SAJC Cluster 1.2 Lecture 11 Notes (Development)

St. Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment H2_DEE_lecture11_2025/pg 1 Lecture 11 Development KEY QUESTIONS: i. How do levels of development vary across space? ii. How are global patterns of trade, capital and labour flows related to variations in levels of development across space? With the completion of this lecture, attached readings and tutorial, you should be able to discuss the: • variations across space in levels of development between: − macro-regions − countries within a macro-region − different places within a country • the shifts in global patterns of flows of trade, capital and labour since the 1950s Lecture Outline 11.1 Introduction 11.2 Variations Across Space in Levels of Development Between Macro-regions 11.3 Variations across Space in Levels of Development Between Countries Within a Macro-region 11.4 Variations Across Space in Levels of Development Between Places Within the Country 11.5 Shifts in Global patterns of Flows of Trade, Capital and Labour Since the 1950s 11.5.1 Changes in Flows of Trade Since the 1950s 11.5.2 Changes in Flows of Capital Since the 1950s 11.5.3 Changes in Flows of Labour Since the 1950s 11.6 Conclusion: What Is the Relationship Between Development and Patterns of Trade, Capital and Labour Flows?

St. Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment H2_DEE_lecture11_2025/pg 2 11.1 Introduction • In general usage, ‘development’ refers to ‘a process of change operating over time’. Traditionally, in the study of development of countries, this would be synonymous with their economic growth, and is seen as the process by which countries advance and become richer. But, growth in average income alone does not, however, guarantee that the full range of human needs and aspirations will be satisfied. • More updated definitions of development have departed from the traditional notion (see above) which is based only on wealth. Development is a now accepted to be wide -ranging and complex concept. It includes wealth, but it includes other important aspects of our lives too . For example, many people would consider good health to be more important than wealth. • Development can, thus, be defined as a rise in the well-being of society as a whole, as reflected in the expanded set of opportunities available to the present generation. It requires not just a rise in mean income, but that this income be distributed as equitably as possible among a population (i.e. over space) to increase the welfare of the whole of society – for example, by increasing access to food, clean water and housing, and improving standards of health and education. • Development would thus lead to greater intra-generational equity, though no particular degree of equity is specified as a target that a country should meet in order to be called ‘developed’. • In other words, contemporary notions of development have come to closely approximate the tenets of sustainable development . For this reason, when considering and discussing development in Topic 1.2, we should include the three pillars/dimensions of sustainable development. • In this lecture, we will learn that there is a reciprocal relationship between development and flows of trade, capital. This means that while flows of trade, capital and labour can influence development levels; the development levels of countries can also influence flows of trade, capital and labour. 11.2 Variations Across Space in Levels of Development Between Macro-regions • Macro-regions (as classified by World Bank) refer to East Asia and Pacific; Europe and Central Asia; Latin America and the Caribbean; Middle East and North Africa; North America; South Asia; and Sub-Saharan Africa (refer to Fig. 1). It is a geopolitical subdivision of countries.

St. Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment H2_DEE_lecture11_2025/pg 3 Fig. 1: World by Region Map • However, it is important to acknowledge that there are also exceptions and variations between macro-regions (see Fig. 3). Adopting the World Bank’s classification (see Fig. 1), o The North American and European macro-regions have high GDP per capita (indicator 5 and 6) as compared to other macro-regions. o The Sub-Saharan African and South Asian macro-regions have low GDP per capita (indicator 5 and 6) as compared to other macro-regions. o • At the global scale, differences in development levels are sometimes described in other ways . The Brandt Line is a conceptual division of the world into the ‘Global North’ and the ‘Global South’ (refer to Fig. 2). The ‘Global North’ refers to developed economies, who are often more powerful, and generally focused on the service and knowledge industries. ‘Global South’ refers to less developed or developing economies, generally focusing on agricultural and manufacturing sectors. It highlights the concentration of wealth, resources, and industrialisation in the Northern Hemisphere, particularly in Europe, North America, and parts of Asia, compared to the relative poverty and underdevelopment in much of Africa, Latin America, and parts of Asia. Fig. 2: The North-South Divide

St. Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment H2_DEE_lecture11_2025/pg 4 Fig. 3: Variations of basic indicators between different macro-regions • The variation in development between macro-regions changes over time. This can be seen from the narrowing of the gap between the G7 and the BRICS between 1995 and 2023 (see Fig. 4). o The G7 consists of seven of the world's most industrialized and economically developed nations. At present, the G7 members are Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. These countries are in the East Asia and Pacific, North America and Europe and Central Asia macro-regions. These countries have traditionally been characterized by high-income levels, advanced technology, strong financial systems, and well-established democratic institutions. They often play a significant role in shaping global economic policies. o BRICS is an association of five major emerging national economies (often regarded as LDCs). The BRICS countries are characterized by their significant influence on regional and global affairs. As mentioned earlier, the member countries are Brazil, Russia, India , China, and South Africa. They belong to the South America, Europe and Central Asia, South Asia and Sub-saharan Africa macro-regions. These nations are known for their rapid economic growth, large populations, and increasing geopolitical influence.

St. Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment H2_DEE_lecture11_2025/pg 5 Fig. 4: Development of G7 vs BRICS 11.3 Variations across Space in Levels of Development Between Countries Within a Macro-region Within a macro -region, the regional scale often reveals significant disparities in economic development among different areas or territories. These inequalities, sometimes referred to as regional imbalances, can result in spatial biases in the distribution of wealth and resources. Several factors contribute to these variations, and historical reasons, as well as geographical resources (comparative advantage), play crucial roles in shaping regional economic d isparities. Case-study: Variation in Levels of Development between Southeast Asian Countries in the East Asia and Pacific Macro-region From 1960 to 1990, Asian macro-region has become wealthier faster than other regions in the world. However, this growth has not occurred at the same pace all over the region. The unequal economic development within a macro-region, particularly in the case of the four Asian Tigers (Singapore, Hong Kong, Taiwan, and South Korea) compared to other Southeast Asian (SEA) countries, has emerged as