Development Gap Causes
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The document discusses several potential causes of the development gap between wealthy and poor nations: 1. Debt from large capital loans that poor countries have struggled to repay, making it difficult to escape poverty. However, debt is argued to be a symptom rather than a direct cause. 2. Corrupt governments that mismanage resources, as seen in countries like Kenya and Nigeria. 3. Exploitation by transnational corporations (TNCs) and colonial powers historically that prevented investments and used trade barriers to undermine economic development in poorer nations. 4. Subsidies in wealthy countries that negatively impact local production in poor countries. 5. Theories like core-periphery and economic man help
Development Gap Causes
- 1. Why is there a development gap? Discussion
- 2. Is it because of deficiencies in some parts of the world and what they may have to survive without? Any thoughts? ..\Year Folders\New courses\A2\Bridging the development gap\8 millennium goals V2.ppt 2009 UN Report on the progress made since 2000 – check this out; it will help understand causes, effects and responses http://www.un.org/millenniumgoals/pdf/MDG_Report_2009_ENG.pdf
- 3. But are these causes or mere symptoms of poverty and the development gap Perhaps we need to examine why these deficiencies are so inadequate in many parts of the world Is it due to debt, brought about by huge capital loans that poor countries have failed to service effectively? You will need to grapple with this when writing your test essay on Friday!
- 4. But is debt a cause of the development gap? Some argue debt has merely made it more difficult for countries to escape poverty – it has effectively maintained a global development gap not caused it per se What role do corrupt governments play? Think about Kenya a few years ago (What did Johan Norberg argue?) or Nigeria now? Shell has now apologised for turning a blind eye! And what about Rwanda - the genocide of the early 1990s? Or perhaps the Darfur conflict currently?
- 5. Have TNCs partly caused the gap? But how? Think back to John Pilger’s documentary and what was going on in Indonesia in 1960s. Our study of colonialism and ‘development theory’ suggests colonialists exploited their colonies - keeping them poor by preventing them from investing in home-based manufacturing and by using tariffs to prevent cheap imports. And isn’t this this going on today? How do tariffs in the US or EU keep poor countries from developing economically?
- 6. And what about the role of subsidies in rich countries? What affect do these have on local production in poor countries? There are two important theories that help understand the history behind the development gap The core and periphery theory and the theory of economic man - See pages 192 and 193 You will need to get to grips with these from a study of the text