Development- is the process of change and growth in a society or a country that will

bring acceptable standard of living.

The aims of development
• Good quality of life/better standard of living
• Enough food
• Good health services
• Better education
• Safety and security
Through those changes people tend to improve their:
• Social aspects
• Political aspects
• Economic aspects
• Environmental conditions
Advantages of development
• Better standard of living/create employment
• Better health care
• Better education/more schools
• Better housing
• Better sanitation
• Access to clean water supplies
• Better infrastructure e.g roads, electricity, telecommunication
• Improved technology/use of advanced/complex technology
Disadvantages of development
• Lack of jobs/unemployment
• Poor sanitation/poor hygiene
• Lack of housing/land/relocate people to pave ways for development
• Pollution of land, water, air and excessive noise
• Higher crime rate/prostitution
• Deforestation
• Disparity of wealth/ wealth not equally shared
• Overpopulation/overcrowding

➢ In order to be successful, development must have an economic component to

ensure the creation of wealth and improve standard of living, it must have the
social component to ensure the well- being of the people, there must be an
element of politic to ensure the protection of democracy, human rights and
freedom. Further, development must also be able to maintain the environment.
➢ We must clearly understand that development does not benefit everyone equally.
Authors are comparing development as a pie meaning some people tend to get a
bigger chunks and others nothing or little a very good example is the disparity of
wealth between urban areas and rural areas.

Four processes of development

1. Economic growth-the creation of wealth and improvement of living standard.
-countries must be able to set up industries to produce goods
and services. Goods and services can be sold locally to other
Countries this will bring in foreign currency that will boost
the economy of the country.
2. Social changes –provision and improvement of basic needs. Basic needs include:
access to clean water, health, education, nutrition, shelter and
clothing. So development must give people access to all these
Things.
3. Political freedom-ensure protection of democracy human rights and good
governance.
-development should allow people to take part in decision making
And take control of their own life.
4. Environmental conservation-development must promote the conservation of the
the natural environment in which people live and the
the natural resources on which they depend.
Activity 1

A B

C D
(a) (i) Identify the four processes of development illustrated A, B, C and D. [4]
(ii) Choose any of the process you identified in (i) and explain it fully. [3]
(iii) Define the term development [1]
(iv) Describe the advantages and disadvantages of development [4]

WORLD DEVELOPMENT
In 1945 the world was divided into:
• The capitalist also called first world (Canada, Ireland, New Zealand,
Singapore, Switzerland, Australia, United States, UAE, Mauritius)
Capitalist is defined as a system of production or trade based on private
ownership of properties and wealth.

Characteristics of capitalist
-private ownership
-the aim is to make profit
-there is no government intervention
 -businesses/companies compete freely
- tend to produce quality products
-the prices of goods and services are controlled by market forces/supply and
demand

• Communist also called second world (Russia, China, Cuba, North Korea,
Vietnam)
Communist is the political system in which government controls the production
of goods and services.

Characteristics of communist
-Public ownership
-state plan and protect industries
-reduce the gap between poor and rich

• Mixed economies/third world (South Africa, Namibia, France, England,

Germany, India, Sweden, Japan)

Mixed economy- an economic system in which some industries are owned by

the state and others are owned by the individuals or private company

Characteristics of mixed economy

-some aspects are controlled by the state and others by individuals
-they focus on the needs and wants of the community
-individual company compete freely
-government partially controls the prices of the products (goods and services)

Capitalist and Communist are also known as:

Capitalist countries can be Communist countries can be called

called
Free economies Socialist economies
Market economies Centralised economies
Laissez fair system Collective economies
Unplanned economies Planned economies

Developing and developed countries

➢ Countries are divided into two major categories based on their economic
factor such as GDP, GNP Per capita, level of industrialization, type
of economic activities and standard of living.
➢ Developed countries have well developed economy and strong
technological and industrial infrastructure e.g Germany, France, USA,
Britain
 ➢ Developing countries are still going through the initial levels of industrial
development and have low GNP Per capita, mainly focusing on primary
activities e.g Namibia, Kenya, Columbia, Gambia.
➢ Developing Continents-Africa
-South America
-Asia
Developed Continents-North America
-Europe
-Australia

• The developed countries are also known as the North countries and the
developing countries are also called the South countries.
• The line that divides developed countries from developing countries is called
Brandt line/North south line.
• Brandt line is defined as the dividing line showing the social, economic and
political division that exist between wealth developed countries from the poorer
developing countries.
• Developing countries are below the Brandt line while developed countries are
above the line, irrespective of their geographical location/position.
Below is the map that illustrates developed continents and developing continents
The rich and poor countries are sometimes referred to as:
Rich countries Poor countries
Countries of the North Countries of the South
MEDCs (More Economically Developed LEDCs(Less Economically Developed
Countries) Countries)
Industrialised countries Non-Industrialised countries
Developed countries Developing countries
High income countries Low income countries

Characteristics of MEDCs and LEDCs

MEDCs LEDCs
• GNP per capita is high over GNP per capita is low less than U$1280
U$10000
• Good quality infrastructure Poor quality infrastructure
• Population growth is low below 1% Population growth is high 2-3.5% or more
• Majority of people have access to Few people have access to suitable
suitable housing housing
• Majority of people work in formal Many people work in the informal sector
sector with better working with poor working conditions
conditions
• People are employed more in People are employed more in the primary
secondary and tertiary sector sector
• People have access to balance diet Many people do not have access to
balance diet. Many suffer from malnutrition
• Higher life expectancy Lower life expectancy
• Higher literacy rate Lower literacy rate
• Access to better health services Poor access to health services
Newly industrialised countries (NICs)
• Newly Industrialised countries(NICs) are countries that have recently and quickly
moved away from agriculture based economy of developing countries.
• NICs are not considered to be developed countries but they have massive
industries to produce goods for exporting.

Characteristics of NICs
-Established export oriented industries
-More labour intensive
-High number of skilled workforce
-Workers are usually employed in the manufacturing industries
-Access to improved technology
-Produce products more cheaply
-Rapid urbanisation and growth of urban centres
Examples of NICs: South Korea, Japan, Taiwan, Singapore, UAE, China, Indonesia,
Brazil, Mexico, Philippines, India, Turkey, Malaysia, Argentina, Thailand and in Africa:
South Africa and Egypt.

Explain the role which the state can play in the rapid economic development of the
country
• Diversify in the economy/different types of industries
• Close partnership with the private sector/giving loans to set up business
• Incentives to private sector to encourage them/tax incentives/subsidies create
conducive environment for business
• Peace and national security
• Removed obstacles for businesses like import and export duties and taxes on
imports goods
• Lobbied/lured MNCs to invest in the country/foreign investment
• Government implemented market-conforming interventions like policies to give a
guide towards industrial growth
• Import substitution and export/free trade
• Establish necessary infrastructure
• Train local people/human resources development/educate people
Activity 2
(a) (i) State three continents that consist mainly of developing countries. [3]
(ii) Give another name for rapidly developing countries. [1]
(iii) How do we call the line that separates developed countries from developing [1]
(b) China classified as a NIC.
What does NICs stand for? [1]
(ii) Name two other NICs. [2]
(iii) Explain four roles which the state can play in the rapid economic growth of the
country. [4]

Organisation of Petroleum Exporting Countries (OPEC)

➢ These are countries that are rich in oil.

➢ The aim is to supply oil and oil products across the whole world examples Iran,
Iraq, Saudi Arabia, Kuwait, Angola, Nigeria, Libya, Canada

Economic sectors

• Primary sector/agriculture and fishing-extraction of resources directly from

nature (growing crops, livestock farming, fishing and mining)
• Secondary sector/industries/manufacturing-producing manufactured goods
from raw materials e.g. turning Mahangu grains into Mahangu flour.
• Tertiary sector/services-involves producing and delivering of services e.g.
teaching, banking, nursing, transport etc.
• Quaternary-involves all knowledge based activities and the use of technology
such as information technology and research.
➢ Developed countries rely more on tertiary, secondary and quaternary activities to
contribute to the economy of the country. Agriculture or primary sector is the
lowest. Examples Germany, France, Australia, Canada, Italy, Norway, Sweden
etc.
➢ Developing countries rely mostly on agriculture, manufacturing and little of
services. Examples Namibia, Sri Lanka, Kenya, Colombia, Pakistan etc.
 Germany (a developed country) the opposite is true for developing countries

Measuring development

➢ To determine whether the country is developed or developing.

➢ Indicator is something that shows the state or level of something.
➢ Development indicator is something used to measure and show the progress of a
country in meeting a range of environmental, social, political and economic aspects
of a country.
Indicators of development

1 Economic indicator

2 Social indicator

3 Political indicators

4 Environmental indicators

Economic indicators-GNP

-GDP

- Energy use

-Employment

Gross Domestic Product (GDP)

Is the total wealth the country produces from goods and services within the country and
excludes the earning from outside the country per year.

➢ Developed countries have high GDP while developing countries have low GDP.

Gross National Product (GNP)

Is the total wealth the country produces from goods and services within the country and
the wealth earned from outside the country per year.

➢ Developed countries have high GNP while developing countries have low GNP.

GNP per capita/per head/per person or GDP per capita/per head/per person

Is the average income a person can get if the economy of the country is shared equally.

How to calculate GNP per capita or GDP per capita?

GNP/Population=GNP per capita

Example USA which is a developed country

U$10533Billion/290 million=U$36320 GNP per capita

Example of Kenya which is a developing country

U$66billion/29million=U$2275.9 GNP per capita

NB take note if the units are not the same you have to convert them into similar unit for
you to be able to divide. The rule of mathematics.

How GNP per capita contribute to a good standard of living?

• Proper medical care

• Clean water provision
• Nutritious food/balance diet
• Proper sanitation
• Better housing
• Better education

Advantages of GNP per capita/usefulness of GNP per capita

• It is a standardised measure which allows easy comparison between countries and

years
• The data is available from the World bank
• It highlights international wealth differences
• It is better than raw GNP measurement which ignores the size of the population or
GDP which does not include investments abroad

Disadvantages of GNP per capita/shortcomings of GNP per capita

• It does not show us how the income produced by all economic activities is shared
• It does not include all production
• Population figures might be outdated
• It ignores quality of life
• It does not measure happiness, satisfaction or well being
• Government statistics maybe inaccurate/outdated

Energy use

➢ wood, oil, natural gas, coal, falling water are all sources of energy
 ➢ we use energy to produce goods and services, goods and services can be sold
locally or internationally and the country will earn foreign currency that will boost
the economy of the country.
➢ Energy consumption you look at the quantity of energy used.
➢ Developing countries use less energy compared to developed countries.

Why developed countries use more energy compared to developing?

▪ They have more industries
▪ Need more energy to produce goods and services to meet the demand of
the world.
▪ They use more electrical goods.

Employment

• You look at the number of people employed in each sector of economy

• Developed country have more people employed in the service and secondary
sector only few employed in agriculture.
• Developing countries majority are employed in primary sector and few employed
in tertiary and secondary sector.
• Further developed countries have higher employment rate while developing
countries have low employment rate.

Terms to remember:
Employment-is an economic situation marked by the condition that individuals
have a paid job.
Unemployment-is an economic situation marked by a condition that individuals
are looking for job but cannot secure one.
Underemployment-is an economic situation marked by the condition that
individuals are working on part time basis or overqualified for the job that they are
doing.
Explain why the percentage of people employed in agriculture is lower in
developed countries than in developing countries.

➢ Developed countries use advanced technology/capital intensive

➢ Highly skilled people in tertiary and secondary sectors
➢ Import raw materials

Social indicators (health and education)

• Health –life expectancy

-infant mortality rate
Life expectancy(LE)- is the average number of years a person is expected to live.
Infant mortality rate (IMR)- is the number of babies who die in a 1000 before they
reach the age of one or first birthday.
Note: developed countries have higher life expectancy and lower infant mortality
rate while developing countries have lower life expectancy and higher infant
mortality rate.
Why developed countries have higher Life expectancy and lower IMR?
➢ Proper medical care
➢ Proper sanitation
➢ Clean water supply
➢ Better nutrition/balance diet
➢ Proper hygiene

Why developing countries have higher IMR and lower LE?

➢ Poor medical care

➢ Poor sanitation
➢ Lack of clean water supply
➢ Lack of balance diet/poor nutrition
➢ Poor hygiene
 • Education
-literacy rate-the number or percentage of people who can read and write.
-school enrolment
-teacher learner ratio
-university enrolment

Note: developed countries have higher literacy rate, higher school enrolment and
university enrolment and low teacher learner ratio while developing countries have low
literacy rate, low school enrolment and university enrolment and high teacher learner
ratio.

Political indicators

• Freedom and justice

• War and conflict
• Percentage of people who vote in elections
• Percentage of women in managerial positions
• Human rights ratings -are given to identify which countries allow their citizens the
greatest amount of freedom and access to basic human rights.

Causes of war and conflict

-religious problems

-political differences

-economic interest

-struggle for independence

-ethnic differences

Effects of war and conflict

➢ Instead of investing money into development, the money is used to buy guns and
weapons
➢ People will be killed
➢ Families and communities are broken up
 ➢ Damage to property and production
➢ Plant cannot be planted or harvested because of people in danger
➢ Roads and telecommunication will be destroyed
➢ Schools and hospitals are damaged and close down

Why are political indicators such as freedom and justice difficult to measure?

• You cannot assign value to them

• You cannot see or touch

Environmental indicators

• Conservation- to look and (care for) take care of our resources

• Sustainable development-the use of resources to meet the needs of today without
compromising the future generation to meet their own needs

Other indicators of the environment

• Rate of pollution
• Rate of deforestation
• Extinction of species

Note: when a question is to indicate the relationship between two or more things you
need to look at the pattern and unlock the pattern and justify it with data provided.

-the higher the higher

-the lower the lower

- the higher the lower

-the lower the higher

Activity 3
1. Study Fig. 1, which shows social and economic indicators of development.

(a) (i) What is meant by life expectancy at birth [1]

(ii) Identify the country with the highest life expectancy. [1]
(iii) Which country is least developed? Use figures from the table to support your
answer. [4]
(b) Explain why the percentage of people employed in agriculture is lower in developed
countries than in developing countries. [3]
(c) (i) State an aspect of development which is not measured by an indicator in Fig.1[1]
(ii) State one indicator used to measure the aspect of development mentioned in (c) (i).

Human Development Index(HDI)/ Composite index

Is the way in which the well-being of the people within the country is measured.
• The HDI measures the level of education, life expectancy/health and per
capita income/standard of living.
• HDI use numbers from 0-1.
• Countries with a score close to 0 are developing countries and countries with the
score close to 1 are developed countries. In 2007 Namibia was 0.647 ranked as
a medium human development categories positioning it at 129 out 189 countries.
➢ A country scores a high HDI when the life expectancy is higher, the education level
is higher and the GDP per capita is higher.
➢ The health of the country is measured by looking at life expectancy.
➢ The level of education is measured by looking at the years of schooling for adults
aged 25 years and above and the expected years of schooling for children of school
entry age.
➢ The standard of living is measured by GNP per capita income.
Multi-dimensional poverty index (MPI)
Is a composite measure of the percentage of deprivation that the average person would
experience if the deprivation of poor households where shared equally across the
population.
• The global MPI is comprised of 10 indicators corresponding to the three
dimension of HDI which are: Education
Health
Standard of living
The 10 indicators of MPI
1.Health: This dimension includes indicators such as:
-child mortality (if any child in the has passed away)
-nutrition (if any adult or child in the family is malnourished)
2. Education: Education indicators include:
- years of schooling
-school attendance
3.Living Standards: this dimension encompasses a range of indicators such as:
-electricity-considered poor if no access to electricity
-access to clean water-considered poor if you no access to clean water
- sanitation-considered poor if you don’t have access to proper sanitation
-flooring-considered poor if material consist of dirty/sandy or dung
-cooking fuel-considered poor if you don’t have electricity for energy
-asset ownership- considered poor if you don’t have radio, telephone,
Bicycle, motorcycle

Explain factors which may influence the level of development in different

countries
➢ Availability of resources-it will improve the standard of living
➢ Population growth-people will not have access to resources and services e.g.
water, health care, education
➢ Fertility rate-high fertility rate country is poor when fertility rate is high because
more resources will be used to sustain the population and it tend to be low in
developed countries.
➢ Age of the population-more children and more old age depend on active group
➢ Infant mortality rate-will be high because of poor access to health care
➢ Life expectancy-the more the country developed the longer the people can live
and the lower the life expectancy the poorer the country tend to be
➢ Political (war and conflict)-political instability slows down development of the
country because it will push away investors.

How political factors affect development

• Form of government-the type of government can affect both individual and
business development because it determines the employment rate as well as the
type of work.
• Political management-government needs to manage buildings and maintaining
infrastructure wisely and spend appropriately.
• Corruption-is when people in power behave dishonest or illegal way and abuse
power for personal gain.
• Political stability-countries with war and conflict or ethnic divides will struggle to
attract investors.
• Laws and policies-trade laws must facilitate trade the import and export of
goods.
How social factors affect development?
• Discrimination-it may cause some people to be excluded from education and
certain economic activities
• Culture and religion-may limit the economics political and rights of women and
children.
• Population growth-big population will slow down the development of the country
• Nutrition- poor diet makes people vulnerable to poor health conditions results
into slow productivity
• Clean water supply and sanitation-poor water quality can lead to diseases
which weakens people production.
How economic factors affect development
The more the wealth the country has the more money is available for development
of infrastructure, education, health services, sanitation, job creation and industrial
development.
How availability of resources affect development
Country that are rich in natural resources can improve their economic conditions
more quickly than countries that suffer as a shortage of natural resources.
End of unit 1