2. Social
Social Environmental
H
Social istorical Environmental
Historical Environmental
Economic
Historical Economic
Political Economic
Political
Political
WHY ARE SOME COUNTRIES RICH
& OTHERS POOR?
S.H.E.E.P MODEL
3. 1. Social Reason
1.1. Rate of Population Growth
In LDCs (E.g. Ethiopia, Nigeria, India):
– Traditional mindsets: Large families seen as sign of
prosperity
– High Mortality due to poor healthcare have more to
ensure some live to adulthood
– Largely farming community: Need more hands to help
in fields
– High birth rate high population growth
overpopulation insufficient food & housing Low
Standard of Living
4. 1. Social Reason
1.1. Rate of Population Growth
In DCs (E.g. Norway, Japan, Singapore):
– Women more educated; more career‐minded
later marriages lower birth rate
– High Costs of Living deters large families
– Lower Population Growth more resources freed
up for development higher SOL
– Problem: Aging Population
5. 1. Social Reason
1.2 Education
In LDCs:
– Little Wealth to spend on education
– Majority of workforce in primary industries (i.e.
farming)
Low income + No schooling opportunities
– Low Standard of Living Low levels of Development
– E.g. Sierra Leone has low GDP per capita of US$548 &
low literacy rate of 29.6%
6. 1. Social Reason
1.2 Education
In DCs:
– More Wealth to build Schools & train Teachers
– Higher literacy rate More employment in
Secondary & Tertiary Industries (higher skilled jobs =
higher salaries) higher Standard of Living Brings
about Development
– E.g. Italy has a GDP per capita of US$27 119 and a
high literacy rate of 98.5%.
7. 2. Historical Reason
• Colonialism is the domination of a more
powerful country over another country.
• Dominated country: Colony
• More powerful country: Colonial power
• Reasons for Colonialism:
1. Raw materials. I.e. Angola
2. Gain control of important trade routes. I.e.
Singapore
8. 2005 UNDP Human Development Report
HDI Country HDI Value GDP per
Rank capita (US$)
012 Netherlands 0.943 29 371
Former Colonial
015 United Kingdom 0.939 27 147
Powers
027 Portugal 0.904 18 126
110 Indonesia 0.697 3 361
127 India 0.602 2 892
Former Colonies
160 Angola 0.445 2 344
11. Recall: Core‐Periphery Model
Low‐value raw
materials E.g. Cotton,
Coffee, Cocoa Technology to
Little Profit process raw
Periphery: Core:
Colonial materials
Colonies Sold at Higher
Angola Portugal
Powers Profit
Economy
grows
Core helped develop infrastructure
such as roads & railways to enable
transport of raw materials but not
education
12. 3. Economic Reason
• How a country becomes RICH? Cumulative
Causation
Multiplier Effect:
Initial development
Cumulative
of CORE results in
Causation
benefits that drive its
Increase in profit
& wages further development
Increase Wealth More
income
14. 3. Economic Reason
Backwash Effect
1.CORE grows: Attracts labour from Periphery
• Brain‐drain in Periphery country; hinders
development
2.Profits controlled in the hands of rich, little
wealth redistributed to the rest of the
population
• Backwash Effect: Flow of labour & raw
materials from the periphery to the core,
leaving the periphery at a disadvantage
18. Illustrating Spread Effect (Centrifugal Growth)
Case Study of Thailand’s Automobile Industry:
Japanese car
manufacturers
benefitted from
cheaper labour & Thailand benefitted
operating costs from the
investment:
1.Jobs creation
2.Transfer skills
and knowledge
19. 4. Environment Reason
4. 1 Presence of raw materials
– Money made from the sale of raw materials
– Used to improve infrastructure and develop the
country
– E.g. Norway (Timber: Furniture, Crude Oil: Petrol)
– Limitations: Not all countries with natural resources
are rich
– E.g. Nigeria
20. Case Study: Crude Oil in Nigeria
– Nigeria still poor despite having extracted & sold
crude oil for large sums of money.
– Reasons:
– Money used to develop urban areas & not rural areas
– Lack of good governance
Negative impacts:
– Environmental degradation
– Environment damaged from oil exploration
– Local water supplies contaminated by oil spillages &
pollution
– Poor health due to pollution
– Low SOL and QOL
21. 4. Environmental Reason
4.2 Climate
– Climate determines the type of natural vegetation
that can be grown.
– Top 10 DCs located in Temperate Climate Zone
– Low to moderate temperatures (below 00C to 340C)
– Moderate rainfall (300 – 1000mm)
– Bottom 10 LDCs located in Tropical Climate Zone
(esp. tropical grassland regions of Africa)
– High temperatures
– Low seasonal rainfall
22. 4. Environmental Reason
Why?
• Cool moist climate: Suitable for growing important
crops, E.g. Canada
• Large scale sale & export of crops allows country to
make profit Brings development
• Dry and arid climate: Droughts make it difficult to
grow crops, E.g. Mali, Ethiopia
• Seasonal rainfall: Floods destroy homes &
farmlands;
• LDCs lack money to rebuild lives & livelihoods unlike
DCs Remain Poor. E.g. Rural areas along major
rivers in China
26. 5. Political Reason
1. Political Conflicts
– Civil War in Sierra Leone since early 1990s
caused it to be one of the poorest & least
developed country (ranked 2nd last in HDI)
– Civil War in Cambodia (in 1970s)
One the other hand,
– Switzerland: high GDP of US$30 552 attributed
to long history of political stability and peace
(ranked top 7th in HDI)
27. 5. Political Reason
2. Leadership:
• Good leadership sets directions, motivate
people into action towards a common goal
• Good governance: Fair, just & honest
government
• stable and peaceful environment that attracts
foreign investors (i.e. MNCs) to set to business in the
country
• Efficient and development‐oriented
• E.g. Norway (Profit cap for petroleum co.s),
28. View YouTube video:
Blood Diamonds (National Geographic)
1. What are some of the reasons why Sierra
Leone is so poor despite having so much
natural resources?
2. How has having diamonds as a natural
resource worked against Sierra Leone?
3. Suggest ways in which they can overcome
poverty and develop.