3. Solutions to the development gap

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3. Sustainable solutions for the Development Gap Learning outcomes: you should be able to: · understand the benefits of appropriate technology o CASE STUDY: ___________________________________________________ investigate and evaluate one case study from an LEDC of a sustainable project that uses appropriate technology, and describe and explain how it aims to use technology to progress economic, environmental and social improvements · understand Fair Trade and the advantages it brings to LEDCs o CASE STUDY: The Fair Trade Organisation - describe one named strategy that is attempting to reduce the global development gap and explain how it attempts to do so, identifying: − the organisation & the core aims of its strategy; − the action(s) taken. · demonstrate knowledge and understanding of aid (both long and short term) and evaluate how aid (bilateral, multilateral, voluntary and tied) brings both benefits and problems to LEDCs (with reference to places for illustration purposes only) Key Terms

We live in an unequal world, a world were many billions are consigned to a live of poverty through no other reason than an accident of birth. But we are also confronted time after time by organisations and relief efforts that encourage us, that dare us, to believe that it does not have to be this way. They dare us to dream of a fairer world, a better world. And they call us to play our part. So what can we do? In this last section of this topic we’ll look at just these kinds of issues. We’ll look at some of the steps being taken to make the world a better place for the billions living in poverty. And we’ll look at the part we can play in making it happen.

Sustainable development

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


3.1 Appropriate technology If you’re a guy, I wonder how you would go about impressing that girl of your dreams? If you’re a girl, I wonder what a guy could do to impress you? Whatever you’re thinking, one thing I can be pretty sure of is that you’ll not follow the advice of the Wurzels, one of the (thankfully) lesser known bands of the 1970s. For, in their 1976 hit song, the lead singer serenaded the love of his life with the following classic lines: I’ve got a brand new combine harvester and I’ll give you the key I’ve got twenty acres, you’ve got forty three, So I’ve got a brand new combined harvester and I’ll give you the key. I’m guessing that for most of the girls, that’s not really going to be the key to your heart. Bottom line is: if you’re trying to impress a girl, the giving of assorted large scale farm machinery isn’t going to cut it - it’s just not appropriate. And now, here comes the tenuous link: if you wanted to achieve sustainable development in underdeveloped rural areas in LEDCs, then sending out a massive combine harvester would not be appropriate either. Why not? What would be the problems of using one of these in remote rural areas in central Africa?

Appropriate technology is

The main benefits of using appropriate technology are:

Example: appropriate technology in Darfur, Sudan The people of the Darfur region were mostly refugees who had fled persecution and were living in tents in refugee camps. They had next to no money or resources and were in desperate need of help. Aid agency ITDG were also desperate to come up with a solution… ‘The people in Darfur thought they had tried everything. The soil was heavy, the climate unforgiving. Too poor to afford camels for ploughing, they worked the land the hard way: by hand. They could only watch as their crops failed and their children suffered.’ ITDG worked with the people to help them develop some appropriate technology using locally available resources to help them in their situation. Here’s how:

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


(i)

Briefly describe how the donkey plough is made. _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________

(ii) (iii)

State how much the crop yields can increase by when using a donkey plough. __________ Explain how the donkey plough is an example of appropriate technology. (Tips: explain why it is better than what they were doing, and also better than bringing out tractors to Darfur). _______________________________________________________________________________ _______________________________________________________________________________ ______________________________________________________________________________

(iv)

State the benefits of this plough: o To the local environment _______________________________________________________ ___________________________________________________________________________

_______________________________________________________________________________ o

To the local people (social benefits) ______________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

As well as being used for humanitarian aid as in the above example, appropriate technology can also be used for longer terms development, as we will see in the next case study.

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


Fog harvesting in Chungungo, N. Chile A sustainable development project using appropriate technology

The problem Chungungo is a village situated on the coastline of northern Chile, beside the ____________ Desert. This desert is the driest desert in the world, and water supply has been a significant issue for as long as people have lived in this area. Chungungo gets on average 60mm of rain/year. So, up until 1992, the village’s water supply had to be brought in from inland by road in tankers. This meant the supply was limited (15 litres/day/person) and unreliable.

The sustainable development solution Although the area is very dry with next to no precipitation, fog sweeps in off the Pacific Ocean on average 200 afternoons a year. In the hills above Chungungo, 100 large nets have been placed to harvest water from the fog! Droplets of fog are deposited onto the nets, drip into gutters and are thus carried downhill to a storage tank in the village.

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


Evaluation: does this appropriate technology lead to sustainable development? Sustainable development occurs when benefits result for ____________________________________ i.

Social benefits - When the nets were set up, they brought on average 170,000 litres of water to the village each day. This allowed the villagers to double their daily water consumption to 30 litres/person. In the first 10 years of the fog collecting operation, the village grew in size from 300 to over 600 permanent residents, with a population of several thousands in the summer. This effectively reversed the out-migration from the village to the large cities, allowing the village to remain viable as a community.

ii. Economic benefits – the water has been used for irrigation purposes, allowing the villagers of Chungungo to grow additional crops, increasing average income in the village by on average 50% over its first 10 years. In addition, some of the money saved by the use of the fog collectors allowed further infrastructural investments in the village, notably an electricity and gas pump for the villagers. Also, the scheme has been so successful that there are some plans to divert some of the water to the east to the dry area known as the cuenca to use for agriculture there, further expanding the economy of the region. iii. Environmental benefits – the main environmental benefits are: o The amount of water taken out of the fog is so tiny, and it is used where it is collected, so it does not damage the delicate ecosystem of the area. o The fog is a renewable source, coming on average _____ afternoons a year. In addition, there are plans to use some of the water harvested to support the planting of a forest in the El Tofo ridge. All in all, this use of appropriate technology has been a largely successful in ensuring sustainable development for the people of Chungungo.

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


3.2 Fair Trade Thanks to Fair Trade, we get a higher price when we sell our coffee. This means that our community has been able to pay a doctor who will give treatment to our members. The price difference has meant that I can afford more food for my family and send my children to school properly equipped with books for the first time. Celestina from Tanzania As we have seen, although we in the MEDCs are connected by world trade to ordinary people in LEDCs, those connections are governed by a system that disadvantages LEDCs. But what if the rules were to be changed? What if people in LEDCs were given a better deal in the global trading system? That’s what Fair Trade seeks to do.

Grower in LEDC

Buyer in MEDC

Fair Trade is an alternative approach to conventional trade and is based on a partnership between producers and consumers. Fair Trade offers producers a better deal and improved terms of trade. This allows them the opportunity to improve their lives and plan for their future. Fair Trade offers consumers a powerful way to reduce poverty through their every day shopping.

What advantages does Fair Trade bring to farmers in LEDCs? There are three sets of benefits resulting from Fair Trade for people in LEDCs:

(i) Fair Trade Standards protect the rights of people in LEDCs There are two distinct sets of Fair Trade standards. One set of standards applies to small scale farmers who are working together in co-operatives. The other set applies to workers, whose employers pay decent wages, guarantee the right to join trade unions, ensure health and safety standards and provide adequate housing where relevant.

(ii) Fair Trade guarantees a minimum price for producers Farmers are guaranteed a minimum price for their product which will never dip below the market price. This price acts as a safety net for farmers at times when world markets fall below a sustainable level. Without this, farmers are completely at the mercy of the market.

(iii) The Fair Trade Premium provides money for social & environmental development In addition to the Fair Trade price, there is an additional sum of money, called the Fair Trade Premium. This money goes into a communal fund for workers and farmers to use to improve their social, economic and environmental conditions. The use of this additional income is decided upon democratically by producers within the farmers’ organization, or by workers on a plantation. The premium is invested in education and healthcare, farm improvements to increase yield and quality, or processing facilities to increase income.

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


What advantages does Fair Trade bring to people in MEDCs? Use the text book p178. In your own words, summarise the benefits of Fair Trade to MEDCs discussed in the first and third bullet points.

The Fairtrade Foundation One named strategy that is attempting to reduce the global development gap

A. The organisation & its core aims The Fairtrade Foundation is the independent non-profit organisation that licenses use of the FAIRTRADE Mark on products in the UK in accordance with internationally agreed Fairtrade standards. The Foundation was established in 1992 by a range of charities such as Oxfam and Christian Aid. According to the Fairtrade Foundation website, its core aim is: Fairtrade Foundation Aims Our vision is of a world in which justice and sustainable development are at the heart of trade structures and practices so that everyone, through their work, can maintain a decent and dignified livelihood and develop their full potential.

Aims translated into everyday English!!

To achieve this vision, Fairtrade seeks to transform trading structures and practices in favour of the poor and disadvantaged. By facilitating trading partnerships based on equity and transparency, Fairtrade contributes to sustainable development for marginalised producers, workers and their communities. Through demonstration of alternatives to conventional trade and other forms of advocacy, the Fairtrade movement empowers citizens to campaign for an international trade system based on justice and fairness. Adapted from www.fairtrade.org

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


B. The strategies adopted The Fairtrade Foundation has a number of key areas of activity designed to promote fair trade: 1. Providing an independent certification of the trade chain, licensing use of the FAIRTRADE Mark as a consumer guarantee on products. When a company wants to register one of its products as fair trade, a Fairtrade liason officer will assist them with the application process. In addition, certifiers based all over the world visit the producers in LEDCs to make sure the fair trade standards are being met. 2. Raising public awareness of the need for Fairtrade and the importance of the FAIRTRADE Mark and so helping the market for Fairtrade in MEDCs to grow in demand. UK Fair Trade Sales (millions) 800

700

600 Other: Cotton:

Value (£ million)

500

Wine: Flow ers:

400

Bananas: Honey products: Chocolate/cocoa:

300

Tea: Coffee:

200

100

0 1998

· ·

1999

2000

2001

2002

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2008

Add annotation to the graph to show (i) the changes in the total value of fair trade product sales (ii) the change in the range of fair trade products on offer. Use the graph and the info in the texts boxes to assess how successful has the Fairtrade Foundation been in fulfilling its second area of activity (again add annotation to the graph). I represent producers in Africa. The increased sales is great news for our members. The Fair Trade Premium has enabled members to build new schools, provide clean water and improve health for their communities. However more is needed. Poverty remains the major challenge for producers in Africa. Some groups are still selling just a small percentage of their produce to Fairtrade. It is crucial to grow the Fairtrade market so that these producers can benefit more from Fairtrade sales. Raymond Kimaro, Chairman of the African Fairtrade Network (AFN)

The phenomenal growth of Fairtrade demonstrates the groundswell of consumer support for Fairtrade. With global sales worth over Euro 1.6 billion Fairtrade has come of age. For producers Fairtrade represents the difference between just surviving, and their ability to invest in their present and plan for their future. But we are not complacent. There are many producers who are yet to benefit from the Fairtrade market. We must grow the market further if we are to expand and deepen the impact for producers. Rob Cameron, Chief Executive Officer (CEO)

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


1. Study the graph which shows the price of rice over a 20 year period from 1984 to 2004. Answer the questions which follow.

(i) Using the graph, explain why organisations like the Fairtrade Foundation can help farmers in LEDCs. ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________ (6)

(ii) Describe what the Fair Trade Premium is and briefly outline the rules governing how it should be used. ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ___________________________________________________________________________________ (4)

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


2. Study the map which shows the countries across the world that certify fair trade products and those which produce them. Answer the questions which follow.

(i) Describe the pattern shown on the map. ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ____________________________________________________________________________________ (3)

(ii) To what extent does this map and the statistics show that fair trade is helping development in LEDCs? ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ____________________________________________________________________________________ (4)

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


3.3 Aid - benefits & challenges to LEDCs As we have discovered through this topic (especially in the President for a Day exercise), lack of money for investment can be one of the major blockages stopping some LEDCs from developing. This is where aid can help as money is given by MEDCs to promote growth and development in LEDCs. In this section we will examine: · the types and sources of aid · why it is given and what it is used for · how it helps – and hinders (!) – development in LEDCs

A. What are the different types and sources of aid? Aid is any form of assistance given by one country or organisation to another country (usually an LEDC). So it can be in the form of: · money – grants (which do not have to be repaid) or loans (which do have to be repaid) · expertise – people who have skills or knowledge that can help development · goods – food, technology or equipment Aid comes from the following sources: Bilateral sources – i.e. one country directly to another. Most of the aid given is in this form.

Multi-lateral sources - i.e. many donor countries contribute to international organisations such as the World Bank who them distribute the aid to many receiver countries.

NGOs (non-governmental organisations) such as Oxfam and Christian Aid, which are charity organisations that raise money and distribute it directly to specific projects in many LEDCs across the world.

Text

B. Why is aid given? ·

· ·

Political/strategic reasons – aid is given to support countries who are your allies. For example, during the first Gulf War in 1990, Egypt supported the US-led coalition against Saddam. In return, the US increased aid to Egypt (as well as cancelling a significant portion of its debt). Economic reasons – aid can be used to generate economic activity in both the donor and recipient countries. For example, see the notes on the Victoria Dam in Sri Lanka on the next page. Moral reasons – for example, the lead given by Tony Blair in the G8 summit in summer of 2005, where the G8 nations managed to reach an agreement to increase aid to Africa by $50 billion.

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


C. What are the impacts of aid? i. Positive impacts Humanitarian aid – the most straightforward form of aid is that which is given in response to natural disasters such as earthquakes, floods or famine. Its objectives are simple (keep people from dying and help them get their lives back on track) and therefore it’s generally very effective. Around 5% of global aid is humanitarian. Development aid – this has a more long term goal: to help a country’s economy grow and to help reduce poverty in the longer term. Because it’s more complicated than handing out tents after a crisis, it’s harder to get it right. But when it does work, it can make a huge difference to the quality of lives of poverty stricken people in LEDCs. If a LEDC wants to develop economically, it very often needs to borrow money to kick start its manufacturing industry (e.g. by investing in infrastructure improvements). Under such circumstances, aid can provide a source of money for investment that would not otherwise be available. If this is combined with effective government policies, it can be effective in producing economic development. When aid is targeted at poverty reduction, aid can lead to social development and can improve the lives of the poorest people in LEDCs (see example below).

Example of a UK government aid package DFID gave $16,540 to help fund the following project. 'If you don't have a canoe,' says Michel Adjibang, 'you'll always remain poor'. This is a fact of life in Ere – a village lying on the banks of the River Logone, surrounded by flooded rice fields in Chad. This 7,000-strong community relies on a precarious combination of fishing and farming for its livelihood. Nets are essential too, along with the smoking ovens which preserve the fish for taking to market. Michel is the president of Walta, a community-based organisation whose name means 'to take responsibility for yourself'. This is precisely what they are doing with the support of the DFID aid. At the fishermen's request a new canoe-building technique has been developed using locally available planks – easier to use and kinder on the environment than earlier craft hewn from increasingly scarce tree trunks. Trainers have shown local carpenters how to build the canoes, and a micro-credit scheme helps fishermen buy canoes and nets. 'With what I earn from fishing, I invest a part of it in farming,' says one fisherman. 'I even get to hire extra hands sometimes. Today my children are in school; and it is what I earn from fishing that even helps me to care for myself'.

Explain how this aid package resulted in social development for both the fishermen directly and others in the local economy.

“Aid alone is not enough for the poorest countries to escape the poverty trap, but quality long-term aid does make a huge difference. Poor country governments have used aid to scale up spending on education and health to help fight poverty. The Tanzanian government used its aid income to offer free schooling to its primary-aged children and now 3.5 million more children are now in school. Tanzania also used aid to strengthen its health services, helping to reduce the number of children dying in their first year of life by almost a third.” Max Lawson, Oxfam Head of Development Finance

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


ii. Negative impacts

‘It has been concluded that official aid has done more harm than good for many countries in need of assistance.’ Michael Carr This is a strong statement. He’s not just saying aid has some good points and bad points. He’s basically saying that those in charge of giving and using aid have got it so spectacularly wrong that it would have been better for all concerned if they hadn’t given any aid at all. Can this possibly be the case? Let’s look at some evidence and then you can decide for yourself whether or not you agree with Michael Carr.

· Tied aid This is aid given on the condition that the recipient country buys goods or uses companies from the donor country. About 70% of USA’s aid is tied, resulting in the bizarre fact that 47% of US aid money is spent on salaries of US experts brought into LEDCs to oversee projects there. There are two main problems with this. · It stops LEDCs from ‘shopping around’ for the best value companies or products. · It does not allow companies from within the LEDC to benefit from the work that is involved in the construction of the project. Example – The Victoria Dam in Sri Lanka The sign below shows who was involved in the construction of the Victoria Dam in Sri Lanka in the 1980s. The UK gave aid to help fund its building. How was this aid tied? How did Sri Lanka benefit and how did they miss out on development? How did Britain benefit?

· Debt We’ve already covered this earlier, so we’ll not have any new notes here. Let’s just use the following images to summaries what we learned about debt previously.

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


· Other problems with aid

Match the statements below with the cartoons above to outline some of the problems with aid Cartoon

Statement Aid doesn’t reach the needy Aid creates debt There are problems with the distribution of aid There are problems with how the product is used Aid can be unsuitable Aid may be tied Export earnings are needed to pay off debts Aid undermines local producers Aid creates dependence

iii. Conclusion – do we agree with Michael Carr?

Unit 2 Theme B: Contrasts in World Development – Lurgan College Geography Department


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