What is development?

Development is a term that measures how advanced a country is compared to others.

There are different aspects to development, economic, social and political.
Economic indicators of development measure a country’s progress in economic growth, e.g. how wealthy a
country is and its level of industrialisation.
As a country
Indicator What it is
develops, it gets…
Gross Domestic Product The total value of goods and services a country produces
Higher
(GDP) in a year. It’s usually measured in US$.
GDP per capita The GDP divided by the population of the country. Higher
Gross National Income The total value of goods and services produced by a
Higher
(GNI) country in a year, including from overseas.

Social indicators measure people’s standard of living, e.g. access to healthcare, education and clean water.
As a country
Indicator What it is
develops, it gets…
The number of live babies born per thousand of the
Birth rate Lower
population per year.
The number of deaths per thousand of the population per
Death rate Lower
year.

Fertility rate The average number of births per woman (in her lifetime). Lower

The number of babies who die under 1 year old, per

Infant mortality rate Lower
thousand babies born per year.
The number of women who die due to pregnancy related
Maternal mortality rate Lower
problems per thousand live births.
The number of working doctors per thousand of the
Doctors per 1,000 Higher
population.

Political indicators measure the stability of political systems and how these meet the needs of society.
As a country
Indicator What it is
develops, it gets…
A measure of the level of public sector corruption
Corruptions Perceptions
according to experts and businesspeople, on a scale of 0- Higher
Index (CPI)
100. The lower the score, the more corrupt a country is.

The indicators in the tables above are all
limited because:
• they all show averages only – e.g.
GDP is inflated in oil-rich countries;
• data are not always accurate – e.g.
GDP doesn’t include the cash
economy.
The Human Development Index (HDI) is a composite
index, which means it measures lots of different data
and is therefore more reliable. HDI measures:
• Wealth (GDP per capita)
• Health (life expectancy)
• Education (average number of years of schooling)
Every country is given a HDI value between 0 (least
developed) and 1 (most developed).
Development differences
Countries at different levels of development have differences in their demographic
data. Knowing how to interpret population pyramids is important for this unit.
Developing countries

Death rate is high and life expectancy low due to poor

healthcare, limited access to clean water and poor nutrition.

Higher fertility and birth rates because poor healthcare

means that many infants die and because there’d limited
access to contraception.

Developing countries have a youthful population – there’s a

higher proportion of children than older people (60+).
Therefore, population pyramids have a very wide base, which
rapidly narrows.

Developed countries

Healthcare is good, so the death rate is low and life expectancy

is high.

Fertility rates are low because people want possessions and a

high quality of life. Females also stay in education longer and so
start having children at an older age.

Developed countries have an ageing population – there’s a

higher proportion of older people (60+) than children.
Therefore, the top of the pyramid widens further and the base
gets narrower, so the middle bulges out.

Wealth is not spread evenly

across all countries in the
world. People in the richest The UK is in the fifth
20% of countries (the fifth quintile. Other countries in
quintile) have 70% of the the fifth quintile include
world’s wealth (GDP per Norway and Japan.
capita), whereas people in the
poorest 20% (the first quintile)
have just 1% of the world’s
wealth.

Differences in wealth can make it difficult for poorer people in those countries…

Poorer countries can’t People in developing Inequalities can increase

afford to invest as much in countries are at higher risk political instability and crime
Education

education as richer for many diseases than in poorer countries. This

Politics
Health

countries. Children may people in developed means civil wars are more
have to work to support countries leading to lower likely in developing
their families instead of life expectancies. countries.
attending school.
Causes of global inequalities
You need to know the reasons why there are global inequalities – i.e. why some
countries are more / less developed than others.

Climate Topography (shape of the land)

If a country has an extreme climate, not much
will grow. This reduces the amount of food
produced, which can lead to malnutrition.
People also have fewer crops to sell, so less
money to spend on goods and services.
If the land in a country is steep, crops will be
difficult to grow, which can lead to
malnourishment. Steep land can also make it
difficult to build on and develop infrastructure
(e.g. roads, power lines). This can limit trade.

Education
Educating people produces a more skilled
workforce, meaning that the country can
produce more goods and offer more services.
This can bring money into the country through
trade or investment. Educated people also
earn more, so they pay more taxes. This
provides money that the country can spend on
development.
Health
In some developing countries, lack of clean
water and poor healthcare mean that many
people suffer from diseases such as malaria
and cholera. People who are ill can’t work so
they’re not contributing to the economy.

Colonialism
Countries that were colonised (ruled by a
foreign country) are often at a lower level of
development when they gain independence
than they would be if they had not been
colonised. European countries colonised
much of Africa in the 19th century. They
controlled the economies of their colonies,
removed raw materials and slaves, and sold
back expensive manufactured goods.
Neo-colonialism
After colonies gained their independence,
developed countries continued to control
them indirectly. For example, some TNCs
exploit the cheap labour and raw materials of
developing/emerging countries. International
organisations sometimes offer conditional
loans, which mean developing countries have
to develop in the way their donors want them
to.

Economic and Political

Authoritarian governments (usually headed by a dictator) can put development policies in place
without worrying about anyone stopping them. This can be good for economic development (e.g.
rapid growth of China), but things can also go really wrong (e.g. Cuba’s economic crash).

Corrupt governments can hinder development, e.g. by taking money that’s intended for building
new infrastructure or improving facilities for people.

Countries with good international relations are more likely to get good trade agreements. They can
also get loans from international organisations to invest in development projects.
 Theories of development
There are many different theories to explain how and why countries develop…or don’t
develop, in Frank’s case.

Socialism: The whole

Capitalism: Trade and community has control
industry are controlled over production and
by private owners for distribution of land –
profit. equality before
achievement.

Rostow’s modernisation theory (based on capitalism)

Rostow’s modernisation theory predicts how a country’s level of economic development changes
over time. It describes how a country’s economy changes from relying mostly on primary industry
(e.g. agriculture), through secondary industry (manufacturing), to tertiary (services) and quaternary
industry (research). At the same time, people’s standard of living improves. Stage 1 is the lowest
level of development and stage 5 is the highest.

Problems with this theory

• It assumes that all countries start at the same

level of development.
• It doesn’t consider the quality or quantity of a
country’s resources, population or
climate/natural hazards.
• It’s out of date – based on 18th and 19th century
development of European countries.

Frank’s dependency theory (based on socialism)

Frank’s dependency theory was developed as an alternative to Rostow’s model to explain why some
countries are more developed than others. The theory suggests that developing countries (the
periphery) remain poor because they are dependent on developed countries (the core). It argues that
the exploitation that started during the colonial period has continued – this is neo-colonialism. Richer,
former colonial countries continue to dominate the trading system even though colonised countries
have gained independence – richer countries continue to take advantage of the cheap raw materials
and labour available in poorer countries.

Problems with this theory

• It was written in the 1950s so is outdated – today, some less

developed countries are developing very quickly, e.g. China and India,
which may show the dependency theory doesn’t work or only applies
to some places.
• It doesn’t take account of other factors which may limit
development, such as natural disasters, lack of resources, conflict etc.
Approaches to development
You need to know about the advantages and disadvantages of three different
approaches to development.

Top-down approaches
strategy
Type of

A government, inter-governmental
organisation (IGO), or TNC direct the project.

These approaches are used for large projects

Scale and

(e.g. HEP dams) and aim to solve large-scale

aims

problems, improving the lives of lots of

people.
Technology Funding

Projects are very expensive and may be

funded by TNCs or governments, others may
be funded by loans, e.g. the World Bank.
Projects are high-tech and energy intensive.
Machinery and technology is often operated
by skilled workers from developed countries
rather than local people.

Bottom-up approaches

Local people and communities decide on

strategy
Type of

ways to improve things for their own

community. Non-governmental
organisations (NGOs) are often involved.
Projects are small-scale (e.g. building a well
Scale and

in a village) and aim to improve the quality

aims

of life for the poorest and most vulnerable

people in society.
Technology Funding

Projects are much cheaper and most money

comes from charities, often relying on
donations from people in richer countries.
Projects involve intermediate technology.
Local materials are used and local people are
employed, which means people have the
materials and skills to maintain the project.

Investment by TNCs

Some profits leave the host country and TNCs can

TNCs provide employment for local people, and
cause environmental problems – developing
more companies mean a greater income from
countries may have less strict environmental
taxes for the host country.
regulations.
Location and context
You need to know about where India is, and reasons why it is significant in its region
and in the world.
Context

India is a rapidly developing emerging country. It has the second

largest population in the world (approximately 1.3 billion) and is
still growing.
India was a British colony until 1947, but now has its own
democratically elected government. India’s relations with the UK
have gone through different phases, but have generally warmed
in recent years. Opinions vary as to the effect of colonialism on
the Indian subcontinent. One benefit is that most of the India has a rich and diverse cultural
population speaks English, which has been an important factor in background. It is renowned for its
India's integration into the global economy. production of ‘Bollywood’ films,
which are exported worldwide.
Bollywood makes 1600 films a year,
seen by a total 2.7 billion people.

Site / Situation

India is located on the continent of Asia and borders six

countries, including China and Pakistan. Its close proximity to
other emerging nations, such as China, provides a huge market
for goods and services.

India is a peninsula, bordering the Indian Ocean, with a coastline

that is over 7,500 km long. This supports trade, with more than
95% of India’s foreign trade (by volume) carried by ship
Economic trends
You need to know key economic facts about India, including how GDP/GNI, economic
sectors, imports/exports, and Foreign Direct Investment (FDI) have changes since 1990.
GDP / GNI per capita

India has undergone rapid economic

development in recent decades.

GDP and GNI per capita have increased

significantly in recent decades. GDP per capita
has increased by approx. 320% since 1990.

Economic sectors

Economic development has changed the importance of the

different economic sectors.
• Primary industry has declined in importance and now
accounts for 17% of India’s GDP.
• Secondary industry accounts for 29% of GDP.
• Tertiary industry is now worth 53% of GDP.

Imports and exports

Economic change in India has affected what India

imports and exports... 1990 2015

As India has become more integrated into Crude oil (for

the global economy, the volumes of both Manufactured
Imports transport and
imports and exports have increased. goods.
industry).
The composition (type) of India’s trade has
also changed, with higher value goods now Low-value High-value
more important to both imports and Exports manufactured manufactured
exports. goods. goods.

Asia is the main destination for India’s exports.

Most imports come from China

Foreign Direct Investment (FDI)

There has been a huge increase in FDI since 1991,

and especially since 2000.
Inward investment (foreign companies investing in
India) has taken place, mostly coming from TNCs.
The government is keen to encourage FDI in the
development of the country’s infrastructure.
Globalisation and Government policy
You need to know how globalisation has increased development and has been helped
by government policies.
Globalisation has increased development in India and has led to an increase in FDI. Along with India’s
geographic location and associated trade links, there are a number of reasons why India has
increasingly become an attractive location for inward FDI.

Aid
In 1991, India received US$2.2 billion in
aid from the International Monetary
Fund (IMF) in exchange for the
government changing its economic
policies (e.g. reducing tariffs) on
imported goods.

Opening up the country to FDI

India is now one of the top locations in
the world for FDI. Most investment
comes from countries such as Japan and
USA. India is trying to attract more FDI
by relaxing the rules on how much land
and property foreign companies can
own.

Investment in education
In 2009, India made primary education
free and compulsory. Literacy rate has
increased so there is now a more skilled
workforce, attracting greater investment
from TNCs.

Investment in transport
India’s rail network is being upgraded
and new roads and airports are being
built. These reduce travel time e.g. the
Delhi metro enables thousands of
commuters to get to work.
Impacts of development (1)
You need to know the advantages and disadvantages of India’s rapid economic
development and globalisation on different age and gender groups, as well as impacts on
the environment.
Demographic change

Development is causing population change in India.

• Fertility rates are falling. Today, India has an
average fertility rate of 2.4. (This means population
growth rates are slowing down).
• Infant mortality rate has fallen.
• Maternal mortality rate has fallen.
• Life expectancy has increased. (to 68 years in 2018).

Urbanisation

As India has become wealthier, urban areas are growing

because of:
• rural-urban migration - people move to towns/cities for
jobs.
• natural increase – better healthcare means longer life
expectancies; incoming migrants are often of child-
bearing age and start families in the town/city.

Regional changes

Some regions of India are developing faster than others, and

rapid economic growth has increased inequality within India…
GDP per capita is highest in the south and west states, which have
the highest urban populations (e.g. Maharashtra – the state in
which Mumbai is located).
• The growth of manufacturing ad services has benefitted
urban areas more than rural areas.
• More money gets spent on these areas in order to attract Maharashtra
more FDI and TNCs. The wealth generated can then be spent (Mumbai)
on development projects, improving literacy rates and quality
of life.
More rural states (e.g. Bihar) have higher rates of poverty.
• This has led to undernourishment and health problems Bihar
because people can’t afford to buy enough food.
• Many children have to work rather than attend school,
leading to low literacy rates.
• Poor health and education leads to a low HDI score.
• Older people are less likely to migrate to urban areas, instead
remaining in rural areas.
Impacts of development (2)
You need to know the advantages and disadvantages of India’s rapid economic
development and globalisation on different age and gender groups, as well as impacts on
the environment.
Impacts on different age and gender groups
Positive impacts
• All age groups have better health…
• Elderly people are living longer.
• There is lower infant mortality
rate.
• There is lower maternal
mortality rate.
• Some age groups have better
education…
• Higher education has given
young graduates access to
better jobs.
• Many adults have better
literacy.
• There can be better gender equality…
• Women have better access to
education.
• Women have better access to
contraception and family
planning advice.
Impacts on the environment
Greenhouse gas emissions
Industrialisation leads to higher energy
consumption. Increased demand for fossil fuels in
industry, homes and transport means more
greenhouse gases are released, contributing to
climate change. India releases approximately 7% of
all global greenhouse gas emissions.
Land and water pollution
Urban sprawl leads to land and water pollution.
Lack of infrastructure means that approximately
70% of India’s sewage flows untreated into rivers.
The River Ganges is ranked amongst the world's ten
most polluted rivers.
Negative impacts
• Rapid industrialisation and lack of
regulations means young working men
may have to do dangerous jobs.
• As young people move to urban areas
to find work, there are fewer workers in
rural villages. This means…
• Children in rural areas may get a
poor education due to a lack of
skilled teachers.
• Children may have to work as
agricultural labourers to support
their families.
• There is still a lot of gender inequality…
• It is unsafe for women in many
urban areas (e.g. Delhi).
• When men leave to find work in
cities, women are left to care for
and provide for the entire
household (balancing a job with
housework).
Air pollution
More factories and cars mean more air pollution. A
recent study by the WHO found that 13 of the
world’s top 20 polluted cities are in India.
Deforestation has become a major problem caused
by commercial logging, the expansion of forests to
agriculture, and urban expansion. This leads to
flooding, loss of biodiversity and climate change.
Desertification (where land becomes increasingly
dry and less useful for farming) is threatening 25%
of India’s land. This is affecting the livelihood and
food security of millions of people.
International relationships
You need to know rapid economic development has changed the geopolitical influence of
India and its relationships with the EU and USA.
As India’s economy has developed, it has become the second
largest market in the world and is expected to be the third
largest economy by 2050. With its increasing development,
India is playing a larger role in regional and global politics. In
recent years, the Indian government has improved relations
with its immediate neighbours.

Geopolitics – The effects of

geography on international politics.

India is a member of several international organisations:

• India was one of the founding members of the United
Nations (UN), which works towards sustainable
development.
• India is part of the World Trade Organisation (WTO), an
IGO that regulates international trade.
• India is a member of G20, a group of 20 of the world’s
largest economies.

Economic growth has changed India’s relationship with the USA and EU…

India and the USA India and the EU

India used to have a poor relationship with the USA
but this has been improving. The USA expects the
economic development of India to increase
employment and economic growth in both
countries.
India has had a good relationship with the EU and
they became strategic partners in 2004. The EU is
one of India’s biggest markets and trading partners.
The EU supports health and education programmes
in India to promote continued development.

Changing international relations have had costs and benefits…

Benefits
Improved relations mean India can cooperate
with other countries on global issues such as
climate change. FDI brings economic benefits
to both India and the country of origin.
Costs
There is increasing tension between India and
China – both have rapidly growing
economies. Developed nations are also
concerned about losing economic power as
India grows.

Foreign investment from TNCs is bringing wealth and jobs to India, but there are problems too…
• TNCs can cause environmental problems. For example, concern from local communities about the
amount of water being extracted by Coca Cola led to two bottling pants being closed.
• Large global retail chains can offer cheap prices on goods…but Indian street traders are concerned
that this will destroy their livelihoods.
• TNCs could withdraw their business from India at any time.