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Development gap
Differences in Poverty
What is Poverty?
Poverty is the state of one who lacks a certain amount of material possessions or
money
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Relative poverty refers to lacking a usual or society acceptable level of
resources or income as compared with others within a society or country
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Described by the UN as ‘as condition characterised by severe deprivation of basic
human need, including food, safe, drinking water, sanitation facilities, health,
shelter, education and information
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25 looking purchasingpower parity
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This system had no clear place for communist countries such as the SU who were
quite well developed and had never been colonies or part of Western Europe
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North/ South Divide
Simpler division, contrasting economically wealthier and industrialised countries with poorer less mature and
largely agriculture ones

GNP per capita was used (measure of country’s wealth)
LDC and MDC
Not widely accepted as developed is not only economic but also social and culture
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Therefore MEDC and LEDC were used
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Some LEDCs are
growing more rapidly (economically) NIC

Factors that make global development inequalities worse
For most of history poverty had been mostly accepted as inevitable as traditional
modes of industrial production were insufficient to give an entire population a
comfortable standard of living
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Environmental factors- People abuse the land but there are understandable
reasons, such as a farmer on the verge of starvation are not going to be
concerned about the rainforest and will cut it down to feed its family
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Reliability of water supply – limited water supply limits crop yields and
therefore food supply
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Investors are put off by a lack of an educated workforce
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Earthquakes limit
World trade is often unfair
Corrupt governments – Take money for themselves at the expense of the
country’s development, meaning money is not available for education health
services, roads clean water and sanitation
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Landlocked countries make trade less easy, as goods have to be driven through
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Investors look
for a country a reliable electricity supply, educated workforce, good
infrastructure, banks financing
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Today, poverty reduction is a major goal and issue for many international
organizations such as the Unite Nations and the World Bank
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Loans and their impacts
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A country in need of fund can borrow money from world trade organisations
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However if it is not, the country
defaults on the debt, which has to be paid back over a long period
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Benefit
hugely as can begin to improve life for their citizens
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Micro enterprise, non profit organisations lend money to individuals in poorer
countries
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Fair trade- International movement ensuring producers in poor countrys get a fair deal
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A good measure of on which side of the gap a country is located is the Human
Development Index (HDI)
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0, the greater the country’s level of
development and the further the country is on its development pathway
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This definition emphasises economic development being imperative to social
development
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‘Less developed countries’ generally:
Lack the right technology
Are politically unstable
Their economies are divided
Their foreign exchange earnings depend on primary product exports
They are vulnerable to the fluctuation of prices ( set by MEDCs )
Little control of imports and exports condemned the ‘less developed’ to obey the
imperialist system
They are a main source of raw materials for the developed countries
They do not always have the power or technology to manufacture higher value
goods; most have to be imported
• Often ‘less developed are previously colonized countries which are in need of
help in the form of international aid agendas
• Economic Development is a measure of progress in a specific economy
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• Other factors that are included in the conceptualization of what a developed
country is include social development indicators of life expectancy and the
levels of education, poverty and employment in that country
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Long term aid – build school, hospitals and invest in industry and agriculture
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As world prices decrease
poorer countrys will receive less for their export
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Will go further into debt
Difefrint devlopments within the EU
Common agriculture policy (CAP)

Countr
y

Development indicators

Vietna Both countries have a similar per capita GDP
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n
Saudi
Arabia
and
Croatia

Saudi Arabia has a per capita GDP comparable to that of
Croatia
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So, although they are equal on an economic
development index - Saudi Arabia is less developed on a human
development index
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For example:
Many indices are averages for the whole population of a
country
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For example, a portion of the population of a highly developed
country could be living below the poverty line
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Some countries do not wish to have
certain index data collected - for example, many countries do
not publish statistics about the number of immigrants and
migrants
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The United Nations Human
Development Index (HDI) is a weighted mix of indices that show
life expectancy, knowledge (adult literacy and education) and
standard of living (GDP per capita)
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HDI is measured between 0 and 1
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994 whereas Kenya has an HDI of 0
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Policies that help even out differences in countries' levels of development within
the EU
The Common Agricultural Policy: this is given to ensure a minimum level of food
production for Europe's population
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It also requires farmers to meet environmental and animal welfare standards
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Structural Funds: a region qualifies for this if it has less than 75 per cent of the
average GDP for Europe
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European Regional Development Fund: this includes the Urban II fund, which targets
deprived areas in cities
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It helps to provide social and economic regeneration in a
sustainable way
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These countries borrowed large amounts of money from the World
Bank or other countries
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Uneven developments within an LEDC
Within any country there is also a very uneven level of development
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Trade surplus – value of exports is greater than imports
Trade deficit – more imports than exports

MEDC export value manufactured good eg electronics and import cheaper
primary products such as tea
Price of primary products fluctuates
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Price of amufactured goods is steady

Tarrifs are taxes imposed on imports which makes foreign good more expensive
to the consumer

Quotas – are limits on the amount of goods imported and usually work in the
MEDC’s favour
China currently dominates supply of world manufactured goods
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There are great variations between different countries
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Does not cover variations in quality of life
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Some countries grow richer at a greater rate than others and some may get poorer so a simple two-fold division
is no longer acceptable
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It reflects political and other factors as well as purely economic
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Standard – material wealth – wealth and nutrition
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e how nice the
environment is, pollution crime – well ebing and enjoyment people have

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