Inequalities in world development

September 18th , 2014

S. Mahler, K. Tran (EK-BILI-GK1, Q1.1)

1 Inequalities in world development

1.1 Introduction
Development or the quality of life can be measured using the HDI (Human Development Index). The calculation of the HDI value includes life expectancy, education and
the GDP per capita. There is a huge gap between northern MEDCs (HDI > 0.9) and
southern LEDCs (HDI < 0.9).
The purposes of the HDI are firstly to measure differences within and between
countries, secondly to highlight where poverty is worst and lastly to help a country set
targets leading to improvements in the quality of life.

1.2 Causes of inequality

Inequality is caused by economic factors (accumulation of wealth leading in improvement of quality of life), by social factors, by political factors (political stability means
better economy, education, health care, etc.) and by environmental factors (fewer
catastrophes leads to higher development).

1.3 Consequences of inequality

LEDCs have, in contrast to MEDCs, a greater natural increase, a higher infant mortality rate and a shorter life expectancies. Education, health care, provision of services
is poor, the diet is insuficient. Moreover, there are more people employed in the agricultural sector than in the other ones as industrialization has not taken place there
yet. Lastly, LEDCs have a low purchasing power and a trade deficit, contrararily to
most MEDCs.

2 Sustainable development and appropriate technology

[Sustainable development should] meet the needs of the present without
compromising the ability of future generations to meet their own needs.
- United Nations

2.1 Effects of sustainable development

Sustainable development is intended to result in a plus in peoples quality of life,
meaning they are happier, physically and mentally healthier, and more educated than
without sustainable development.
Sustainable development should lead to an increase in the standard of living, which
is primarily based on the countrys economic situation.

2.2 Ways to achieve sustainable development

Encouraging economic development at a tolerable rate in order to prevent them
from debts.
Development of technology using local skills and resources and based on the local
needs.
Better resource handling:
Making use of natural resources
Development of resource a friendlier materials
Using longer lasting resources

2.3 Examples for sustainable development

Socio
a economic:
Family planning, controlling replacement rate
People and resources:
Renewable resources
Recycling
Re-afforestation
People and the environmental
Ecotourism

2.4 Ladakh, a real-life example of working sustainable defvelopment

Ladakh is a region in northern India, most of the time icy cold, dry and with a
short growing season. However, the population is growing and, in comparison to
many neighbouring regions, very wealthy. This is being achieved by using sustainable
technology.
Most of the settlements in Ladakh are located next to a river, so hydro a electric
power plants can be used to power and heat the houses. The houses themselves are
built facing south and with energy, conserving walls against the cold. The water from
the river can additionally be used to irrigate crops. In order to protect their crops
against frost, many people in Ladakh build greenhouses.

3 World trade and interdependence

As no country is capable of acquiring or producing all the goods it needs, trade is
necessary. As every country is dependent on each other, there is a so called interdependence.
If a country sells goods, that is called export. Buying goods means there is import.
The difference of export and import is called trade balance. There is a trade surplus
if the trade balance is positive and a trade deficit vice versa.

3.1 Differences between LEDCs and MEDCs

In contrast to LEDCs, MEDCs ...
mainly export manufactured goods (higher prices)
have a greater trade volume
can keep the profits at home (no multi-national companies moving their money
in their home country)
have a good internal transport system.
export a great variety of products (and are not dependent on one or two products
they export)

References
[1] D. Waugh, The New Wider World, Third edition, Nelson Thornes, 2009, 182-187