Indentifying the Development Gap

A2 Geography

Learning Objectives

• To discover the different ways of measuring the development gap

• Understand the reasons for using different measures of development

• Appreciate that some countries develop faster than others thus distorting some measures

The North South Divide

• 1981 – The West German Chancellor Willy Brandt produced the Brandt report the report identified ‘The Development Gap’

Simply he said

• The North possess 80% of the world’s wealth• The South only 20%• Positives of Map:• Simplifies data so that it's easy to understand.• GDP is used which is an easy to access data source.•

Negatives of Map:• Doesn't include some countries which are more

economically developed.• Generalised patterns with some countries above the Brandt

line less developed less than some below

Measuring the Gap

• Measurements require data• Data is based on the formal economy• Ignores much unpaid, subsistence and

informal work• Two indicators are commonly used:• GDP• Gross National Income (GNI)

GDP

• Mean value of goods and services produced in a country over a year. Divided by the population to give a per capita value which is converted to US$ to enable comparisons

GNI

• Like GDP but also includes income from overseas investments – As such it is a better measure than GDP

• Like GDP it is given as a per captia value.• It is shown in US$ using a conversion

method known as the ATLAS method (Using exchange rates averaged out over 3 years – to smooth fluctuations)

What’s wrong with these two measures?

• Non of these take into account the Purchasing Power Parity i.e. What this income is actually worth in terms of the cost of living.

• A $100 in the UK will buy a lot less than a $100 in the USA even more so from a country like China

• China’s GDP in 2006 was $2,000 however when converted to PPP$ it was $7,660 this shows it is cheaper to live here than the USA

Are these the only measures of Development?

• Try to think of different ways that we can measure develop’t

The Human Development Index (HDI)

• Composite index that measures a country's average achievements in three basic aspects of human development: health, knowledge, and a decent standard of living

• Health is measured by life expectancy at birth• Knowledge is measured by a combination of the

adult literacy rate and the combined primary, secondary, and tertiary gross enrolment ratio

• Standard of living by GDP per capita (PPP US$)

The Value

• The values range from 1 (High) to 0 (low)• Longest life expectancy is Japan – 82

lowest Zambia – 32• Japan = 1, Zambia = 0 (Country with 57

would be 0.5)• This is done for each of the three

measures

HDI

The World is a Complex Place

• Since 1981 things have become more complex and Brandt’s line is now looking a little dated

• Why do you think that is?

• Some S. American countries like Brazil were already developing in the 1970’s making the line out of date by 1981

• Economic develop’t patterns have been complex so that some parts of countries have developed quicker than the whole (Hong Kong, Dubai).

• Some countries in SE Asia have grown rapidly since 1981 (Thailand, Malaysia)

• More NIC’s than in 1981• While some have grown rapidly others

have remained the same so the gap between rich and poor has widened

• UN now uses four levels of income• High• Upper middle• Lower middle• Low• As a way of classifying the 206 nations of the world.• This is still difficult as India one of the fastest

growing countries on the earth is still a low level income country whilst Ethiopia one of the slowest growing is also low.

Concrete

• There is concrete evidence though to state that 26 of the 30 poorest countries in the world are to be found in Sub-Saharan Africa. (2006)

• It’s clear some countries are being left behind.

Activity

• Compare the two maps on HDI and the Brandt line make a detailed list of:

• Which countries have changed since 1981• Which have not changed since 1981• What are the advantages and

disadvantages of using GDP, GNI and HDI as indicators of development

Learning Objectives

To discover the different ways of measuring the development gap

Understand the reasons for using different measures of development

Appreciate that some countries develop faster than others thus distorting some measures