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A2 Development & Inequality - Case Studies & Key Ideas

A2 Geography
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P D

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Transcript of A2 Development & Inequality - Case Studies & Key Ideas

Development and Inequality
Case studies and key ideas
The Brandt Line & Economic Indicators of Development
Development is a process of change likened to a length of cable.
The Core is the economy – the power. The Outer casing is made up of different aspects of the development process.
(
Based upon Quantitative & Qualitative data
).
The Development Cable Model (1998)
1980 – The West German Chancellor Willy Brandt produced the Brandt report. He stated that: The North possess 80% of the world’s wealth. The South only 20%. There was a clear Development Gap, which needed to be closed (reduced) - the rich North should help the poor South. This division is sometimes called 'the North-South Divide'.
All based upon
quantitative data
/ measures:
1. Crude birth rate.
2. Crude death rate.
3. Natural increase (growth rate).
4. Infant mortality rate
5. Fertility rate.
6. Life expectancy.
7. % under 15 years (structure of the population).
Can be illustrated by:-
Demographic transition model.
Population pyramids.
Demographic (social) Indicators of Development
Traditionally development was defined as
economic growth
(based upon
quantitative data
).

This led to the '3 worlds model':
First world = advanced, developed or capitalist nations.
Second world = partially advanced, partially developed or mainly socialist nations.
Third world = developing, undeveloped or under-developed nations.
Unreliable data from LEDCs
Economic (Traditional) Indicators of Development
Rostow's Development Stairway Model (1950's)
Reasons for an unreliable census data (statistics) in LEDCs;
* Too costly for some LEDC’s.
* Incomplete mapping (areas are too remote, inaccessible due to poor infrastructure).
* Lack of trained staff.
* Hard to record nomadic peoples.
* Transport difficulties.
* Male staff unable to interview women in the Middle East and Indian subcontinent, due to cultural differences.
* Language (regional dialects) difficulties.
* Low literacy levels.
* They can be adapted to portray something entirely different for political reasons.
All measures based upon
quantitative data
:
1. GNP/I (gross national product/Income) / GDP (gross domestic product) per capita.
2. Purchasing power parity per capita.
3. Energy consumption.
4. Workforce engaged in agriculture / manufacturing /service sectors.
GNP/I:
This allowed countries to be classified according to income:
High income countries (MEDC’s).
Low income countries (LEDC’s).
Middle income countries (including the NIC’s, the newly industrialised countries).
This economic growth and development was expected to trickle down to the poorer countries whose GNP would subsequently improve.
Purchasing Power Parity
Introduced by the world bank to over come problems with GNP measures.
Takes into account the cost of living in a country.
Gives a truer indication of living standards and the wealth of individuals.
Still uses US dollars.
Highlights areas of HIGH, MIDDLE and LOW purchasing power.
Problems with using MONETARY UNITS to assess development:
1. Real value of a currency can change over short periods, so US dollar is used, conversion creates distortions due to inflation (some countries are over-valued, some are under-valued).
2. Does not reflect the actual purchasing power of a currency within a country (costs vary country to country, E.g. buying a can of Coke in Kenya may cost the equivalent of 20p, in Sweden it may be £1.50).
3. Much output does not enter international trade (Informal economy in slums/shanty towns).
4. Socialist countries may have different definitions of national income.
5. High local costs due to cold winters or the size of a country, E.g. Russia, lead to problems due to money spent on clothes, heating and transport.
6. GNP gives no indication of how money/wealth is distributed within a country. A rising GNP may show a country is wealthier while the poorest citizens remain extremely poor.
Energy Consumption
per capita is a common economic measure of development:
It is a rough guide to the degree of industrialisation of a country and how far along Rostows stages of Development a country has moved.
Industrialised countries can use 10 times more energy than non industrialised countries.
Can be kilowatt hours of electricity per capita or measured as a coal equivalent figure.
Workforce Engaged In Agriculture:
The percentage of the population engaged in each of the sectors of employment give an indication of levels of development.
This is shown in the
Clarke-Fisher model
.
LEDC’s have a large percentage employed in the primary sector, particularly farming.
As a country develops and industrialises the percentage employed in the secondary/manufacturing sectors will increases as will industrial output.
MEDC’s will have the highest percentage employed in the service/ tertiary sectors as only they can afford so many ‘non producers’.
Physical Quality of Life Index (PQLI)
Composite indicator (
Quantitative data
) devised by the Overseas Development Council in 1977.
Indexed from 0 to 100.
(0 is the worst, 100 is the best).
Based on: *Life expectancy
*Infant Mortality Rate
*Adult Literacy Rate
Index >77 suggests that the minimum requirements for development are satisfied.

Problems:
Limited, due to the small number of variables.
Oil rich nations have large GNP per capita but lower PQLI.
Other countries E.g. China and Sri Lanka have low GNP per capita but ‘highish’ PQLI.
Quality of Life
(Multi-variate or composite)
Indicators of Development
(1977 onwards)
Human Development Index (HDI):
Devised in 1990, when the UN Development Programme realised that income growth/ economic measures were not good indicators of development. (
Quantitative data
)
HDI consists of; *Real income per capita (PPP) (ECONOMIC)
*Educational attainment, given by adult literacy rate combined with the mean number of years of schooling. (SOCIAL)
*Life expectancy at birth (DEMOGRAPHIC)

Problems:
Its creation by UN was politically motivated to focus on health and development issues.
The 3 indicators are good, but not ideal; What about nutrition?
Some data may not be available in many countries. (Educational attainment, given by adult literacy rate combined with the mean number of years of schooling.)
Masks regional disparities between urban/rural, core/periphery and between ethnic or gender groups.
Only shows relative development, a country may be developing but remain low compared to other countries.
International Human Suffering Index (IHSI):
Developed in 1987 by the Population Crisis Committee of Washington DC.
Gives an indexed score, from 0 to 100. Unlike the PQLI, the lower the score, the better. (
Both Quantitative & Qualitative data
)
Score is based upon 10 variables/factors;
*GNP per capita. *Rate of inflation. *Growth of labour force.
*Urban population growth rate. *Infant Mortality Rate.
*Daily calorie supply as a % of requirements.
*Access to clean drinking water. *Energy consumption per capita.
*Adult literacy rate.
*Personal freedom - qualitative data.

Problems:
Does not accurately reflect the inequalities within the given area. They do not reflect income distribution.
There is still a lack of agreement on a universal system of measuring social development. Some indicators change daily, e.g. freedom of speech, right to vote, political freedom.

The other problem is associated with the collection of data, for some of the following reasons; *Very few census surveys take place in LEDCs.
*Registration is inadequate and unrepresentative. *Only the better educated, wealthier people can understand the registration procedures. *Refusal to fill in forms for political or personal reasons.
CASE STUDY:
Applying the CORE-PERIPHERY model to BRAZIL
Resource Endowment and Environmental Determinism
Models of spatially uneven (unequal) development
The link between Levels of Development & Quality of life
Factors affecting Levels of Development & Quality of Life (& adding to the Development Gap)
Resource endowment
suggests that development is dependent on the resources (both natural and human) that the country has to exploit.
There are links with the theory of
environmental determinism
which suggests that human activity is determined by the environment. European development due to its coal and iron reserves, fertile soils, temperate climate and low frequency and intensity of natural hazards.
This is a linear model. It suggests that all countries go through the same stages. There are disparities because all countries now have a varied job base and wealth differences between urban & rural regions. It is based on the experiences of Western Europe and North America. (Developed countries).
It does not take into account spatial differences within a country. (Urban & rural).
The big question is why do countries fail to “take off”?
'Cumulative Causation' - Gunnar Myrdal
Can be used on a global scale or within countries to explain regional/ spatial disparities.
Cumulative Causation – Spiral of advantages that occur in a specific geographical location (
Core
).

Core
– Success based on
initial advantages
(resource endowment, location, site & situation), develops further due to
acquired advantages
(multiplier effect, agglomeration, increased tax revenue, increased public spending, education and health care, skilled labour, improvements in infrastructure).
Periphery
– Inaccessible, underpopulated, resource poor.
Backwash Effects
Negative effects of the core’s growth on the periphery. Out-migration of economically active people from periphery (P) to core (C), outflows of capital from P to C, decreasing tax base in P, firms of the periphery not able to compete with the firms of the core and therefore periphery being flooded with core’s products. Reflects relationship between MEDCs (Core) and LEDCs (Periphery).

Spread Effects
Positive effects of the core’s growth on the periphery. Core unable to supply all the products the Core is demanding so supply from the Periphery to the Core. Core becomes affected by NEGATIVE EXTERNALITIES (high rents, overcrowding, congestion) so firms relocate to periphery. NICs / RICs.

Key question
– Will the benefits of the Core’s development “spread” or “trickle down” to the periphery?
Friedmann's model is a variation on Gunnar Myrdals model.

He suggests that there is no core or periphery in stage 1, all settlements are similar rural villages.


By stage 2 a dominant economic core has developed due to industrialisation with surrounding settlements becoming the periphery. This mirrors the "backwash effects" above.


Stage 3 shows a slow spread of benefits from the core to the periphery (as described in the "Spread effects" above).


Stage 4 shows few spatial economic inequalities between the core and the periphery, a mature urban structure.
Countries’ levels of development can be imagined as a flight of steps rising from the least developed to the most developed. Countries climb the stairway at different speeds as they develop. At any given time, there will be groups of countries on the same step. This model tries to explain how countries develop.
Developmental Stairway shown as a map
Other indicators of development.
A BRIC country (Brazil, Russia, India & China).
‘Take off’, maybe ‘Drive to maturity’.
Largest country in S. America, 5th in world.
Equator to Tropic of Capricorn.
10 neighbours.
2 major geographical regions – AMAZON Basin and Central Highland plateau.
Populous with widespread income disparity.
CORE = South-East Brazil
Rio de Janeiro – Belo Horizonte – Sao Paulo = the industrial triangle.
The driving force behind the Brazilian economy (metals, minerals, coal, farm produce).
Under strict military rule Brazil embarked on an industrialisation strategy based on exports
and imports. Growth based on minerals and agriculture. (coffee, grain).

Rio, original capital.
Service and industrial centre, food, building materials, electrical, chemicals, textiles, tourism.
Cultural and political centre.
Dominant issues
from rapid urbanisation –favelas,
pollution, crime, poverty, congestion, inequality.

Sao Paulo.
72km from sea.
1850 expansion through coffee plantations.
Profits reinvested in industrial base of manufacturing and commerce.
Cumulative causation and multiplier effect operate.

Belo Horizonte.
First modern city – planned but planning overtaken by rapid urban growth (slums development
& rapid rural-urban migration).
Agriculture and industry.
Steel, cars, textiles, gold, gemstones.
The whole region experienced SPREAD EFFECTS, NATURAL POPULATION GROWTH
AND IMMIGRATION.
Backwash Effects - North-East Brazil
30% population live here.
RECIFE and SALVADOR - urban centres.
A former core - Many years of neglect and DOWNWARD SPIRALS, a Backwash Region?
Contributed to colonisation of Amazonia.
Trans-Amazonian Highway starts here.
Subject to chronic drought.
Recent reversal of decline based on oil discovery. Some government assistance to growth.
Responsible for continued growth.
Periphery - North
Includes AMAZONIA – the Amazon basin.
Trans-Amazonian Highway – crosses tributaries – military and economic reasons.
MANAUS and BELEM - urban centres.
Rubber boom then rapid decline.
A RESOURCE FRONTIER - remote, dangerous, hardened people live there.
1960s/70s resumed interest. (Political)
Mineral wealth – copper, agriculture. (Ranching & Soya beans).
Government encourages Foreign Direct Investment (E.g. Cargill Industries – Soya beans).
Government backed colonisation by farmers. NE farmers (but no experience in wet/humid
conditions).
Ranching widespread (beef).
Significant environmental and social impact (jaguar people – illness, prostitution, exploitation,
murdered) and deforestation.
Growth pole policy.
AGRO-MINERAL poles.
Often where Trans–Amazonian Highway crosses rivers e.g. XINGU, TOCANTINS.
Recent government attempts to limit destruction.
Rio
Sao Paulo
Belo Horizonte
Recife
Trans-Amazonian Highway
Forest clearance for cattle
Forest clearance
Manaus
Quality of Life
(QoL) is difficult to define. It has a
psychological side
including peoples feelings such as satisfaction, happiness, fulfilment and security. It has
physical aspects
that include diet, housing, mobility. It also includes
socio-economic factors
including employment prospects, access to services, education and leisure.
QoL is best thought of as the product of economic development.
As a country's level of development rises, so does its QoL. The external strands of the development cable can be used to indicate the QoL.
Composite or Multi-variate measures are therefore needed to indicate QoL.
The
Human Development Index
is the most commonly accepted measure of QoL.
Some QoL indicators
Different indicators of development
Qualitative indicators
literally describe actual individual peoples' lives and living conditions. Such
subjective accounts
are featured in newspapers, magazines and on social media including TV and radio. These indicators convey the reality of poverty much more vividly than the 'numbers' used
objective quantitative indicators
.
Physical
- Resources available (energy, metallic, natural & agricultural minerals, fresh water, soil quality), moderate climate, access to oceans for trade & new technologies also led to economic development.
Landlocked countries have to rely on neighbouring countries with coastlines cooperating in the passage of international trade.
This poses a problem for 15 African nations, 7 of which are the poorest in the world. 2 poorest countries in South America, Bolivia & Paraguay, are also landlocked.
Historical
- The longer a country or region has had to develop, the more economically developed it becomes.
Western Europe
went through it's
agricultural and then industrial revolutions
in the
1700s and 1800s
giving time to be fully settled, exploit their natural resources, build infrastructure and their population. Africa, Asia and Latin (
Central & South
) America only started their agricultural and /or industrial revolutions in the 1900s.

'Early' Western European development
in the 1800s led to
exploitative colonisation
of some Asian, African & Latin American countries by European superpowers (UK, France, Spain, Netherlands, Germany, Portugal). Food, minerals and even people (coal, oil, rice, tea, coffee, sugar, precious metals, iron, aluminium, diamonds, slaves, etc) were exploited leaving the colonies
resource poor and often politically unstable
due to enforced artificial borders created by the colonial power which cut across tribal lands and forced different political, religious and tribal groups to coexist. Such countries are now going through civil war (Nigeria, Sudan, Rwanda, Syria, ....)
Political
- Governments can either promote of deter economic development.
Corrupt governments
do not allow financial aid to reach those who are in need, often spending loans on weaponry, military resources or themselves and their friends and relatives. As loans gain interest and need to be repaid, this mentality just pushes the country further into debt and therefore further away from economic development. (E.g.
Mozambique
)

Japan
is an example of a how political power can dictate a country's level of development.
Prior to 1870
Japan was a
feudal society
following an
isolationist policy with minimum contact with the outside world
for hundreds of years.
In 1870
Japan's political outlook changed to incorporate
modernisation and industrialisation, open to new technologies and trade with the rest of the world
. By 1912 the economy was transformed through a well developed transport & communications infrastructure; a skilled, educated population; a fast growing industrial base and a powerful army and navy.
Social:
Human capital = education and skills of a country's workforce.
Advanced economies have high literacy and skills levels. Led to success of RICs like India and NICs like Taiwan & Singapore.
Low levels of literacy and skills are a consequence and also a cause of a lack of development.
LEDCs often have pre-industrial economies with little demand for literacy and education leading to limited productivity and little engagement in international trade. GDP per capita is obviously low in these economies.

Gender Inequality
= In many LEDCs
women are denied equal access to education, employment and personal development.
A large part of the potential workforce is therefore 'neutralised' reducing productivity and holding back economic development. This is most pronounced in Sub-Saharan Africa, South & West Asia and Arab States. (Islamic states)

Population Growth
= Rapid population growth leads to reduced economic development
if the rate of population growth out paces the rate of economic growth
. This leads to high rates of dependency (on aid), poverty and little economic progress per capita.

Diseases
=
Poor health and disease reduces peoples' ability to work and a country's ability to develop.

At the same time poor health and disease are symptoms of poverty and inadequate health care found in developing nations.
The most serious tropical diseases are
malaria, tuberculosis, dengue (sleeping sickness)
.
Disease has the greatest impact in the humid tropical areas of Africa, Asia and Latin America
where 1:6 of the population is affected.
Malaria = >1 million people die of malaria per year, mostly infants, young children and pregnant women
mostly in Sub-Saharan Africa. Malaria accounts for 1.3% loss in economic growth in worst affected countries.
Substantial economic differences (in GDP) exist between countries with and without malaria.
It is found in >90 countries and affects 300-500 million people. Impacts are chronic, debilitating illness which reduces workers' productivity, affects children's school attendance and education, limiting future jobs. Medical care is expensive to individual households and countries as a whole whihc increases poverty.
Economic
= Main factors to influence levels of development are
Foreign Direct Investment (FDI), international trade and infrastructure
.
FDI
= generates jobs which put money into the national economy, stimulates economic growth in that region/area, attracts new skills and technologies, helps finance essential transport infrastructure (roads, port, airport).
Problems:
EU has 7.6% of worlds population, but receives 46% of all FDI. Africa has 14% of worlds population, but receives 3.4% of all FDI. Inequalities reflect the difference in levels of economic development between the two continents. The more developed EU has more attractive investment opportunities.
Trade

= International trade is dominated by MEDCs selling expensive, high end goods
(electronics, vehicles, machinery, computer & media related technology).
Many African and Asian countries have little involvement in world markets/trade
, which adds to their poverty and lack of development.
Airports and ports are essential for international trade, as are efficient telecommunication (including broadband), road and rail networks. These are also important for attracting FDI.
Millennium Development Goals
Core - Periphery Model (Worldwide, Europe, France, UK, Malaysia)
Trade and Aid
What is the 'Development Gap'?
Economic inequalities and social issues
How do countries climb the stairway?
The factors which energise or drive development have been much stronger in some countries than in others.
These factors are the same as those suggested in the Core-Periphery Model of inequality.
OPEC states
Gunnar Myrdals Cumulative Causation Model
The Energiser Model uses the same ideas as Myrdal's model (above) to suggest why countries develop at different rates.
1981 – The West German Chancellor Willy Brandt produced the
Brandt report
. The report identified
‘The Development Gap’
, the economic difference between the
'Rich North' and the 'Poor South'
. It is also sometimes referred to as the ‘North-South Divide’.
Most commonly, the gap is thought of in terms of income / economics but it also has social, environmental and political impacts.
Data used for measuring development was based on the formal economy. It ignores much unpaid, subsistence and informal work.
Two indicators are commonly used: GDP, Gross National Income (GNI).
Since 1981 things have become more complex and
Brandt’s line is now looking a little dated
. Some S. American countries like Brazil were already developing in the 1970’s making the Brandt line out of date by 1981.
Economic development patterns are complex so
some parts of countries have developed quicker than the whole
(Hong Kong, Dubai).
Some countries in SE Asia have grown rapidly since 1981 (Thailand, Malaysia).
More NIC’s than in 1981.
While some have grown rapidly others have grown marginally, so
the gap between rich and poor has widened
.
The UN now use four levels of income via the World Bank stairway (GNI):
Low income = (LEDC)
Lower middle income = (RIC)
Upper middle income = (NIC)
High Income = (MEDC)

A way to classify 206 nations of the world.
Still difficult as India is one of the fastest growing countries on Earth and GNI wise is still at a ‘low income’ level whilst Ethiopia one of the slowest growing is also ‘low income’.
Based only on income it is therefore not a true reflection of development.
Is there really a Development Gap?
Almost half the world (>3 billion) live on < $2.50 a day.
The GDP of the 41 ‘Heavily Indebted Poor
Countries
’ (567 million people) is less than the wealth of the world’s 7 richest
people
combined.
Nearly a billion people entered the 21st century unable to read a book or sign their names. (>14% of the global population).
Less than 1% of what the world spent every year on weapons was needed to put every child into school by the year 2000, and yet it didn’t happen.
1 billion children live in poverty (1 in 2 in the world).
640 million people live without adequate shelter.
400 million have no access to safe water.
270 million have no access to health services.
10.6 million died in 2003 before they reached the age of 5 (or roughly 29,000 children per day).
The ‘gap’ between the ‘haves’ and the ‘have nots’ has a long history of widening.
Generally the rich have grown richer faster than the poor.

Current economic development trends are a complex picture:
Most of the world is getting wealthier.
Africa / LDCs are largely excluded from wealth growth.
The ‘gap’ between the richest and poorest is ‘stretching’.
Parts of Asia are beginning to catch up with G7 / OPECs, as their economic growth is faster. (RICs & NICs)
The Group of 7 (G7) is a group consisting of the finance ministers and central bank governors of the seven major advanced economies as reported by the International Monetary Fund (IMF): Canada, France, Germany, Italy, Japan, the United Kingdom and the United States meeting to discuss primarily economic issues. The European Union is also represented within the G7. The G7 are the seven wealthiest major developed nations by national net wealth, representing more than 64% of the net global wealth ($263 trillion) according to the Credit Suisse Global Wealth Report October 2014.
The Organisation for Economic Co-operation and Development (OECD) is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy and the market economy, providing a platform to compare policy experiences, seeking answers to common problems, identify good practices and coordinate domestic and international policies of its members. Most OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries.
Factors affecting development (widening the gap)
G7
OECD
This image shows the rich actually building upon the poor (exploitation)
Inappropriate international aid does not help those people most in need. Examples include large dam and HEP schemes. Some FDI such as "Nike" in Pakistan, or "Coca-Cola" in India are also inappropriate as profits are repatriated to the headquarters in MEDCs.
Global targets, adopted by the UN in 2000.
Aiming to reduce global poverty by 50% by 2015.
Significant, difficult but achievable goals and targets.
Mixed progress so far, on target in Asia, but Africa will reach the poverty target in 2147 at present rate of progress.
Currently much more is needed.
G7 / OECD countries need to meet their promised 0.7% of GDP target.
Target of MDG is to increase health, education and opportunity in LEDCs combined with a reduction in debt.
Currently, aid and debt tend to cancel each other out.
NGOs are currently training men and women to increase opportunity and reduce poverty through appropriate technology development.
Conclusion:
Many people are getting wealthier; absolute poverty is reducing (people on less than $1 per day). The gap between rich and poor is widening; relative poverty is worsening. Economic growth is raising millions out of poverty in Asia. Large parts of Africa are stagnant, or getting poorer. Radical action on trade, aid and development are needed to achieve the MDG by 2015.
Also see slide 12
Types of Trade:
Modernisation (increased international trade, intense industrialisation).
Capitalist / Free trade system.
Neo-liberalism.
World Bank.
International Monetary Fund.
World Trade Organisation.
‘Trickle down effect’.
Debt & Structural Adjustment Programmes.
Types of Aid:
Bilateral.
Multi-lateral.
NGO’s.
World Food Programme.
Short term, long term.
‘Top-down’.
‘Bottom up’.
Tied aid.
Corrupt governments.
NEGATIVES about Trade and Aid:
Most LEDC countries are not developing as a result of a capitalist market economy.
Trade is unfair and exploits the LEDC’s resources.
Bilateral Aid does not usually reach the most needy people.
Tied Aid benefits the MEDC more than the LEDC.
POSITIVES about Trade and Aid:
Multinational corporations are providing jobs, wages and infrastructure in some LEDCs.
Countries such as Taiwan and South Korea have developed rapidly due to trade.
Farmers getting a fair price for the products (Fairtrade).
NGO’s helping those most in need (WaterAid, Oxfam, Christian Aid, Red Cross/Crescent etc).
Further reading = Geofile 587 Trade Versus Aid
2011 HDI
The Economist Intelligence Unit developed a new (2005) Quality of Life Index (QoLI) based upon subjective life-satisfaction surveys (qualitative) variables and objective (quantitative) QoL indicators such as GDP per capita. The QoLI does not tally up with HDI or GDP per capita. This is because it focuses on the spread of wealth within a country, rather than the country's total wealth. The more uneven the distribution of wealth between rich and poor, the lower the overall average QoL will be.
Social inequalities (Multiple Deprivation) can be found internationally, nationally and even locally between urban and rural areas, or even within individual cities. London is a good example of this trend.
(Case studies of multiple deprivation = Harehills/ Seacroft in Leeds, London Docklands)
Economic inequalities and environmental issues: Mexico City
World Bank Environmental Indicators of Development.
Solutions to these problems are being tackled through the 'Plan Verde', or 'Green Plan'. (See Moodle for more info). A direct comparison can be made between Curitiba in Brazil and Mexico City as they originally had similar environmental problems.
Other solutions to reduce global inequality come through Foreign Direct Investment, Trade and Appropriate Aid.
The core-periphery model is based upon Gunnar Myrdals Cumulative Causation model (above). Proposed in 1950s his model explains how some continents/ countries/ regions/ cities become dominant cores at the expense of the poorer periphery.
The process of initial advantages, which are then followed by acquired advantages include the multiplier effect for the agglomeration of industry, people, income, trade, etc ...
Applying the Core - Periphery Model to Malaysia (Negative Backwash Effects)
Inequality in the UK: The North South Divide
Sarawak (Eastern Malaysia)
The core:
South of Kuala Lumpur (capital).
Investment by government and TNC’s.
Good infrastructure, roads, rail, ports and telecoms.
Export processing zones.
Industrialised.
Urbanised.
Free trade zone.
Typical NIC characteristics.
Inward migration of people from Malaysia and abroad.
Concentration of higher levels of:
• % completed secondary education.
• % degree education.
• Salaried wages with benefits.
• Employed by TNC.
• Larger component of mobile educated people aged 20-40.
• Larger component of young single people including young females for assembly industry.
• Shortage of labour, both skilled and educated AND for services and construction e.g. low wage, low skill foreign workers recruited from Indonesia.
Result of deliberate government policy to promote rapid industrialisation through growth of the secondary manufacturing sector from simple TNC controlled raw material processing (e.g. rubber) for export, to TNC driven electronics consumer goods (computer parts, printer inks, circuit boards) manufacturing for export. Guided and controlled by Malaysian government agencies and driven by negotiated joint ventures e.g. With Japanese TNCs.
Core Periphery situation has created divisions in Malaysia that the government now has to face up to; unequal prosperity and internal social and economic division. Current policies appear to simply enlarge and evolve the Core zones at the expense of the periphery.
Applying the Core - Periphery Model to France (Positive Spread Effects)
Core
includes Paris, Calais, Lille and NE France a heavily industrialised sector of the country, mainly secondary industry.
Periphery
includes the rest of France, mostly agricultural primary industry. France's plan has been decentralisation of industry and services away from Paris. Including council administrative offices to the periphery, to promote areas for economic development by creating areas with tax breaks and relocation grants for new and existing industry. To improve road and rail infrastructure, including Lyon Airport which has been developed for air freight and tourism. Languedoc (Tourism = Montpellier Airport & TGV & road links from north) and the Gulf of Fos (deep water port = ICI, ESSO, Ford) are examples of successful areas.
Industrial decline of NE core region:
Closures in coal and steel.
Unemployment.
Depopulation.
Dereliction.
Poor, old housing.
Congested infrastructure.
Poor environment.

Government initiatives:
Industrial regeneration.
Input of investment.
Improvements in infrastructure.
Replacement of industries.
Housing and environmental programmes.
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