Trade and aid have been suggested as ways towards achieving development however there are questions as to which is more effective and if either viable paths to development are. Aid has been given for years to developing countries in an effort to resolve social problems and improve the economy to make way for trade.
There are different types such as bilateral, multilateral, and given by NGO, as well as different categories of aid such as long term development aid, short term aid (e.g. after a natural disaster) and ‘bottom up’ and ‘top down schemes’.
For the western world trade has been a key to economic development. Countries and organisations such as the UK, US, IMF and World back hold a neoliberalist view that free trade is essential for economic growth, exemplified by the formation of trade blocs such as NAFTA which vastly increased the GDP of its member nations. Increased trade leads to increased GDP and promotes the multiplier effects, so effects are felt across society. Development inevitably follows as industrialisation leads to goods for export and increased wealth. It also allows LEDCs to take advantage of developed markets and eventually reduce the dependency on them.
However, there are criticisms that aid can never achieve economic sustainability as it can create a dependency and become part of national income. It can also lead to the cycle of debt for example IMF suggested that as a way of developing Guyana should sell its natural resources such as gold, however this put the country in a precarious position for future development. It also owed allot of debt from aid it had received which the IMF pressure to pay off with borrowing yet more loans. This led to the country using 45% of earning to pay off debt and only 15% towards services within the country. As a result there are now less than 250 trained doctors due to many migrating and school staffed by untrained teachers.
Corruption is another issue that often prevents aid reaching the ones in need most for example president Mobutu (Zaire) has an estimated fortune of $5 billion siphoned off from loans from the World Bank.
Aid also may be inappropriate such as ‘top down’ schemes which often do more harm than good. The Akosombo dam in Ghana for example was built in the hope of generating income through exporting water from the lake behind to Benin and Tongo as well as generating electricity for local industry to grow. However 80,000 people had to leave their homes and river transport and local industry were slow to develop. As a result of drought in 1999 exports never got underway; although there was more success in the fishing industry only 10% of the country’s fish is sourced from the lake.
There are also criticisms to trade – neoliberalist view will only succeed if applied properly such as the Asian tigers (export orientated, market led to economic growth) but for many LEDCs it is an unrealistic pathway to development. Many depend on their primary industry for profit, with is not viable in a market where prices are decreasing and other factors such as grouping (EU) restrict the capacity to trade. Wealth doesn't always trickle down, as aid is used increase economic potential leading to trade but even with this MEDCs prevent LEDCs from accessing their market (such as Ethiopia). There may be underlying issues that inhibit this growth such as HIV, conflict and drought which must be dealt with first. Lack of infrastructure means mass production on a large-enough scale cannot happen.
The provision of aid worldwide was its highest in 2006 at $24 billion, although so was the proportion of aid given to improving healthcare, sanitation and education which could suggest some progress in meeting millennium goals.
There have also been successful schemes such as ‘Bottom up schemes’ Farm Africa and bilateral aid to Bangladesh through trade and aid. Farm Africa is a scheme in Tanzania that promotes sustainable farming by teaching skills that can be passed down as well as forest management and generating income though traditional activities (honey production and basket weaving).
In Bangladesh the UK has given £114 of bilateral aid that has helped lift half a million people out of poverty, as well as building 1400 classrooms providing basic education for 4.5 million children (educated workforce. NGOs have been successful in the health sector by reducing infant mortality by providing immunisations and improving sanitation, contraception use is also higher than in India.
Microfinance schemes have help develop Bangladesh’s textile industry which is now the number one export industry accounting for 75% and generating $10.53billion form 2003-05. It is also sustainable and 90% of borrowers in the scheme are women promoting social equality. An export processing zone has been developed however; the USA has refused exports from Bangladesh as it is not allowed to operate in the EPZ. However, the scheme has given many access to work and a sustainable future though trade.
Environment versus economic sustainability
Definition of sustainability, why there is one or the other, how environment suffers when the economy develops: Sarawak, Globally how the economy suffers: China and NIC growth in general, alternate view – way forward sustainable tourism GBR. Small scale works, large scale doesn’t indicated by the amount that we have done to combat global warming (little so far) and the need for a sustainable future (fossil fuels running out).
Sustainable Tourism
No lasting impacts on the environment or culture, including the need for tourists to take responsibility and respect the local culture e.g. dressing appropriately.
Sustainable tourism is tourism that does not damage the environment and so keeps the future potential for using the resource available – sustainability meeting needs of today without affecting future to use it. It has long been discussed as a way of achieving economic development whilst upholding environmental sustainability. Such as in the Serengeti national park, which faces threats to the ecosystem by large scale development aimed at reducing poverty and so the impact of that factor on the park. This includes the road linking Amsha and Musama cutting through a narrow section of migratory corridor for wilder-beasts The suggested way forward instead is to develop the local economy involving harnessing traditional techniques including basket weaving and honey production to use an income generating activity aimed at the tourist industry. Local villages have even become ‘tourist hotspots’ as a result.
However the development of ecotourism is only 5% of the current market, although it is growing. Sustainable tourism is in theory mutually beneficial as the profit generated goes back into funding conservation, however there have been criticisms about the cost and benefit of conservation. As management is expensive and so will always com second to profits. As well as this there are also questions of about how sustainable it really is, and its potential to be implemented as a large scale project. For example in Cuba the US embargo on tourist somewhat restricts the potential of the tourist industry. However if this were to be lifted tourist numbers would dramatically increase. In 2003 Cuba received 1.5 million tourists and by 2010 this was estimated to have risen to 10 million. So far damage to the pristine beaches and marine environments has been little, however this will change with increasing numbers and more planned developments such as resorts. Although the wwf is working on conservation measure such as zones, the ecosystem is under threat and requires a great deal of management in order to protect it.
This management can be seen in other conservation areas such as the great Barrier Reef. It is the largest coral reef system in the world home to some rare and endangered species. Located on the NE coats of Australia the scheme covers a comparatively large area and has been successful in protecting the reef through strict government and local schemes.
During the 80’s and 90’s there was a huge influx in tourist number as visitor numbers increased 80%/year. Tourism is now a major part of the local and national economy generating $5bil AUS per year, tourism accounts for 85% of the reefs economic output. Tourist can however damage the reef system as the coral is very sensitive to slight changes in temperature and pollution (global warming can have a major impact on fragile ecosystems). Damage by boat anchors can potentially kill coral as if one part breaks off the whole organism can die. Development along the coast affecting mangrove trees and estuaries can have repercussions down the coast, as the reef id fed by nutrients from these. Meeting locals need is a part of sustainable tourism aims and tourist can also affect the indigenous people as it affects where they can fish.
These issue cause concern for the future of sustainable tourism however there have been management strategies which address the state of the reef system, the needs of locals and the tourists. A zoning system is in place and conservation implemented by the GBRMPA which restricts where tourism and development can take place. There are also restrictions on fishing with permits needed and caps on numbers.
Sustainable tourism is a reality if strict measures are taken to ensure the state of the ecosystem comes before profits (contrast Cuba and GBR). Conservation may not be no.1 priority for countries exploiting ecosystem in order to develop.
There are different types such as bilateral, multilateral, and given by NGO, as well as different categories of aid such as long term development aid, short term aid (e.g. after a natural disaster) and ‘bottom up’ and ‘top down schemes’.
For the western world trade has been a key to economic development. Countries and organisations such as the UK, US, IMF and World back hold a neoliberalist view that free trade is essential for economic growth, exemplified by the formation of trade blocs such as NAFTA which vastly increased the GDP of its member nations. Increased trade leads to increased GDP and promotes the multiplier effects, so effects are felt across society. Development inevitably follows as industrialisation leads to goods for export and increased wealth. It also allows LEDCs to take advantage of developed markets and eventually reduce the dependency on them.
However, there are criticisms that aid can never achieve economic sustainability as it can create a dependency and become part of national income. It can also lead to the cycle of debt for example IMF suggested that as a way of developing Guyana should sell its natural resources such as gold, however this put the country in a precarious position for future development. It also owed allot of debt from aid it had received which the IMF pressure to pay off with borrowing yet more loans. This led to the country using 45% of earning to pay off debt and only 15% towards services within the country. As a result there are now less than 250 trained doctors due to many migrating and school staffed by untrained teachers.
Corruption is another issue that often prevents aid reaching the ones in need most for example president Mobutu (Zaire) has an estimated fortune of $5 billion siphoned off from loans from the World Bank.
Aid also may be inappropriate such as ‘top down’ schemes which often do more harm than good. The Akosombo dam in Ghana for example was built in the hope of generating income through exporting water from the lake behind to Benin and Tongo as well as generating electricity for local industry to grow. However 80,000 people had to leave their homes and river transport and local industry were slow to develop. As a result of drought in 1999 exports never got underway; although there was more success in the fishing industry only 10% of the country’s fish is sourced from the lake.
There are also criticisms to trade – neoliberalist view will only succeed if applied properly such as the Asian tigers (export orientated, market led to economic growth) but for many LEDCs it is an unrealistic pathway to development. Many depend on their primary industry for profit, with is not viable in a market where prices are decreasing and other factors such as grouping (EU) restrict the capacity to trade. Wealth doesn't always trickle down, as aid is used increase economic potential leading to trade but even with this MEDCs prevent LEDCs from accessing their market (such as Ethiopia). There may be underlying issues that inhibit this growth such as HIV, conflict and drought which must be dealt with first. Lack of infrastructure means mass production on a large-enough scale cannot happen.
The provision of aid worldwide was its highest in 2006 at $24 billion, although so was the proportion of aid given to improving healthcare, sanitation and education which could suggest some progress in meeting millennium goals.
There have also been successful schemes such as ‘Bottom up schemes’ Farm Africa and bilateral aid to Bangladesh through trade and aid. Farm Africa is a scheme in Tanzania that promotes sustainable farming by teaching skills that can be passed down as well as forest management and generating income though traditional activities (honey production and basket weaving).
In Bangladesh the UK has given £114 of bilateral aid that has helped lift half a million people out of poverty, as well as building 1400 classrooms providing basic education for 4.5 million children (educated workforce. NGOs have been successful in the health sector by reducing infant mortality by providing immunisations and improving sanitation, contraception use is also higher than in India.
Microfinance schemes have help develop Bangladesh’s textile industry which is now the number one export industry accounting for 75% and generating $10.53billion form 2003-05. It is also sustainable and 90% of borrowers in the scheme are women promoting social equality. An export processing zone has been developed however; the USA has refused exports from Bangladesh as it is not allowed to operate in the EPZ. However, the scheme has given many access to work and a sustainable future though trade.
Environment versus economic sustainability
Definition of sustainability, why there is one or the other, how environment suffers when the economy develops: Sarawak, Globally how the economy suffers: China and NIC growth in general, alternate view – way forward sustainable tourism GBR. Small scale works, large scale doesn’t indicated by the amount that we have done to combat global warming (little so far) and the need for a sustainable future (fossil fuels running out).
Sustainable Tourism
No lasting impacts on the environment or culture, including the need for tourists to take responsibility and respect the local culture e.g. dressing appropriately.
Sustainable tourism is tourism that does not damage the environment and so keeps the future potential for using the resource available – sustainability meeting needs of today without affecting future to use it. It has long been discussed as a way of achieving economic development whilst upholding environmental sustainability. Such as in the Serengeti national park, which faces threats to the ecosystem by large scale development aimed at reducing poverty and so the impact of that factor on the park. This includes the road linking Amsha and Musama cutting through a narrow section of migratory corridor for wilder-beasts The suggested way forward instead is to develop the local economy involving harnessing traditional techniques including basket weaving and honey production to use an income generating activity aimed at the tourist industry. Local villages have even become ‘tourist hotspots’ as a result.
However the development of ecotourism is only 5% of the current market, although it is growing. Sustainable tourism is in theory mutually beneficial as the profit generated goes back into funding conservation, however there have been criticisms about the cost and benefit of conservation. As management is expensive and so will always com second to profits. As well as this there are also questions of about how sustainable it really is, and its potential to be implemented as a large scale project. For example in Cuba the US embargo on tourist somewhat restricts the potential of the tourist industry. However if this were to be lifted tourist numbers would dramatically increase. In 2003 Cuba received 1.5 million tourists and by 2010 this was estimated to have risen to 10 million. So far damage to the pristine beaches and marine environments has been little, however this will change with increasing numbers and more planned developments such as resorts. Although the wwf is working on conservation measure such as zones, the ecosystem is under threat and requires a great deal of management in order to protect it.
This management can be seen in other conservation areas such as the great Barrier Reef. It is the largest coral reef system in the world home to some rare and endangered species. Located on the NE coats of Australia the scheme covers a comparatively large area and has been successful in protecting the reef through strict government and local schemes.
During the 80’s and 90’s there was a huge influx in tourist number as visitor numbers increased 80%/year. Tourism is now a major part of the local and national economy generating $5bil AUS per year, tourism accounts for 85% of the reefs economic output. Tourist can however damage the reef system as the coral is very sensitive to slight changes in temperature and pollution (global warming can have a major impact on fragile ecosystems). Damage by boat anchors can potentially kill coral as if one part breaks off the whole organism can die. Development along the coast affecting mangrove trees and estuaries can have repercussions down the coast, as the reef id fed by nutrients from these. Meeting locals need is a part of sustainable tourism aims and tourist can also affect the indigenous people as it affects where they can fish.
These issue cause concern for the future of sustainable tourism however there have been management strategies which address the state of the reef system, the needs of locals and the tourists. A zoning system is in place and conservation implemented by the GBRMPA which restricts where tourism and development can take place. There are also restrictions on fishing with permits needed and caps on numbers.
Sustainable tourism is a reality if strict measures are taken to ensure the state of the ecosystem comes before profits (contrast Cuba and GBR). Conservation may not be no.1 priority for countries exploiting ecosystem in order to develop.
