Core 2: Disparities in Wealth and Development

Measurements of regional and Define indices of infant mortality, education, nutrition,

global disparities income, marginalization and Human Development Index
(HDI). Explain the value of the indices in measuring
disparities across the globe.
Origin of disparities Explain disparities and inequities that occur within
countries resulting from ethnicity, residence, parental
education, income, employment (formal and informal) and
land ownership.
Disparities and change Identify and explain the changing patterns and trends of
regional and global disparities of life expectancy, education
and income.
Examine the progress made in meeting the Millennium
Development Goals (MDGs) in poverty reduction, education
and health.
Reducing disparities Discuss the different ways in which disparities can be
reduced with an emphasis on trade and market access,
debt relief, aid and remittances.
Evaluate the effectiveness of strategies designed to reduce
disparities.

Development: An improvement in the quality of life. Although wealth comes into this, many
other things are also important like health, education and security.

Indices: An arrangement of material or figures in a numerical order. We can use indices to

compare countries. Indices can be useful because organisations and governments can use
them to decide where investment and improvements are most needed. For example if a
country has very higher birth rates, then the government may need to invest in family
planning.

Measuring income:
Gross National Product (GDP): total value of goods and services produced in a country
in a year.
Gross National Income (GNI): The total value of good and services produced within a
country together with the balance of income and payments from or to other countries.
Increasingly preferred monetary indicator.
Problems with Monetary Measures
Most countries use different currencies, because the value of currencies change against
each other (exchange rates) it is hard to make accurate comparisons.
All countries have a formal and an informal economy. The formal economy is regulated
by the government and its value is known. However, the informal economy (things like
shoe shining, car windscreen cleaning) isnt, so the government and economists dont
know the true value of economies and therefore GNI.
Some goods and services are unpaid e.g. volunteering in a charity shop or parenting.
However, they contribute to the economy so shouldn't they be included?
Looking at a country's overall GNI disguises intra-country variations. For example the
East of China is becoming very rich, but much of the west is still very poor.
Just looking at money also neglects many other important aspects of development e.g.
education and healthcare.
Per capita: Because countries have different size populations, it is not fair comparing
their total GNI (countries with bigger populations will normally have larger GNI). Therefore,
economists and geographers normally look at GNI (or GDP/GNP) per capita. To calculate
GNI per capita you take the total GNI of a country and divide it by the total population.

Infant Mortality: Highest IMRs found in poorest LDCs. Causes of death often preventable.
Reducing infant mortality is a Millennium Development Goal (number four). Despite this there

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are still huge differences in the rates of infant mortality around the world. Measuring infant
mortality accurately can be problematic because in many LEDCs birth certificates and death
certificates are not always given and many births take place outside of hospitals. Infant
mortality rates can be high for a number of reasons including: the health of the mother, natal
care, education levels, diet, disease, conflict, access to healthcare and medication.

Marginalisation: When a group of people become separated from society. The Index of
Marginalization considers the percentage of illiterate population older than 15 years old, the
percentage of population older than 15 years without elementary school, percentage of
population living in dwellings without toilet, without electricity, without access to water, with
some level of overcrowding, with floor of earth, in localities with less than 5,000 inhabitants,
and with income lower than 2 minimum wages.

Measuring education: Education can be

measured in countless ways including; adult
literacy, student teacher ratio, school
enrollment, number of school years completed
and number of university graduates. Access to
primary education is another Millennium
Development Goal (number two). Access to
education is a considered an important goal
because it helps individuals and countries to
move out of poverty, by getting a better job,
reducing birth rates, etc. When looking at
education it is important to look at the
education received by boys and girls. The yellow parts of
the map below show where girls are disadvantaged Gender parity in primary
and the red areas where boys are disadvantaged. education

Measuring nutrition:
Nourishment is an important indicator because it
can affect peoples ability to work, get educated
and fight disease. Again the elimination of hunger
is a Millennium Development Goal (number one).
Even though Malthus predicted that we would run
out of food and have mass famines and conflicts
over food, there is currently enough food for
everyone. However, food is distributed unevenly
causing problems. The darker areas of the map
below show areas where large numbers of people
are undernourished.
Malnutrition: condition that develops when the body does not get the amount of
vitamins, minerals and nutrients it needs to maintain healthy tissues and organ function.
Malnutrition prevalence, height for age (% of children under 5): Prevalence of
child malnutrition is the percentage of children under age 5 whose height for age
(stunting) is more than two standard deviations below the median for the international
reference population ages 0-59 months.

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Human development index (HDI): developed in
1990, used by UN to measure levels of
development. Three variables:
GNI per capita
Life expectancy
Educational attainment (adult literacy &
combined primary, secondary, tertiary
enrolment)
The HDI calculations score all countries between 0
and 1. The map shows that according to HDI the
most developed countries are in Western Europe
North America and Australia while the least
developed countries are in Central Africa.
HDI is what is known as a composite measure.
This simply means that more than one variable is taken into account, for HDI three variables
are looked at. It can be harder to collect all the data for composite measures, but they do give
a more complete and accurate picture of a country's are area's development.

Problems and Limitations of Development Indicators

Although development indicators can be useful for governments, NGO's etc. to know where to
target investment or where for industries to locate a new factory, or even for where an
individual to move to, they do have their limitations:
Countrywide statistics disguise intra-country variations. For example, the east of China is a
lot richer than the west, but if you looked at China's overall GDP you would not know this.
In many countries data is inaccurate or incomplete. Some countries also refuse to release
certain pieces of information or data.
Most development indicators (with the exception of HDI) focus on only one aspect of
development.
Most indicators use averages and tend to neglect or highlight the sectors of the population
that are marginalised.
Indicators are always out of date. Once information has been collected, analysed,
presented and published a lot of things can have changed either for the better or worse.
Development indicators can be manipulated, used or ignored to suit peoples needs. One
indicator may suggest an area is developed while another may suggest an area is
undeveloped.

Origins of Debt Problems Caused by Debt

The debt problems of many LEDCs started after decolonisation High levels of debt can cause
(independence). Many countries after independence were many problems, leading to a
encouraged to borrow money to invest in infrastructure spiral of decline:
projects. Money was available because: Reduced investment in
The discovery of oil and rise in oil prices in the 1970's essential services like
meant many OPEC countries had huge reserves schools and hospitals
OPEC countries invested many of their reserves in Reduced investment in
western banks infrastructure projects like
At the time low interest rates meant that poor countries roads, ports and airports
were encouraged to take large loans from western banks High levels of unemployment
Dictators of many poor countries took the borrowed the Increased taxation on
money themselves rather than investing it in their individuals and companies to
countries pay debt
Oil crisis of 1970s caused rising interest rates, such Increased reliance on aid
that loan repayments increased. Imposed reform in order to
Many currencies of LEDCs also fell in value making get debt e.g. former SAPs
repayments more expensive imposed by IMF
Lack of previous investment in the economy meant that Possible default
the countries were generating very little income.

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The factors above meant that many countries had crippling Problems of raising future
debt and started to default and were forced to take out very capital (poor credit rating)
strict loans from the IMF and World Bank.

Disparities and inequities occurring within countries

- Ethnicity: Some ethnic or religious groups can become marginalised and struggle to
escape from poverty. This might be because the political leaders are from a certain ethnic
group or tribe and they favour people from that group. Alternatively it might be immigrant
groups are discriminated against and only be able to work in the informal economy or be
exploited.
- Residence: Where you live can be very important in determining your wealth. This might
mean your residence of birth e.g. Japan or Afghanistan. If your are born in Japan you are
much more likely to be free from conflict, receive an education, enjoy a good diet, have a
roof over your house, get a job and live comfortably. However, it might also mean your
personal residence (your house). If you live in a solid house that protects you from the
weather and if you have water and electricity supplies then you are more likely to remain
fit and healthy, be able to work and be relatively well off. However, if you live in an
informal settlement e.g. a favela in Rio, then you are unlikely to have a reliable electricity
supply, or running water, or an inside toilet with sewers, or rubbish collections, or a secure
structure or even legal ownership of the land or house. Therefore, you are more likely to
suffer from ill health, be affected by natural disasters and risk eviction at any time. If this is
the case you are more unlikely to be able to work or secure loans and increase your
wealth.
- Parental education - If your parents are educated it is more likely to mean that they
have a good job and can afford all of life's needs (housing, food, etc.). If your parents are
employed it is also more likely that they can afford to send you to school, giving you a
head start in life.
- Personal education - Again if you have been educated you are more likely to get a job,
stay healthy and become wealthier. In summary people who are educated are likely to see
their income and wealth rise, while people who are illiterate won't be able to find a job or
only find a poorly paid job.
- Income: If a country or individual already has a good income or wealth it is easier to
generate more wealth. Individuals cannot only ensure that they have a good residence and
a healthy diet, they can also borrow money more easily to invest. Some organisations like
the Grammen Bank in Bangladesh are trying to improve micro-credit for poor people
so that they can start investing in their businesses and growing their wealth although not
everyone agrees it is the best solution.
- Employment
+ Formal Economy: The sector of the economy that is taxed, monitored and regulated
by the government. The formal economy is included in a country's GDP, GNP and GNI.
Informal Economy: The sector of the economy that is not taxed, monitored or
regulated by the government, it is sometimes referred to as the black market. The
informal economy includes illegal activities like the drugs and sex industry, but also
begging, shoe shining on the street or selling counterfeit DVDs.
+ Unemployment: When people don't have job.
Underemployment: When people are employed in a job below the skill/education
level they are qualified for. E.g., a trained doctor working as a security guard.
- Private ownership of land is an important factor in allowing people to grow food and
generate income. If you have land you can at a minimum live a subsistence lifestyle, but
more likely be able to sell surpluses or secure a loan against the value of land. Sometimes
females may struggle to avoid poverty because they are unable to inherit or own land.

Case Study - NYC

Life expectancy:
- Manhattan: 54% white.
- Bronx: majority black.
- Blacks have shorter life spans than whites: 3 years less in Bronx than Manhattan
Parental education:

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- In Bronx, only 20% of eligible children are enrolled in charter schools (majority white).
Income:
- Top 300,000 Americans have as much income as the bottom 150 million.
- Manhattan wealthiest of 5 boroughs: Upper East Side has 231% of citywide median
income.
- Bronx has 46% of citywide median income: Morrisania/Belmont region is 29%.
Employment:
- Unemployment much higher in Bronx (15%) compared with Manhattan (8%).
- Black and Hispanic people are often discriminated against in the work place or lack the
education and skills necessary for higher paid jobs.
- Many recent migrants also struggle with English, which hinders their chances of getting a
job.
Land Ownership:
- Bronx have to rent houses (often owned by people living in Manhattan).
- People in Manhattan often have the equity to buy a home and not have to pay out a
significant proportion of their monthly expenses on accommodation that they will never
own.

Dependency Theory (Frank, 1966)

The development of the rich world was achieved by exploitation of the developing world.
Developing countries moved into production of cash crops (coffee, tea, cocoa), which
meant that they were no longer subsistent and actually dependent on developed countries
for food imports and food aid.
The development of many countries were slowed or stopped by the arrival of colonists. He
points out that many countries were richer before colonisation than after.
Global economy is set up in favour of small number of core MDCs. Remaining countries
are satellites whose development depends on establishing subservient ties with core
countries.
Rate of development in a country depends on its relationships with other countries.
o Countries locked into unequal relationships, core countries have power to keep other
countries underdeveloped and dependent on them.
As more powerful countries exploit resources of its weaker colony, colony then becomes
more dependent upon stronger power. Goods flow from colony to support consumers in
overseas country.
o Countries become more dependent as a result of interaction and development.
Core Periphery: Manufactured goods, aid, polluting industry, political & economic ideas.
Periphery Core: Brain drain, raw materials, political support, debt repayment.
This dependency may have grown even greater since Frank produced his argument because:
Many poor countries owe large debts to developed countries or international banks.
The world is now more globalised with many developed country TNCs operating in and
possibly exploiting developing countries.
Developed countries tend to specialise in more value-added industries like banking and
manufacturing, widening the development gap even more. This can increase debt and
hamper their independence and technological development.
Many international organisations are dominated by developed countries e.g. G20, World
Bank, IMF and even the UN Security Council.
Many developing countries have now become reliant on NGO help.
Population growth is highest in developing countries so many are suffering from greater
overpopulation and are more dependent on foreign help.

Rostow Model: Supports that all countries are able to progress along the development
pathway.

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1. Traditional subsistence economy:
Agricultural basis
Little manufacturing
Few external links
Low levels of population growth (stage 1
DTM)
2. Preconditions for take-off:
External links are developed
Resources exploited, by colonies or
MNCs
Urban system developed, transport
infrastructure
Inequalities between urban core &
periphery increase
Population increasing (stage 2 DTM)
3. Take-off to sustained growth:
Economy expands rapidly, manufacturing exports
Regional inequalities intensify (multiplier effect)
Population growth: natural (most MDCs today), forced (socialist countries, e.g. Poland,
Russia) or planned (NICs).
4. Drive to maturity:
Diversification of economy
Service industry developed
Growth spreads to other regions & sectors of country
Population growth stabilises (late stage 3/early stage 4 DTM)
5. Age of high mass consumption
Advanced urban-industrial systems
High production & consumption of consumer goods, hi-tech equipment
Population growth slows (stage 4 DTM)
Criticisms:
Many countries seemed to have become stuck at stages 2&3 and can't move onto to stage
4&5.
Developed countries only reached stage 5 by exploiting countries, now making it
impossible for poorer countries to develop further.
High levels of debt and corruption mean some countries struggle to progress.
It is probably not possible for all countries to enjoy mass consumption. Some countries will
need to specialise in primary products to satisfy our demand for food and raw materials.
Because jobs in primary industries are less well paid, it will probably mean that they are as
wealthy and cannot enjoy a mass consumption lifestyle.

World Systems Theory (Wallerstein, 1970s)

Argues that a capitalist world economy is a fairly new idea, only been in existence since
the 16th Century
A number of countries forge ahead creating a core region rest of the world becomes
peripheral. Semi-peripheral area developed to bridge the gap between the two.
Periphery becomes specialist in the primary sector; core becomes specialist in the higher
value secondary and tertiary sectors.
World System theory doesn't state that countries become stuck in the periphery like
dependency theory, but can develop and therefore reduce disparities. NICs and the BRICS
countries are good example of semi-peripheral countries fast reducing the wealth
disparities.
Measuring disparities within a country

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Gini Coefficient
This is a measurement of inequalities within a
country.
A score of 0 means that there is perfect equality.
A score of 100 means that all the wealth is
owned by one person.
Countries with a high Gini coefficient tend to be in
Latin America (e.g Mexico 51.7) or Africa (e.g.
Botswana 63). Low countries tend to be MEDCs.
Nordic countries particularly low (e.g. Norway 25).
Some exceptions, e.g. USA is quite high for an
MEDC showing wide disparities within the country
(45)
Lorenz Curves
A method of measuring disparities in a country
The further away the Lorenz Curve is from the "line of perfect equality", the more income
is unevenly distributed.
If a country's Lorenz Curve is distant from the line of perfect equality, it means a small %
of the population controls most of the wealth and that the country's income distribution is
uneven.

Model that suggests disparities within a country will

widen over time (not directly on syllabus but should
be built into essays / extended answers to show
greater understanding)
Cumulative Causation
Gunnar Myrdal 1950s
Multiplier effect generated by new industry
Growth poles created with an influx of migrants,
entrepreneurs and capital, stimulating economic
growth.
Core areas would get richer and disparities would widen
in the country between rich and poor
Periphery areas would suffer from negative multiplier
effect (opposite of what is on diagram)

Model that suggests disparities within a country will lessen over time (not directly
on syllabus but should be built into essays / extended
answers to show greater understanding)
Core Periphery Model
Hirschman (1958)
Also suggested that the core and periphery areas would
develop, similar to Myrdal.
Core benefitted from virtuous cycles of development.
Periphery impeded by vicious cycles
However, the difference between Hirschman and Myrdal is that
the core periphery model describes a later trickle down effect
from the core to the periphery.
Counterbalancing forces would overcome polarisation
(backwash), eventually leading to economic equilibrium being
established.
Who was correct? Subsequent literature has favoured Hirschman over Myrdal.

Explain the changing patterns and trends of regional and global disparities in life
expectancy
Life Expectancy is the average age people are expected to live to at birth. The world's current
average life expectancy is about 70 years, but there is a huge gap between the highest
(Monaco at about 89 years) and the lowest (Angola at about 38 years). The life expectancy

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has been growing fastest in East and South East Asia and South America. Life expectancy in
Sub-Saharan Africa has been falling since 1985 due to HIV.
The world's average life expectancy has increased by about 25 years in just over 50 years.
The reasons for the increase in life expectancy include:
Improved diet and increased food production.
Better provision of clean water
Immunisation programmes to eliminate diseases like small pox and reduce others like
TB. Deaths from malaria have declined massively in recent years.
Better medical care (e.g. treatment for cancer has improved mortality rates, improved
screening for heart disease has led to more patients taking preventative steps). Anti retro-
viral drugs are keeping people with HIV alive for longer.
Improved post natal care (reduced infant and child mortality)
Better education about diet, hygiene, etc.
Despite the impressive rise in the worlds life expectancy there are some countries or regions
that have only seen very small rises or even falls. Reasons may include:
Prolonged civil war e.g. Sierra
Leone
Disease e.g. HIV in Botswana
where life expectancy has decreased
from 60 in 1985 to 39 in 2011.
Famine and drought e.g. Ethiopia
There can be differences in life
expectancy within countries. These
might be caused by:
Smoking and drinking
Government health spending
Income
Dangerous jobs (fishermen,
mining, oil drilling)
Pollution, especially in northern industrial cities like Sunderland and Sheffield
Distance from medical care.
Diet (fruit and veg / fast food)

Explain the changing patterns and trends of regional and global disparities in
education
Education is vital if countries want to reduce disparities, alleviate poverty and see an
improvement in the standard of living. Education
can be measured in numerous ways including:
Adult literacy
Percentage of university graduates
Education spending
Pupil teacher ratios
Male female education equality
Years of Schooling
The UN sees education as very important not only
is it a key measurement in their HDI, but it is also
their Millennium Development Goal number 2
(Achieve universal primary education).
The bar graph to the right does demonstrate that all regions are seeing an increase in the
average years of schooling. However, even with the increase many children in Middle Eastern
and North African countries are only receiving half as many years of education as the richest
countries and children in sub-Saharan countries are only receiving as third many years of
education.
Education is vitally important for many reasons, including:
If people can read and write they are less likely to be exploited because they know what
they are being asked to do and/or what to sign.

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 They understand the importance of family planning and can reduce fertility rates and birth
rates.
They understand the importance of health, diet and medicine. They will know how to
prevent diseases e.g. HIV and malaria, how to remain fit and healthy by eating a good diet
and how to cure diseases when sick.
They have a better chance of getting a higher paid job.
They have a better chance of being independent and
not relying on a husband/wife, their family,
community or country.
Even though the graph does show a reduction in global
disparities, differences still exist because:
Some groups in some countries oppose female
education.
Some countries are at war and youngsters and
teachers are forced to fight.
Some countries cannot afford to provide free
education for all.
In many primary industry-based countries, children are needed to work on the land.
In poorer countries children might have to contribute to family income, care for parents or
look after the family home.
There has been a huge increase in school enrolment around the world, including Sub-Saharan
Africa. Many countries, e.g. Rwanda, Tanzania have provided free schooling for all for the first
time which has resulted in a massive increase in the number of students attending school and
its consequent effect on literacy rates.

Explain the changing patterns and trends of regional and global disparities in
income
Having a good income is important because it allows people to
get an education for themselves and for their children, maintain
a healthy diet and therefore stay fit and pay for a good house
and services. In short it allows you to enjoy a positive cycle of
wealth. However, it must be remembered that we cant simply
look at peoples income and determine if they are wealthy or not.
If we looking at the UK, the highest average income are going to
be found in the SE. However, this is also the area where cost of
living is most. Therefore it might be better looking at peoples
disposable income rather than their gross income.
The diagram clearly shows that there is a massive gap between
the rich and the poor, with the richest 5 th controlling 74.1% of the
worlds wealth and the bottom 5th controlling only 1.5%. However, even though the world is
still very polarized in terms of income, many countries are seeing their national incomes
increase and are moving towards converging with some of the bigger more developed
countries. Countries like South Korea and more recently China, India, Vietnam and Indonesia
are seeing rapid and prolonged growth in income.
There has been a large increase in average incomes around the world in the last 30 years
(although this has been slowed by the current economic downturn). East and South Asia have
been the largest increases in average income. The BRIC countries (Brazil, Russia, India and
China) have seen the fastest recent increases and they are likely to be followed by other
rapidly developing economies like Vietnam and Indonesia. Sub-Saharan Africa has seen a
disproportionately small increase in income, which has led to widening disparities between
this region and the rest of the world.

MDGs
The Millennium Development Goals are eight international goals that all members of the
United Nations agreed to try and meet by 2015. The aim of the MDGs is to encourage
economic and social development in all countries (especially LEDCs). The eight Millennium
Goals are:
1. Eradicate extreme poverty and hunger

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 2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria and other diseases
7. Ensure environmental sustainability
8. Global partnership for development
You need to understand the attempts and successes of the Millennium Development Goals in
meeting three main targets:
1. Poverty Reduction
2. Education
3. Health

MDGs Poverty Reduction

The eradication of extreme poverty and hunger is Millennium Development Goal number one.
Goal no. 1 is basically two interlinked targets (Target 1. Halve, between 1990 and 2015, the
proportion of people whose income is less than $1 a day and Target 2. Halve, between 1990
and 2015, the proportion of people who suffer from
hunger). Their success will be measured by:
Indicators (Part 1 - Poverty)
1. Proportion of population below $1 (1993 PPP) per day
(World Bank)
2. Poverty gap ratio [incidence x depth of poverty]
(World Bank)
3. Share of poorest quintile in national consumption
(World Bank)
Indicators (Part 2 - Hunger)
4. Prevalence of underweight children under five years of
age (UNICEF-WHO)
5. Proportion of population below minimum level of
dietary energy consumption (FAO)
In terms of poverty the graph to the right indicates that all regions have seen a fall in absolute
poverty accept West Africa. However, apart from SE Asia and E Asia no regions have yet met
the Millennium Development Goal. Asia has seen a massive fall in poverty because of the
massive success of countries like China, India, Singapore, South Korea, Vietnam and
Indonesia.
However, even though many regions are seeing a fall in absolute poverty, rising food prices
actually mean that many people are worse off, despite being above the UN threshold. So even
though China and India will probably mean the goal is met, the growing imbalance between
food and resources will probably ensure that millions still go hungry.
In terms of hunger, there remains a huge imbalance in the distribution of food. In many
developed countries people are malnourished because they are over eating or eating
unhealthily, while in many developing countries people will remain undernourished, especially
in countries like Somalia where human and physical factors damage food production.

MDGs Education
Universal primary education is Millennium Development Goal number two (Target 3. Ensure
that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course
of primary schooling). Success measured by:
Indicators
6. Net enrolment ratio in primary education (UNESCO)
7. Proportion of pupils starting grade 1 who reach grade 5 (UNESCO)
8. Literacy rate of 15-24 year-olds (UNESCO)
The graph shows that almost every region (except CEE/CIS - East Europe and former USSR
states) has seen an increase in primary enrolment. However, even with the increase in some
regions like Sub-Saharan Africa, nearly 30% of children are not being educated. Maybe more
encouraging is the graph to the right that shows the equality between female and male
education is improving. Apart from Oceania and East Asia every region has seen a
convergence to equality between males and females. Again though it can still be argued that

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even though gap is dropping, it is still too high because 55% of people who receive no
education are females.
Recent UN research all suggests that youth
literacy is improving globally. This is important
because it shows that they received an
education and should allow them to get a better
job and higher income and therefore be able to
support their children and send them to school.

MDGs Health
Goal 4 (Target and Indicators) - Reduce
Child Mortality
Target 5. Reduce by two-thirds, between 1990
and 2015, the under-five mortality rate.
Indicators
13. Under-five mortality rate (UNICEF-WHO)
14. Infant mortality rate (UNICEF-WHO)
15. Proportion of 1 year-old children immunized
against measles (UNICEF-WHO)
There has been significant success in meeting this goal. All regions of the world have seen a
fall in child mortality rates. However, it must be remembered that because some regions have
got such high birth rates and fertility rates the absolute number of child deaths has not
decreased e.g. Sub-Saharan Africa. It must also be remembered that roughly 21,000 children
die everyday because of preventable diseases. The decrease has been achieved by:
Improving immunisation programmes
Improving parental education and providing pre and post natal care
More females giving birth in hospitals or with trained medical staff
Breast feeding and vitamin supplements
Insect repellent bed nets
Goal 6 (Target and Indicators) - Combat HIV/AIDS, Malaria and other diseases
Target 7. Have halted by 2015 and begun to reverse the spread of HIV/AIDS
Indicators
18. HIV prevalence among pregnant women aged 15-24 years (UNAIDS-WHO-UNICEF)
19. Condom use rate of the contraceptive prevalence rate (UN Population Division)
19a. Condom use at last high-risk sex (UNICEF-WHO)
19b. Percentage of population aged 15-24 years with comprehensive correct knowledge of
HIV/AIDS (UNICEF-WHO)
19c. Contraceptive prevalence rate (UN Population Division)
20. Ratio of school attendance of orphans to school attendance of non-orphans aged 10-14
years (UNICEF-UNAIDS-WHO)
Target 8. Have halted by 2015 and begun to reverse the incidence of malaria and other
major diseases
Indicators
21. Prevalence and death rates associated with malaria (WHO)
22. Proportion of population in malaria-risk areas using effective malaria prevention and
treatment measures (UNICEF-WHO)
23. Prevalence and death rates associated with tuberculosis (WHO)
24. Proportion of tuberculosis cases detected and cured under DOTS (internationally
recommended TB control strategy) (WHO)
Even though the overall number of people living with HIV is increasing, the actual number of
new cases is decreasing, along with the number of AIDS deaths. The reason that the this is
occurring is that people with HIV are now surviving longer due to increased access to Anti-
Retro Viral drugs (ARVs) However, the news is not all good, because in some regions like
Eastern Europe and Central America the number of HIV infections is increasing.
The key to reducing HIV infection rates is to:

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 Improve availability of condoms
Improve knowledge of how HIV is
transmitted
Improve testing
Ensure all blood for medical use is tested
Reduce transmission between mother
and baby
Key to improve health is targeting education.
Many countries with high HIV infection rates also
have poor levels of literacy. It is therefore very
important to target education at an accessible level
e.g. posters, theatre groups, community meetings,
etc. The spread of HIV appears to have stabilized in most regions, and more people are
surviving longer. Sub-Saharan Africa remains the most heavily affected region, accounting for
72 per cent of all new HIV infections in 2008. Many young people still lack the knowledge to
protect themselves against HIV. In sub-Saharan Africa, knowledge of HIV increases with wealth
and among those living in urban areas. The rate of new HIV infections continues to outstrip
the expansion of treatment. The 3 by 5 initiativea global effort to provide 3 million people in
low- and middle-income countries with antiretroviral therapy by 2005was launched in 2003.
At the time, an estimated 400,000 people were receiving this life-prolonging treatment. Five
years later, by December 2008, that figure had increased 10-foldto approximately 4 million
people an increase of over 1 million people from the previous year alone.
There have also been significant successes in reducing malarial deaths. Probably the biggest
reason is increasing the number of children sleeping under mosquito nets. However, to
eliminate malaria deaths, malaria testing will have to increase along with affordability and
availability of malaria drugs. Living conditions and the removal of stagnant standing water will
also have to be improved. Half the worlds population is at risk of malaria, and an estimated
243 million cases led to nearly 863,000 deaths in 2008. Production of insecticide-treated
mosquito nets soars, e.g. in Kenya 3% of children slept under a mosquito net in 2000. In 2008
it was 46%.

Reducing Disparities Trade & Market Access

Many people argue that the best way to alleviate poverty and reduce disparities is to promote
global trade. This argument has grown even stronger after the forces of Capitalism effectively
defeated the ideas of Communism. However, despite improvements in transport and
communication, global growth and are a more cultural interconnected planet, many countries
still struggle to trade freely. One of the biggest barriers to free and open trade is protectionist
policies carried out by developed nations.

Trade: The exchange of goods and/or services. The exchange may be for other goods and/or
services but is normally for money.
Trading bloc: A group of countries that have joined together to promote trade. This might be
through relaxing protectionist barriers or even having a common currency. Examples of
trading blocs include the EU, NAFTA and ASEAN.
Exports: Goods and/or services produced within a country and then sold overseas.
Imports: Goods and/or services purchased overseas and brought into a country.
Sanctions: Sanctions are restrictions placed on a country's trading. For example after Kuwait
was invaded by Iraq, Iraq was not allowed to buy any military goods or weapons. This sanction
was enforced by the UN.
Protectionism: Attempts to protect domestic markets by making foreign goods less
competitive. This is most commonly done through tariffs and quotas placed on foreign goods
and subsidies given to domestic goods.
Embargo: an official ban on trade or other commercial activity with a particular country.
Tariffs: Tax/duties placed on imported products to make them more expensive and reduce
demand for them.
Quotas: A limit placed on foreign goods to reduce the supply of them, therefore forcing the
price up reducing the demand for them.
Subsidies: Financial help given to companies to make their production costs less. This might

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be through grants, or the reduction of taxes, relaxed planning control or below marked price
electricity and water. The aim of subsidies is to make products cheaper and to protect them
from overseas competition.
Free trade: allows a country to trade competitively with another country, with no restrictions.
WTO: The World Trade Organisation is an organisation aimed at protecting free global trade. It
replaced GATT in 1995 and has 153 members. To join the WTO you have to demonstrate how
your country promotes and practices free trade.
Fair trade: Trade that attempts to be socially, economically & socially responsible to address
the failings of the global trading system.
Balance of trade surplus: When the value of your exports is greater than the value of your
imports.
Balance of trade deficit: When the value of your imports is greater than the value of your
exports.
FDI: Foreign direct investment is money invested in a foreign country by TNCs or other
countries.
TNC: A transnational corporation is a company that operates in multiple countries.
Microcredit: Small loans that are given to people that normally struggle to get credit from
normal banks. The pioneer of microcredit was Grameen Bank in Bangladesh.
Free trade zones (Export processing zones or Enterprise zones): A zone or area where
tariffs and quotas may be waivered, taxes lowered, planning relaxed and bureaucracy eased
to try and encourage investment and FDI.
Many countries who have developed in recent years (e.g. China, South Korea have developed
through a focus on trade. This has enabled the countries as a whole to have a higher income
and it has had resulting positive implications on the development of the countries.
Many poorer countries in the world are prevented from developing by protectionist measures
by MEDCs, particularly aimed at secondary manufactured products. This results in many
LEDCs being unable to develop a manufacturing base, as trade barriers are so restrictive for
secondary products that they cannot export them. Increasing free trade would enable many of
these countries to develop a manufacturing industry and improve the development of the
country.

BENEFITS OF FREE TRADE BENEFITS OF PROTECTIONISM

Gives local companies a chance to TNCs may take over local producers e.g.
become global companies (TNC) Walmart moving into El Salvador and taking
Countries who participate in free trade over local supermarkets
grow faster Workers are often exploited by TNCs and paid
Protectionism makes products more low wages for long hours
expensive and may stop normal citizens Countries may become dependent on foreign
from buying them e.g. cars in El Salvador countries imports e.g. Europe relies on
are very expensive because of import Russian gas
duties Countries may become reliant on foreign
Local companies can create pollution just workers e.g. UAE rely on European, South
as much as TNCs and may not have the Asian and Filipino workers
money to clean up accidents e.g. BP Producing locally should reduce transport
created a huge spill but had the finances costs and certainly reduce air miles
to clean up Local companies will use more appropriate
Mexico has increased its exports since technology and take greater care of the
joining NAFTA environment
Trading can improve relationships The most skilled jobs will be taken by foreign
between countries workers and may lead to
Countries with trading relationships are unemployment/underemployment
less likely to go to war Much of the profits will go overseas e.g.
Jobs are created for local workers economic leakage e.g. Hiper Piaz profits go
Workers may improve skill and education back to Walmart in US
level TNCS often dont care about the environment
Infrastructure like roads and ports are of other countries and may cause pollution
improved for the whole country e.g. Union Carbide in Bhopal, India

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 Laws can be put in place to protect worker Fast food franchises like Starbucks and Burger
rights King may cause local traditional restaurants
More money can be made by selling to to close
external markets rather than just Fast food restaurants may worsen peoples
domestic market diets
Residents have access to greater variety TNCs may close factories during economic
of products recessions leading to unemployment
Companies will become more competitive Countries may be forced to change policies to
and should actually lower prices suit TNCs e.g. lower taxes.
It is hard for countries to be self-sufficient
because they may lack fertile soils or
fossil fuels - they need to trade to survive
and grow

TRADE - ADVANTAGES TRADE - DISADVANTAGES

Increased trade can create domestic Many countries have protectionist policies
jobs, which increase tax revenue and that make it hard to compete.
reduce welfare costs. Many LEDCs trade in low value primary
A free trade economy may attract products that may cause them to build up a
foreign direct investment (FDI), large trade deficit.
which can create new jobs, improve Some countries lack raw materials and so
infrastructure, etc. find it hard to trade without importing large
Trade ensures that countries don't quantities of raw materials.
become dependent on other Emerging markets may be flooded with
countries or tied to other countries cheap foreign imports, destroying local
policies. businesses.
Trade is a long-term solution that TNCs can move into new emerging markets
creates jobs, income, investment and exploit resources and workers.
and training for the foreseeable TNCs can destroy local culture by flooding
future where aid tends to be short the market with foreign products e.g.
term fixes. Starbucks and McDonald's
Trade allows countries to compete on During periods of economic downturn TNCs
an equal footing with other countries will leave foreign countries first, often
around the world. Instead of being creating unemployment and leaving
dependent on others, they are shortages of products.
actually contributing to the global If the balance of trade (imports and exports)
market. This increases countries and is uneven then a large deficit may develop.
individuals self-esteem. Also countries may be effectively
It allows countries to buy and access blackmailed when the exchange is uneven
products that they don't have e.g. Russia can blackmail the Ukraine over
themselves or are unable to produce the supply of gas.
themselves. Trade can cause environmental damage e.g.
Trade can improve relations between deforestation and carbon emissions from
foreign powers transportation can cause pollution

Reducing Disparities Debt relief and Aid

Debt Relief
Even though the current news stories are all about EU and US debt, in reality many of these
countries are able to pay their debt and borrow more money as long as they make public
sector savings. Even though these countries owe much greater amounts of money than many
poor countries, it is the poorest countries that have to spend a greater percentage of their
GDP on debt repayments (debt service). Many poor countries incurred large debt burdens
after decolonisation. They received loans for governments and banks flush with money from
the Middle East oil boom. The borrowing of money did not lead to the expected growth and
soon many countries had mountains of debt. Enforced IMF structural adjustment programmes
often forced countries to sell of government assets cheaply, opened the economy to outside

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competition (often exploitation) and slashed spending on vital infrastructure projects and
services (schools and hospitals). As interest rate payments rose many countries were unable
to pay and defaulted.
During the 1990's Nicaragua in Central America had the largest per capita debt in the world.
In the late 1990's Nicaragua had a debt of $6.1 billion, which equated to about $1,300 per
capita. The government had to spend half its revenue on service debt (paying interest on
debt). So even though Nicaragua's
total debt was a fraction of the US's
it was financially in a much worse
position.

HIPC
The Heavily Indebted Poor
Countries (HIPCs) are poor
countries with high levels of debt
and poverty. As can be seen from
the map the majority of these
countries are located in Africa,
with a few in SE Asia and Latin
America. The HIPC programme was
initiated by the IMF and World Bank
in 1996 after extensive
campaigning from NGOs. Countries
were only admitted to the programme if they could prove that their debt was unsustainable.
The majority of the debt relief is coming from the IMF and World Bank.
To remain eligible for debt relief countries had to enforce anti-corruption efforts, promote
democracy and account for expenditure.
Nicaragua had unsustainable debt and therefore became eligible to HIPC status. In 2000
Nicaragua received debt relief of nearly $4.5 billion reducing its debt burden as a percentage
of export earnings to below 150% and its annual debt service to below 9% of government
expenditure.

Jubilee 2000
The Jubilee 2000 campaign was a coalition of 40 countries calling for the end of third world
debt. The aim of the campaign was to wipe out $90 billion in debt owed by the world's poorest
countries to some of the world's richest countries and international banks.
Although the Jubilee 2000 coalition was started at the turn of the millennium they still
campaign for the cancellation of debt. Most recently they have campaigned to have Haiti's
debt cancelled after the devastating earthquake of 2010. Haiti was already one of the poorest
nations in the western hemisphere after the earthquake it lost most of the means to service
its debt.

Aid
Emergency aid: Help that is given to a country that is suffering from a natural disaster or
conflict. Emergency aid may include food, water, tents, clothing or even rescue teams to look
for victims of natural disasters.
Development aid: Aid that is given to benefit the country. This might be money given to
build a new road or port to improve infrastructure or money given to build a new hospital or
school to benefit the people of a country.
Tied aid: Aid that is given to a country with proviso that they spend it in a particular way or
follow a particular policy.
Untied aid: Aid that is given to a country with no policy or spending requirements attached.
Multilateral aid: Aid that is given by multiple donors to a specific country. Multilateral aid
may be collected by an NGO or a UN organisation e.g. UNHCR.
Bilateral aid: Aid that is given by one country directly to another country.
NGOs: Non-governmental organisations have no connections with national governments.
They are usually charitable organisations that aim to benefit local communities and support
the development of countries.
World Bank: charged with helping developing nations.

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IMF: the International Monetary Fund aims to stabilise currencies and support weak
economies.
SAPs: Structural Adjustment Programmes were implemented by the IMF. Aid or loans was
usually dependent on countries following SAPs. SAPs aimed to cut social expenditure,
liberalise trade, privatise assets and reduce corruption. Unfortunately many of the policies
were criticised because they ended up favouring MEDCs and TNCs who were able to obtain
favourable trading terms and purchase undervalued government assets.

AID ADVANTAGES AID DISADVANTAGES

After a natural disaster, food Countries can become dependent on money given by
and medical aid can be vital foreign donors instead of developing their own economy
in saving lives and cannot to become independent.
always be provided by the Aid money does not always reach the most needy and
affected government. instead is taken by corrupt officials. Some aid like
Aid can help build expensive medicine can also get help up by bureaucracy and
infrastructure products that actually be out of date by the time it reaches the intended
wouldn't normally be built e.g. recipients. Kleptocratic (corrupt) governments may also
new roads, ports, irrigation take money for themselves and not give it to the people
projects or HEP stations. that need it.
Can help build schools and Tied aid can force countries to carry out policies that
hospitals that improve the are not necessarily beneficial to the country. Also many of
health and education of local the contracts might go to companies from donor
populations. countries, so the receiving country is not receiving the full
Many aid agencies employ benefit in terms of jobs, training and income. The IMF had
local workers to carry out structural adjustment programmes that forced countries
projects. This not only creates to make harmful economic changes in order to get loans.
employment but also teaches Food aid or worse food dumping, can force local food
local new skills. This is production to collapse. Often food is dumped when it is
especially true of bottom-up not needed. This undercuts the local food market and
aid where locals are fully takes local farmers out of business.
involved and make all key Aid may stop because of political changes in donor
decisions. country or receiving country or because of economic
Many charities provide downturns. However, the UK has protected its
education about hygiene, diet development budget in the current economic downturn.
and health. These schemes Aid might fund inappropriate and/or harmful
are not creating dependency, technologies that cannot be sustained after aid has been
because they are not removed e.g. Nuclear power. Other projects like roads and
necessarily giving money, but dams can cause large-scale environmental problems.
do improve the well-being of Aid sometimes takes the forms of loans, which can
societies. lead to high levels of debt. Many African countries
borrowed large amounts of money off the IMF and World
Bank and now have huge debt problems.

Difference Between Top-down development and Bottom-up development

Top-down Development (inappropriate): Bottom-up Development (appropriate
Development that is led by international technology): Development that is run by local
organisations who dictate and implement communities for the benefit of the community
policies and schemes with little local input.
Usually large scale policies or schemes Usually small scale initiatives
Usually carried out by governments or Involves more local communities and
international organisations local workers. The schemes are usually
Work is often carried out by outside led by the local people themselves
contractors Projects are often labour intensive and
Schemes usually have plenty of funding. for the benefit of the local community
Often quick to respond after natural e.g building a well or repairing irrigation
disasters ditches.
Local people are often not consulted in Funds are very limited

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 decision-making Teach local people new skills
Schemes are not always appropriate and Schemes are appropriate and
not always sustainable long-term sustainable long-term.
because of lack of local knowledge.

Increasingly bottom-up approaches are being favoured because they reduce the chances of
corruption, involve, train and educate local people and are sustainable because they have
been built with the support and input of local people. However, top-down aid is still very
important to respond to natural disasters and conflicts where local organisations and
communities don't have the technology,
equipment or money to help.
Reducing Disparities Remittances
Remittances: Money that is sent back to family
and friends from economic migrants, usually
living abroad.
Economic migrants: People that migrate to a
different location (sometimes a different country)
for the purpose of finding improved job prospects.
Remittances
As can be seen from the graph to the right
remittances can make a significant contribution
to many countries overall income. El Salvador
received the equivalent of 20% of its GDP from
Salvadorians living abroad, mainly in the US. El
Salvador is a Central American Country with a population of just over 6 million people and a
population density of about 290 per km2 (the highest in Central America). It has a GDP per
capita of about $7000 but close to 40% people live below the poverty line. Official
unemployment is just over 7%, but the true figure is probably much higher. Because of the
high levels of poverty an estimated two million Salvadorians have migrated abroad, mostly to
the US. The exact figure is unknown because many migrants travel illegally. With its two
million migrants living abroad, it is estimated that El Salvador receives about $4 billion in
remittances every year, but yet again this figure could be higher because of money returning
through unofficial channels.

Advantages of Remittances Disadvantages of Remittances and Migration

and Migration
Reduces unemployment Remittances fall during economic downturn. This is
Reduces pressure on schools probably the time remittances are most needed
and hospitals (if migrants take It can create dependency i.e. a family relying on one or
children) two members living abroad
Reduces pressure on Creates family division and family pressure/conflict
infrastructure (houses, water, (the need to provide!)
electricity, transport) Increased dependency ratio in losing country, placing
Remittances go directly to pressure on government
friends and family so enter Brain drain. Usually the youngest, most educated and
economy at local level skilled choose to leave.
Migrants can return with new Reduces incentive of government to invest in
skills (language, ICT) education and job provision
Improved relations with Migrants are open to extortion (family members may
countries (Barack Obama be threatened for money or migrants might lose money
recently visited El Salvador) on exchange rates/transfer fees)

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