Knowledge Organiser: The Development Gap

Key Terms

• Development gap — difference in quality of life between richest and poorest countries
• HDI — composite measure: income + life expectancy + education (0–1)
• GNI per capita — average income; hides inequality
• IMR — infant mortality rate; deaths per 1,000 live births
• LIDC — Low-Income Developing Country (Ethiopia)
• NEE — Newly Emerging Economy (Nigeria)
• Cycle of poverty — self-reinforcing trap: low income → low education → low productivity
• Tied aid — aid requiring spending on donor country goods
• Fair trade — guaranteed minimum price + social premium
• FDI — foreign direct investment; e.g. Chinese investment in Ethiopia
• HIPC — debt cancellation programme; $1.9bn cancelled for Ethiopia, 2004

Ethiopia Key Facts (LIDC)

• East Africa, landlocked, 120 million people, capital Addis Ababa
• HDI: 0.498; GNI per capita: ~$1,000; Life expectancy: 67
• Infant mortality: 38 per 1,000; ~68% below $3.20/day; literacy ~51%
• Birthplace of coffee; 12 million depend on coffee farming
• Never colonised — rare exception in Africa
• Addis Ababa Light Rail opened 2015 (first sub-Saharan metro)
• GDP grew 9–10%/year 2004–2019; Chinese investment ~$12bn
• Tigray conflict 2020–2022: 300,000–500,000 deaths; reversed years of progress
• HIPC debt relief: $1.9 billion cancelled, 2004
• Grand Ethiopian Renaissance Dam — 5,150 MW, largest in Africa when complete

LIDC vs NEE vs HIC

• Ethiopia (LIDC): HDI 0.498 | GNI $1,000 | LE 67 | IMR 38
• Nigeria (NEE): HDI 0.539 | GNI $2,000 | LE 54 | IMR 55
• Brazil (NEE): HDI 0.760 | GNI $14,000 | LE 76 | IMR 13
• UK (HIC): HDI 0.929 | GNI $46,000 | LE 81 | IMR 4

LE = life expectancy; IMR = infant mortality per 1,000

Strategies — Evidence and Limitations

• Aid: saves lives in emergencies; tied aid reduces effectiveness; dependency risk
• Fair trade: Fairtrade minimum $1.40/lb; protects from crashes; tiny % of farmers
• FDI (China): Addis Ababa light rail, Djibouti railway; increases debt, profits leave
• Debt relief (HIPC): $1.9bn cancelled for Ethiopia (2004); frees spending; doesn't fix trade patterns
• CHILD causes: Conflict, History, Infrastructure, Low prices, Disease
• Level 3 answers: Name strategy + evidence + limitation + comparative judgement

Common Mistakes

• Using GNI per capita as the only measure: GNI hides inequality within a country — always mention HDI (combining income, life expectancy and education) as a more complete development measure
• Saying aid always helps development: Tied aid (spending restricted to donor country goods) reduces effectiveness; long-term aid can create dependency — always evaluate limitations alongside benefits
• Ignoring the causes of the development gap: Use the CHILD framework (Conflict, History, Infrastructure, Low commodity prices, Disease) to explain WHY countries remain poor — list causes, don't just describe the gap
• Not naming Ethiopia with specific data: Vague LIDC answers lose marks — use specific statistics (HDI 0.498, GNI ~$1,000, 12 million coffee farmers, Tigray conflict 2020–2022 reversing years of progress)