Trade and Development

A. Development

Development is the use of resources and technology to bring about change. This
change is positive and generally involves the improvement in people’s quality of life and
improving the standard of living in a country. Also, development means “using the
productive resources of society to improve the living conditions of the poorest
people” (Peet and Hartwick 1999, 1)

The Brandt Line is the line dividing the world into the developed and developing
world. Developed countries are often referred to as those that are in the north of the
Brandt line and the developing countries as being those in the south of the Brandt line.

There are four sectors of economy in relation to development.

1. Primary activities are the extraction of raw materials from the earth’s
surface. For example, forestry, farming, mining, and fishing.
2. Secondary activities involve the manufacturing and processing of goods
obtained in the primary activities.
3. Tertiary activities are the provision of services, meaning whatever is being
processed or manufactured in the secondary activities are then displayed
at shops or markets to be sold.
4. Quaternary activities involve research and technology. This new section is
developed because a lot of developed countries are now focused on research
and technology development and it is a much higher part of the economic sector.
The reason why we need to understand the differences between these activities is
because of the observed distinctions of activities between a developed country and a
developing one. A developing country is more likely involved in the primary and
secondary activities whereas a developed country is more likely involved in tertiary and
quaternary activities.

There are three different types of indicators that can be used in order to compare
development:
a. Economic indicators (show how well off a country is economically)
b. Social indicators (show level of human development, welfare, and quality of
life)
c. Demographic indicators (show the statistics of a country’s population)