Approaches to Development (Edexcel GCSE Geography: B (1GB0))

• Various approaches to tackling the problems of low and widening development gap
• These are seen at both large and small scales and involve individual or multiple organisations (global players such as Trans National Corporations (TNCs), IGOs (International Governmental Organisations) and governments 
• They can be an economic or holistic approach but both have advantages and disadvantages and aim to have a multiplier effect
• Top down strategies are aimed more at an economic level and include large projects which hope to improve incomes for people through developing industry
• A high level of technical support is usually needed with funding from foreign loans and IGOs such as the IMF and World Bank
• Examples include:
  • Major roads, bridges, and railways
  • New airports and ports
  • Hydroelectric power dams

• Freetrade:

  • This approach is where countries do not charge tariffs and quotas between themselves, this encourages trading which is free of taxes and charges

  • This can be beneficial to developing and emerging countries

• Investment:
  • Where countries and TNCs invest money in developing countries which provide employment and income

  • Example: Chinese companies investing in Africa (mainly energy, mining, construction and manufacturing)

• Industrial development:
  • Brings employment, higher incomes and opportunities to invest in housing, education and infrastructure
  • This has a multiplier effect

  • Example: China’s move away from agriculture to manufacturing made it one of the fastest growing economies in the world

• Tourism:
  • Some countries have become tourist destinations
  • Which leads to investment and increased income 
  • Infrastructure is improved and direct and indirect jobs created

  • Tourism can become vulnerable during a recession

• Debt relief:
  • Many developing countries borrowed money to develop their economies during the 1970s and 1980s
  • Some of these countries have fallen into serious debt and are unable to pay back these loans because of the high rates of interest
  • In 2006, the International Monetary Fund (IMF) agreed to cancel the debts of 19 of the world’s poorest countries 
  • This money saved in debt can now be used for development projects such as industry, resources and infrastructure
  • But corrupt governments may keep money

  • Example: Ugandan government has spent money to provide safe water to over 2 million people

• Bottom-up strategies are aimed at social development, with smaller community projects that are aimed at improving health, education, or food supplies at a local level
• Examples include: 
  • Wells and water pumps
  • Schools and health clinics
  • Training for farmers
•  Aid:
  • Countries or non-governmental organisations (NGOs such as Oxfam) donate resources to a country to help or improve people’s lives
  • Aid can take the form of money, emergency supplies, food or technology, specialist skills
  • Helps reduce the development gap through investing in development projects
  • Focus is usually on health care, education and services

  • Example: Goat Aid helps families buy goats, which produce milk and meat

• Intermediate technology:
  • This is where suitable, appropriate and sustainable projects, equipment and ideas are used
  • These are tailored to the needs and wealth of a local community 
  • Example: Micro-hydro for the remote villages of Nepal which the community build and maintains

  • Provides enough electricity to improve life for the villagers: enables children to study at night, families to watch TV and use mobile phones and the internet

• Fairtrade:
  • International movement that helps producers in poor countries get a fair deal by setting standards for trade 
  • Farming is done in an environmentally friendly way
  • Product has a better position in the global market
  • Part of the end price is invested back into the local community and future development projects

  • Example: Over 90% of small coffee farmers in eastern Uganda have joined the Gumutindo Coffee Cooperative, which allows the coffee to be milled before roasting, which adds value to the coffee and increases the farmer's income

•  Microfinance loans:
  • Small-scale financial support for small start-up businesses is usually aimed at women to help them become more self-sufficient
  • Example: Grameen Bank, Bangladesh, was set up in 1976 to help local women use their skills to develop small businesses. Initially, the bank lent women money to buy mobile phones, which the women then charged villagers to use, giving them a small profit, but also enough to repay the loan 

Globalisation and development

• Globalisation has played a significant role in development through trade
• Countries trade because one country has something that another country does not
• There are many processes and players (transnational corporations (TNCs), governments) that have contributed to globalisation, with some countries benefitting more than others from this
• Countries that have embraced globalisation have seen more progress than those that remain 'switched off'
  • Rise in the internet and mobile communications making data transfer cheaper, faster and easier than ever before
  • Goods are moved around the globe cheaply and in bulk on container ships
  • People travel easier and cheaper around the world on aircraft etc. 
• Developments in technology have encouraged many TNCs to invest in emerging countries such as India and China, by shifting the production of goods and moving data processing, call centres and administrative functions overseas
• This shift has benefitted emerging countries by creating new jobs and improving income levels and a better quality of life for some
• Emerging countries have made it easier for TNCs to locate and offer incentives for investments through:
  • Creating special economic zones (SEZs) and export processing zones (EPZs) which have no, or very low taxes
  • Restricting workers' rights, banning workers from joining unions and having no, or very low minimum wage
  • Limiting environmental, pollution, health and safety laws, to reduce costs for new factories and offices

Examples of Advantages and Disadvantages of Globalisation on Development

Bottom-up vs top-down

Table to show Advantages and Disadvantages to Development Strategies