Download - 1. Geographical (Location)
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
SixFactors:
1.Geographical(Location)
a. TropicalRegions
• mostdevelopingcountriesarelocatedinthetropics• intheabsenceofairconditioningtechnology,discourageworkandhavehighratesofinfectiousdisease,reducinglabourproductivity
• excessivemoisture,drought,disease,andpoorqualitysoils(outsidevolcanicregions,rivervalleys,anddeltas)limitagriculturalproductivity
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
Brandt LineNorth-South
Divide
Tropics
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
b.DistancefromtheCoast
• countriesfarfromthecoastlineorwithlimitedaccesstonavigablewaterwaysshowslowerratesofeconomicgrowth
• duetohigherratesoftransportationcostsinaccessingworldmarkets
• acountrywhosepopulationisfartherthan100kmfromtheseagrows0.6%slowerthanthosewheretheentirepopulationiswithinthisdistancefromthecoast
World’sLandlockedCountries
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
EconomicPerformanceofLandlockedCountries
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
2.Historical
a. ColonialExperience
• developingcountrieswereatonetimecoloniesofdevelopedcountriesandmanyoftoday’sillsareblamedonthelegacyofexploitationbytheimperialpowersofEuropeandtoalesserextent,theUnitedStates
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
b.StageofDevelopmentProcess
• poorcountriesGinditdifGiculttocompetewithrichcountriesinpartbecauseofthe‘HeadStartFactor’
• thatis,whenrichcountriesbegantheirdevelopmentprocess,itwasmucheasierthantodayrequiringfewerresources,simplertechnology,lesscapital,minimallabourskills,andrestrainedbyfewergovernmentregulations
3.Economic•factorsincludecapitalshortage,lowlabourproductivity,andlack
oftechnology,knownastheViciousCircleModelofPovertyLow Incomes
Low Savings
Low Investment
Low Stock of Capital
Low Productivity
Low Output
(especially technology)
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
b.ForeignDebt
• Backinthe1960sand1970s,manyLDCstookoutloansfromMDCsusingtheircashcropsascollateral
• sincethen,thevalueofcashcropshassteadilydeclined• thishadmadeitmuchmoredifGiculttopaybackdebtswhichhavesincegrownsigniGicantly
• manyLDCscannotintroduceimprovementsduetothecostofpayingofftheirdebt
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
c.TradeInequitiesEconomicdisparitybetweencountriesbecomesblatantlyobviouswhencomparingthevalueofeconomicgoodsproduced:
• computerdesign,softwaredesign,marketing,etc.thattakeplaceinMDCsisofgreatervaluethantheelectronicsandcomputersmanufacturedinNewlyIndustrializingCountries(NICs);
• computersandelectronicsproducedinNICsareofgreatervaluethanthecashcropsproducedinLDCs;
• withcashcropsdroppinginvalue,whateffectwouldthishaveondisparity?
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
4.Social
a. PopulationProblems
• rapidgrowth,highdependencyloads,urbanizationfocusesattentiononcurrentneedstakingawayresourcesfrominvestmentinthefuture
• levelsofeconomicgrowthrequiredtomeetneedsofpopulationnowandinthefutureisunrealistic
E.g.Ifacountry’spopulationgrowsby2.5%peryear‐howdoesthisaffectdisparity?• topreventdisparitywithinthecountryfromgrowinganylarger,theeconomy,jobs,healthcare,education,cleanwater,sewage,etc.,etc.,etc.,mustalsogrowby_____%
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
b.HealthLevelsandEducationalAchievement
• lowlevelsofbothhealthandeducationtypicalofdevelopingcountriesadverselyimpactslabourproductivity
c.ClassStructure•socialmobility,arequisiteformodernizationisrestrictedin
countrieswithrigidclassstructures•InLatinAmerica,smallprivilegedeliteexerciseallpoliticaland
economicpower•InIndia,aperson’slotinlifedeterminedbywhatevercastethey
happentohavebeenborninto
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
d.StatusofWomen
• tendtobelimitedtotraditionalroleswhichineffectmeansthathalfthepotentiallyproductivelabourforceisrestrictedfromparticipatingintheeconomicdevelopmentoftheirsocieties
e.KinshipGroups•allegiancetofamilies,clans,ortribescanstandinthewayof
economicprogress,whichrequiresfreedomofactionsforindividuals‐averycommonprobleminnon‐westernworldwhichencompassesamajorityofworld’spoor(e.g.Afghanistan)
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
5.Political
a.PoliticalDivision
• mostnewnations(mainlythosecreatedfromthebreak‐upEuropeanEmpiresinLatinAmerica,Asia,andAfrica)haveonlyweaknationalidentitiesaspoliticalloyaltiesremainforolderinstitutionsdeGinedbyrace,ethnicity,religion,language,ortribenotcountry
• detrimentaltodevelopmentbecauseitmakesconsensusonsocio‐economicpolicynexttoimpossible
b.PoliticalInstabilityandCorruption•wherepoliticaldivisionisseverecountriestendtobeunstable
andvulnerabletocoups•dictatorshipandarbitraryruleintheinterestofthoseinpower
andendemiccorruptionalmostinevitablyfollow(antithesisof‘peaceorderandgoodgovernment’necessaryforinvestment)
Gr. 12 Canadian and World PoliticsCauses of Development Disparity
6.Cultural
a.ReligiousBeliefs
• historyofeconomicdevelopmentintheWestshowsadirectlinkbetweenmodernizationandtheprevailingbeliefsoftheirsocieties
• ProtestantismversusCatholicism• Non‐westernbeliefsin‘fatalism’notconducivetoeconomicgrowthanddevelopment
b.CustomsandTraditions•traditionalvalues(suchastheprohibitioninterestpaymentson
moneyborrowed)canbestrongdisincentivestodevelopment