Developement Gap 1

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• The Development Gap

• How can the population be divided?

• In 1981, as a result of the Brandt Report countries had been divided in a simplistic divide known as the Brandt Line.

• This was not very useful as countries were divided into the 'Rich North' and 'Poor South'.

• Said strategies of division are known as two fold which only take into account things relating to the economy. Five fold strategies are more effective as they take social factors into account.

• As result refinements had split countries into LEDC's, MEDC's and NIC's.

• Some nations such as South Korea had been put inside the poor south despite their fast economic growth in comparison to countries such as Bangladesh..

• Measures of development

• GNP (Gross national product) is the measure of all of the things that are produced  by countries.

• GNI (Gross national income)  is a better indicator of development as it takes into account the difference in wages inside the nation. This paints a much better image inequality in the nation.

• Although GNP is valid if its used alone it can be invalid. For instance China have a GNP of 2600 million which one of the world's highest. Although at the same time they have a population of over a billion showing people were worse off. 

• HDI (Human Development index) is  takes into account death rates, life expectancy and literacy rates (social factors).

• Unfair patterns of world trade

• Trade seems to favours rich countries more than poor ones

• Imports - what is bought by a particular place or country. 

• Exports - amount earned from what is sold by a place or country.

• Where exports are higher than imports are countries that have a trade surplus.

• Where imports are higher than exports are countries with a trade deficit

• Rich states often form trading blocs such as the European 

• This is shown as in the EU one tonne of sugar was priced at 680 euros.

• This move deprived sugar farmers in Mozambique.

• Robbed jobs of 12,000 sugar farmers in Swaziland.

• Trading in these blocs often reduces tariffs and quotas leading to more revenue.

• Quota - the quantity of a particular thing.

• Tariff - fees payed to country as a result of trading with them.

• Sugar was 280 euros in Swaziland however they would have still made a loss as result of tarrifs of trading with the EU