Deveopement Srudies Chapter 1

8/8/2019 Deveopement Srudies Chapter 1

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Chapter 1 - DevelopmentDefinition of developmentDevelopment is most commonly equated with economic growth.Economic growth refers to the change in a countrys wealth over time and such changesare usually measured in percentages.It has been widely seen as a good indicator of the health of a countrys economy andwhether development is taking place.However, many have argued that there are many goals to development and economic

growth is just one of them.Other non-economic goals include improving the standard of living and the non-materialquality of life.Standard of living refers to the goods and services available to people in the environmentthey live in.Quality of life refers to the well-being of the people.Characteristics of developmentDifferent viewpointsDifferent people have different ideas of what development means.

An economist is likely to define development purely in terms of economic growth or theaccumulation of materials wealth.

A sociologist may equate development with social progress in a society, such as the

increasing literacy rate of the population.A political scientist, on the other hand, may look at development as a process in politicalchange, such as when more and more people are able and willing to vote.For a geographer, the focus may be on how development as a process has spread fromone region to another and how it has both positively and negatively affected the physicalenvironment in particular.Continuous processDevelopment is a continuous process.No country can say that it has achieved the highest level of development possible.There is always room for improvement.

As there are different levels of development, a country has to plan a series of short-termand long-term goals to reach its targeted level.

The success or failure to reach these goals within the time frame decided upon will helpthe country determine whether it is progressing towards being more developed.Dependence on several factorsIn reality, the rate at which countries undergo development differs.Some countries are able to develop faster than others.It is possible for a country to either move forward or slip backward after reaching a

particular level of development.Success or failure is never simply dependent on just one or two factors.

A slip may be due to a combination of factors, such as political instability or a majorenvironmental disaster.Success in achieving development depends on a number of factors, such as the presenceof resources and the effective implementation of development goals by governments.

Wide range of measurementDevelopment is measured according to many different standards within a society.One of thee standards is economic development.Purchasing power refers to the amount of goods and services a given amount of moneycan buy.Standards of development can also be social or political depending on the angle ofassessment.Positive and negative impactsThe result of development can be positive or negative, or a combination of both.Positive changes such as a clean water supply and an efficient transportation system


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would benefit the majority of the population.However, there could be a negative impact, such as an increase in air pollution because ofmore people being able to afford cars, or forests and farmlands being cleared for thedevelopment of golf courses.These results of development benefit only a minority of the population and sometimes mayeven cause more harm than good in the long term.Sensitive issueDeciding which countries are developed and which countries are not requires comparisons

to be made.It involves labeling countries according to their levels of development.This is a particularly sensitive issue, as no country would appreciate being regarded asunderdeveloped and backward.Choices and dilemmasThere are many goals to development.These goals may include increasing economic growth, improving standard of living andenhancing quality of life.However, the government of a country has limited funds, and given so many goals,choices will have to be made.Governments are put in dilemmas about which developmental goals should be prioritizedfor the welfare of the country.

Classification of countriesOver the years, several attempts have been made to classify countries according to thelevels of development.Given the definitional difficulties associated with the term development, it is not surprisingthat these classifications have raised huge disagreements, with many criticizing them asbeing vague and discriminatory.Moreover, it caused much unhappiness among countries which were labeled as ThirdWorld.These countries felt that the term was negative and biased, since it suggested that theyoccupied third place in the hierarchy of the three worlds.Due to such problems, a new system of classification was devised, grouping the countriesinto developed and developing.

Hence, all countries previously from the First World and were listed as developed whilethose from the Second and Third World were grouped together as developing countries.Based on a largely economic criterion, these categories were better received by poorercountries as developing implied a positive process of continuous improvement.However, this classification is not without difficulties as well.The application of the term developing country to some of the worlds less developedcountries could be considered inappropriate - a number of poor countries are notimproving their economic situation, but have instead experienced prolonged periods ofeconomic decline.

After many revisions, the most common classification presently is to group countries intoDeveloped Countries (DCs) or Less Developed Countries (LDCs).Countries at the early stages of development with lower standards of living and a lower

quality of life are considered less developed.To prevent the classification from being too general, DCs and LDCs can be further dividedinto, firstly, the old industrialized countries are countries which initiated theirindustrialization program in the early 1900s, such that their current economies are inadvanced stages of development.Secondly, the newly industrialized economies (NIEs) are nations with economies moreadvanced and developed than those in the LDCs, but have yet to show the full signs of adeveloped country.To many, this is seen as a mid-category between DCs and LDCs.Thirdly, emerging economies refer to those countries with economies that exhibit


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consistent and fairly strong development over a longer period of time.Some writers have also referred to emerging economies as those countries which haveembarked on economic development and reform programs, and have begun to open uptheir markets to emerge onto the global scene.Fourthly, least developed countries are countries that exhibit the lowest indicators of socioeconomicdevelopment.They generally suffer from extreme poverty, ongoing and widespread conflict and lack of

political and social stability.

Fifthly, the oil rich countries are those countries which have accumulated considerablewealth based on selling their oil reserves but have yet to fully develop other parts of theireconomies.Sixthly, the centrally-planned economies are countries which do not subscribe to thecapitalist system.Classification, according to the extent of development, is not only restricted at the countrylevel - similar attempts have been extended to the regional scale.Many have observed that most DCs tend to lie in certain regions, and the same could besaid about LDCs.Hence, it is possible to categorize regions as developed or less developed.Such classifications of development at the regional level are increasingly necessary as theinterdependence of countries in this era of globalization has led to the importance of

regional cooperation in the process of development.Hence, it is not difficult to see the establishment of regional associations, such as theEuropean Union (EU), that seeks to work towards a higher level of development for itsmember nations.Indicators of developmentWe can rely on certain indicators or signs which can generally be categorized into threebroad groups - economic, social and other indicators.Economic indicatorsIncome per capitaThe most common economic measure of development is Gross National Product (GNP).It refers to the total value of goods and services produced by the citizens of a country in agiven year.

It includes both the contributions made by the citizens working and investing in the countryand the income received by the citizens of that country who are working and investingoverseas.However, it excludes the earnings by non-citizens who worked or invested in the countryas this often does not stay in the country and thus does not contribute to its development.

As the contribution of GNP is affected by the size of a population, a country with a higherpopulation is likely to have a larger GNP compared to a country with a lower population.To ensure accuracy, GNP per capita rather than GNP per se is a better measurement ofdevelopment.GNP per capita refers to the average amount of income earned by each citizen in thecountry in a given year.Currently, GNP per capita is used by the United Nations to classify all the countries in the

world into, firstly, high-income economies.Secondly, middle-income economies.Thirdly, low-income economies.Generally, a DC would have a higher GNP per capita than a LDC.This is because a DC usually has a higher proportion of secondary and tertiary industriesthat bring in a higher amount of income compared to a LDC that has a larger primaryindustry.Primary goods such as timber, iron ore and rice are likely to generate less profit comparedto manufactured goods and services.However, GNP per capita does not give a true picture of the level of development in a


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country for a number of reasons, firstly, it is an average figure and therefore does not showindividual and regional differences.In some companies, there are people who are extremely rich and others who areextremely poor.Secondly, it does not take into account the local cost of living.Thirdly, it does not reflect the informal economic activities that are not registered with thegovernment.Fourthly, it does not take into account the social and environmental costs brought about by

economic growth.Employment structureThe industries in a country can be divided into three main types - primary, secondary andtertiary.Primary industries refer to industries that extract natural resources directly from the Earth.Secondary industries refer to industries that use the natural resources extracted by the

primary industries as raw materials and convert them into useful products.Tertiary industries refer to industries that provide services.

As a country becomes more developed economically, the proportion of its workforceemployed in primary industries will decrease while the proportion of workforce in thesecondary and tertiary industries will increase.Eventually, when the country reaches the developed status, the proportion of the

workforce in the tertiary industries will dominate, followed by the secondary industries,while the primary industries will employ the smallest proportion of the workforce.Demographic indicatorsDemography is the study of the size, structure, growth, distribution and movement of a

population.These population characteristics are often taken as a reflection of a countrys level ofdevelopment.The population structure of a LDC is usually different from that of a DC.This can usually be seen through the countries population pyramids.The population pyramid of a LDC usually has a wide base which indicates a large numberof children, and the steady upwards narrowing shows that more people die at a relativeyoung age.

Such a pattern Amy be the result of a number of factors, such as the lack of access of birthcontrol methods and unfavorable environmental factors.On the other hand, the population pyramid of a DC will tend to have a narrow base with asignificant broadening in its upper portion.This signifies that the DCs, in contrast with the LDCs, tend to have lower birth and deathrates, resulting in aging populations.Life expectancyLife 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 DCs is often much longer than those living in theLDCs.High fertility rates and life expectancy imply that health care and its accessibility are better

in the DCs than the LDCs.Infant mortality rateThe 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 DCs, the availability of good sanitation facilities and healthcare systems, and theeasy accessibility of hospitals and doctors have contributed to lower infant mortality ratescompared to those of the LDCs.In some LDCs, the occurrence of war and drought may create a shortage of food, resultingin more babies dying from famine or malnutrition.Poorly nourished people are more vulnerable to life-threatening diseases.


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Urban populationThe percentage of people living in an urban area is another demographic indicator.This figure is usually higher in a DC than a LDC.DCs have the financial resources to develop cities with modern infrastructure such asskyscrapers, and facilities such as hospitals, schools and water pipelines.

A large proportion of the population may also be living in urban areas because they workin the secondary and tertiary industries that are mostly located there.LDCs, on the other hand, usually have a lower percentage of people living in urban areas.

A large proportion of the population live in rural areas where primary activities such asagriculture are practiced.However, the percentage of urban population may not be an accurate indicator ofdevelopment.In recent years, there is an emerging counter-urbanization trend in some DCs.People who used to live in the cities are relocating to the more rural environment of sunbelt states.This is partly because of the increasing congestion and levels of pollution in the cities andalso the increase in private car ownership among the population.In the LDCs, expectations of better employment opportunities and a higher standard ofliving have also contributed to rapid growth in urban population.Insufficient housing facilities in cities often result in the development of slums and squatter

settlements.Slums are authorized housing areas that have deteriorated over time and are poorlymaintained.They often no longer have access to water and electricity supplies.Squatter settlements refer to areas where people have illegally built makeshift housingfrom discarded cardboards and planks.These settlements have no proper electricity or water supplies, and they are often next toopen sewers and piles of garbage.Social indicatorsAccess to water and sanitationOther indicators of economic development and the standard of living are accessibility tosafe drinking water and the availability of proper sanitation.

It is believed that the leading causes of death in many LDCs are contaminated drinkingwater and poor sanitation.The percentage of people who have access to safe drinking water and proper sanitation inthe LDCs is generally low.

Adult literacy rateAdult literacy rate refers to the percentage of the population aged 15 and above who areable to read, write and understand simple statements.It is not unusual that the populations of the DCs have a higher literacy rate compared tothose in the LDCs.This is because the governments in DCs have the financial resources to meet theeducational needs of the people.They are able to build schools, train teachers and subsidize the cost of education.

Moreover, the people in the DCs, who earn a higher income, can afford to send theirchildren to schools to be educated.Education, however, remains a luxury for many children in the LDCs, where schools arenot readily available, parents are poor and children are expected to help out on the farms.In some countries, social customs that limit the access of females to education have alsocontributed to the low literacy rates.Unmeasurable aspects of developmentThe economic and social development can be measured in terms of numbers and figures.However, there are other aspects of development that cannot be measured andcalculated.


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These are the qualities that help define the quality of life.They include a sense of security, fulfillment in life and freedom.Human Development IndexEconomic and social indicators alone are not enough to help us assess the developmentof a country adequately.In order to help to do this, the United Nations Development Program (UNDP) created theHuman Development Index (HDI) in 1990.The HDI combines three important development indicators - an economic indicator (GDP

per capita), a social indicator (adult literacy rate) and a demographic indicator (lifeexpectancy).GDP refers to the total value of goods and services produced by citizens and non-citizensin the country.The average scores of individual countries for each of the three indicators are calculatedand compared.The HDI ranges from zero to one and is divided into three categories - high, medium andlow levels of human development.The HDI provides a comprehensive method of measuring development because it takesinto account economic wealth (measured by GDP per capita) as well as the quality of life(measured by educational achievements and health data).Generally, a higher GDP per capita would contribute to a higher HDI value.

However, this is not always the case.A country may be rich in terms of GDP per capita but the accumulated wealth does notnecessarily improve the quality of life of all the people living in the country.On the other hand, some countries may not be as wealth as others but their level ofhuman development may be higher.The Core-Periphery ModelThe model proposed by American planner, John Friedman in the 1960s attempts toexplain the differences in development at a variety of scales.

According to the core-periphery model, the countries of the world can be divided into twomain groups - the core and the periphery.The core generally refers to the richer and developed countries or regions, while the

periphery refers to the poorer and less developed countries or regions.

Unequal development between countriesThe theory proposes that development of a country was initially premised upon naturaladvantages.These include the presence of natural resources, a good natural harbor and plentifulsupply of cheap labor.These advantages attract some form of external force to come in and stimulate dynamicchange.

As the model was derived from historical case studies of various places, many believedthat the external force mentioned by Friedman referred to colonialism.Foreign intervention results in certain acquired benefits for the country, including bettertechnical skills and increased monetary investments.These benefits allow for the development of a core country, where there is generally better

infrastructure, skilled labor and a higher income as compared to other places.Given the core countries improved, superior conditions, factors of production such aslabor, and natural resources, will be displaced from periphery countries to the core.The core countries are able to take control of these factors of production through variousmeans, such as war and unequal trading rules, given their military and economicadvantages.

As a result, the core countries developed further to attain a higher standard of living.The periphery continues to depend on the core countries for trade and development.Their economic growth is slowed down or stagnated by continued exploitation throughunequal trading relations.


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Unequal development within countriesThe core-periphery development process can also be used to explain unevendevelopment at the sub-national scale, where certain regions within countries performbetter than others.However, it must be noted that this process is more obvious in the LDCs than in the DCs.This can be seen most clearly from the great differences in the living standards betweenthe high growth urban areas and the declining rural areas in the LDCs.

As with the unequal development between countries, the principal idea behind the core periphery

framework is that there is a transfer of factors of production from the periphery tothe core.Will core-periphery relations and unequal development persist?

According to Friedman, as a country develops, the core may expand and stimulatedevelopment in the periphery.The effects of development may spread from the core to benefit the periphery.This is known as the spread effect.Thus, inequalities between the core and periphery may gradually be reduced or evenbridged.However, Friedman observed that while in theory, the unequal relations between the coreand periphery may disappear, in reality, many of these inequalities persist.This led him to conclude that if there is no intervention by the state to implement certain

policies, the core will continue to get richer and more developed, while the periphery willget poorer.Whilst Friedman focused on the spread effect to attain equality, other writers who usedthe core-periphery concept were not so optimistic.In particular, the dependency theorists most active in Latin America in the late 1960s,argue that the backwash effect rather than the spread effect would occur.The backwash effect refers to the negative impact effected by the growth of the core onthe periphery, which tends to be poorer.The backwash effect will outweigh benefits produced by the spread effects, causing the

periphery to suffer the negative impact of the growth of the core.The backwash effect is the spatial concentrations of wealth in the core, at the expense ofthe periphery.

Examples of such an effect include draining of investment, labor and raw materials fromthe periphery.Hence, as the dependency theorist put it, the periphery will always suffer as they areheavily dependent on the core.The only way out of this is for the periphery to cut all links to the core and withdraw fromthe whole capitalist system of exchange altogether.Basing a country on a non-capitalist system is thus seen as the solution.Limitations of modelLike all theories and models, the core-periphery model is not perfect.One of its most obvious limitations is its failure to explain the rapid growth rates of someEast Asian and Southeast Asian economies, such as Hong Kong and Singapore, whichwere once colonies of core countries.

Factors affecting developmentSocial and cultural factorsSocial and cultural factors refer to factors that affect the level of education of the

population, fertility rate and birth control, work ethics, as well as the provision andaccessibility of healthcare services and medical facilities.Social norms and cultural beliefs strongly affect peoples attitudes towards birth rate andfamily size.In the LDCs, low levels of education and traditional beliefs are often responsible for thehigh birth rates and large family sizes.

A large population and a high birth rate tend to hinder development because resources


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have to be spent on providing health and medical care, food and education for the youthful

population.As a result, fewer resources are channeled to develop and improve the quality of life ofthe general population.In general, children living in the LDCs have fewer opportunities for education as their

parents cannot afford to send them to school.Furthermore, the number of schools may be limited and there may be a lack of properlytrained teachers and facilities in the rural areas.

A low literacy rate has negative impact on the economic development of a country.People with little or no formal education may have difficulties learning new skills andembracing modern technology.They may be reluctant to change because they feel safer to do things in the traditionalway.This leads to a shortage of skilled labor and therefore hinders and slows down thedevelopment of secondary and tertiary industries in the country.Environmental factorsNatural disasters can strike any country, regardless of its level of development.Both the DCs and LDCs have experienced hurricanes, droughts, earthquakes and othernatural disasters.However, responses to a disaster differ greatly.

When a natural disaster hits a DC, the country has the resources and manpower to dealwith it and help those whose livelihoods have been affected to recover quickly.

Agriculture, a vital source of food and income for the majority of people in the LDCs, isoften ruined by natural disasters.When compared with the DCs, the damage done to the economies of the LDCs, is oftenmuch greater, as funds which are already limited would have to be diverted to repair thedamage, thus slowing the development process.Man-made environmental problems can also further hinder development.For example, overgrazing, deforestation and poor land management can lead to severesoil erosion, loss of soil fertility and desertification.The loss of arable land for cultivation may require the construction of expensive irrigationsystems and costly chemical fertilizers to restore its ability to support crops and natural

vegetation.Historical factorsMany LDCs were once under colonial rule.While colonial governments did help to develop their colonies by building basicinfrastructure, helping their colonies develop was not the main purpose of colonization.The colonial powers wanted to obtain natural resources that could be used for their ownindustrialization and development.The outflow of resources from their colonies resulted in these colonies being unable to fullydevelop their own economies.

As a result, the colonies became dependent on their colonial governments botheconomically and politically.Economic factors

Many LDCs are rich in natural resources such as oil, iron ore and coal.However, this natural advantage has not been exploited to benefit the countries.This is because the mining industries, among others, tend to be controlled by only a fewlarge companies.While these companies reap the profits, little of the wealth is redistributed to the rest of the

population.The country consequently remains undeveloped with the poor infrastructure.This situation in the LDCs is unlike what happened in many of the DCs in the 19th century.The wealth from the mining industry was invested to develop the country and raise thequality of life.


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Another factor that causes uneven development between countries is the quality ofworkforce.In the LDCs, the workforce typically earns low wages.With a large proportion of their income spent on basic necessities such as food, clothingand housing, they are left with little or no savings.With little or no money for investment, they are trapped in a vicious cycle of poverty,unable to raise their standard of living.In short, low income leads to low investment, which results in a low level of productivity

and continued low incomes.Cumulative causationThere is, however, a way for LDCs to break out of this vicious cycle of poverty.They can do so through the cumulative effect of movements of both people and resourcesto increase wealth and spur greater economic developments in a region.This is called cumulative causation.With initial help from the government or external agencies like the World Bank or AsianDevelopment Bank, the LDCs can develop a core economy through the process ofcumulative causation which benefits and develops the periphery as well.This will gradually lead to an overall improvement in the standard of living for the

population.The process of development can take place in the following way, firstly, a new industry is

introduced or an existing industry is expanded.Secondly, this creates new or more jobs for the local population.With employment, the population becomes richer, thus increasing their purchasing power.Thirdly, with more income and thus savings, the workforce is able to undertake training toimprove themselves.Fourthly, as the quality of the workforce improves, they are able to get better paying jobs.With increased income, demand for more goods and services also increases.This leads to the setting up of retail and food outlets, and entertainment, education andhealthcare services.Fifthly, as the place develops to provide better jobs and a higher standard of living, itattracts people from other areas to migrate, live and work there, increasing the local

population as a result.

Sixthly, with a larger population, the government is able to collect more taxes.Seventhly, with a larger budget, the government can further expand the public service.

A new phase of construction begins.Eighthly, the place becomes a growth pole, that is, the catalyst of growth for a region or anarea, with a continued influx of migrants and businesses further stimulating economicgrowth.Ninthly, invention, innovation and the revamping of industries could lead to greater growth,which includes the introduction of other industries or the expansion of existing industries.Tenthly, linked or related industries are attracted to this place to set up businesses here.Eleventhly, at the same time, links are still in place with firms supplying raw materials tothe industry.Twelvethly, links are forged with other firms that make use of the products or process the

products forward.Political factorsThe goals of development consist of economic growth as well as how economic benefitscan be more evenly distributed to improve the quality of life of the population.To achieve these goals, not only must the government be effectively organized,accountable and transparent in policy-making and implementation, free from corruptionand actively promotes justice, there must also be good governance.Good governance is more than good, efficient government.It must involve grassroots and non-governmental organizations in public debates, in policymakingwith the aim of developing a strong civil society participating in public affairs.


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One important characteristic which will lead to development is political stability.Stable governments are more likely to attract foreign multinational companies (MNCs) toinvest in the country.

A fair and just government creates a stable and peaceful environment for businesses todevelop and carry out their operations.

An unstable government, marked by internal struggles for power, is constantly changingand is likely to deter foreign investments in the country.This is because investors may be worried that their investments would be threatened by

unfavorable industrial policies, following changes in political leadership.Besides stability, another important characteristic is honesty.

An incorruptible government inspires confidence among both local and foreign investors.This is because investors can be assured that they would not have to incur additionalcosts of production in the form of bribes if they want to set up their businesses in thecountry.The policies adopted by governments are equally important.For example, by investing in education, a country could ensure that its population isequipped with skills that are attractive to investors.Having a comprehensive industrial policy that provides incentives, such as infrastructureand tax relief, also encourages investment.Strategies for development

This section examines the different strategies adopted by the LDCs to bring aboutdevelopment in their countries.These strategies involve quantitative measures such as economic growth and qualitativemeasures such as social well-being and literacy rate which are associated with quality oflife.In general, the development strategies help improve the HDI of the LDCs.The HDI is concerned with three major aspects of development - economic, demographicand social.Economic development strategiesIn general, economic development may be measured by an increase in GNP and GNP percapita.To achieve a high GNP and GNP per capita, the LDCs need to develop both their

agricultural as well as industrial sectors so as to increase the quantity and improve thequality of the goods produced.Agricultural developmentIn order to develop the agricultural sector in the LDCs, the problem of low productivitymust first be addressed.

Agricultural production, especially in the African countries, has decreased due to fallingfood prices over the years.In addition, the development of industries in urban areas has caused an increase in ruralurbanmigration.Consequently, farms in the rural areas are faced with labor shortage.Without sufficient labor to work the farms, the yields will drop and the economicdevelopment of the country will be hampered.

One key economic strategy to remedy this situation is to develop the agricultural sector inthe LDCs so that farmers will stay in the rural areas to work on their farms.Governments in the LDCs must help farmers improve their cultivation methods in order toincrease the productivity of their farms.This will, in turn, lead to an increase in the income of the farmers and their quality of life.Unfortunately, sometimes the outcome may not turn out as planned.High productivity levels can also lead to the oversupply of products which in turn leads tolower prices.In such cases, higher productivity does not naturally mean more incomes for the farmers.Some ways that have been used to help farmers in the LDCs increase their farm


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production include the use of modern farming technology and scientific research todevelop new high-yield seedlings, improvements in irrigation and an increased use ofchemical fertilizers.However, these means have their drawbacks.However, it is expensive to grow these high-yielding crops because they need more waterand chemical fertilizers to grow well.Irrigation must also be improved and large quantities of pesticides are required to protectthe new type of seedlings as they are more vulnerable to pests and diseases.

As a result, the Green Revolution benefited mainly the rich farmers who could afford thehigh costs of production.It did not bring about the large-scale economic development that was envisioned.It can be concluded that any new development introduced in the agricultural sector mustbe, firstly, economically affordable - this will ensure that the development benefits all thefarmers, and not just the rich minority.Secondly, economically feasible - for example, while the complete mechanization of farmsmay improve productivity and efficiency, it may also increase unemployment among thefarmers and force them to migrate to urban areas to seek employment.However, if a balance between the use of mechanization and manual labor is maintained,then productivity can still be increased without displacing the farmers.Thirdly, technologically feasible - land conditions should be taken into account when

deciding on the type of technology to be adopted.For example, machinery which is suitable for farms in low-lying areas may not be suitablefor farms located in places with high relief.Fourthly, socially acceptable - many farmers in the LDCs do not own any land.Those who do own land usually have very small-sized farms, which imply low production.To overcome this problem, some governments in the LDCs acquire the fragmentedfarmland and redistribute the land to the farmers.This may not be the best solution because farmers may resent the idea of the governmenttaking away their land.

After all, many of their farms have been passed down through many generations.A more socially and culturally acceptable way is to help farmers organize themselves intogroups to form cooperatives.

A few farmers may cooperate by pooling their resources together and combining individualplots of farmland.In this way, the size of the farm will be big enough for the farmers to cultivate in a moreeconomical and efficient way.They can also combine their financial resources to buy better seedlings and fertilizers, toimprove irrigation methods, and to employ labor to work on their farms.Industrial developmentIn the process of development, the LDCs often seek to change their predominantlyagricultural-based economies to industrialized economies.Industrialization provides more employment opportunities and higher, more stable incomefor the workers.The manufacturing industry also adds value to the raw materials when the industries

process them into finished products.The sale of these finished products will help the country earn more foreign currency, whichis crucial to its economic development.Some LDCs may process raw materials but are unable to process these raw materials intofinal products.They can only sell their raw materials to the DCs that have the financial resources,technology and skilled manpower to manufacture finished products from raw materials.The DCs will then sell these finished products to the LDCs at higher prices.It would be more economical for the LDCs to produce the finished products themselves,which explains why many LDCs are looking towards industrialization.


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However, they face many difficulties, such as a lack of skilled labor, raw materials andmarkets, as well as strong competition from the DCs which are already industrialized.To overcome these difficulties, the LDCs must focus on several factors, firstly, providing orimproving the basic infrastructure essential for industrial development.These include reliable water and power supplies, efficient transport and communicationsnetworks, and good port facilities.Secondly, building up a well-trained and skilled labor force.Thirdly, ensuring easy access to raw materials.

Fourthly, providing strong support from the government.Fifthly, securing strong backing from banking and financial institutions.Sixthly, implementing sound economic policies for the expansion of the consumer markets.Demographic development strategiesDemographic development strategies focus on overcoming problems caused by rapid

population growth, such as low levels of healthcare services and low literacy rates.Population growthIn many LDCs, the rate of population increase is much higher than those of the DCs.Rapid population increase strains a countrys resources.It also reduces the governments ability and effectiveness to provide for its people,especially in the areas of education and health care.Improvements in quality in life, living conditions and income levels, which are required for

development will also be greatly hampered.Therefore, the LDCs must control their high rates of population growth.To bring about a decrease in population growth, there must be changes in the followingareas, firstly, family planning by educating couples on the benefits of having fewerchildren.Contraception methods must be taught to the people.Such education is important to the success of family planning, especially in overcomingentrenched cultural and religious beliefs.In addition, family planning services must be made readily accessible to the people.Secondly, due to the lack of healthcare facilities in many LDCs, the infant mortality ratesare high.Families in the LDCs tend to have more children so that some will survive to adulthood.

Thus, healthcare services must be improved to reduce the infant mortality rates andthereby also reduce the high birth rates.Thirdly, women in the LDCs must be given greater access to education.This will raise the social status of women, give them greater freedom to decide when to getmarried, and to choose between using birth control and having more children.Social development strategiesSocial development has an impact on the quality of life of people in a country.Two major aspects of social development are health care and education.Healthcare servicesThe health status of a population is important in the developmental process.

A healthy population is more able to contribute to development efforts and will also bebetter placed to benefit from the fruits of these efforts.

As discussed earlier, many LDCs have high rates of infant mortality and their lifeexpectancy levels are well below those of DCs.Indicators such as these are often a good reflection of the health status of a populationand the quality of health care.In many LDCs, health facilities such as hospitals are inaccessible to a large proportion ofthe population, especially those living in remoter rural areas.Where hospitals and clinics do exist, there are frequent shortage of trained nurses/doctors,drugs and basic equipment.Providing good health care for everyone is an expensive mission for the governments ofthe LDCs.


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Many LDCs still cling to a top-down style of health care, which means the considerable

proportion of health expenditure is being allocated to a few key hospitals, particularly in themain towns and capital city, whereas the rural areas are neglected.Given that health care is so important to development, more attention needs to be given tothis aspect.Some strategies to improve health care in the LDCs include, firstly, medical and healthservices should be made accessible to the whole population.Direct financial given to the rural areas so that hospitals, medicine and medical equipment

will be made available to more people.Secondly, increase the number of nurses and doctors and make sure that different areasof the country can gain access to these medical personnel.Qualified doctors can be sent down to the rural areas to train local medical staff in basicfirst aid, common vaccines and medications, and symptoms of common ailments.Thirdly, improve sanitation facilities to prevent the outbreak of diseases.Clean water should also be made available to the population living in different areas.While such strategies are very difficult to carry out due to many LDCs lack of economicresources, it must be remembered that development is about choices and dilemmas.Health care should be placed as one of the top priority of LDCs, since development canonly take place with the presence of a healthy population.Education

Another key element in the development process has to be education.It is only with an educated population that a country possessing the necessary humanresources can develop.Like health care, education is an expensive service to provide.The quality and availability of education varies considerably within and between countries.Many education systems in the LDCs are often inappropriate for the present-day needs ofindividuals, communities and nations.Indeed there has been much debate on what is the most appropriate form and structure ofeducational provision in the LDCs.Most commentators would probably agree that providing everyone with basic primaryeducation, especially literacy, should be the first priority of all countries.However, for many of the LDCs, primary school enrollment and adult literacy rates are well

below those of the DCs.In addition, in many LDCs, the number of boys who attend school far surpasses thenumber of girls.Given the importance of education to development, certain strategies have been agreedupon by international organizations, such as UNESCO, to enhance primary education andincrease literacy rates in the LDCs, firstly, teach useful skills.Courses should be relevant and linked to a communitys life.Secondly, be more flexible.Use child-centered approaches; adjust school timetables to the daily routine and seasonalfarming calendar.Thirdly, get more girls to go to schools.Be sensitive to the social, economic and cultural barriers to ensure equal participation.\

Fourthly, raise the quality and status of teachers.Improve pay and teaching conditions; retrain teachers with negative and stereotypicalideas.Fifthly, cut the familys school bill.School fees and equipment charges deter participation; basic education must be free ofsuch costs for poor families.The Role ofInternational CooperationBesides having an effective national strategy, cooperation between countries is equallyimportant in bridging the development gap between the DCs and LDCs.Many international organizations have assumed an important role in helping the LDCs in


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their development.LDCs need financial aid, skilled professionals and relevant technology, especially afterthey gain political independence.In promoting development, these international organizations do not focus on just economicdevelopment but also emphasize social and human development.The projects they carry out can be long term (more than five years) or short term (less orequal than five years).

Asian Development Bank

The Asian Development Bank (ADB) has been active in conducting research and providingfunds for countries in the Asia-Pacific region.

ADB focuses on eradicating poverty, improving the status of women and managing theenvironment.It provides loans, guarantees and the technical assistance manly to governments forspecific projects and programs.World BankThe World Bank is another financial institution that provides financial and technicalassistance to the LDCs.It plays a supportive role in its mission eradicate global poverty and improve standards ofliving.It provides loans to the LDCs for projects on improving education and health care.

Limitations to foreign aidAccording to the UN Report on Millennium Goals 2005, international development aid hasreached an all-time high.Most aid goes to relief and emergency assistance, as well as repayment of debts.It does not provide funds for social services or poverty reduction.Over the years, there has been growing skepticism about the role of international financialaid and assistance as a solution to poverty and low levels of human development in theLDCs.This is because many of these countries have been receiving aid for many years but theirlevels of economic and human development are still low or even lower than before.In particular, many African nations which have received large amounts of aid from theUnited States of America and the international community continue to have per capita

incomes below US$500.There are a number of reasons to explain why aid has often been ineffective.First, a significant amount of the aid was given to the LDCs in the form of loans, which theyhave to repay over a number of years with interest.When these debts accumulate, the LDCs usually spend more of their earnings repayingthe interest.Moreover, the aid may not reach the people who really need it.Most aid could end up in the hands of corrupt government officials or be invested inmilitary equipment because of ongoing civil war.Often, aid enables the rich to get richer while the poor remain poor.International agreementsBetween 1990 and 2002, the average total income of the world increased by 21%,

average life expectancy was raised from 63 to about 65 years and the number of peopleliving in extreme poverty has declined by 130 million.Nevertheless, differences in improvement still exist across countries, especially amongSub-Saharan African countries.International organizations, the DCs and the LDCs have come to agree that more concreteand equitable plans have to be put in place in order to resolve the problem of unequaldevelopment of the world and improve living conditions across the Earth.UN Millennium ProjectOne such plan is the United Nations (UN) Millennium Project.This project consists of eight development goals that all 191 UN member states have


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signed in agreement in 2000 to try achieve by the year 2015.The eight goals are, firstly, to eradicate extreme poverty and hunger.Secondly, to achieve universal primary education for all children, male and female.Thirdly, to promote the gender equality and empower women.Fourthly, to reduce child mortality rates to below five per 1000 live births.Fifthly, to improve maternal health.Sixthly, to combat HIV/AIDS, malaria and other diseases.Seventhly, to ensure environmental sustainability.

Eighthly, to develop a global partnership for development.Several observations have been recorded in the UN Millennium Goal Report 2005 sincethe implementation of these goals.Firstly, progress in development has been made.For example, firstly, the number of people living on less than US$1 a day has dropped bynearly a quarter of a billion.In more than 30 countries, hunger was reduced by at least 25%.Secondly, all the LDCs have improved in the goal to provide universal primary schooleducation, but notably in countries in Latin America and the Caribbean, Southeast Asia,East Asia, and Northern Africa, have achieved more than 90% of children enrolled in

primary school.Thirdly, concerning access to safe drinking water, the situation has improve worldwide.

The proportion of population using safe drinking water in the developing countries hasincreased from 71% in 1990 to 79% in 2002.Fourthly, progress has been slow in improving sanitation in the developing countries.

Although sanitation coverage in the developing countries has risen from 34% in 1990 to49% in 2002, the rate of progress is slow.If improvement progresses at this rate, there will still be about 2.4 billion people worldwidewith no access to proper sanitation facilities by 2015.

A lot more needs to be done in this area if the UN is to achieve this goal by 2015.Secondly, the rate of development is not the same for all the goals.Some development goals take longer to achieve than others.For example, progress in promoting gender equality and empowering women is very slowin the LDCs, although some progress has been made.

Combating diseases such as AIDS and malaria has also not been very successful.Thirdly, development is unequal in different developing regions.The rate of development is fastest in Latin America and the Caribbean, East Asia,Southeast Asia and Northern Africa but slowest in Sub-Saharan Africa and Oceania.For example, China is leading in reducing poverty but in Sub-Saharan Africa, the povertyrate is increasing; the poor are getting poorer, and half of the children under five years oldare malnourished.Within a country, there is also uneven development.For example, according to the World Bank, the income gap in China between the rural andurban population is widening.In cities like Beijing, Shanghai and Guangzhou along the coastal region of China, GDP percapita is between US$608 and US$781.

However, in parts of central and interior China, GDP per capita drops to below US$300.Indeed, in most LDCs, the uneven development between the rural and urban areas is themain reason for rural-urban migration.The goals are not only targeted at quantitative economic growth but also qualitative,

people-centered development.The United Nations has stressed global partnership, with the LDCs taking up the primaryresponsibility of developing their own countries while the DCs provide political andfinancial support.So far, these goals are on track as Kofi Annan, the former Secretary-General of the UnitedNations, stated in his foreword in the Millennium Development Goals Report 2005.


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He said the goals have unprecedented political support, embraced at the highest levels bydeveloped and developing countries, civil society and major development institutionsalikeUN Convention on the Law of the SeaIn addition, the UN Convention on the Law of the Sea has also played a part to even outthe development process of countries worldwide.The convention not only allows coastal states to exercise sovereignty over their territorialseas, it also allows countries to set up Exclusive Economic Zones (EEZ) where they have

a right to conduct marine research, harvest natural resources and carry out economicactivities within 200 nautical miles of their shores.More importantly, it also assures land-locked countries of their right to access the seathrough the territories of neighboring coastal states.Through these laws, the LDCs and land-locked countries are permitted to use oceanresources and transportation routes for development purposes.Trade agreementsBilateral and multilateral trade agreements also contribute to the economic development ofcountries within the agreements.Some of the most successful multilateral trade agreements that exist at present are, firstly,the European Union or EU which consists of 25 European countries.Secondly, North American Free Trade Agreement or NAFTA which comprises Canada,

North America and Mexico.Thirdly, Association of Southeast Asian Nations or ASEAN which includes all the Southeast

Asian countries.Membership to these international organizations has a positive impact on the economicdevelopment of member states.The cooperation among member states brings about greater economic resources tofacilitate their development and also greater political power as they bargain with nonmemberstates for more trade benefits.

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Deveopement Srudies Chapter 1

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