Disparities overview and how

to reduce

You now know...

What disparities and development are as concepts.
How we can measure development (social and
economic indicators)
Why GDP/ GNI are not enough on their own
The HDI (LE, literacy and PPP)
PQLI (LE, literacy and IM)
The world is very uneven in respect to
development (core and periphery)

 1. Disparities exist
2. Emerging economies? (NICs)

The Facts
Nearly half the worlds population, 2.8 billion
people, survive on less than $2 a day.
About 20 percent of the worlds population, 1.2
billion people, live on less than $1 a day.
Nearly 1 billion people are illiterate and 1 billion
do not have safe water.
925 million people do not have enough to eat more than the combined populations of USA,
Canada and the European Union
http://www.un.org/en/globalissues/briefingpapers
/food/vitalstats.shtml

Task
Global disparities List reasons for worldwide
disparities between and within countries using
pages 75-84

Global Disparities

Internet usage
Ethnicity
Gender
Location (rural v urban)
Access to food
Climate
Disease
Mechanisation

Global Disparities

Shelter/ housing
Health and education provision
Land ownership
Amount of tourism
And many more

Syllabus...
Explain disparities and inequities that occur
within countries resulting from ethnicity,
residence, parental education, income,
employment (formal and informal) and land
ownership.
Case-Study - Brazil

GLOBAL VARIATIONS IN
DEVELOPMENT

Cycle of Poverty
Countries can be seen as trapped in a Cycle of Poverty. A self perpetuating
combination of factors which unless broken will stop development.

Vicious cycle of poverty

Vicious cycle of hunger

World Systems Analysis

There is a Global Economy which all countries are a part of.
Therefore countries are interdependent and development in one
country depends on the countrys position in the Global Economy
(World system)
The Global Economy is divided into the Core, Semi Periphery and
Periphery.
World Systems Analysis theorists such as Immanuel Wallerstein argue
that the development of the Core is a result of its exploitation of the
Periphery.

Annotate a World map

with the information
from the next three
slides

Global Economic Triangle of the CORE

North America
Western Europe
East Asia
Main trade flows are between these three areas.
Countries in this core have diversified economies,
with high output, high purchasing power and large
domestic markets.
Outside this core, the global periphery is a location of
cheap raw materials or cheap manufacturing or a
market for the core to dump their surplus products.

SEMI PERIPHERY
A wide range of countries.
First waves of NICs South Korea, Taiwan, Hong
Kong, Singapore
Second wave of NICs or RICs eg Malaysia, Mexico
BRICS Brazil, Russia, India, China, South Africa
Some of these countries could now be seen as part of
the CORE (South Korea) others are characterised by
regional disparities (Brazil) others with very rapid
economic growth (China)

THE PERIPHERY
LEDCs. Mainly Africa.
Small domestic markets, lack of
infrastructure, population
increase, low economic output,
low levels of economic
diversification, high
agricultural population.

This global economy is dynamic

For example

The New International Division of Labour

The spatial decentralisation of many economic activities.
Until recently the NIDL was seen as the spatial
decentralisation of manufacturing away from the Core to
Semi Peripheral areas.
Now we can observe a NIDL in services and an increasing
decentralisation of coordination and control operations.

Dependency theory
Domination of the rich over the poor has led to continued and
growing disparities between the rich and the poor.
European colonialism of the rest of the world started in fifteenth
century and continued to the 1970s. 500 years of exploitation
of the human and natural resources of Africa, Asia and the
Americas.
Dependency on foreign capital, loans and aid has led to many
LEDCs facing a huge debt burden and a loss of control of their
state finances to institutions such as the World Bank and IMF
often resulting in forced reductions to public spending on health
care and education.
The global economy benefits the rich at the expense of the
poor. Poorer countries are encouraged (forced through World
Bank and IMF rules) to open up their economies to foreign
competition. This leads to neo-colonialism by TNCs. At the
same time richer countries maintain high levels of
protectionism. European CAP

So why are there disparities in the level of

development of different countries?
1.Countries have different levels of resources and there is a positive
correlation between resources and development. (Resource
Endowment)
2.All countries are making the same linear progression but are at
different stages of development. (Rostows and Clarkes models)
3.Countries are either in the Core, Semi Periphery or Periphery of a
larger system which is the Global Economy. This system is dynamic but
would be expected to follow a pattern of growth in the core followed by a
spread of growth from the core to the semi periphery and periphery
(Cumulative causation within a World System)
4.There are disparities because the rich exploit the poor and the poor are
dependent on and dominated by the rich (Dependency Theory)
TASK Answer questions 7, 9 and 10 on page 90

TNCS
Transnational Corporations (eg Nike) are
corporations that are registered in more than one
country or have operations in more than one
country. It can also be referred to as an
international corporation
National and local governments often compete
against one another to attract TNC facilities, with
the expectation of increased tax revenue,
employment, and economic activity.

 To compete, countries may offer TNCs incentives

such as tax breaks, pledges of governmental
assistance or subsidized infrastructure, or lax
environmental and labour regulations.
These ways of attracting foreign investment may
be criticized in many ways. TNCs play an
important role in developing the economies of
developing countries, providing employment,
choice of multi goods etc.

GOOD BOOK!!
DEBATE ARE TNCs
GOOD FOR LEDCs
OR NOT??

WHAT CAN BE DONE TO REDUCE DISPARITIES?

1.4 billion people struggle to survive on less than $1.25 a

day (World Bank 2005). How can they be helped?

Familiarise yourself with the eight goals and try to

assess what impact each goal has on reducing
disparities and alleviating poverty.
Why were these eight goals chosen?

Target 1a: Reduce by half the proportion of people

living on less than a dollar a day
1.1 Proportion of population below $1 (PPP) per day
1.2 Poverty gap ratio
1.3 Share of poorest quintile in national consumption
Target 1b: Achieve full and productive
employment and decent work for all, including
women and young people
1.4 Growth rate of GDP per person employed
1.5 Employment-to-population ratio
1.6 Proportion of employed people living below $1
(PPP) per day
1.7 Proportion of own-account and contributing family
workers in total employment
Target 1c: Reduce by half the proportion of people
who suffer from hunger
1.8 Prevalence of underweight children under-five
years of age
1.9 Proportion of population below minimum level of
dietary energy consumption

Target 2a: Ensure that all boys and girls

complete a full course of primary
schooling
2.1 Net enrolment ratio in primary education
2.2 Proportion of pupils starting grade 1 who
reach last grade of primary
2.3 Literacy rate of 15-24 year-olds, women
and men

Target 3a: Eliminate gender disparity in

primary and secondary education
preferably by 2005, and at all levels by
2015
3.1 Ratios of girls to boys in primary,
secondary and tertiary education
3.2 Share of women in wage employment in
the non-agricultural sector
3.3 Proportion of seats held by women in
national parliament

Target 4a: Reduce by two thirds the

mortality rate among children under five
4.1 Under-five mortality rate
4.2 Infant mortality rate
4.3 Proportion of 1 year-old children immunised
against measles

Target 5a: Reduce by three quarters the

maternal mortality ratio
5.1 Maternal mortality ratio
5.2 Proportion of births attended by skilled
health personnel
Target 5b: Achieve, by 2015, universal
access to reproductive health
5.3 Contraceptive prevalence rate
5.4 Adolescent birth rate
5.5 Antenatal care coverage (at least one visit
and at least four visits)
5.6 Unmet need for family planning

Target 6a: Halt and begin to reverse the spread of

HIV/AIDS
6.1 HIV prevalence among population aged 15-24 years
6.2 Condom use at last high-risk sex
6.3 Proportion of population aged 15-24 years with
comprehensive correct knowledge of HIV/AIDS
6.4 Ratio of school attendance of orphans to school
attendance of non-orphans aged 10-14 years
Target 6b: Achieve, by 2010, universal access to
treatment for HIV/AIDS for all those who need it
6.5 Proportion of population with advanced HIV infection
with access to antiretroviral drugs
Target 6c: Halt and begin to reverse the incidence of
malaria and other major diseases
6.6 Incidence and death rates associated with malaria
6.7 Proportion of children under 5 sleeping under
insecticide-treated bednets
6.8 Proportion of children under 5 with fever who are
treated with appropriate anti-malarial drugs
6.9 Incidence, prevalence and death rates associated with
tuberculosis
6.10 Proportion of tuberculosis cases detected and cured
under directly observed treatment short course

Target 7a: Integrate the principles of sustainable

development into country policies and programmes;
reverse loss of environmental resources
Target 7b: Reduce biodiversity loss, achieving, by 2010, a
significant reduction in the rate of loss
7.1 Proportion of land area covered by forest
7.2 CO2 emissions, total, per capita and per $1 GDP (PPP)
7.3 Consumption of ozone-depleting substances
7.4 Proportion of fish stocks within safe biological limits
7.5 Proportion of total water resources used
7.6 Proportion of terrestrial and marine areas protected
7.7 Proportion of species threatened with extinction
Target 7c: Reduce by half the proportion of people
without sustainable access to safe drinking water and
basic sanitation
7.8 Proportion of population using an improved drinking water
source
7.9 Proportion of population using an improved sanitation
facility
Target 7d: Achieve significant improvement in lives of at
least 100 million slum dwellers, by 2020
7.10 Proportion of urban population living in slums

Target 8a: Develop further an open, rule-based,

predictable, non-discriminatory trading and financial
system
Includes a commitment to good governance, development and
poverty reduction both nationally and internationally
Target 8b: Address the special needs of the least
developed countries
Includes: tariff and quota free access for the least developed
countries' exports; enhanced programme of debt relief for
heavily indebted poor countries (HIPC) and cancellation of
official bilateral debt; and more generous ODA for countries
committed to poverty reduction
Target 8c: Address the special needs of landlocked
developing countries and small island developing States
(through the Programme of Action for the Sustainable
Development of Small Island Developing States and the
outcome of the twenty-second special session of the
General Assembly)

Target 8d: Deal comprehensively with the debt problems of developing countries through
national and international measures in order to make debt sustainable in the long term
Some of the indicators listed below are monitored separately for the least developed countries (LDCs), Africa,
landlocked developing countries and small island developing States.Official development assistance (ODA)
8.1 Net ODA, total and to the least developed countries, as percentage of OECD/DAC donors gross national income
8.2 Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic
education, primary health care, nutrition, safe water and sanitation)
8.3 Proportion of bilateral official development assistance of OECD/DAC donors that is untied
8.4 ODA received in landlocked developing countries as a proportion of their gross national incomes
8.5 ODA received in small island developing States as a proportion of their gross national incomes
Market access
8.6 Proportion of total developed country imports (by value and excluding arms) from developing countries and least
developed countries, admitted free of duty
8.7 Average tariffs imposed by developed countries on agricultural products and textiles and clothing from
developing countries
8.8 Agricultural support estimate for OECD countries as a percentage of their gross domestic product
8.9 Proportion of ODA provided to help build trade capacity
Debt sustainability
8.10 Total number of countries that have reached their HIPC decision points and number that have reached their
HIPC completion points (cumulative)
8.11 Debt relief committed under HIPC and MDRI Initiatives
8.12 Debt service as a percentage of exports of goods and services

Target 8e: In cooperation with pharmaceutical companies, provide access to affordable

essential drugs in developing countries
8.13 Proportion of population with access to affordable essential drugs on a sustainable basis
Target 8f: In cooperation with the private sector, make available the benefits of new
technologies, especially information and communications
8.14 Telephone lines per 100 population
8.15 Cellular subscribers per 100 population
8.16 Internet users per 100 population

 As we are now at the completion date, what

progress has been made?

http://www.theguardian.com/globaldevelopment/2015/jul/06/united-nationsextreme-poverty-millennium-development-goals
Ban Ki-moon hails achievements of millennium
development goals but warns world still riven by
inequality

How did they do?

Full report now published
http://www.un.org/millenniumgoals/2015_MDG_Rep
ort/pdf/MDG%202015%20rev%20(July%201).pdf

And now?
http://www.un.org/sustainabledevelopment/sustainabl
e-development-goals/

9 December 2014
Halving of malaria deaths tremendous achievement

Global efforts have halved the number of people dying from malaria - a tremendous achievement,
the World Health Organization says.
It says between 2001 and 2013, 4.3 million deaths were averted, 3.9 million of which were children
under the age of five in sub-Saharan Africa.
Each year, more people are being reached with life-saving malaria interventions, the WHO says.
In 2004, 3% of those at risk had access to mosquito nets, but now 50% do.
Villagers from the Highlands in Papua New Guinea NG have been trained to detect and treat the
disease in the community
There has been a scaling up of diagnostic testing, and more people now are able to receive
medicines to treat the parasitic infection, which is spread by the bites of infected mosquitoes.
An increasing number of countries are moving towards malaria elimination.
In 2013, two countries - Azerbaijan and Sri Lanka - reported zero indigenous cases for the first
time, and 11 others (Argentina, Armenia, Egypt, Georgia, Iraq, Kyrgyzstan, Morocco, Oman,
Paraguay, Turkmenistan and Uzbekistan) succeeded in maintaining zero cases.
In Africa, where 90% of all malaria deaths occur, infections have decreased significantly.

Malaria in Africa
528,000
deaths from malaria in 2013
54%
drop in mortality since 2000
49% of at-risk people in sub-Saharan Africa have access to
mosquito nets
70% of malaria patients could be treated but not all sick children are
taken to a clinic
43% of pregnant women did not receive a single dose of
preventative medicine

1. Copy the vicious cycle of poverty and explain

what this showing.
2. Write down the 8 development goals
3. Question 2 page 103
4. How successful have the MDGs been?
5. What does the future hold are the SDGs a
positive move?

'Future Earth' platform outlines

global change strategy
It has identified eight global challenges, including
"water, energy and food for all" and
decarbonisation.
The SDGs are the successor to the UN Millennium
Development Goals, which come to end in 2015.

Deliver water, energy and food for all

Decarbonise socio-economic systems
Safeguard the terrestrial, freshwater and marine natural assets
Building healthy, resilient and productive cities
Promote sustainable rural futures
Improve human health
Encourage sustainable consumption and production patterns
Increase social resilience to future threats

How else can disparities be reduced?

Industrialisation?
Trade/ market access?
Debt relief?
Remittances?
Fair or free trade?
Trading BLOCs?

Read pages 104-109

Trading BLOCS

EU
NAFTA
And many others
Help to relieve taxes/ obstacles to trading by
allowing free imports and exports

Migrant Workers
Facilitating workers to migrate to other countries to work.
These workers will send back money (REMITTANCES) and will gain new
skills which may benefit the country if they eventually return.
REMITTANCES RECEIVED
1. India - $21.7bn
2. China - $21.3bn
3. Mexico - $18.1bn
4. France - $12bn
5. Philippines - $12bn
6. Pakistan - $3.9bn
7. Bangladesh - $3.4bn
World Bank's 2004 figures
The World Bank estimates that total worldwide remittances exceeded
$232bn in 2005, more than twice the level of development aid from all
sources.

 The value of remittances to poor countries is

enormous. Since 1996 they have been worth
more than all overseas-development aid, and for
most of the past decade more than private debt
and portfolio equity inflows. In 2011 remittances
to poor countries totalled $372 billion, according
to the World Bank (total remittances, including to
the rich world, came to $501 billion). That is not
far off the total amount of foreign direct
investment that flowed to poor countries. Given
that cash is ferried home stuffed into socks as
well as by wire transfer, the real total could be
50% higher.

 Remittances are not just big, but growingthey

have nearly quadrupled since the turn of the
millenniumand resilient. In 2009, when
economies around the world crashed, remittances
to poor countries fell by a modest 5%, and by
2010 had bounced back to record levels. By
contrast, foreign direct investment in poor
countries fell by a third during the crisis, and
portfolio inflows fell by more than half. The
most remarkable thing about remittances today is
their continued growth, year after year, despite the
global economic crisis, says Dilip Ratha, head of
migration and remittances at the World Bank.

Aid and debt relief

How effective is it?
Reliant?
Goes to the right places? Those that need? How
decide?

Obstacles to development
1.
2.
3.
4.
5.
6.
7.

Corrupt governments (Mugabe in Zimbabwe)

Access to capital
Disease (Malaria, AIDS)
Natural disasters
Inaccessibility
Landlocked
Unfair trade

Core Periphery Model

What methods can countries use to develop and
again reduce disparities?

Growth Pole Approach

Development of a core region or growth pole.
Leading to spread effects benefiting the country as a
whole.
Growth Pole Could be planned or unplanned. Development of a
specific location through agglomeration. (Special Economic Zones in
China)
Propulsive Industry Industries
which can stimulate growth. Ship
building, Automobile, Hi tech.

Bottom up Grass roots development

The aim is to lift people out of poverty by helping them
directly. Helping them to help themselves.
Local involvement in the decision making process.
Identifying their needs and deciding on the most effective
solution. Use of appropriate technology. Generally long
term aims of sustainability. Break the cycle of poverty!

Bottom up Grass roots development

Sanitation and water supply, improved farming through use of
appropriate technology, education, health care improvements and
family planning, development of local industries and businesses
through micro loans and the reduction in bureaucracy, improved
marketing and access to markets, land and property rights, access to
enabling technologies such as the Internet and mobile phones.
Countless examples of this approach throughout the world. Watch the
Millennium village documentary on Sauri in Kenya

Bottom up Grass roots development

Often involved in improving
the status of women and their
role as decision makers

Regional development
Focus on developing the peripheral regions of the country. Attempting
to reduce the regional disparities which develop from an uneven
development of the core and periphery.
Linked to attempting to reduce rural to urban migration, particularly to
the primate city of the core.
Often investment in improving infrastructure particularly transport and
communications to link the region more with the core.
This approach has been very popular in Europe and is a major part of
the EU budget. Particularly in regions which have suffered from
industrial decline or countries such as Ireland, Portugal and Greece.

Export led growth

Economic growth through the production and export of products which
the country has a comparative advantage at producing.
Approach adopted by many East and South-East Asian countries
particularly successful in Taiwan where most of the enterprises were
Taiwanese not foreign owned.
There can be significant state involvement in the form of investment,
subsidies and protectionist measures.
Potential problem of dependency on key products and problems if export
markets drop.
Ivory Coast Cocoa
China - GDP growth slow down because of USA recession
http://www.guardian.co.uk/business/2009/feb/02/china-unemployment-unrest

Nigeria and Korea stand at the opposite ends of the development

spectrum. Twenty years ago, their exports were the same value, but
Korea developed a diversified manufacturing base, while Nigeria was
dependent on oil, which fell in value. Koreas high-tech exports like cars
and electronic goods have led to rapid development.

Import substitution
Production of products domestically instead of import of products.
Subsidies and protection of domestic industries from foreign
competition and tariffs and non-tariff barriers reducing imports.
This approach was adopted by many Latin American countries. Also
USSR and Warsaw Pact countries had to adopt this approach
because of isolation from the Global Economy.
Proponents of free trade argue that by following this approach the
benefits of free trade are lost and the country is wasting resources
trying to produce what it would be better off importing. The country
should focus resources on what it has a comparative advantage at
producing.

Foreign Direct Investment

- Encourage foreign companies to locate in the country to stimulate
economic growth. The foreign companies would provide the investment
the economy needs. Policy encouraged by the World Bank.
- Particularly significant in extractive industries such as mining and oil
where the initial costs are very high. Eg Nigeria oil, Bolivia silver
- Some protection of domestic industries needed. Just opening economy
to foreign competition will mean even profitable and sustainable industries
will be unable to survive in the initial periods.
High levels of FDI in Chinas Special Economic Zones

Which is the best?

Which is the BEST way to reduce disparities?
Class debate.