Candevelopmentbeassessedbyeconomicfactorsalone?

1. Economicfactors
Veryoftentheeconomyislinkedtoallotherspheresandcanaccountforalargepartofa
countrysdvpmt
TheamountofFDIacountryreceivescanaccountforitsdevelopment:forinstance
BurkinaFaso,anLEDC,received$113millioninFDIwhereasHongKongreceived
asmuchas$115billionthusexplainingitsstatusasanMEDC
Theprevalenceoftheservicessectorcanaccountforacountrysincreased
development:forinstance,inSouthKorea70%oftheworkingpopulationworksin
thisparticularsegmentoftheeconomy
GDPpercapitaisalsoagoodindicatorofthedevelopmentofthecountrysinceit
revealsinformationaboutlivingstandardsandconsumerspending:forinstance,in
NorwaywheretheGDPpercapitaequals97.200$,peoplecanaffordtospendtheir
holidaysabroad,attendconcertsorplays,whereasintheDemocraticRepublicof
CongopeoplecanthaveaccesstothesefacilitatiessinceGDPpercapita=440$
Unemploymentratethatexplainspowerparityandconsumerspending
27%ofthepopulationisunemployedinGreeceandthisseriousissuecan
explaindisparitiesinthecountry:infactmorethanhalfofthetoalGDPis
producedinonesoleregion(Attica)mainlyfromtourismandsomeservice
activities,whereasintherestoftheregionspeoplerelyingonagricultureare
currentlyunemployedbecauseoftheirlackofskills

2. Noveryoftenitsacombinationofmultiplefactors
Somecountriesfaketheirstatisticsandperhapsinsteadoflookingateconomic
factors,wecanassessthepoliticalsituationofthecountryor
Politicalinstabilitythatcauseswavesofmigrantsandaveryfragilesituationinthe
countrybecausepeopleareextremelyvulnerable:theUNestimatedaround400,000
peoplehaddiedintheSyrianCivilWarsince2011=>braingaincozmassivewaves
ofmigrants
Thenumberofinternationalinstitutions,embassiesacountrypossesses>itshows
itsouverturetowardsinternationalcooperationandpeacefulrelationsandalsoits
desiretoopenuptonewpartnershipsandtradeagreementsthatmightenhancethe
economyandhelpthedevelopmentofthecountry
Naturalhazardscanalsocontributetothelackofeconomicprosperity:inMali
desertificationandfloodingresultedinthedestructionof76%ofthearableland,
havinganegativeimpactondevelopmentsinceitcanleadtofamine(10%ofthe
populationisseverelyfoodinsecure)andatradedeficit
Socialfactorshavetobetakencareofasaccesstohealthcareservices,education,
facilitatiestofightdiseasessuchasebolaormalariaplayanimportantrolein
developingcountries:forinstance,Somalia,anLEDC, 29%ofthecountrys
populationhasbeenenrolledinschool,andlifeexpectancyisonly55years ,solack
ofaccesstoservicesdoesdetermineacountrysdevelopment

Conclusion:
veryoftenacombinationoffactorsandusingmultilayeredindexessuch
asHDIinordertounderstandthecomplexitiesofdvmp
mostimportantremainsthestudyofthedisparitieslinkedtodvmptwithinacountry

HDIisareliableindicatorofacountrysdevelopmentbecauseitcanrevealmajor
discrepenciesbetweenregions:inBrazil,theHDIintheNorthofthecountry
(Marranhao)islessthan0.65whereasintheSouthishigherthan0,81(SaoPaulo)
theHDIisremarkablebe
Anothereconomicfactorthatcanreflectacountrysconditionisthe
prevalenceofthetertiarysectoralthoughtheATKearneyindexprimarily
assessestowhatextentcancitiesbeconsideredglobal,itcanalsobeuseful
inmeasuringacountrysfinancialattractivenessortheskillsandavailabilityof
thelabourforceIndiarankingfirst,itreflectsthe25%ofitstotalexportsthat
comefromservices

Assessthefactorsaffectingglobaltrade

INTRO: International trade is the exchange of commodities, products, services, capital

betweenpeopleandcompaniesindifferentcountries.
Exchange rates, competitiveness, growing globalization, tariffs and trade bariers,
transportation costs,languages,cultures,varioustradeagreementsaffectcompanies
byitsdecisiontotradeinternationally.

I. ECONOMICFACTORS

Geographical proximity emergence of trade blocs : removal of internal tariffs

(NAFTA), some trade blocks even adopting common external tariffs (MERCOSUR) and
others going as far as having the same currency and abiding to the same political
legislations(EU)alotoftradehappeningbetweendifferentnations

Positiveimpacts
increase in regional flows: natural gas and oil exchanges remain very regional,
and are very much linked to infrastructures (gas lesseasytoshipthanoil)=>regional flows
withintheEU=$300billion,andEUsfirstcommercialclientistheEU
decrease in unemployment rate: in Brazil from 9.9% in 2002 to 6.7% in 2012
thanks to the MERCOSUR trade block that allowed Brazil to produce more, hence hiring
morepeople
important growth of the GDP: the oil and natural gas sectors contribution to
Brazilian GDP increased from 3% in 2000 to13%in2014andmaindriver=Petrobras(very
successful because of Mercosur trade block thatmadeitpossibletobuythegiantArgentian
PECOMEnergiacompany)
 sometimes even promoting sustainable development: Petrobrassubscribestothe
United Nations Global Compact that promotes security of ecosystems (ocean and forests)
ranked1stsustainalbleoilcompanybySpainin2008

Negativeimpacts
the trade block agreements isolate LEDCs and other developing countries,
especially inSubSaharanAfrica:theshareofAfrican exportsintheglobal tradefellfrom3.1
inthemid1950sto1.2inthe1990Sanditkeepsdecreasing
it remains very regional on a global scale because most nations dependent on
trade with their neighbours (although exceptions exist: Chinas main trade partner istheUS
over $500 billion yet among the 10 first tarde partners, 7 are members of the ASEAN+6
agreement)

II. POLITICALFACTORS

Political stability with few restricting trade policies export oriented industries
liberal tax laws: exemption from central sales tax, service tax a topdown strategy that
enhancesglobaltradeandalsoallowstheprosperityofacountry

Positiveimpacts
encourage economic activity for the domestic market (manufacturing sector
especially): manufacturing sector accounted for 23% of India's total exports in 2012 91 of
the 143 SEZs are situated intheSouthofIndiacozthemostindustrializdareaandcoastline
that makes India aninterfacebetweenAsiaandtherestoftheworldin2011$68billionfor
exports20%ofFDIinflowsgotoservices
development of infrastructure: in South Africa, a lack of container capacity will
hamper the economy from 2019 onwards, thus the government will increase the container
capacityfrom3millionto20millionrailfreightfrom25%to73%inordertotrademore

Negativeimpacts
many LEDCs suffer from political instability and corrupted leaders that have no
interest in improving global trade: Boko Haram government in Nigeria, corrupted leader in
DRofCongo
many countruies are governed by incompetent leaders that do not have good
strategies: according to MITs economic complexity index (ECI), Libya was ranked 118th
among 124 countries in 2014 because it exports only afewproducts,whichareofrelatively
high ubiquity (crude oil)and whichare exportedbymoreinfluentialcountrieslikeSaudi Arabia,
Russia and Canada whereasGermanyexportscermets (rareelectroniccomponents),1st most
complex product in the ranking, allowing Germany to gain over $200 million from exports =>
countrieswillsoonloseinterestinLibyanoil,thusremovingLibyafromglobaltrade

III. COMBINATIONOFFACTORS

Oftenmultiplefactorsaffectglobaltrade
inMali:climatechangeincreaseddesertificationandflooding,only14%arableland+
smuggling of weapons, Tuareg rebellion attacks => unable to participate in
internationaltradebecausetheylacktheresourcesandthegovernmentisunstable
in SouthKorea: Confucianism, imported fromnearbyChina,withitsemphasisonthe
importance of the family, social cohesion, education and respect for authority +alot
ofUSaid=>SouthKoreaabletotakeaveryimportantstanceinglobaltradesincein
2014itwasthe5thmajorexportingcountry(>$500billion)

CONCLUSION: although exchanges of goods, capital exist worldwide, they seem to

concentrate around main cores (US, EU, SE Asia), thus preventing SubSaharan countries
to thriveas well=>globaltradebecomesveryregionalinmostcases,anditcangoasfaras
reinforcingtheBrandtline
the trading ability of a country depends sometimes on factors that cannot be
controlled: environment, culture etc., thus some countries are denied a major rolein
globaltrade

Migration

MigrationfactorscanbeexplainedthroughLeesmigrationmodel.Bothpullandpush
factorsarewithoutdoubteconomic,buttheycanalsobepoliticalorsocialenvironmental.

I. Economicfactors

migrantsareveryoftenmotivatedbyhigherincomesinthehostcountryandoptfora
permanentmigration
whenPolandandsevenotherEasternEuropeancountriesjoinedtheEUin
2004,manyEasternEuropeanmigrantstargetedcountriessuchastheUKor
Franceasaresultofwagesthatwerefivetimeshigherthanwhattheycould
getathome
theunemploymentratealsoplaysamajorroleinthedecisiontomigratesince
workershopetofindajobinthehostcountry
forinstance,inMexico,40%ofthepopualtionisunemployedwhichiswhy
peopleattempttomigrate,mostofthetimedoingitilegallyandjeopardizing
theirlife
sometimespeopledecidetomigratetemporarileinordertosendremittancesback
homeandsustaintheirfamiliesfinancially
inPoland,2,5%ofthetotalGDPcomesfromtheearningsofthepeople
leavingabroad
 highskilledworkersdecidetomigrateinordertofindjobstomatchtheirqualification,
resultinginalotofbraindrainforthesourcecountry

II. Politicalfactors

today,SubSaharanAfricaistornapartbynumerouswarsthatcreatealotofpolitical
instabilityandinsecuritywhichpushespeopletomigrate
forinstancetheCivilWarinSudanledto1millionpeopletofleethecountry
andto6milliontobeinternallydisplacedduetoapoliticalcrisis
ofLebanon=Syria

III. Socioenvironmentalfactors

oftenthesourcecountrydoesnotpresentgoodhealthcarefacilities,accessto
educationoranequaltreatmentofwomenwhichiswhypeopledecidetomigrate
Singapore,duetoitsimportantdependecyratio,promotestopeducation
(especiallywiththenewYaleNUSUniversity),betterpensions,birth
incentivesandaccesstogoodeducationwhichattractsalotofmigrants
climatechangeispredictedtoforcemillionsofpeoplefromtheirhomesduetomore
frequentextremeweathereventsandrisingsealevels(theydonthavethefinancial
securityorsocialnetworkstoprotectthem)
example:300peoplefromHathifushiIslandhadtobepermanentlydisplaced
becauseofsoilsalinisationandextremeflooding:1mofwater

Towhatextentdoallregionsbenefitfromglobalisation?

I. Allregionsbenefit

1)Culturalglobalization:
atrendtomergedifferentculturesandthusmakingaglobalizedworld
CocaCola,AmericancompanybasedinAtlanta,distributes16%ofitsdrinks
toEurasiaandAfrica,13%toEuropeandtheresttotherestofthecontinents
withexportsinover200countriesitisthebiggestbeweragecompanyinthe
worldandwithinthelastyears,wecansaythatitshapedthecultureofthe
worldsincetheAmericandrinkcanbefoundinsomanynations
43millionArabFacebookusersin2011fromYemen,Syria,Iraqetc.
facebookfacilitatescommunicationallovertheworldandthankstothe
speedingupoftechnologiesandInternetconnections,allcontinentsarenow
linked

2)Economicglobalization :
flowsofcapitalandincreasedtradehelpdeveloping,marginalized
countriesintegratewithintheinternationalsphereofinfluence
BrazilhadanexponentialgrowthinFDIasitgrewfrom$19billionto$96
billionwithin8years,thusmakingitthe4thmostFDIreceivingcountry
 byexportingitsrawmaterials(22%mineralproducts,8%cattle,16%
vegetables)andimportingnewtechnology(26%machines,11%
transportation),BrazilisemergingasanNICandbenefitsgreatlyfrom
globalizationbecausethiscreatesadecreaseinunemployment,itprovides
workerswithnewskills,itdevelopstheinfrastructure

3)Politicalglobalization
severalorganizationscreatedinordertopromotetherespectofthe
humanrightsortoensurepeacebyeliminatingopressivegovernments
andinstauringdemocracies
inChad,theUnitedNationsactivelyparticipatesinthefightagainstterrorism(ex.
presenceofFrenchandUSarmedforces)andthankstoChadscooperative
leader,thecountryavoidedatakeoverbytheBokoHaramrebels
also,theUN,alongwiththeGovernmentofChadsapproval,launchedthe
ChildrenandArmedConflictmissiontoendtherecruitmentanduseof
childrenbyterroristgroups
moreover864ChadiansoldierstakepartintheUnitedNationspeacekeeping
missioninMali
globalizationaffectedsucharemoteareaasChadbyinvolvingitintothe
internationalfightagainstterrorism

II.Aphenomenonofconcentrationaroundmaincores(US,EU)thatwidensthe
existinggapbetweenNandS
inordertohaveabetterunderstandingofthesituation,wehavetozoominandlook
atregionalscales

1) becauseofahistoryofcolonialismandincompetentgovernments,
alongwithanexponentialdemographicgrowth,certainnationsinthe
SouthstilldonotbenefitfromglobalizationasMEDCs(SubSaharan
countries,Bangladesh,Bolivia)
Example: NPRTshirtProject,BowenFlowers=cottonfarmerproducing13
thousandbalesofcotton/year,equivalentof>9millionTshirts
onlyworkswith13workersand26machines(veryautomaticand
sustainable)
opposedtoBangladesh:workerswork12h/day,6daysaweek,earn
80$/month,girlshavebeenworkingsince16yearsold,4millionpeoplein
Bangworkinthegarmentindustry,norunningwater,chemicalproductsused
1200peoplekilledinRanaPlazain2013,deadliestdisasterinthegarment
history
=>exploitationoflabourforce,itpreventsBangladeshfromdeveloppingitslocalcompanies
since>85%ofthepopulationworksinthegarmentindustry,itforbidsgirlseducation,
globalizationimpactsnegativelythiscountry

2)atalocalscale,wenoticethatevenglobalcitiessufferfromglobalization
assectoralshiftsprovetoincreaseunemploymentrateandhamperthewellbeingof
tensofthousandsofpeople
 Example: inMonticello,NewYork,aquarterofthepopulationisuneducated,the
medianincomeisthelowestintheentirestate$23,000forafamilyof4whereasthepoverty
lineinthestateis$25,000aregionwithdrugbarsamongthefirst5%mostdangerousones
=>NewYorksglobaldimensionproducedsegregationwithinthecity:lessskilledworkers
movedoutoftheCBDtheflowofmigrantsbeingsoimportant,illegalimmigrantsmoved
towardsmoreremoteareas

CONCLUSION
gloablizationdoeshelpcertainareastoprosper,butitseemsitcreatesmoresegregation
thancohesionveryhardtofindnewstrategiestohelpLEDCscozmostLEDCsarein
SubSaharanAfrica,aregionaffectedbycolonialism=>lackofeducation(unlikethe
emergenceofNICsinAsia),alsoenvironmentalfactorsthatinvoluntarilyhamperthe
developmentofthecountryandalsosevrepoliticalcrisis(ISIS,BokoHaram)

Maybeuseful:Casestudy1
IvoryCoast:productionestimatedataround1.6tons,thelargestproducerofcocoabeansin
theworld
farmerthoughtusedforwine,butinsteadisforchocolate
hardlyavailable,veryexpensiveachocolatebar=2euros,al^honsoearns
7/day15familymembersand4laborers
fermentationwithbananaleaves

Interestingfacts
internationalorganizationsthatworktofosterglobaltrade(IMF,G8),butoften
representatoolofdominanceforthesuperpowersovertheperiphery
BradtLinestillrelevantbecause14%ofthepopulation inthedevelopingworldlived
onl
essthanUS$1.25adayin2012
thewealthiest1percentownsmorethanhalfoftheglobalwealth
70%globalpopulationstillonagriculture

TowhatextentistheglobalSouthanareaofsimilarityanddiversity?

I. Economicsphere
Similarity:
manycountriessharecommontradeblockswhichallowthemtotradewith
theirregionalpartners
forinstance,LAIA(= LatinAmericanIntegrationAssociation) spans
severalLatinAmericancountriesintroducingcommontariffsand
seekingacertainequilibriumforallcountriestobewellintegrated
AlmostallcountriesoftheGlobalSouthareemergingeconomies(Brazil,India)
orLEDCs(Mali,IvoryCoast)

Diversity:
EmergingcountrieswithboomingeconomiessuchastheBRICSoftenpolarize
mostoftheflows(capital,goods)thuspreventingLEDCsfromdeveloping
 $96billionFDIinBrazilwhereasonly$72millioninBolivia(2014)
Thelargestconcentrationofheavilyindebtedpoorcountriesisfoundin
SubSaharanAfricawith33countriesoutofatotalof39,thusshowingthatthe
Africancontinenthassufferedthemostintermsofdevelopment

II. Politicalsphere
Similarity:
Mostcountriesaredemocracieswithgovernmentsthatseektomakethe
countrymoreprosperousbyattractingforeigndirectinvestment
Untilthe1980s,Mexicofollowedapolicyofgvmtsponsored
industrialisationbasedonimportsubstitutionindustriesafterthe
1980s,alongwiththecreationofNAFTAandMERCOSUR,Mexicos
economybecamemorecompetitiveandtheeconomyshiftedtowardsa
serviceorientedindustry.Todayover60%oftheMexicanGDPcomes
fromthetertiarysector
Diversity:
StillsomeexcessivelycorruptgvmtslikeUzbekistanorCongothatcontrast
withtherestoftheglobalsouth
SomepoliticalinstabilityinsubsaharanafricawhereasinSouthAsiatheres
nosuchthing(exceptforisolatedcasesofillegalflowsinmexicoor
venezuela)
Regardlessofthegovernmentsimplicationinthedevelopmentofacountry,
someunpredictedfactorssuchasnaturalhazardscanhamperthe
development:becauseofdesertificationandfloodinginMali,only14%ofthe
landisarableandthisisextremelyproblematicbecausethegovernmentrelies
mostlyonagriculture

III. Socialsphere

Similarity:
almostallcountriesintheglobalsoutharepartoftheUNdevelopment
frameworkorotherNGOsthathelpthemwithaidtofightmalaria,ebolaor
eventhespreadofterrorism

Diversity:
Livingstandardsarenotsimilarintheglobalsouthsinceaspectssuchasthe
levelofeducation,rateofundernourishmentortheaccesstosafewaterdiffer
fromcountrytocountry:
Atafirstglance,wenoticethatthepercentageofppllivingunder
$1.90/dayattains5.6%whereasinSubSaharanAfricaitgoesupto44%
Bychangingscales,theseinequalitiesareallthemore
impressiveandreflect
MortalityrateinMaligoesashighas10%whereasinSouthAfricais
around3.5%
 Humandevelopmentindex:0.41inMaliand0.66inSouthAfrica
Mumbaiaccountsfor40%ofIndiastradeandthehousingprice
isoneofthehighestintheworld,yetMumbaihasover10million
slumdwellers,reflectingamassivesegreggationwithinthecity