Development Revision Notes

Development is a measure of how economically and socially advanced a country is. To evaluate this, several indicators are used, each reflecting different aspects of development.

Gross National Product (GNP) per capita calculates the total economic output of a country divided by its population, showing average income. For example, a country with a GNP per capita of $40,000 is generally more economically developed than one with $1,000.

Literacy rates indicate the percentage of adults who can read and write, reflecting education quality and access. Higher literacy rates often correlate with better job opportunities and economic growth. For instance, a literacy rate of 98% suggests widespread education, while 50% indicates limited access to schooling.

• GNP per capita = Total national income ÷ Population; measured in US dollars or local currency.
• Literacy rate = Percentage of literate adults; indicates education level.
• Life expectancy = Average years a person is expected to live; reflects health and living conditions.
• Human Development Index (HDI) combines income, education, and life expectancy into a single composite score (0 to 1).

Development is unevenly distributed globally and within countries. Between countries, disparities arise due to historical, geographical, political, and economic factors. For example, many high-income countries in Europe and North America have high HDI scores, while some countries in Sub-Saharan Africa have low scores.

Within countries, development can vary between urban and rural areas or among regions. For instance, a capital city may have better healthcare, education, and infrastructure compared to remote rural areas, leading to internal disparities.

Understanding these disparities helps target development policies and international aid effectively.

• Between countries: Differences in income, education, and health standards.
• Within countries: Urban-rural divide, regional inequalities.
• Causes include resource distribution, governance, historical colonisation, and investment levels.

Economic activities are grouped into four sectors based on the nature of work: primary, secondary, tertiary, and quaternary.

The primary sector involves extracting natural resources, such as farming, fishing, mining, and forestry. For example, rice farming in rural Asia is a primary activity.

The secondary sector processes raw materials into finished goods, including manufacturing and construction. An example is car manufacturing in Germany or textile factories in Bangladesh. The tertiary sector provides services like retail, education, healthcare, and tourism. For instance, teachers and shop assistants work in this sector. The quaternary sector involves knowledge-based services such as research, information technology, and financial services, like software development or scientific research.

• Primary: Agriculture, fishing, mining; raw material extraction.
• Secondary: Manufacturing, construction; turning raw materials into products.
• Tertiary: Services including education, healthcare, retail, tourism.
• Quaternary: Knowledge and information services, e.g., IT, research.

As countries develop economically, the proportion of people employed in each sector changes. In low-income countries, most people work in the primary sector due to reliance on agriculture and resource extraction.

With industrialisation, employment shifts to the secondary sector as manufacturing grows. For example, China experienced rapid growth in factory jobs during its development phase.

In more developed economies, the tertiary sector expands, reflecting increased demand for services. For instance, in the UK, over 70% of employment is in services like finance and healthcare. The quaternary sector grows in highly developed countries with advanced technology and knowledge economies, such as the USA and Japan, where research and IT jobs are significant.

• Early development: High primary sector employment.
• Industrialisation: Growth in secondary sector jobs.
• Advanced economies: Dominance of tertiary and quaternary sectors.
• This shift reflects economic diversification and rising living standards.

Globalization is the increasing interconnectedness of countries through trade, investment, technology, and cultural exchange. It is driven by advances in technology, especially communication and transport, which reduce costs and time for moving goods, services, and information.

Transnational corporations (TNCs) play a key role by operating in multiple countries, spreading investment and technology. For example, the multinational company Unilever produces goods worldwide and sources materials from various countries.

Economic factors such as free trade agreements, deregulation, and the search for cheaper labour encourage globalization. This process has mixed impacts: locally, it can create jobs but also cause environmental damage; nationally, it can boost economic growth but increase inequality; globally, it promotes cultural exchange but may lead to cultural homogenization.

• Technology: Internet, container shipping, air travel.
• TNCs: Companies like Apple or Toyota with global operations.
• Economic drivers: Trade liberalisation, foreign direct investment.
• Impacts vary by scale and include economic growth, job creation, cultural change, and environmental concerns.

Consider the example of a global fast-food chain such as McDonald's. It operates in over 100 countries, sourcing ingredients locally and internationally, employing thousands worldwide, and adapting menus to local tastes.

McDonald's exemplifies how TNCs integrate global supply chains, influence local economies by creating jobs, and contribute to cultural globalization by spreading similar eating habits.

However, it also faces criticism for environmental impacts and affecting local food cultures, illustrating the complex effects of globalization.

• Global presence with local adaptation.
• Creates employment and investment in host countries.
• Influences culture and consumer behaviour.
• Raises issues of sustainability and cultural identity.