2.2. the development gap

Question 1

Increasing development gap;

How is the development gap increasing regionally?

Answer 1

It is spatially selective (some regions benefit and some do not) per capita incomes and trade varies significantly;

• UK – for every 12 jobs generated in the south 1 is lost in the north (e.g. Coventry, London and Cambridge are attractive economic centres [Myrdal] with tertiary and quaternary industries – Hull & Blackpool have unemployment due to loss of industry (e.g. manufacturing) - cannot compete. Little FDI in the south reaches the north
• Lack of growth in LEDCs (Friedmann stages of growth model) - spatial inequalities across rural and urban areas

Question 2

Increasing development gap;

How is the development gap increasing using the example of Sub-Saharan Africa?

Answer 2

• Sub-Saharan Arica has made little improvement in narrowing the gap (with a 0.4 HDI difference in 2005 which has not altered for 30 years)
• In 2005 sub-Saharan Africa contributed 2% to global output in GDP, whereas East Asia and Pacific contributed 19%
• In sub-Saharan Africa 20 countries have lower incomes per head than they did 2 decades ago
• Zimbabwe has 80% unemployment with no FDI due to political/ economic instability and corruption, AIDS epidemic, lowering life expectancy, malnutrition and non-democratic society

Question 3

Increasing development gap;

What social factors are indicating that the development gap is increasing?

Answer 3

• 1/5 of the world’s population lives on less than 2 dollars a day
• More than 850 million people in poor countries cannot read or write
• Nearly 1 billion people do not have access to clean water & 2.4 billion to basic sanitation
• 11 million children under 5 years old die from preventable diseases each year

Question 4

Increasing development gap;

What poitical factors are indicating that the development gap is increasing?

Answer 4

• European colonialism (due to exploitation of African, Asian and American resources)

Question 5

Increasing development gap;

How does Myrdals model suggest that the development gap will increase?

Answer 5

Cumulative causation (Myrdal) - growth circles mean that periphery regions do not experience core growth (outflow of capital, firms in periphery cannot compete)

Question 6

Increasing development gap;

What shows that the development gap is increasing between countries?

Answer 6

• The wrlds 8 richest people have the same wealth as the poorest 50%
• 90% of TNCs are in MEDCs
• 2006 – GDP per capita was 125x greater in N. America than E. Africa (even though E. Africa has become wealthier). This is seen in Frank’s model (domination of the rich over the poor)

Question 7

Decreasing development gap;

What poitical factors are indicating that the development gap is decreasing?

Answer 7

• Greater political stability and relationships (e.g. China and Russia)

Question 8

Decreasing development gap;

What economic factors are indicating that the development gap is decreasing?

Answer 8

• Larger internal markets (e.g. India)
• Countries are willing to exploit globalisation (in terms of trade, finance and communications)
• East Asia GDP has increased so that GDP per capita is 1/8 of that of N. America

Question 9

Decreasing development gap;

What social factors are indicating that the development gap is decreasing?

Answer 9

• Human Development Index trends from 1975 to 2005 showed most world regions have narrowed the gap

Question 10

Decreasing development gap;

How could TNC involvement decrease the development gap?

Answer 10

• Increasing development and amount of TNCs could reduce the development gap (as both host and home countries benefit)
• Rapid industrialisation and cheap flexible labour (e.g. India)