Chapters
- Global Variations in Economic Development and Quality of Life
- Classifying Economic Development and Quality of Life
- Demographic Transition Model and Development
- Causes of Uneven Development
- Strategies to Reduce the Development Gap
- Tourism as a Tool for Reducing the Development Gap: Case Study of Kenya
- Rapid Economic Development in LICs and NEEs
- Case Study: India
- Economic Futures in the UK
- Urban Sustainability
We’re living in a much more global society, but there are a lot of factors that are impacting the way that the economic world works, as well as the impact this has on people’s lives.
The world’s economic landscape is continuously evolving, resulting in varying degrees of economic development and quality of life across different regions. What are some of the ways that the changing economic world is having an impact on countries around the globe?
Global Variations in Economic Development and Quality of Life
Economic development and quality of life vary significantly across the globe.
High-Income Countries (HICs) generally exhibit higher standards of living, advanced infrastructure, and better access to healthcare and education compared to Low-Income Countries (LICs) and Newly Emerging Economies (NEEs). This disparity is influenced by a lot of factors and there is not as much mobility as some people would like.
Classifying Economic Development and Quality of Life
Areas of the world are classified according to their level of economic development and quality of life using several methods, so there are a lot of different ways to evaluate development and finances. These include:
| Indicator | Description |
|---|---|
| Gross National Income (GNI) per head | Reflects the average income of a country's citizens. |
| Birth and Death Rates | Indicate population growth and health conditions. |
| Infant Mortality | Measures the number of infants dying before reaching one year per 1,000 live births. |
| Life Expectancy | Shows the average number of years a person is expected to live. |
| People per Doctor | Represents access to medical services. |
| Literacy Rate | Indicate the percentage of people who can read and write. |
| Access to Safe Water | Measures the percentage of people with access to clean drinking water. |
The Human Development Index (HDI) is possibly the most important way to measure quality of life. It combines data on income, education, and life expectancy to provide a measure of development.
While these measures provide valuable insights, they have limitations. Economic indicators like GNI per head may not account for income inequality within countries. Social measures such as literacy rates can overlook quality of education.
Even the indices like HDI, although comprehensive, might still miss out on specific regional issues.
Demographic Transition Model and Development
The Demographic Transition Model (DTM) illustrates how birth and death rates change with economic development. It is divided into five stages:
| Stage | Characteristics |
|---|---|
| High Fluctuating | High birth and death rates, low growth. |
| Early Expanding | High birth rates, declining death rates, rapid growth. |
| Late Expanding | Declining birth rates, low death rates, slowing growth. |
| Low Fluctuating | Low birth and death rates, stable growth. |
| Declining | Very low birth rates, low death rates, declining population. |
Countries in earlier stages typically have lower development levels, while those in later stages exhibit higher development and quality of life. The financial situation a country is in can impact the DTM, and vice versa.
Causes of Uneven Development
Uneven development can be a problem brought about by a lot of different factors, including geographical ones. Harsh climates and disasters can make the problems much worse.
There are also economic factors such as income inequality plus a lack of investment, poor infrastructure, and reliance on agriculture limit economic growth. Colonial histories and conflicts can leave lasting impacts on development.
The disparities in development lead to significant differences in wealth and a country’s performance on the global stage.
- Wealth: HICs accumulate more wealth, exacerbating the gap with LICs and NEEs.
- Health: LICs and NEEs often face higher disease burdens and lower life expectancies, without the medical help they need.
- International Migration: Economic disparities drive migration from poorer to wealthier regions in search of better opportunities.
Strategies to Reduce the Development Gap
There are a lot of ways that the global society can look to start reducing the development gap and aiding some of the lower-income countries.
Attracting foreign direct investment to stimulate economic growth is one of the methods, as well as industrial development and tourism, especially in more beautiful parts of the world.
HICs providing financial and technical support to improve infrastructure and services can be a massive help, but not all countries are happy to do so, with their own citizens in mind.
Implementing affordable and sustainable technologies, plus ensuring fair prices for producers in developing countries are also key strategies.
Tourism as a Tool for Reducing the Development Gap: Case Study of Kenya
Kenya, an NEE, leverages tourism to boost economic development.
The country’s natural attractions, such as safaris and beaches, draw tourists, generating revenue and creating jobs. This influx of capital aids in developing infrastructure and improving services, contributing to poverty reduction and economic growth.
Tourism provides 5% of Kenya’s GDP in terms of direct industry, but the figure could be much higher when considering indirect impacts.
Rapid Economic Development in LICs and NEEs
Some LICs and NEEs experience rapid economic development, leading to significant changes.
- Improved healthcare and education services.
- Increased pollution and resource depletion.
- Westernisation and shifts in traditional lifestyles.
Case Study: India
India is located in South Asia, with significant regional and global influence due to its large population and growing economy.
India has democratic governance with a diverse political landscape, and is home to numerous ethnic groups and languages.
The culture has a rich heritage with global cultural exports like Bollywood. Diverse ecosystems exist across the country, but they face pollution and resource management issues.
India’s economy has shifted from agriculture to services and manufacturing. The growth of information technology and pharmaceuticals exemplifies this shift.
Role of Transnational Corporations (TNCs)
TNCs like IBM and Tata contribute to economic development by creating jobs and fostering technological advancements. However, they also bring challenges such as labor exploitation and environmental concerns.
India maintains diverse trade relationships and is a member of international organisations like BRICS and the WTO.
India also receives various forms of aid, including financial aid for infrastructure projects and technical aid for skill development.
Rapid industrialisation has led to air and water pollution and waste management issues, some of the side effects of urbanisation.
Economic growth has improved living standards for many, though disparities remain. Access to education and healthcare has expanded, but poverty and inequality persist.
Economic Futures in the UK
The UK’s economy has evolved significantly, influenced by de-industrialisation, globalisation, and policy changes. The shift towards a post-industrial economy emphasises information technology, services, and finance.
Modern industrial development aims to be more environmentally sustainable, reducing emissions and promoting green technologies.
Areas experiencing population growth, like the South East, see increased housing and infrastructure development. Conversely, areas of decline, like parts of the North, face reduced services and economic opportunities.
Upgrades in road, rail, port, and airport infrastructure enhance connectivity and economic efficiency. Efforts to address regional inequalities include investment in the Northern Powerhouse and Midlands Engine initiatives.
The UK maintains strong global links through trade, culture, and communication. Membership in organisations like the Commonwealth and past involvement in the EU shape its international relationships.
Urban Sustainability
The changing economic world we live in significantly impacts geographical concepts. Understanding the dynamics of economic development, its causes and consequences, and strategies to address inequalities is crucial to understand the world’s current state.
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