Measuring development, poverty and the development gap.
Development and Poverty
Despite remarkable global progress in reducing extreme poverty over the past few decades, hundreds of millions of people still live in conditions of severe deprivation. Understanding why some countries are rich and others are poor -- and what can be done about it -- is one of the most important questions in social science.
Why It Matters:
- Approximately 700 million people still live in extreme poverty (below USD 2.15 per day)
- Global inequality affects migration, conflict, health, and environmental sustainability
- Norway is one of the world's largest per-capita donors of development aid
- Debates about development shape international policy and human rights discourse
Learning Objectives:
- Understand different definitions and measures of development
- Identify the major causes of poverty and underdevelopment
- Analyze the legacy of colonialism on contemporary development
- Evaluate different approaches to measuring progress
Economic Development:
- Increase in GDP and GDP per capita
- Industrialisation and structural transformation
- Integration into the global economy
- Growth of formal employment and rising wages
Human Development (UNDP):
Inspired by the work of Amartya Sen and Mahbub ul Haq, the United Nations Development Programme defines development as expanding people's choices and capabilities:
- The ability to live a long and healthy life
- Access to education and knowledge
- A decent standard of living
- Political freedom and human rights
Sustainable Development:
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland Commission, 1987 -- chaired by Norwegian Prime Minister Gro Harlem Brundtland).
Amartya Sen's Capability Approach:
Indian economist and Nobel laureate Amartya Sen (born 1933) argued that development should be understood as the expansion of human freedoms and capabilities, not merely income growth. A person may have a high income but lack access to healthcare, education, or political participation -- and therefore not truly be "developed."
Measuring Development:
| Indicator | What it measures | Limitations |
|---|---|---|
| GDP per capita | Average economic output per person | Ignores inequality, environment, well-being |
| HDI | Health, education, income | Simplifies complex realities |
| Gini coefficient | Income inequality | Does not capture overall wealth or poverty |
| Multidimensional Poverty Index (MPI) | Deprivation in health, education, living standards | Data availability varies |
| Gender Inequality Index (GII) | Gender-based disparities | Does not capture all forms of discrimination |
The Development Spectrum:
Rather than a binary division between "developed" and "developing," most experts now recognise a spectrum. The World Bank classifies countries as low-income, lower-middle-income, upper-middle-income, and high-income based on Gross National Income (GNI) per capita.
In 1960, South Korea and Nigeria had similar GDP per capita levels. By 2024, South Korea's GDP per capita was approximately USD 33,000, while Nigeria's was approximately USD 2,200. How did their paths diverge so dramatically?
South Korea:
- Invested heavily in education and human capital development
- Adopted an export-oriented industrialisation strategy
- Government actively directed industrial policy, supporting key sectors (steel, electronics, automotive)
- Benefited from US economic and military support during the Cold War
- Achieved democratic governance after decades of authoritarian rule
- Companies like Samsung, Hyundai, and LG became global leaders
- Today ranks among the world's top 15 economies
Nigeria:
- Rich in natural resources (oil, natural gas, minerals)
- Experienced the "resource curse" -- oil wealth concentrated among elites while the majority remained poor
- Suffered from decades of military dictatorship and political instability
- Corruption diverted public funds away from education, healthcare, and infrastructure
- Colonial borders (drawn by Britain) created a diverse but fractured nation with ethnic and religious tensions
- Despite being Africa's largest economy, over 40% of the population lives in extreme poverty
Key Lessons:
- Natural resources alone do not guarantee development
- Investment in education and human capital is critical
- Good governance, rule of law, and anti-corruption measures matter enormously
- Historical context (colonialism, Cold War politics) shapes development trajectories
- There is no single "recipe" for development -- each country's path is unique
The "capability approach" to development, which argues that development should be measured by the expansion of human freedoms and choices rather than income alone, was developed by:
Explain the difference between "absolute poverty" and "relative poverty." Give an example of each and discuss why both concepts are important for understanding poverty in different contexts.
Poverty has multiple, interconnected causes. No single factor explains why some countries remain poor.
Historical Causes:
Colonialism:
European colonial powers (Britain, France, Spain, Portugal, the Netherlands, Belgium, Germany, Italy) controlled most of Africa, Asia, and the Americas for centuries. The legacy includes:
- Extraction of natural resources and wealth to enrich colonial powers
- Destruction of indigenous political, economic, and social structures
- Imposition of arbitrary borders that divided ethnic groups and united rival communities
- Creation of extractive institutions designed to benefit colonisers, not local populations
- Psychological and cultural damage from racism and subjugation
The Slave Trade:
The transatlantic slave trade (16th--19th centuries) forcibly removed an estimated 12.5 million Africans, devastating communities and economies across West and Central Africa.
Structural Causes:
The Debt Trap:
Many developing countries borrowed heavily in the 1970s and 1980s. When interest rates rose, they could not repay. Debt servicing consumed funds that could have been spent on education, healthcare, and infrastructure.
Unfair Trade Rules:
Agricultural subsidies in wealthy countries (EU, US) depress global prices, making it harder for farmers in developing countries to compete. Trade rules often favour industrialised nations.
Corruption and Weak Governance:
When leaders steal public funds or make decisions to benefit themselves rather than citizens, development stalls. Transparency International's Corruption Perceptions Index consistently shows a correlation between corruption and poverty.
Internal Causes:
Conflict and Instability:
War and civil conflict destroy infrastructure, displace populations, and divert resources from development.
Climate Vulnerability:
The poorest countries are often the most vulnerable to climate change (droughts, floods, rising sea levels) despite contributing least to greenhouse gas emissions.
Brain Drain:
When highly educated individuals emigrate to wealthier countries, developing nations lose the human capital they need most.
The Poverty Trap:
A vicious cycle in which poverty itself prevents escape: poor health leads to low productivity, which leads to low income, which leads to poor nutrition and education, which perpetuates poverty.
The "resource curse" refers to:
Discuss how the legacy of colonialism continues to affect developing countries today. In your answer, identify at least three specific ways in which colonial history has shaped the economic, political, or social conditions of former colonies. Use examples from at least two different regions.
Key Takeaways
Development is a multidimensional concept encompassing economic growth, human capabilities, sustainability, and freedom. It cannot be measured by GDP alone.
Amartya Sen's capability approach redefines development as the expansion of human freedoms and choices.
Absolute poverty (below a fixed minimum) and relative poverty (below the societal average) are both important for understanding deprivation.
The causes of poverty are complex and interconnected: colonial history, unfair trade structures, corruption, conflict, climate vulnerability, debt, and brain drain all contribute.
The resource curse demonstrates that natural wealth does not automatically lead to development.
Colonialism left a lasting legacy on political boundaries, economic structures, institutions, and social conditions in former colonies across Africa, Asia, and Latin America.
Key Vocabulary:
- Development -- expansion of human capabilities and economic opportunities
- Absolute poverty -- living below the minimum needed for basic survival
- Relative poverty -- having significantly less than the societal average
- Resource curse -- the paradox of resource wealth leading to poor outcomes
- Brain drain -- emigration of skilled individuals from developing countries
- Colonialism -- foreign political and economic control over another territory
Essay (300--400 words): Choose one developing country and analyze the main factors that have contributed to its current level of development. Consider historical, economic, political, and social factors. Use at least two development indicators (e.g., GDP per capita, HDI, Gini coefficient) to support your analysis.
The concept of "sustainable development" was prominently defined in the 1987 Brundtland Report. Who chaired the commission?
Dette kapitlet er skrevet av Anthropics toppmodeller (Claude Opus og Claude Fable) og er foreløpig ikke manuelt gjennomgått — kvalitetskontrollen gjøres av uavhengige KI-agenter, og innmeldte feil rettes fortløpende. Funnet en feil? Meld fra, så retter vi den. Les mer om hvordan innholdet lages.