”
7. Enhanced response to critical issues - e.g., in
Health, there was a surge in vaccines; research in
treatment of water; programmes enhancing
school enrolment and reducing school drop out .
 Weaknesses of MDGs
1. Limitations in the MDGs’ development process
2. Limitations in the MDGs’ structure
(organization)
3. Limitations in the MDGs’ content
4. Limitations in the MDGs’ implementation and
enforcement
Who identified the goals and targets?, how and
why certain goals were chosen and what political
agendas influenced the structure of the MDGs?
• Process was led by US, Europe and Japan, and co-
sponsored by the World Bank, IMF and the
Organisation for Economic Co-operation and
Development (OECD)
• Japan opposed the inclusive gender target
• Some UN members and religious institutions
rejected the reproductive health goal
• The World Bank dictated the indicator for poverty
reduction as the proportion of people living below
the poverty line of $1 per day
• Goals on peace, security, disarmament, human
rights, transparent and accountable governance
and democracy were deliberately left behind …. to
lessen the burden on donors
Poor structure or organization
• Goals are ‘overambitious’ or ‘unrealistic’ and
ignore the limited local capacities (one size fits
all).
• Interconnectedness of goals was ignored e.g.,
separate maternal and child health goals results in
separating strongly linked maternal and newborn
issues
• The absence of accountability for every MDG
(except Goal 8)
 Unsatisfactory Content
• Failed to capture issues to do with reducing
inequality within and between countries – didn’t
address issues of the poorest of the poor, the
most vulnerable
• Numbers reduce numerical imbalances as
opposed to substantive asymmetries – e.g.,
gender inequality
• Too narrow to capture the major issues of
development – key issues left out
• There is a challenge when the MDGs are used for
other planning purposes - goals are too narrow
and the targets poorly defined. (susceptible to
distorting priorities and evaluation of
performance)
Challenges with regards to implementation
of MDGs and subsequently in the
interpretation of progress reports
• Who will enforce the implementation of the
MDGs – the dog that can bite
• How will nations be held accountable if they
pay little attention to MDGs
• Problems to do with the actual measurement
of progress – methodology differs
Sustainable Development Goals
• on September 25th 2015, countries adopted a
set of goals to end poverty, protect the
planet, and ensure prosperity for all as part
of a new sustainable development agenda
• 17 goals with 169 targets covering a broad
range of sustainable development issues
• each goal has specific targets to be achieved
over the next 15 years
Sustainable Development Goals
• Agenda 21, adopted at the Earth Summit,
drew upon this sentiment and formalized nine
sectors of society as the main channels
through which broad participation would be
facilitated in UN activities related to
sustainable development.
• These are officially called "Major Groups" and include the
following sectors:
• Women
• Children and Youth
• Indigenous Peoples
• Non-Governmental Organizations
• Local Authorities
• Workers and Trade Unions
• Business and Industry
• Scientific and Technological Community
• Farmers
Sustainable Development Goals
• Major Groups and other stakeholders (MGoS)
continue to demonstrate a high level of
engagement with intergovernmental processes at
the UN.

• The coordination of their input to

intergovernmental processes on sustainable
development has been led by UNDESA (United
Nations Department of Economic and Social Affairs)/
DSD (Division for Sustainable Development).
• Member States ultimately decide upon the
modalities of participation of MGoS.

• Thus, the engagement and participation of

MGoS in intergovernmental processes related
to sustainable development varies depending
on the particular sustainable development
topic under discussion.
 Differences – MDGs and SDGs

• Six "essential elements": dignity, prosperity, justice,

partnership, planet, people.
(Ban Ki-Moon, the eighth Secretary-General of the United Nations)
• no targets for justice and prosperity in MDGs
• Finite formulations in SDGs
STRATEGIES FOR POVERTY
REDUCTION IN MALAWI
 OVERVIEW OF THE STRATEGIES
• The Vision 2020
• Malawi Vision 2063
• The Malawi Poverty Reduction Strategy
• The Malawi Economic Growth Strategy
• The Malawi Growth and Development Strategy
• The Malawi Growth and Development Strategy II
• The Malawi Growth and Development Strategy III
 VISION 2020
• Was launched in 2000
• Sets out a long-term development perspective for
Malawi
• States that: “by the year 2020 Malawi as a God
fearing nation, will be:
 secure,
 democratically mature,
 environmentally sustainable,
 self reliant with equal opportunities for and active
participation by all
 Having social services, vibrant cultural and
religious values
 A technologically driven middle-income economy
• Emphasized on
 Long term strategic thinking
 Vision and visionary leadership
 participation by the population
 Strategic management
 National learning
• Fundamentals of other strategies are based on
the Vision 2020 development perspectives
Goals to be reached by 2020
• Good Governance
• Achieving Economic Growth and Development
• Achieving a Vibrant Culture
• Developing Economic Infrastructure
• Food Security and Nutrition
• Human Resource Development and Management
• Achieving Science and Technology-Led
Development
• Fair and Equitable Distribution of Income
• Natural Resource and Environmental
Management
• Working Example: Good Governance
• how to enhance national unity;
• how to improve the role and performance of the
public sector;
• how to improve the role and performance of the
private sector;
• how to make Malawians aware of their rights and
responsibilities;
• how to enhance and sustain the rule of law and
respect for human lights;
• how to enhance the separation of powers and
checks and balances;
RESPONSES TO QUESTIONS
• making Malawians aware of their civil and human
rights and responsibilities;
• improving and sustaining the rule of law and respect
for human rights;
• enhancing the role and performance of the public
sector;
• creating an enabling environment for private
enterprise,
• enhancing the separation of powers, checks and
balances of the three branches of government;
• encouraging political participation by the general
populace;
• nurturing and appointing foresighted leaders;
• improving internal security; and
• creating capacity in political and strategic studies.
MALAWI VISION 2063
•Implemented in phases
•First 10 year phase launched on 08 Nov 2021 by
Chakwera
•Incorporates views of Malawians across the
country, in rural and urban areas, as well as the
diaspora
The MW2063 is anchored on the three pillars of
• Agricultural Productivity and Commercialization
• Industrialization and
• Urbanization
It has 7 enablers namely:
• Mindset Change
• Effective Governance System
• Public Sector Performance
• Private Sector Dynamism
• Human Capital Development
• Economic Infrastructure and
• Environmental Sustainability.
• Has top 10 goals
1. An inclusively wealthy and self-reliant industrialized
upper middle-income country.
2. A vibrant knowledge-based economy with a strong and
competitive manufacturing industry that is driven by a
productive and commercially vibrant agriculture and
mining sector.
3. World-class urban centres and tourism hubs across the
country with requisite socio-economic amenities for a
high-quality life.
4. A united, peaceful, patriotic and proud people that
believe in their own abilities and are active participants
in building their nation.
5. Effective governance systems and institutions
with strict adherence to the rule of law.
6. A high-performing and professional public
service.
7. A dynamic and vibrant private sector.
8. Globally competitive economic infrastructure.
9. A globally competitive and highly motivated
human resource.
10.An environmentally sustainable economy.
 It is youth centric
 Addresses major weaknesses of Vision 2020
such as ……..
 The Malawi Poverty Reduction Strategy
• Was the first attempt to translate the long term
Vision 2020 into medium term
• Was launched in May 2002
• Sets out a long-term development perspective for
Malawi
• The goal of the MPRS was to achieve “sustainable
poverty reduction through empowerment of the
poor.”
• The MPRS was built around four strategic pillars
namely:
1.sustainable pro-poor growth;
2.human capital development;
3.improving the quality of life of the most
vulnerable; and
4.governance.
• In addition, it had four key cross cutting issues
namely: HIV and AIDS, gender, environment,
science and technology.
• The implementation period for the MPRS was for
a period of three years and it came to an end in
the fiscal year 2004/05.
• In the second half of 2005, the MPRS was
reviewed to draw lessons from its
implementation.
• These lessons are summarized in the report
“Comprehensive Review of the MPRS 2005” and
its findings informed the strategic direction of the
MGDS.
• The notable achievement of the MPRS was the
decline in poverty levels from 54.1 percent to
52.4 percent.
• Also important was the fact that Ministries and
Departments tried to implement their activities in
line with the MPRS framework.
• However, there were some short falls that
hampered the implementation process. These
included failure by Ministries and Departments to
translate the activities into the budget and MTEF
(Medium-Term Expenditure Framework); slow
implementation of the devolution process, and
that funding was not based on pillars.
 Malawi Economic Growth Strategy
• The Government of Malawi did not develop the
MPRS in close collaboration with the private
sector.
• The MEGS was a joint realisation by the Malawi
Government and the private sector that the
Malawi economy had been registering negative
growth and that something had to be done in
order to reverse the trend.
• The Government invited the private sector to
come into play
• Therefore, in July 2004, the Government
developed the MEGS in collaboration with the
private sector.
• The MEGS was not developed as an alternative to
MPRS but rather as a complement to strengthen
pillar one
• Hence, the MEGS was designed to address the
weaknesses of the first pillar of the MPRS,
sustainable pro-poor growth.
WHAT WERE THE FOUR WEAKNESSES?
1.Strategies and actions were insufficient to achieve
sustained annual economic growth of at least 6%.
(needed new investments that would directly
impact on economic growth)
2.Some issues, like the housing and land policy,
were not well articulated to contribute effectively
to broad based growth.
3.Did not focus on eliminating obstacles to
economic growth
4.Did not sufficiently articulate the role of the
private sector.
MEGS EMPHASIZED ON:
1.Investments that would directly impact on
economic growth
2.Rapid broad-based growth (expand the sectoral
sources of growth).
 Apart from the core agriculture sector explore
other key potential sectors that could generate
growth e.g., tourism, mining and manufacturing
(with particular emphasis on agro-processing like
processing of cotton textiles and garments)
3.Deepening and sustenance of the gains made
from the agriculture sector
4. Making the economy less susceptible to external
shocks like weather, changes in terms of trade,
political developments in the region, and
fluctuations in external aid flows.
5. The need for the creation of favourable
environment for private sector participation -
private sector is the engine of growth in the
modern liberalised and globalised world.
6. Strategies and actions that did not require
substantial additional spending by Government
but refocusing on existing resources
• It was envisaged that in the medium term, donor
organisations would have a key role to play in
creating a conducive environment for economic
growth by supporting policy reforms and
providing resources
 Malawi Growth and Development
Strategy Framework (2006-2011)
• The overarching operational medium-term
strategy for Malawi designed to attain the
nation’s Vision 2020
• The MGDS attempted to translate the MDGs for
Malawi in a localized context.
• The main objective of the MGDS was to create
wealth through sustainable economic growth and
infrastructure development as a means of
achieving poverty reduction.
• The MGDS incorporated inputs from the MPRS,
MEGS, Integrated Household Survey, the Malawi
Demographic and Health Survey and the Malawi
Poverty Vulnerability Analysis
• Stakeholders that were consulted included the
Government, Parliament, Judiciary, private sector,
civil society, donors and co-operating partners,
and the general public.
• 6 KEY PRIORITY AREAS OF THE MGDS
1.Agriculture and Food Security
2.Irrigation and Water Development
3.Transport Infrastructure Development
4.Energy Generation and Supply
5.Integrated Rural Development
6.Prevention and Management of Nutrition
Disorders, HIV and AIDS
1. AGRICULTURE AND FOOD SECURITY
• Agriculture is the single most important sector of
the economy - employs about 80 per cent of the
workforce, and contributes over 80 per cent of
foreign exchange.
• However, agriculture in Malawi is characterized
by low and stagnant yields, over dependence on
rain-fed farming, low level of irrigation
development, and low uptake of improved farm
inputs among others.
• Consequently, Malawi continues to suffer from
chronic food insecurity.
• The goal is therefore to increase production for
food security and agro-processing and
manufacturing
HOW?
(a) Agricultural Productivity
• Expected to increase smallholder productivity
• Increased orientation of smallholder farmers to
greater commercialization and international
competitiveness.
• The strategy also envisaged increased livestock
production to meet domestic demand.
• Contract farming, strengthening linkages of
farmers to markets, creating a balance between
domestic and export oriented markets and
providing effective extension services.
(b) Agro-processing
• Expected to increase the process and adding of
value to agricultural products
• Targeted crops are tea, tobacco, sugar, cotton
and wheat e.g., increased production of garments
made from locally woven cotton cloth as opposed
to imported synthetic fabrics.
(c) Food Security
• Expected to make food available to all in sufficient
quantities and qualities, and at affordable prices.
• To be achieved through improving agricultural
productivity, implementing policies to improve
maize markets; improving the ability to import
and distribute food; providing means for
Malawian’s to gain income etc
2. Irrigation and Water Development
• Irrigation and water development is key to
Malawi due to its direct linkages with agriculture
and energy.
• Irrigation reduces the over dependence on rain-
fed agriculture while proper conservation of
water will also contribute towards the generation
of electricity.
• Key strategies include construction and
promotion of small and medium scale irrigation
schemes to enhance food and cash crop
production.
3. Transport Infrastructure Development
• Malawi’s transport infrastructure is characterized
by poor road network, poor and limited access to
ports, limited air links, inadequate freight and rail
capacity.
• The inadequacy of the transportation
infrastructure results in high costs of production
• MGDS sought to improve transportation, thereby
reducing time taken to export goods, cost of
domestic trucking, costs of cross-border and
transit trade, cost to reach domestic, regional and
international markets;
• Deliberate emphasis was placed on improving
mobility and connectivity of rural producing
communities to markets.
4. Energy Generation and Supply
• Malawi is relatively well endowed with a wide
variety of energy resources but a full potential of
the energy sub-sector remains far from being
realized - owing to a number of structural,
operational and institutional challenges.
• The provision of energy in Malawi is inadequate,
unreliable and inaccessible to all who need it
mainly due to lack of competition in the sector;
siltation due to poor farming practices; weeds and
water hyacinth on the Shire River; lack of progress
on regional interconnection, and widespread
vandalism of equipment.
• The MGDS sought to reduce the number and
duration of blackouts, increase access to reliable,
affordable electricity in rural areas and other
targeted areas (MAREP), improve coordination
and the balance between the needs for energy
and those of other high growth sectors such as
tourism and mining.
5. Integrated Rural Development
• The MGDS recognized that broad based economic
growth and development cannot be achieved if
rural areas with potential for growth were
sidelined.
• In this context, Government strived to promote
the growth of rural growth centers.
• It was expected that developed rural growth
centers would create employment that will
enhance incomes for rural communities and in-
turn reduce rural-urban migration trends.
• Emphasis was on rural infrastructure
development such as roads and communications,
energy supply, agro-processing and
manufacturing.
6. Prevention and Management of Nutrition
Disorders, HIV and AIDS.
• Malawi is severely affected by HIV and AIDS.
• The country still faces a number of challenges in
containing the spread and impacts of HIV and
AIDS
• Challenges include hunger and poverty which
make individuals more vulnerable to infection;
inadequate supply of ARVs and access to
nutritious diets.
• The MGDS goal was to prevent further spread of
HIV and AIDS and mitigate its impact on the socio-
economic and psychosocial status of the general
population and high risk groups.
• Emphasized on behaviour change among high risk
groups, increased number of people accessing
VCT, increased uptake of ARVs and nutrition
therapy.
• In order to support the six key priority areas, the
MGDS was built around five broad thematic areas
• The thematic areas, that also highlight the MDGs
are:
1.Sustainable economic growth
2.Social protection
3.Social development
4.Infrastructure development
5.Improved governance.
(1) Sustainable economic growth
• Aimed at creating wealth and employment,
transforming the country from a predominantly
consumption-based economy to a predominantly
production-based economy, and turning it into a
middle-income economy.
• Sub-Theme One: Maximizing the contribution to
economic growth through the potential sectors of
growth – manufacturing, mining and tourism
• Sub-Theme Two: Enabling environment for
private sector led growth e.g. tax reforms
• Sub Theme Three: Export Led Growth – exploring
international and regional markets
• Sub Theme Four: Conserving the Natural
Resource Base – emphasizing on fisheries,
forestry, wildlife and the environment.
• Sub Theme Five: Economic Empowerment – e.g.,
increasing number of women and youths who
actively participate in economic activities
• Sub Theme Six: Land and Housing – aimed to
ensure tenure security and equitable access to
land
(2) Social protection and Disaster Risk
Management
• This sub-theme wanted to introduce measures
that would decrease the risk of economic shocks
and strengthen resilience to shocks (related to
food security and economic empowerment).
• Sub Theme One - Protecting the Vulnerable:
identified social protection programs that
protected the vulnerable groups like the elderly,
persons with disabilities, populations affected by
disasters, the chronically sick, orphans, single
parents, the unemployed, vulnerable children
(like the malnourished), lactating mothers and
destitute families from economic shocks
• Sub Theme Two - Improving Disaster Risk
Management:
• The aim was to reduce the socio-economic impact
of disasters such as acute food shortage, severe
flooding, Hailstorms
• Government planned to put in place adequate
disaster risk management measures that go
beyond emergency response to include
preparedness, prevention and mitigation as well
as rehabilitation and reconstruction.
• This called for lobbying for adequate funding and
developing an effective early warning system.
(3) Social development
• The overall goal of this theme was to develop
human capital for full participation in the socio-
economic and political development of the
country.
• Sought to produce an educated, skilled and
healthy workforce
• Sub Theme One - Health and Population: sought
to increase life expectancy, decrease maternal
mortality rates, decrease child morbidity and
mortality, increase access to and use of health
services, decrease cases of preventable diseases
(e.g., malaria and TB), increase vaccination rates
and use of modern contraceptives and ARVs
• Sub Theme Two - Education
• Government was implementing reforms in order
to increase access and retention at all levels;
improve the quality and the relevance of
education being provided; improve equity,
management and supervision; and the training of
more teachers for both primary and secondary
levels.
• Through construction of additional classrooms,
provision of relevant school supplies, curriculum
reviews, training of more teachers and upgrading
the existing under qualified ones.
• Sub Theme Three – Gender: Gender inequalities
in accessing resources, opportunities & decision
making affect economic growth and
development.
• The main challenges are social/cultural factors,
human rights abuse, gender-based violence and
limited participation in social economic activities.
• Abuse accelerate other factors in women and
child disfavour such as spread of HIV and AIDS.
• The goal was to mainstream gender in the
national development process to enhance equal
participation of both sexes for sustainable
development.
(4) Infrastructure development
• Provision of infrastructure in the areas of
transport (road, rail, air and water), water supply
and sanitation, electricity, telecommunications,
and information technologies contributes to
enhanced productivity of business
establishments
• Infrastructure in Malawi is grossly inadequate,
characterized by low availability, unreliability
and expensive.
• Sub Theme One – Air and Rail Transport:
• Malawi has very high airfreight, prohibitive
landing rights and fees, below standard of
unavailable facilities at major airports
• The rail network is inefficient, unaffordable and
ineffective. The sub-theme therefore seeks to
reverse this current situation.
• Sub Theme Two - Information, Communication
Technology:
• Sought to address constraints in broadcasting,
telecommunications and Information technology
sectors
• Sub Theme Three – Research, Science and
Technology Development:
• The goal of this theme was to enhance
development through the application of science
and technology.
• The government therefore established national
institutional structures that support the
development of science and technology
• Such institutions include the National Research
Council (NRC), Malawi Industrial Research and
Technology Development Centre (MIRTDC) and
the Department for science and technology.
(5) Improved Governance
• The success of the first four themes depends very
much on good governance.
• The main tenets of good governance are issues to
deal with good public sector management,
absence of corruption and fraud, decentralization,
justice and rule of law, security, good corporate
governance, and respect of human rights.
• In addition, the need for political will and change
of mindset
• This theme, therefore, endeavours to address
concerns in these tenets of good governance.
• The sub-themes include:
1)Macroeconomic Growth;
2)Public Policy Formulation, Fiscal Management,
Public Sector Management and Corruption;
3)Decentralization,
4)Developing a Strong Justice System and Rule of
Law
5)Security,
6)Corporate Governance, and
7)Human Rights
Implementation Modalities of the MGDS
• Its implementation involved all stakeholders – the
Government, civil society organizations, private
sector and the general public. Government will
take a leading role through consolidated budget.
• Donors and co-operating partners were expected
to align their support and activities to the MGDS.
Monitoring and Evaluation
• Was in accordance with the Master Plan
developed by the then Ministries of Economic
Planning and Development, Finance, Local
Government & Rural Development & the NSO.
 THE MGDS II (2011 to 2016)
• The fundamentals of the MGDS II are also based
on the shared Vision 2020
• The MGDS II is built around six broad thematic
areas namely:
a)Sustainable Economic Growth;
b)Social Development;
c) Social Support and Disaster Risk Management;
d)Infrastructure Development;
e)Improved Governance; and
f) Cross Cutting Issues.
I. Sustainable Economic Growth
• Maximizing the contribution of potential growth
sectors such as agriculture, mining and tourism,
• Creating an enabling environment for private
sector participation and development; fostering
job creation; empowering rural communities;
ensuring equitable access to land; and enhancing
sustainable use of the environment.
II. Social Development
• Sought to address issues of population dynamics;
health; education; child development and
protection; youth development and nutrition.
III.Social Support and Disaster Risk Management
• Deals with sections of the population that
experience extreme poverty and still require
social support.
IV. Infrastructure Development
• Emphasized on infrastructure development in
areas of: energy; transport; water
development; information and
communication; and housing and urban
development
V. Improved Governance
• Government sought to address issues related to
access to economic opportunity, private sector
participation, efficient stewardship of public
resources, promotion of democratic governance
institutions, and justice and the rule of law.
• Focus is placed on four sub themes, namely
economic governance, corporate governance,
democratic governance and public sector
management.
VI. Cross Cutting Issues.
• Gender, capacity development, research and
development, Human Immunodeficiency Virus
(HIV) and Acquired Immune Deficiency Syndrome
(AIDS), nutrition, environment, climate change,
population and science and technology are critical
issues that cut across and impact on all sectors of
the economy.
 From these five themes, the MGDS II identifies
nine key priority areas namely:
I. Agriculture and Food Security;
II. Energy, Industrial Development, Mining and
Tourism
III. Transport Infrastructure & Nsanje World Inland
Port
IV. Public Health, Sanitation, Malaria and HIV and
AIDS management
V. Integrated Rural Development
VI. Green Belt Irrigation and Water Development
VII. Education, Science and Technology
• Government realised that rapid development in
all sectors of the economy requires highly skilled
and educated workforce, and the application of
science and technology.
• This key area, therefore, wanted to strengthen
the education system and promote science,
technology and innovation
VIII. Child Development, Youth Development and
Empowerment
• Children and the youth constitute a significant
proportion of the population of Malawi.
• Government, therefore, realised that it was
essential to invest in child development, youth
development and empowerment.
IX. Climate Change, Natural Resources and
Environmental Management
• Natural resources form a principal source of social
well being and economic development in Malawi.
However, these resources are under constant
stress
• Government developed a number of adaptation
and mitigation measures to climate change and
related impacts – e.g., promoting bio-diversity
conservation programs; promoting projects on
waste management, developing environmentally
friendly technologies & practices; conserving and
protecting forest plantations & natural
woodlands.
Implementation
• Just as the MGDS, the implementation of MGDS II
involved all stakeholders with the government
aligning the national budget to this strategy.
• Other stakeholders including donors and
cooperating partners also aligned their
programmes and support to the MGDS II.

Monitoring and evaluation

• Was done through Sector Working Groups to
ensure that it is inclusive and participatory.
 THE MGDS III (2017 to 2022)
• Was officially launched on 13 March 2018
• The fundamentals of the MGDS III are based on the
shared Vision 2020, SDGs, and AU’s Agenda 2063
• MGDS III is built around the theme: Building a
Productive, Competitive and Resilient Nation
• Productive = improve productivity
• Competitive = turn the country into a competitive
nation
• The resilience is necessary because the country
experienced multiple shocks including floods,
drought and financial leakages midway through the
implementation of MGDS II
FIVE KEY PRIORITY AREAS
1.Agriculture, Water Development and Climate
Change Management
2.Education and Skills Development
3.Energy, Industry and Tourism Development
4.Transport and ICT Infrastructure
5.Health and Population
• Strategy has fewer KPAs for easy management
• The five KPAs were chosen on the basis of their
strong links among themselves, with the SDGs,
the AU Agenda 2063
FIVE KEY PRIORITY AREAS
1.Agriculture, Water Development and Climate
Change Management
2. Education and Skills Development
• Education is key for socio-economic
development and industrial growth as it
facilitates skills development.
• Education and skills development empowers
different groups of people including women, the
youth and persons with disabilities
• Education system needs to be reformed to
include entrepreneurship, and vocational skills
development in order to improve employability
as well as entrepreneurship of the young
Malawians thereby reducing youth
unemployment
3. Energy, Industry and Tourism Development
• Energy is recognised as the lifeblood of the
economy
• Ensure access to clean, reliable, reasonably-
priced and sustainable energy supply
4. Transport and ICT Infrastructure
• The 2017 Global Competitiveness report ranks
Malawi’s infrastructure on position 135 out of
138 economies
• High transport costs, long travel times etc etc are
issues
5. Health and Population
• Population size, structure and distribution, have
strong linkages with social and economic
development.
OTHER DEVELOPMENT AREAS
• Financial Services
• Disaster Risk Management and Social Support
• Gender, Youth Development, Persons with
Disability and Social Welfare
• Human Settlement and Physical Planning
• Environmental Sustainability
• HIV and AIDS Management
• Nutrition
• Peace and Security
• Integrated Rural Development
Implementation Framework
• The MGDS III has been developed through a
process that allows all stakeholders to participate
in the development of the country. Its
implementation will, therefore, also involve all
stakeholders, including the three arms of
Government: the Executive, Parliament, and
Judiciary; and civil society and Faith Based
Organizations (FBOs); private sector and the
general public.
• Sector Working Groups (SWGs) have been
identified
MODELS OF ECONOMIC
DEVELOPMENT
 Models of Development

• A Model is a simplified description of a

process to assist with prediction
• Models of Economic Development help us
understand how countries develop
economically.
• We study Models because if we understand
how development occurs, strategies can be
adopted to help countries to develop (give an
example of a push-pull model)
• Three Models will be discussed, namely:
a)ROSTOW’s Model
b)The Dependency Theory
c) Neo-Liberal Approach
 A. ROSTOW’S MODEL
• Developed by an American Walt W. Rostow
• Rostow was an economic historian
• Rostow’s Model of economic growth suggests
that all countries pass through a series of stages
of development as their economies grow.
• These stages follow the development pattern of
the US and western nations.
• Any country can be placed in one of five
categories in terms of the stage of growth:
Rostow’s Stages of Growth Development
1. Traditional Society
 Characterised by
• high levels of agriculture and labour intensive
agriculture - subsistence agriculture.
• subsistence economy – output not traded or
recorded
• existence of barter
 Population has no scientific perspective on the
world and technology (Pre-Newtonian era)
2. Pre-condition for take-off:
• Shift from agrarian to industrial/manufacturing
society begins
• Development of mining industries
• Increase in capital use in agriculture
• Use of some capital equipment helps increase
productivity and generate small surpluses which
can be traded.
One principal strategy of development necessary
for any take-off is the mobilization of domestic
and foreign savings in order to generate sufficient
investment to accelerate economic growth
3. Take off:
– Increasing industrialisation
– Further growth in savings and investment
– Some regional growth
– Number employed in agriculture declines
 Increased industrialisation increases
productivity, savings and investments.
4. Drive to Maturity:
– Growth becomes self-sustaining – wealth
generation enables further investment in value
adding industry and development
– Industry more diversified
– Increase in levels of technology utilised
As the economy matures, technology plays an
increasing role in developing high value added
products.
5. High mass consumption
– High output levels
– Mass consumption of consumer durables
– High proportion of employment in service
sector
 Service industry dominates the economy –
banking, insurance, finance, marketing,
entertainment, leisure and so on.
• CRITICISMS
1.Too simple – assumes linear growth in economic
development
• Process of growth not as a homogenous
continuum but as a discontinuous course involving
qualitative changes
2.The western capitalist model is not the only path
to economic progress.
• Need for other infrastructure – human resources
(education), roads, rail, communications networks
• Assumes that all countries follow the same route
of development
3.Not all countries and economies started the same
way or would want the same things as the US or
western nations.
• Assumes that each country is economically and
politically free
• Doesn’t look at variations within a country
 The views of the poor themselves are not heard
 Modernization is associated with development aid
from the developed countries (Note: One
principal strategy of development necessary for
any take-off is the mobilization of domestic and
FOREIGN saving!!!)
 B. THE DEPENDENCY THEORY
• The Theory came as a critical reaction to the
linear approaches to economic development.
• Argues that development or underdevelopment is
a result of dominance/dependence relationship
between countries or regions.
• The dominant region that plays a central role is
referred to as the core (the metropolitan, the
centre) while the dependent region that follows is
referred to as the periphery (satellite)
• Development/Underdevelopment is initiated
when the core exerts pressure on the periphery
• The pressure can be in form of political, economic
and cultural influences
• The pressure can be applied through
multinational corporations, international
commodity markets, foreign assistance,
communications and comprador groups (e.g.,
powerful NGOs, politicians, public officials) etc
• The dominant states are the advanced industrial
nations while the dependent states are those
states of Latin America, Asia, and Africa.
• The South is an external sector of the North - a
source of materials, cheap labour and educated
people (through brain drain).
• Poverty at all levels is attributed to exploitative
relationships (internal colonialism) between the
developed communities and their satellites and
also between individuals with different economic
and political powers.
CRITICISM
1.Theory fails to explain why NICs like South Korea
and Brazil have grown despite maintaining
relations with the “exploitative” West
2.Blames international economic system as sore
source of poverty in LDCs forgetting factors such
as ethnicity, war, culture, religion etc
3)Ignores geographical and demographic differences
that determine policies and market outcomes
4)Some LDCs cannot ‘survive’ without the aid from
the core countries because their per capita
income is very low – economic malaise
 C. NEO-LIBERAL APPROACH
 Widely accepted by the West, IMF, World Bank
 Has its roots in the Structural Adjustment
Programme of IMF, IDB and World Bank
 The Approach calls for the removal of State from
control, regulation, and ownership of economic
system because government spends highly
 State owned enterprises are not efficient – abuse,
corruption, uncompetitiveness, overemployment
 State regulation/protectionism distorts free flow
of goods and govts struggle to enforce regulation
 Governments do not know how to allocate
resources efficiently – diversity in regions
• Therefore, developing countries should adopt
'Reaganomics' or ‘Thatcherism’
1) Push for Privatization
• Sell off state-owned assets and admit private
sector investors to all sectors of the economy
• This in turn decreases employment in the public
sector
• Condition of employment must be productivity
and not welfare
2) Push for Fiscal Austerity
• Decrease government spending: (reduce public
spending on social services, health, education,
infrastructure)
• Charge user fees for social services (medical,
health, education, communication)
• End food and transportation subsidies
• Retrench government employees
3) Push for Trade liberalization
• Government should open up the market to the
outside world by removing all trade barriers
• Demand and supply should determine the prices
of goods
Other Issues:
4) Emphasize on exports
5) Devalue national currency
CRITICISM
• Not a single developed country reached its status
without some kind of protectionism.
• When markets are imperfect, neo-liberal
conditions can fail and may not work as
neoliberals predict.
• The Approach is an example of the core-periphery
relationship between the North and the South.
• It is risky leaving the economy of the country in
the hands of the private sector
• A free market does not favour the uninformed
rural masses in developing countries
 ROOTS OF AFRICAN POVERTY
• There have been efforts by politicians and
international organisations to reduce African
poverty but Africa is still struggling with poverty
• Recently, there have been improvements in the
fight against African poverty but the rate is very
slow.
• The Strategies and Models used to fight poverty
fail to explain why many African states are failing
to move away from poverty
• Some of the factors for continued African poverty
include:
1. Poor Health Education – poor hygiene
education, limited use of pit latrines, lack of risk
prevention measures during natural disasters
2. Diseases that are endemic to the continent – TB,
Malaria, HIV/AIDS
3. International trade against the African continent
– the “North” heavily subsidizes sectors that
face African competition
4. Dependency on primary exports – Africa exports
cheap raw materials and import expensive value
added products (unequal trade)
– Price War affects income (too many countries
producing similar cash crop or commodity)
5. Monoculture versus economic diversification –
dependence on one major commodity is a risk
because of price fluctuations; natural disasters;
some resources are finite
6. Poor links to the world economy and export
promotion – accessing international markets is a
problem due to protection, lack of capital to
compete and the “price war”
7. Import substitution (approach of substituting
externally produced goods and services with
local ones) – Africa has a “leaky bucket” Model
SUSTAINABLE DEVELOPMENT
• The process of development brings along with it
some environmental impacts. The environmental
impacts of development include:
1. Degradation of resource base
• The actual process of development (physical)
wastes and destroys vast amounts of natural
resources
• Loss of soil resources, pressure on forests etc are
some of the examples
2. Pollution
• Manufacturing industries – produce industrial
effluents (discharge from a sewage system,
factory, nuclear power station, or other industrial
plant) and industrial accidents
• Agricultural development – chemical fertilizers
and pesticides; monoculture; hybrid or GM crops;
and Green Revolution? (by replacing native seeds
with hybrids)
• Transportation sector – spillages due to accidents
and emissions into the atmosphere
3. Ozone Layer Depletion
• Ozone layer protects us from ultra-violate
radiation (UV B radiation)
• Ozone layer depletion occurs naturally but some
human activities have been blamed for
aggravating the depletion levels
• Industrial processes and products that produce
substances such as chlorofluorocarbons (CFC),
nitric oxide and methane are blamed for
depletion of the ozone layer
• UV B radiation leads to cataracts, skin cancers
and devastation of vegetation
4. Global warming
• There are debates on this issue (long time/short
time trend)
• There is evidence of rise in average global
temperatures
• This has been attributed to increase in carbon
dioxide emission due to industrialization
 Source: BBC GCSE

Solution to this is Sustainable Development

 SUSTAINABLE DEVELOPMENT
• Originated from the 1987 World Commission on
Environment and Development (Our Common
Future report or the Brundtland report)
• Sustainable development defined as the kind of
development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs
• The concept of sustainable development has
three main pillars: economic growth,
environmental protection, and social equality.
• Seven critical objectives (strategic imperatives) of
sustainable development include:
1. Reviving Growth
• Development that is sustainable has to address
the problem of the large number of people who
live in absolute poverty - that is, who are unable
to satisfy even the most basic of their needs.
• Poverty reduces people's capacity to use
resources in a sustainable manner; it intensifies
pressure on the environment.
2. Changing the quality of Growth
• Sustainable development involves more than
growth. It requires a change in the content of
growth, to make it less Material- and energy-
intensive and more equitable in its impact.
3. Meeting Essential Human Needs
• Seeks to meet the satisfaction of human needs
and aspirations.
• Often, due to poverty, people cannot satisfy their
needs for survival and well-being even if goods
and services are available.
• At the same time, the demands of those not in
poverty may have major environmental
consequences.
4. Ensuring a Sustainable Level of Population
• Sustainable development can be pursued more
easily when population size is stabilized at a level
consistent with the productive capacity of the
ecosystem.
5. Conserving and Enhancing the Resource Base
• If needs are to be met on a sustainable basis the
Earth's natural resource base must be conserved
and enhanced. (emphasize that that’s the reason
why EIAs are done)
6. Reorienting Technology and Managing Risk
• Technology is the key link between humans and
nature.
• First, the capacity for technological innovation
needs to be greatly enhanced in developing
countries so that they can respond more
effectively to the challenges of sustainable
development.
• Second, the orientation of technology
development must be changed to pay greater
attention to environmental factors –
environmental friendly technologies
7. Merging Environment and Economics in
Decision Making
• Economic and ecological considerations are not
in opposition - just integrate the policies
• This requires changes in the legal and
institutional frameworks; needs community
knowledge and support; requires changes in
attitudes and procedures of both public and
private-sector enterprises
Seven requirements to achieve the objectives of
sustainable development
•To achieve the above imperatives, the Our
Common Future report suggested the following
requirements:
1.a political system that secures effective citizen
participation in decision making.
2.an economic system that is able to generate
surpluses and technical knowledge on a self-reliant
and sustained basis
3.a social system that provides for solutions for the
tensions arising from disharmonious development.
4. a production system that respects the obligation
to preserve the ecological base for
development,
5. a technological system that can search
continuously for new solutions,
6. an international system that fosters sustainable
patterns of trade and finance, and
7. an administrative system that is flexible and has
the capacity for self-correction.
ECONOMIC INTEGRATION
• Economic growth Models and Poverty Reduction
Strategy Papers have emphasized on the need for
increased investment, the expansion of the
economic base, fair trade and free markets if
nations are to experience meaningful
development
• In a nutshell, it can be argued that there is a need
for economic integration if nations are to
experience meaningful development
• On the one hand, economic integration has been
realised through international trade (exchange of
goods and services across national borders)
• Pattern of the global trade is evidenced by
conspicuous routes
• However, we have seen unfair trade and price
war greatly disadvantaging developing nations
• This therefore traps developing countries in a
vicious cycle of poverty
• On the other hand, Transnational Corporations
(TNCs) [also known as Multinational Companies]
have ensured economic integration.
• There are 2 criteria for defining a TNC
i. A TNC engages in business activities - including
sales, distribution, extraction, manufacturing,
and research and development - in two or more
countries
ii. Its management decisions are made based on
regional or global alternatives
• E.g., Coca-Cola, Toyota, General Motors
• TNCs increase job opportunities and exports
(thereby improving the balance of trade)
NEGATIVE EFFECTS OF TNCs
• Monopolize trade because they have a large
capital base and wider network
• Most profit realised by TNCs goes to developed
countries – their headquarters
• High paying jobs (for managers and researchers)
are in developed countries
• It is well known that many TNCs sell low quality
goods – developing nations are dumping sites
• So, what next? Is trade necessary for
development?
Answer? The theory of Comparative Advantage
• A country should aim at specializing in
capabilities and opportunities in which it excels
rather than compete with other countries
• But this can only work where
i. We have free trade
ii. We have liberal markets
iii.Countries are producing for commercial
• According to the theory, developing countries
should therefore specialize in Primary products
• However, specializing in primary products has its
own risks as we learnt earlier on
 May be DEVELOPMENT AID can help?
• However, people have criticized development aid
Why has development aid been criticized?
• Foreign aid has been dominated by corporate
interests
• Has created unnecessary debt burden – mainly
assistance from lending institutions
• Prevents developing countries coming up with
their own lasting strategies to fight poverty
• Is attached to political considerations
• Aid is usually poorly managed
SOCIAL GEOGRAPHY
 WOMEN PARTICIPATION IN DEVELOPMENT
• Social construct affects participation in
development
• However, geographers strive for gender equality
• Women highly disadvantaged in four broad areas
 Women and work - marginalised at work places;
power relations; property rights – land and
companies; no direct participation in the
economy – limited access to loans; poor
treatment; agriculture – work more but proceeds
enjoyed by men
 Women and the environment – men destroy the
environment but it is women who suffer most
from the consequences
 Women and Education - Stereotyping –
intelligence; at family level – boys have an
advantage to prosper
 Women and health – no decision on reproductive
health
APPLIED GEOGRAPHY
• The role of the state
i. Construction of infrastructure
ii. Environmental management
iii.Education
iv.International trade
v. Health
vi.Security
vii.Social welfare
• The role of civil society organisation
i. Government check
ii. Capital check