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Summary - Development gap

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  • March 12, 2024
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  • 2022/2023
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nchy04
The global development gap can be measured using single indicators (GDP p.c (nominal and
PPP), LE) or indices (HDI, GDI), with each having pros and cons

Development: defined as the ongoing process of improvement, usually measured in
economic terms.

Development gap: The Development Gap refers to the widening difference in levels of
development between the world's richest and poorest countries.



Definition Pros Cons

GDP Gross Domestic product – the - Useful figure for - Can hide inequalities as
monetary value of all finished comparing countries it does not show the
goods and services made within - Often sued to rank distribution of wealth
a country during a specific countries to establish - Can be manipulated by
period. a fair system of aid governments who want
payments to appear poor to collect
- Is a good indicator of more aid
the state of the - Does not take into
economy and account subsistence of
provision of services informal economies
- Fairly easy to calculate which are very
from official important in less
government figures developed countries

GDP per the monetary value of all - Useful to understand
capita finished goods and services state of economy and
made within a country during a provision services
specific period divided by the
population

GDP per Gross Domestic Product per - exchange rates are - Market rates are more
capita PPP capita at purchasing power relatively stable volatile, and using
parity - gross domestic product over time them could produce
converted to international large swings in
dollars using purchasing power aggregate growth
parity rates and divided by the measures even when
total population. growth rates in
individual countries
are stable.

Life the average period that a
expectancy person may expect to live.

HDI Human development index - - acts a broad - does not consider the
measure of a country's average measure than GDP correlation between
achievements in three basic as besides capturing education and GDP
aspects of human development: the levels of income and health and GDP.
health, knowledge and standard it also adds the This means higher
of living. measures of health education will lead to

, and education higher income.
- when a person lives
for 1 more year, the
income will increase.
- does not include the
value of graduates
and school dropouts.

GDI Gender development index - - Overall welfare - No direct measure of
measures gender inequalities in measure gender inequality
achievement in three basic - Directly comparable
dimensions of human to HDI
development.



Haiti India China South South Africa Brazil UK
Korea
GDP 21 B USD 3450 B $18.32 1.80 trillion 345.00 USD 1490.00 USD $3.198 trillion
USD trillion Billion Billion


GDP/ Capital 1025.00 2,321.104 11800.00 28075.00 7200.00 USD 11200.00 USD 41900.00 USD
USD USD USD USD
GDP PPP 2847.00 $11.665 $30.07 $3.057 731 billion 3,092 billion $3.776 trillion
USD trillion trillion USD trillion USD USD USD USD


Life 64.7 70.19 78.2 83.85 62.8 81.10 83
expectancy


HDI 0.51 0.6333 0.761 0.916 0.709 0.875 0.932
Literacy rate 60.78% 77.7% 96.84% 97.97% 95.02% 99.2% 99%


Infant 49.2/1000 27.7/1000 8.70/1000 1.86/1000 24.3/1000 11.4/1000 3.42/1000
mortality rate


Birth rate 23.1/1000 17.2/1000 10.9/1000 6.90/1000 19.3/1000 13.1/1000 11.3/1000

,Development differences at a global scale reveal complex patterns and national scale
differences also exist
What is happening to global inequality? Include examples from the figures above as proof.
- More people are above the poverty line
- Average income has the largest range, globally due to GDP and development
levels of opportunities, but also on local scales because of inequalities of job
opportunities which stems from the problem of the range of education levels



What does the indicator measure and show?
- Shows the vast differences of inequality in regards to a range of factors
between countries



What is happening to global and national inequalities as a result of Covid?
- Moved backwards – manufacturing companies would be growing in China due
to masks etc. Countries heavily relying of trade may slow down in growth due
to slowing down of industries
Relative poverty: being poor within the country you're in
Absolute poverty: actually under the poverty line

Reasons for development differences globally:
● North/South Divide
○ GCSE results in england: 27% grades above 8 in London, but only 22% in
Manchester
● Resources
● Trade
● GDP

Hong Kong:
● The average monthly income
of the poorest households in Hong
Kong fell by 22.9 per cent to HK$2,700
from 2019 to 2022, according to an
Oxfam report, while that of the richest
rose by 6.3 per cent to HK$127,600
● HK has large wealth gaps:
central vs Mong kok
● Gap can also be seen
depending on where one lives

, Why is there a development gap within the UK
● North/South
● Evidence
○ Mortality rates
○ GCSE results lower up north
○ More covid cases in the north
● Most developments are catered to those of high political leadership positions:
○ Since most political leaders are in London, tubes are designed for them to get
around their homes and offices easily

Theoretical frameworks can be used to help explain the development gap globally and
nationally (dependency theory, core-periphery relations, modernisation theory)

1. Dependency theory - Rostow 1950s
- Written in the cold war era when communism was seen as a huge threat to
modern society and further expansion of communist ideals caused fear within
the USA.

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