The development gap between countries and regions The factors that affect economic development A developed economy A region of industrial decline A comparison of two regions with uneven distribution of economic activities A developing economy and the impact of colonialism on its economic development Global injustice 2 Levels of Economic Development

Factors that affect economic development:  Physical: location, raw materials, and landscape and climate  Social and cultural: education, migration and standard of living  Political: political instability, EU policy and national policy Chapter 2: Levels of Economic Development

France  A developed economy:  One of world’s wealthiest and most developed economies  Population over 65 million  High standard of living  Scores highly on the HDI  2010 scored 0.872, 14th position  High human development, literacy and life expectancy rates Chapter 2: Levels of Economic Development

France  Footloose industries:  Peripheral regions  Science parks (technopoles)  Provence-Alpe-Cote-d’Azur (PACA): telecommunications, electronics, computer software, healthcare  Factors: transport, telecommunications, education, hydro-power Chapter 2: Levels of Economic Development

France  Mass tourism:  Developed in the 1960s  World’s most popular tourist destination  77 million visitors in 2010  6 per cent income  Major employer  Attractions: cultural cities, mountain ranges, Mediterranean coastlines, skiing, religious sites  Paris: most visited city in the world  Attractions: Eiffel Tower, Louvre Museum, Palace of Versailles, Disneyland Paris Chapter 2: Levels of Economic Development

France  Industrial decline – Nord-Pas-de-Calais:  19th century: major industrial region  Coal supplies valuable resource  Coal mining, steel mills and textile industries developed  From 1960s: rapid economic decline  Coal mines closed, iron and steel industries declined and textile industry declined  High unemployment and outward migration  Since 1990s: government and EU funding  Transport networks and new growth industries Chapter 2: Levels of Economic Development

Sambre-Meuse Valley – An area of industrial decline:  Core region  Now area of industrial decline  Factors: physical, social, cultural and political  Rapid development: large coalfields, markets, accessible, migrant workers  Industrial decline: coal supplies exhausted, cheaper coal, oil and gas, productivity fell, costs increased, new technologies, heavy industries declined  Result: Jobs losses, high unemployment, outward migration, pollution  Economic revival: local and EU investment, infrastructure, communications, industrial estates, retraining, landscape cleaned Chapter 2: Levels of Economic Development

Colonialism  15th century: modern colonialism  16th and 19th centuries: colonies in Africa, Asia and the Americas  Main colonial empires: France and Britain  Others: Spain, Portugal, Germany and the Netherlands Chapter 2: Levels of Economic Development

Colonialism (continued)  Features of colonialism:  Raw materials exploited  Exports: local industry and manufacturing run down  Plantation crops: low prices, replaced local produce  Not self-sufficient, became dependent Chapter 2: Levels of Economic Development

Colonialism (continued)  Colonial powers: wealthy  Colonies: poor and under-developed  Following colonialism:  Neo-colonialism still economically reliant  Economic development affected

India  Before colonialism:  Rich raw materials  Craft industries, e.g. textiles  Self-sufficient, economically independent, well-developed internal trade network  1700: share of world income was 22.6 per cent  1952: share of world income was 3.8 per cent Chapter 2: Levels of Economic Development

India  Impact of colonialism:  Plantation crops replaced local crops  Exports: tea, cotton, spices and jute  Local industries suppressed  British exports: high prices  High taxes  Economic growth concentrated in port cities, e.g. Madras Chapter 2: Levels of Economic Development

India  Post-colonial India  Independence 1947: Rebuild economy  Domestic policy: protect the Indian economy  Replace imports with domestic production  Economic intervention, regulation, central planning Chapter 2: Levels of Economic Development

India  Five-year plans  1990s: tax reforms, free trade policy  Foreign investment: pharmaceuticals, manufacturing, IT  Low-cost, well-educated workforce  Multi-national corporations (MNCs)  Exports of goods and services  Challenges: uneven distribution, income inequalities, unemployment, extreme poverty Chapter 2: Levels of Economic Development