Development Geography
Development Geography
LOW
INCOME NON- INDUSTRIALIZED
POOR
(Agricultural)
DEVELOPING
COUNTRIES
THIRD
L.E.D.C’S
WORLD
*Check out the Brandt Division (or north/south divide) on page 194 of your textbook.
HIGH
INCOME
RICH
INDUSTRIALIZED
DEVELOPED
COUNTRIES
M.E.D.C’S FIRST
WORLD
NORTH
4. Levels of poverty
689 million people live in extreme poverty, that is, - below 1.90 $ per person per day.
World and African poverty levels have decreased but South African poverty levels have
Increased. 56 % of South Africa’s population (31 million) live in poverty.
5. Economic structure
Contribution to G.D.P. by economic sector (primary, secondary, tertiary) - as a
percentage.
Employment by economic sector (primary, secondary, tertiary) - as a percentage.
6. Balance of trade.
Is the difference between the value of a country's exports and the value of its
imports.
Analysed in terms of a positive or negative balance of trade.
South African trade balance in 2021 was positive 25.8 billion USD.
7. Gini co-efficient.
Measures economic inequality
in a country or the gap
between the rich and poor.
Given as a percentage.
O% indicates a perfectly equal
distribution of income
(or wealth) within a population.
100 % represents complete
inequality when one person in
a population receives all the
income, while other people
earn nothing.
Co-efficients generally range
from 24% to 63%.
South Africa is the most
unequal country in the world
with a co-efficient of 63 %. ….or about 100 kilograms !
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2. Life expectancy.
In South Africa is 64 years. In France life expectancy is 82 years.
Is a measure of nutrition levels and health care.
3. Population growth rate.
Given as a percentage of total population.
Developing countries generally have high population growth rates and high
dependency ratios.
Most countries in Africa have population growth rates above 2% and most
European countries have negative population growth rates.
South Africa’s population growth rate is 1.3%.
Source- https://resilience.earth.lsa.umich.edu/units/population/index.html
POPULATION (BILLIONS)
Political
POWER, POLICY,
MANAGEMENT DECISIONS
Social Economic
JOBS AND MONEY
PEOPLE AND HOW THEY
INTERACT
Biophysical base
CLIMATE, RELIEF,
SOILS, VEGETATION
AND ANIMALS
Levels of technology affects the ability to process raw materials into high demand/high cost
manufactured products. Advanced technology in ‘First world’ countries enabled them to
control both the manufacturing process and pricing of manufactured items.
Many developing countries of the world are found in the tropics and sub-tropics where
infertile soils (tropics) or a lack of rainfall/water (sub-tropics) inhibits food security. Food
insecurity restricts urban industrial economic development.
HIGH PROFITS
GLOBAL TRADE IMBALANCE
‘First World’
EXPENSIVE
Extraction requires:
Low technology
Low skill levels
Low wages paid
Processing requires:
CHEAP High technology
High skill levels
LOW PROFITS High wages paid
‘Third World’
3. Trade imbalances:
The above diagram illustrates that the economic development of those regions or
countries that own the production process is rapid.
Slow economic development occurs in those regions/countries that only produce
and sell raw materials.
L.E.D.C’s experience a negative trade balance when trading with M.E.D.C’s,
whereas, M.E.D.C’s enjoy a positive trade balance.
Colonialism (in the past) and Globalization (in recent times) has entrenched this
global trade imbalance.
Multinational companies control 70% of world trade.
(You need to understand the terms; ‘Globalization’ and ‘Multinational companies’.
4. Energy/power:
Social development (improvements in standards of living and education) as well
as economic development is linked to a cheap, reliable electricity or power
supply.
Less than half of the world’s population have access to cheap, reliable energy.
People in developing countries of the world rely on biomass fuels (wood and
dung).
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DEVELOPMENT MODELS
Models are generalizations (simplifications) of reality.
Each country or region in the world has very different interactions:
Between people.
Between people and the resources of nature.
No one model can accurately explain or predict development in a region or country but
all models do try to explain and predict how:
A countries economy develops (or does not develop) over time.
Problems facing development can be predicted and overcome.
Government policies can help or hinder development.
Great Britain
reached this stage
first in the 1790’s
Europe
1700 - 1800
Great Britain
before 1750
USA in the
Great Britain in 1950’s
the 1850’s followed by
Britain,
Western
Europe and
Japan.
Cross reference the above infographic with Table 17.1 on page 215 of your textbook.
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ROSTOWS MODEL:
Advantages:
Provides insight that development is a stage by stage growth. Each achievement in a pre-
ceding stage creates a platform to assist further economic growth.
Shows links between political/government policy and economic development.
Disadvantages or limitations
Eurocentric- An American and West European model- not applicable to many other places in
the world.
Does not explain regional variations in development in one country caused by natural
uneven distribution of resources.
Did not address the immorality of colonialism/imperialism…the primary means whereby
European countries achieved ‘take-off’.
Developing countries believed money or Capital was needed for Rostows ‘take-off’. African
and Asian countries borrowed from MEDC’s – creating huge national debt. LEDC’s therefore
could not advance past stage 2.
Focused on economic growth rather than true development which considers political, social
and environmental aspects.
Disadvantages or limitations
Friedmann believed that the under-development noticed in the periphery would
only be a temporary phase (stage 2). He believed stage 3 and 4 would see
renewed development in the periphery- this was not seen in most countries.
In reality core regions grew because of the exploitation of the periphery areas.
This unequal development is characterized by:
Higher wages in the core, unemployment and low wages in the periphery.
Monopolies.
Widening gap between rich and poor.
Environmental damage or resource exhaustion in the peripheries.
The development gap created by a ‘free market’ economy could only be
addressed by government policies of decentralization.
Principles guiding rural and urban community development will be addressed by looking at examples
from around the world.
(Combustible methane)
Greenhouse nursery
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This model would have limited success in South African cities because:
Low cost formal housing is single unit RDP houses. Contract corruption works
against real change- either densification (requiring major civil engineering) or
self-build projects.
‘Public’ transport is dominated by private high cost mini bus ‘cartels’.
There is slow growth in industry and employment creation. Brazil has 3.5 times
more people but 7 times the land area and greater geographic spread of
resources.
South Africa’s population growth rate is double that of Brazil’s.
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INTERNATIONAL TRADE
Any group of people with money is a potential market for trade. A good market may be:
A region with a dense population.
A region where people have a lot of money.
WORLD MARKETS, COMMODITIES TRADED AND TERMS OF TRADE
International markets are monopolized by rich MEDC countries such as Germany, France, U.K,
U.S.A and Japan. These countries have the technology and capital to manufacture useful
commodities (eg- cell phones, motor vehicles) and services (eg- Microsoft, google and fast food).
Globalization has entrenched this unfair ‘colonial’ type of global trade relationship described
above.
GLOBALIZATION refers to the increased potential for global trade created by advancements in
transport and information technology.
Countries are becoming more interconnected and interdependent. Resources, goods, services,
skills and to some extent technology move freely over international borders.
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PHASE 1 PHASE 2
A German motor company German production costs rise due to high labour costs and rising
(VW) identifies local and costs of transport of raw materials
international markets for a Some LEDC’s or NIC’s produce cars at lower production costs due to:
cheap and reliable car. Access to technology
VW exports its product. Cheaper labour costs
Abundant and cheap local raw materials
PHASE 3
VW only survives by becoming a multinational company.
In 1951 VW opened its 2nd largest production plant (outside Wolfsburg) in South Africa.
This was to exploit cheap labour and raw materials (outsourcing production).
Multinationals enabled MEDC countries to maintain market control (monopolization).
Certain VW models produced in South Africa are exported to Germany.
Multinational companies such as VW are the most obvious manifestation of globalization.
TYPES OF TRADE RELATIONSHIPS- Free trade, trade barriers, subsidies and Fair Trade
FREE TRADE
If all trade in the world was ‘free trade’ then:
MEDC companies or Multinational companies would monopolise world trade.
Economic growth and development in LEDC countries would be very slow.
TRADE BLOCS AND TRADE BARRIERS
Some countries have grouped together, creating a ‘trade bloc’ (trade group) in order to make
trade cheaper and easier between them:
Free trade is allowed between countries in the ‘bloc’.
Trade barriers in the form of heavy import taxes or import quotas are placed on products
brought in from outside the ‘bloc’.
Import quotas restrict the volume or quantity of imported products.
Trade tariffs (taxes) and import quotas serve to:
Limit the negative impact stronger economies may have on weaker economies.
Protect companies in a country from cheap imports or ‘dumping’.
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SUBSIDIES
Government intervention aims to assist exports and provide protection against imports.
In South Africa the clothing, textiles and leather goods industry receives government
assistance from the farm to the factory.
This includes farmer training as well as subsidies to maintain the health of cotton
crops, cattle and sheep.
Factory owners benefit from tax rebates, training subsidies and subsidized
transport of raw materials.
These subsidies allow for quality, well priced products, able to compete against
cheap imports.
In this way employment within the textile sector is also protected.
The South African government has insisted on a 45% import tax on all clothing
and textiles even from B.R.I.C.S countries such as China.
The tourism and automobile manufacturing sectors in South Africa also benefit
from government subsidies.
Some governments make direct subsidy payments to exporters. This export
subsidy would be a percentage of the value of the exports.
Governments may also manipulate the value of their currency. A weaker
currency will raise the cost of imports and lower the cost of exports.
FAIR TRADE
Emerging or developing countries such as South Africa, Brazil and China are calling for:
Laws banning ‘dumping’ of cheap imports. This is to protect local manufacturers.
Higher prices to be paid for raw materials from LEDC countries.
A fixed price for raw materials independent of world market price fluctuations.
This would mean that the manufacturers and consumers at the top end of the
value market chain safeguard the producers of raw materials at the lower end
of the value chain.
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Gender inequality
In the rural areas of many LEDC countries, particularly Africa, women do much of the work to
ensure food is grown, water, and firewood is collected and the daily needs of children are met.
Much of these daily activities, particularly water and firewood collection are time consuming.
Women need to be involved in community decision making before the daily quality of life in
many rural areas can be improved.
Women have traditional knowledge, for examples:
Medicinal herbs.
Grass weaving.
Pottery.
Growing crops
Many traditional skills can be used to set up informal businesses.
In South Africa’s traditional communities Gender equality is a challenge.
However, the Gender Advocacy Programme (G.A.P), launched in 2002 aims to secure equal
representation for women at community level, in education, and all levels of government.
*Read: The Fact File on page 242 of your textbook and Figure 19.2 on page 243 of your textbook.
Complete Activity 19.1 on page 242 of your textbook.
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C. Ranking cities according to a ‘Green City Index’. Study Table 19.2 on page 247
of your textbook.
The ratings given on table 19.2 for selected South African cities are about
15 years old.
Environmental governance, waste disposal and in particular, water quality
ratings for many South African cities have deteriorated. Most urban rivers
and streams in South Africa have alarming e-coli bacteria levels.
2. Industrial pollution
The BRICS trade bloc has adopted an
environmental ranking system for its companies.
Some of the categories rated are:
Air pollution in particular, Co2 and So2 emissions.
Rehabilitation of natural habitat after stripping for
industrial development or mining.
Zero liquid effluent discharge.
Encourage trade and overseas investment by creating trade blocs (like B.R.I.C.S) and other
investor incentives.
South Africa’s Industrial Development Zones (I.D.Z) strategy offers investors cheap land,
cheap electricity, cheap water, free trade, training subsidies and tax rebates.
Promote tourism
Protect local agriculture
Protect local business through import duties, import quotas and subsidies.
Ecotourism resources and rural development Buy local campaign - proudly South African
Protect and nurture the informal economy (or the second economy), in particular
the role of women in small business development.
Improve training and skills development.
Facilitate government (public sector) and private sector partnerships.
In order to reduce the development gap between MEDC and LEDC nations the
following suggestions have been made:
1. Debt cancellation
Cancellation of all international debt. This would mean a loss of income for
MEDC countries.
Only cancel the interest on debt.
Cancel debt of countries that show good governance.
2. Trade agreements
MEDC countries promise to do more trade with LEDC countries.
This trade should be according to ‘Fair Trade’ principles.
3. Removal of subsidies
MEDC governments provide subsidies to farmers or manufacturers in their
countries.
Goods are produced below market price.
Farmers and businessmen in LEDC countries cannot sell their products and
go out of business because of cheaper imported commodities.
Pages 256 – 260 in your textbook provide case studies that highlight the positive and
negative consequences of development aid.
A. Read Case Study 1 on pages 256-257 and complete Activity 20.1 on page 257.
B. Read Case Studies 2 and 3 on pages 258-259 and complete Activity 20.2 on
page 260.