Development - Inequality within and Between Countries By the end of the lesson you will have: Re-capped what you have learnt so far about development and indexes Learn what the Gini Co-efficient is and how to calculate it Analysed global development trends since the 1970s

Globalisation – Enquiry Question 3 What are the consequences of globalisation for global development and the physical environment and how should different players respond to its challenges? 3.7 Economic measures (both single and composite indices) of development (income per capita, economic sector balance) contrast with those focused on social development (Human Development Index (HDI), Gender Inequality Index (GII)) and environmental quality (air pollution indices). a. Economic measures (both single and composite indices) of development (income per capita, economic sector balance) contrast with those focused on social development (Human Development Index (HDI), Gender Inequality Index (GII)) and environmental quality (air pollution indices). (7) b. Trends in widening income inequality, globally and nationally (measured using the Gini Coefficient), suggest globalisation has created winners and losers for people and physical environments between and within developed, emerging and developing economies. (8) c. Contrasting trends in economic development and environmental management between global regions since 1970 indicate differential progress that can be related to the outcomes from globalisation.

Re-Cap: Development Chocolate Bar Starter Split your A4 sheet into 8 parts Write down 2 words that you can link to development from the last lesson Walk around the room and fill in the rest of your sheet – can you get a full sheet of words or concepts?

The Gini Co-Efficient The Gini Co-efficient is a useful and analytical tool that helps us to explore the economic disparity within countries. This helps us as geographers consider the scale of economic development that a country REALLY has. A Lorenz curve is a curve on a graph which helps us identify the economic inequality within a country The further the curve is away from the middle ‘line of perfect equality’ the more unequal the country is (i.e. a small amount of very rich people and the rest of the population are poorer) The Lorenz curve can then be used to calculate a ‘gini index’ number between 0 and 1. The closer the number is to 0, the more equal a country is economically between its residents. The closer the number is to 1, the less economically equal the country is A basic introduction

Step 1—Raw Data Adrian $ 90.00 Bob 15.00 Cathy 70.00 Derek 200.00 $ 90.00 Bob 15.00 Cathy 70.00 Derek 200.00 Eddie 125.00 Pupils are then to work through the worksheet to practice the skills focus for creating a Lorenz Curve and calculating the Gini Coefficient

Step 2—Arrange in Ascending Order Bob $15.00 Cathy 70.00 Adrian 90.00 Eddie 125.00 Derek 200.00

Step 3—Find Total Income Bob $ 15.00 Cathy 70.00 Adrian 90.00 Eddie 125.00 Derek 200.00 Total $500.00

Step 4-Find % of Income Bob 15.00 15/500 = 3% Cathy 70.00 70/500 = 14% 15/500 = 3% Cathy 70.00 70/500 = 14% Adrian 90.00 90/500 = 18% Eddie 125.00 125/500 = 25% Derek 200.00 200/500 = 40% Total $500.00

Step 5 – Find Cumulative % of Income Bob 3% Cathy 14% 17% Adrian 18% 35% Eddie 25% 60% Derek 40% 100%

Step 6 - Plot the Data

Step 7 – Find Area Under Lorenz Curve Trapezoid Equations Total Area = 0.33

Step 8a - Finding the Gini Coefficient Subtract Area under Lorenz Curve from .5. .5 - .33 = .17 This is the area between perfect equality and Lorenz Curve

Step 8b – Find the Gini Coefficient The Gini Coefficient is found by taking the ratio of the Area capsulated by the area of the right triangle. In this case, .17/.50 or .34. One could simply multiply by 2 The Gini Co-Efficient of this country = 0.34

Step 9a--Finding the Gini Coefficient Gini shows income disparity A high Gini shows that wealth is concentrated among a few  A low Gini shows more equitable distribution 

Unequal Economic Development since 1970 Asia has leapt over the poverty threshold with average income per capita now at $20 a day African countries remain unequal with gains being made in the Maghreb regions. North Africa remains ‘switched on’ to globalisation and will have a rise of middle class in future years Sub-Saharan Africa remains ‘switched off’ due to geographical location, conflict and poverty

Unequal Environmental Development since 1970 The transformation of 40% of the world’s terrestrial surface into productive agricultural land has led to habitat loss on a continental scale The negative environmental impacts affect the world’s poorest regions the most (East Africa)and further inequality Examples of such environmental impacts is groundwater depletion and the removal of mangrove forests TASK: Study figure 14.8 in your book and jot down some concrete examples of environmental ‘losers’

Exam Practise Using table 14.1 on page 201, describe whether there is a correlation between the human development index of a country and its gini coefficient

Exam Practise Using table 14.1 on page 201, describe whether there is a correlation between the human development index of a country and its gini coefficient In table 14.1 there initially appears to be a correlation between the HDI of a country and its gini coefficient. In high ranking HDI countries, we see the lowest gini coefficent with Sweden (ranking 12 in the HDI) having a gini coefficient of 25. In the lowest ranking HDI countries we see higher gini coefficent; Uganda (ranking 180 in the HDI) having a gini coefficient of 44. In the middle HDI countries such as Indonesia, we see a gini coefficient in between at 33. However, there are also anomalies such as Burundi which is low HDI ranking, yet has a coefficient of 33 which is lower than that of the UKs (at 34) which is a high ranking HDI country and all the middle ranking HDI countries have a lower gini coefficient than the UK.

Consolidation Complete worksheet 3.7 in your workbook

Development - Inequality within and Between Countries By the end of the lesson you will have: Re-capped what you have learnt so far about development and indexes Learn what the Gini Co-efficient is and how to calculate it Analysed global development trends since the 1970s