Understanding Global Development and Inequality
Measuring Development
Human Development Index (HDI)
To determine a country’s advancement, the UN considers social factors like literacy, healthcare access, life expectancy, and gender equality using the Human Development Index (HDI).
Human Poverty Index (HPI)
The Human Poverty Index (HPI) evaluates development by measuring deprivations in life expectancy, adult literacy, and standard of living.
Life Expectancy
Measures the probability of surviving to a given age, which is significantly higher in developed countries.
Adult Literacy and Standard of Living
Measured by the percentage of the population without access to safe drinking water.
Economic Contrasts
Unequal Distribution of Wealth
Gross Domestic Product (GDP), the value of goods and services produced annually, is used to measure economic development. GDP per capita is calculated by dividing GDP by the population.
Internal Inequalities and Extreme Poverty
Resource availability isn’t always the issue in rich countries. GDP per capita is a good indicator of a country’s wealth distribution.
Differences in Consumption
- Excessive consumerism in rich societies contrasts with chronic malnutrition and lack of safe water access in poor countries.
- Greater disparities exist in expensive goods and services.
- Energy consumption also varies considerably.
Differences in Healthcare
Lack of basic health education, hygiene, medical care, and access to medicine drastically increases mortality, especially infant mortality, in less developed countries.
Differences in Education
Literacy, the ability to read and write, is a key indicator of development.
Differences in the Situation of Children
Child labor is prevalent in less developed countries.
Differences in Growth Rate
Many developed countries will experience insignificant population growth in the next 50 years.
Causes of Underdevelopment
The Colonial Legacy
Many former colonies remain financially, industrially, and technologically dependent on wealthier nations.
The Technological Gap
Poor countries lack proprietary technology, hindering their development.
External Debt
Accumulated external debt burdens many poor countries, impacting their ability to secure future loans.
Population
Disease and famine have long-term consequences, including a lack of skilled labor, which hinders economic development.
Bad Governments and Armed Conflicts
Political instability, corruption, and armed conflicts devastate economies and populations, hindering development.
Differences in World Trade
While trade has fueled growth in countries like China and India, the poorest nations often face trade barriers and agricultural subsidies from developed countries, hindering their progress.
Overcoming Underdevelopment
Foreign Aid
- International organizations like the IMF provide financial assistance and debt relief.
- Direct aid from wealthy countries.
- NGOs like the Red Cross and Doctors Without Borders provide aid and support, funded by individuals, governments, and businesses.
Effective Government Management
Organizations like the World Bank and the EU provide aid contingent on good governance, reduced corruption, and economic reforms.
Changes in the Organization of Trade
The World Trade Organization (WTO) regulates international trade. Fairer trade practices, including reduced import taxes and agricultural subsidies, are crucial for developing countries.
Poverty and Exclusion in the EU
The “fourth world” comprises 17% of the EU population living in poverty.
The Poor
Defined as those living below 60% of the national average income, the concept of poverty varies across countries.
Social Exclusion
Individuals facing homelessness, addiction, long-term unemployment, low-paying jobs, inadequate pensions, and illegal immigration often experience social exclusion and limited access to resources.