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Development and Globalisation
revision

Key Terms
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NAFTA-North American free trade agreement
ASEAN- association of Southeast nations
EU- European Union
OPEC-organisation of petroleum exporting countries
WTO- World trade organisation
IBRD-international bank for reconstruction and development
IMF-International monetary fund
TNC-Trans national corporation
FDI- Foreign direct investment
Free Markets- tariffs on exports and imports removed
Trade Blocs-Groups such as the EU and NAFTA
Nation states-geographical area that can be identified as deriving its policitcal legitimacy from
serving as a sovereign nation
GDP-Gross domestic product
GDI-Gross domestic income
NICs- Newly industrialised country
RICs- Recently industrialised country
Trade- process of buying and selling goods

Development Gap and Development
continuum
• Development gap=the difference in affluence between the richer
and poorer countries of the world
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• Measures of development
• First world -Most developed countries- western Europe/ North
America
• Second world -State controlled communist countries
• Third world -All other countries-Africa, Latin America
• The Brandt Line = Shows the north/south divide between
developed and developing countries
• No longer as useful as many countries have since moved out of the
South divide that they once were in between the 50s and 80s
...


Development Gap and Development
continuum
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Developed countries
Developing countries
Least developed countries (LEDC’S or LED’s)
Newly industrialising countries (NIC’S)
Recently industrialised countries (RIC’s)
Centrally planned economies-Communist
countries
• Oil Rich countries- high GDP per head although
wealth is found within one group such as in Saudi
Arabia
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680k employees- 115k
abroad
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$6 billion spent on products
from China
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Damage the
environment (destroy forests) in a country where 90% live in rural
areas
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Saudi Star bought
10k hectares- failed on infrastructure promises
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• Dyson- Moved to Malaysia and cost the UK 500 jobs within their
factories
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• Automobile industries- moved to China- Signature British industry
now operates elsewhere
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Largest population in the world
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Large, efficient workforce- little pay, large consumer
market
• Enterprise or economic zones - cater to the needs of the
industry- development without interference
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• Iron was sourced from China originally- used for
automobiles until early 2000s
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• Having a wide number of industries has prevented China
from suffering economically
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• Made use of cheap labour
• Evolved from having to enforce change to
becoming more democratic
• High tariffs on imports
• Huge control over development
• Promoted education as vitally important=skilled
and more highly paid workforce= more GDP=
Eco development
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• Offshore outsourcing - HSBC- caused rural to urban
migration- leaving agriculture industry without resources
• 2
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T is one of the biggest growing industries - grants and
incentives for this industry
• INFOSYS-the ‘Indian Microsoft’ 94,000 employees
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Weather
attracts tourists all year around and access is possible via both sea and air
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Oil discovered in the 60s- population grew 300% between 68-75
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Built
largest manmade harbour in the world- built some of the biggest skyscrapers
(emirates tower)
Most revenue now made from trade, real estate and finance
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Hub for IT and financeDIFC(Dubai international finance centre) and DIC(dubai internet city) and an
information technology park
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Free zones-a cluster of eco activity specialised in said activity
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LEDC case study (Bangladesh)
• Strong correlation between low income and high
population growth
• Population- 144 million
• 82% below $2 a day
• GDP per capita $400
• Life expectancy 63
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5
million children
• 14 million urban dwellers access to health services
• Trying to develop it into a democratic country to enable
prosperity

LEDC case study (Bangladesh)
• Went through various stages of development in
the 70s, 80s, 90s and 21st century
• 70s- market interventions to reduce cost of food
and flood control, irrigation and drainage
projects
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• 90s focused on small scale infrastructure- roads,
bridges etc
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Groups are reliant on each other to pay back
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(94% of borrowers are female)
• AID-DFID chars program- aid to the poorest in the north
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• Aid still needed- natural disasters (farmers) health, child mortality rates
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Hoped it
would attract foreign investment
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• Textile industry is number one export earner 75% of total exports in
05/06
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Expansion predicted to increase to 15 billion in 2011 largely due to WTO’s
reduction in trade restrictions
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Rubbish composted
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Income goes back into charity to offer
financial support to full time teachers
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• Centre Parks-Educate guests to recycle-reduce energy
and water usage- not resulted in significant change
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Reduce
carbon emissions- not yet happened
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NOT SUSTAINABLE
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Springs on site for guests to use

Cuts down on waste water bottles
reducing waste of landfill

Litter reduced to biodegradable bottles

Uses greenhouse effect to dry sheets

Energy not wasted on tumble dryers

Energy now used in areas that have to
have it

Raw, brown sugar is brought and used
in bulk

Avoids waste of small packages- cuts
down on pollution by the processing of
natural sugar

Adds money to local economy- cuts
transport pollution

100% bio degradable soap for
dishwashing

Water doesn’t have lasting effect on
the environment

Water can be used for plantsmultipurpose

No Chlorine is used in the pool

No harmful are used which could
pollute local environments, flora and
fauna

Animals that would drink from it don’t
get harmed

Compost used as a fertiliser for plants

A natural fertiliser- no harmful
chemicals in the environment

Animals and wildlife not damaged by
chemicals

Free Trade
• No boundary on imports and exports- results in
undercutting which benefits MEDCs and put LEDCs at
a disadvantage-Senegal popular meal ingredients
have become victim to foreign imports undercutting
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• Child labour
• People in MEDC’s lose jobs due to outsourcing
products
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Farmers receiving a consistent and
fair price for their wares= helps them to become more
economically stable, benefits those in poorer
countries (Ivory Coast and Ghana who produce 60% of
world’s cocoa)
• However, guidelines are often not followed- child
slaves, forced labour
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• Democracy put in place due to the rise of
capitalism
• Market free policies- makes trade as
restriction free as possible
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Development issues-Trade-Negatives
• LEDCs cannot compete in the global market due
to the great difference in wealth between them
and MEDCs
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• Many countries suffer from debt, in order to
receive financial help cuts must be made to
health and education
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• Preliminary healthcare to prevent illness and enable
people to operate in day to day life more effectively
such as working
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• Aid dependency can ne created when aid becomes a
substantial proportion of national income (Haiti,
Bangladesh, Nepal)
• Aid often comes with disadvantages such as having to
agree to conditions that the donor creates
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• 2003- 26% of all energy came from renewable
sources
• Trying to wean itself off oil within 15 years
without building nuclear power stations as these
also damage the environment
• Wants to change to renewable energy before
climate change destroys and economies and oil
prices rise due to scarcity
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Wild fires and insect attacks have also
damaged the forests
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• Crop yields fell by almost 2 thirds during the 90s due to
land degradation by loss of forests, floods and tidal waves
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Sustainability-Social
• At least two types of sustainability are often
achievable however one is often lost at the
expense of another
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• Whilst Sweden are an exception
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Nation Groupings
• Group 1- Affluent countries- America, Europe, Japan
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China, India- growth means they may replace first
group
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Important natural resources (60%
natural oil) Cannot translate wealth obtained to sustained
economic growth
• Group 4- Lagging behind
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Face development challenges
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EU presently
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Greater chance of peace with international
understanding

Some loss of financial controls to central
authority (EU central bank)

People can more easily seek work abroad

Pressure to adopt central legislation

Possibility of developing a common currencyavoids fluctuations and simplifies transactions
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Certain eco sectors are damaged due to
sharing resources (UK Fishing grounds
damaged by Spain and France)

Trade barriers removed- improves economybetter standards of living

Elites within system hold too much power
through voting systems

Remote regions within countries receive helpSouthern Italy- development everywhere

Drive towards federalism from some countries
is opposed by others

Greater democratic function
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Smaller regions within large countries demand
a greater voice- lead to seperatist movements

Britain leaving the EU?
• For-UK Contributes to CAP policy 15 billion
• EU incompetence with the Euro- bailing Greece out
• Free trade can still exist without being a part of the EU
(Switzerland)
• Against- EU=Britain free trade
• Ally with the US- nothing to offer
• Turning away immigrants damages economy
• Those that attract immigrants are most prosperous
countries
• Poorest would be affected
• No evidence supporting that leaving the EU would bring
less immigrants



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