DEVELOPMENT

Different people have different notions of what development means. An economist

is likely to define development purely in terms of economic growth or the
accumulation of material wealth. A sociologist may equate development with
social progress in a society, such as the increasing literacy rate of the population.
For a geographer, the focus may be on how development as a process has spread
from one region to another and how it has both positively and negatively affected
the physical environment in particular.

Development – the progressive process, which aims to achieve economic growth

and create an environment for individuals to enjoy a decent standard of living and
quality of life.

Economic growth – refers to the change in a country’s wealth over time and such
changes are usually measured in percentages.

Standard of living – refers to the goods and services available to people in the
environment they live in.
Quality of life – refers to the well-being of the people. It is dependent on factors
such as political and religious freedom, environmental health, and happiness,
which are difficult to measure.

Indicators of development
1. Economic indicators – Income per capita – the common economic measure
of development is Gross National Product (GNP). It is the total values of
goods and services produced by the citizens, and the income earned by
citizens working and investing overseas, excluding the earning by non-
citizens who worked or invested in the country.

GNP = A+ (B-C)
A = Gross Domestic Product (GDP) = total value of goods and services produced
by the citizens and non-citizens in the country.
B = Income earned by citizens working and investing overseas
C= Income earned by non-citizens who worked or invested in the country.

GNP per capita refers to the average amount of income earned by each citizen in
the country in a given year. Currently, GNP per capita is used by the United
Nations (World Bank classification, 2005) to classify all the countries in the world
into:

 High-income economies (US $10726 or more)

 Middle-income economies (US $ 876 - $10725)
 Low-income economies (US $ 875 or less)

Generally, a MEDCs would have a higher GNP per capita than LEDC. This is
because a MEDC usually has a higher proportion of secondary and tertiary
industries that bring in a higher amount of income compared to a LEDC that has a
larger primary industry.

2. Demographic indicators – the population characteristics like size,

structure, growth, distribution and movement of population are often taken
as reflection of a country’s level of development.

Life expectancy – refers to the average number of years that a person can expect
to live in a particular country. The life expectancy of people living in the MEDCs
is often much longer than those living in the LEDCs. High fertility rates and life
expectancy imply that health care and its accessibility are better in the MEDCs
than the LEDCs.

Infant mortality rate – refers to the number of deaths of children under the age
of one per 1000 live births in a year. In the MEDCs, the availability of good
sanitation facilities and healthcare systems, and the easy accessibility of hospitals
and doctors have contributed to lower infant mortality rates compared to those of
the LEDCs.

3. Social indicators – the other indicators of economic development and the

standard of living are accessibility to safe drinking water and the
availability of proper sanitation.

Adult literacy rate – refers to the percentage of the population aged 15 and above
who are able to read, write and understand simple statement. The populations of
MEDCs have a higher literacy rate compared to those in the LEDCs. This is
because the governments in the MEDCs have the financial resources to meet the
educational needs of the people.
 4. Human development Index (HDI) – the HDI combines three important
development indicators – an economic indicator (GDP per capital), a social
indicator (adult literacy rate) and a demographic indicator (life expectancy).

Employment structures
The divisions of employment sector into primary, secondary, tertiary and
quaternary industry is known as employment structure. Industry can be classified
using a four-way division. Over time, the percentage of the population of a country
working in these different sectors of industry will change as the country develops.
This is covered in the 'Employment structures' section.

• Primary industries are classified as those which produce the raw materials
for industry. Examples include mining, quarrying, farming, fishing and
forestry, all of which produce raw materials that can be processed in to a
finished product. People working in these industries are described as being
in the primary sector.

• Secondary industries are the manufacturing and assembly industries. They

take raw materials and manufacture finished products from them. Examples
include steel manufacture, bread making and food processing. People
working in these industries are described as being in the secondary sector.

• Tertiary industries are service industries, and are the area of most growth
in the United Kingdom.
Examples include doctors, teachers, lawyers, estate agents, travel agents,
accountants and policemen. People working in these industries are
described as being in the tertiary sector.

• Quaternary industries are the newest, most hi-tech sector of industry. They
are the research and development industries. Examples include the
development of new computer components and research into GM crops.
People working in these industries are described as being in the quaternary
sector.
Employment structures
You can use the percentage of people working in each sector to help describe how
developed a country is. This is called the employment structure. By looking back
through history, you can also see how one single country has developed by looking
at the changes in their employment structure. The more developed a country
becomes the more it will rely on secondary and, in particular, tertiary industries. A
less developed country will be characterized by a greater percentage of the
population in primary industries, usually farming.

Example: Ethiopia
Primary: 88%; Secondary: 2%; Tertiary: 10%; Quaternary:0%. Ethiopia is a
typical example of a developing country, in terms of its employment structure. The
majority of the population work in the primary sector. The United Kingdom shows,
Primary: 3%; Secondary: 25%; Tertiary: 70%; Quaternary: 2%. The United
Kingdom exhibits the employment structure of a well-developed country. The
number of people working in the primary sector has steadily decreased and the
number of people working in the secondary sector is still reasonably high, but has
also been falling steadily. The massive growth has been in the tertiary sector, where
huge numbers of jobs have been created. This is not just in the traditional tertiary
industries like teaching and health care, but also in the tourist industry, the
computer industry and the financial industry. There has also been the introduction
of the quaternary sector, although this still takes up a very small percentage of the
overall employment structure of the country.
 3.1.2 Inequalities in Development

Inequalities in Development
Stages of development
All countries move through the dierent stages of development
The UN identifies four main stages of development

Stages of Development

The development gap

Factors affecting Development and Human Welfare

1.Physical geography
 Landlocked countries find trade more difficult and so often develop more slowly
 Small countries develop more slowly due to fewer human and natural resources
 Those countries with extreme climates develop more slowly
 The physical geography also impacts on the natural resources available

2.The natural resources are those things provided by the physical environment
Natural
Uses
resource
Water Domestic use, energy
Timber, habitat, rubber, recreation,
Forests
food, medicines
Fossil Fuels Fuel, energy
Soil Growing crops
Rocks Construction
Minerals Glass, jewellery, money
Animals Food, skins
 Some countries are able to meet all their needs from the natural resources they have
 Many countries have to import some natural resources that are not available within
their borders
  When countries have to import natural resources, this means they do not have security
of supply as imports could be affected by war or political issues
 Water, food and energy security are particularly important to support a country's
development
3.Demography
 The population structure of a country
 The birth and death rates, as well as immigration, affect the available workforce.
 Those countries where birth rates have fallen the most, show the highest rates of
growth
4.Technology
 Can help to increase water, food and energy security
 Mechanization of farming increases yields and improved land surveying may
reveal more energy sources
 Technology can also mean that existing resources are used more efficiently
5.Social
 Levels of education affect the skills people have. The more educated a population
is the more a country will develop
 Healthcare affects how well people are which affects their ability to work
 Lack of equality can mean that the overall productivity of a country is a
affected
6.Government policies
 The stability and effectiveness of government can have a significant impact on
development and human welfare
 Development and human welfare are greatest where there is a democratically
elected government
 Corrupt governments do not invest in the country's development or in improving
the quality of life for the population
A government's economic policy affect development and human welfare through:
o Open economy - where foreign investment is encouraged, which generates
faster development.
o Higher rates of saving and lower spending compared to GDP, results in further
development
Differences within countries
As well as differences between countries there are also differences in development within
countries:
This can be seen in all countries whether they are developed, emerging or developing
Often development is focused on particular regions
Inequalities within countries are due to several factors
Cumulative causation theory is one explanation for regional differences:
 Growth in the core region attracts skilled labor and capital
 Areas in the periphery suffer as skilled labor leaves and investment is focused on
the core
 The gap between the core and the periphery grows
 Eventually the growth of the core region may stimulate growth in the periphery
due to the demand for raw materials

Cumulative Causation
There are three stages of regional inequality:
 Pre-industrial stage - regional differences are at their lowest
 Period of rapid economic growth - increasing regional differences
 Regional economic convergence - where wealth from the core spreads to other
parts of the countries.
Causes of regional inequalities
 Residence - Urban areas generally attract greater levels of investment leading to
increased business and incomes:
 Ethnicity - Discrimination can result in ethnic groups having income levels
significantly below the dominant groups within a country. This reduces the
opportunities open to these groups
 Employment- The split between formal and informal employment impacts
incomes. Formal jobs usually have higher incomes and greater benefits, such as
 holidays and sick pay Education - Those with higher levels of education usually
gain higher paying employment
 Land ownership -Inequalities in land ownership are strongly linked to
inequalities in income

Economic Sectors
This refers to a classification system for types of employment
An economic activity is the production, purchase or selling of goods and services
Economic activities can be grouped into four sectors:
 Primary - mining, fishing, farming etc.
  Secondary - factory workers, clothing, steel production etc.
 Tertiary - nurses, lawyers, teachers, shop assistants, chefs
 Quaternary - hi-tech scientists, research and development
Employment Sectors
Employment in Economic Sectors
1.Economic sectors are an indicator of a country's economic development using either.
 The amount each sector contributes to the Gross Domestic Product (GDP)
 The percentage of the population they employ
2.The proportions of each economic sector GDP and employment changes over time;
 In the pre-industrial period, the primary sector dominates with steady increases in the
secondary and tertiary sectors
 As countries develop the reliance on the primary sector for GDP and employment rapidly
decreases
 During the industrial period the amount of GDP and employment in the secondary sector
increases to become dominant and then decreases. The primary sector continues to
decrease and tertiary sector increases
 In the post-industrial phase, the tertiary and quaternary sectors increase whilst the
secondary and primary sectors decrease.
 The tertiary sector dominates employment and GDP in the post-industrial period.

Clark-Fisher Sector Model

As countries develop the numbers of people employed in each economic sector changes
This can be seen in the Clark Fisher Sector Model above and in the examples below: