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This lesson examines the relationship between globalisation and global inequality — the persistent gap in wealth, health, education and quality of life between the world's richest and poorest countries. It addresses the Edexcel Enquiry Question: "What are the consequences of globalisation for countries and different groups of people?"
Development is a multidimensional concept that encompasses economic growth, improvements in quality of life and increases in individual capabilities. Several indicators are used to measure it:
| Indicator | Definition | Strengths | Weaknesses |
|---|---|---|---|
| GDP (Gross Domestic Product) | Total value of goods and services produced within a country in one year | Widely available; allows international comparison | Does not account for income distribution, informal economy, purchasing power or non-monetary factors |
| GNI (Gross National Income) | GDP + income earned by residents abroad − income earned by foreigners within the country | Better reflects national income; used by World Bank for country classification | Still an average — masks inequality |
| GNI per capita (PPP) | GNI divided by population, adjusted for purchasing power parity | Accounts for differences in cost of living between countries | Still an average; data quality varies |
| Gini coefficient | Measures income inequality within a country (0 = perfect equality, 1 = maximum inequality) | Directly measures inequality | Does not show absolute poverty levels |
| Indicator | Components | Strengths | Weaknesses |
|---|---|---|---|
| HDI (Human Development Index) | GNI per capita (PPP), mean/expected years of schooling, life expectancy at birth | Multidimensional — goes beyond economics; easy to compare; published annually by UNDP | Does not measure inequality, environmental sustainability or political freedom; data quality issues in some countries |
| IHDI (Inequality-adjusted HDI) | HDI adjusted for inequality in each dimension | Accounts for inequality within countries | More complex; data less widely available |
| GII (Gender Inequality Index) | Reproductive health, empowerment, labour market participation | Highlights gender-specific development challenges | Focuses on specific aspects of gender inequality |
| MPI (Multidimensional Poverty Index) | Health, education, living standards (10 indicators including nutrition, sanitation, electricity, assets) | Identifies deprivation at household level; goes beyond income poverty | Data-intensive; not available for all countries |
Exam Tip: When discussing development indicators, always evaluate their strengths and weaknesses. No single indicator captures the full complexity of development. The HDI is a good composite measure but still has limitations — mention these for top marks.
The gap between the world's richest and poorest countries remains stark:
| Indicator | Richest Countries | Poorest Countries |
|---|---|---|
| GNI per capita (PPP) | Norway: ~102,000;Switzerland: 87,000 | Burundi: ~780;CentralAfricanRepublic: 1,000 |
| Life expectancy | Japan: 84.8 years; Switzerland: 83.4 years | Central African Republic: 54 years; Chad: 53 years |
| HDI | Switzerland: 0.962; Norway: 0.961 | South Sudan: 0.381; Central African Republic: 0.387 |
| Under-5 mortality | Finland: 2 per 1,000 | Somalia: 117 per 1,000; Chad: 110 per 1,000 |
Inequality also exists within countries:
Walt Whitman Rostow's Stages of Economic Growth model proposes that all countries follow the same linear path to development:
| Stage | Description |
|---|---|
| 1. Traditional Society | Subsistence agriculture, limited technology, rigid social structure |
| 2. Pre-conditions for Take-off | External demand for raw materials, development of transport and banking, agricultural surplus |
| 3. Take-off | Rapid industrialisation, urbanisation, manufacturing growth |
| 4. Drive to Maturity | Economic diversification, technological advancement, reduced poverty |
| 5. Age of High Mass Consumption | Service-based economy, high living standards, consumer society |
Strengths: Simple, accessible model; explains the development trajectory of countries like the UK, USA, South Korea.
Criticisms:
Andre Gunder Frank's dependency theory offers a radically different explanation:
Strengths: Highlights the role of power, exploitation and historical injustice in creating global inequality; explains persistent underdevelopment.
Criticisms: Overly deterministic — ignores the agency of LIC governments and people; does not explain the rapid development of NICs (South Korea, Taiwan, Singapore); some aspects of the theory are ideologically Marxist.
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