The development gap — causes and consequences

The development gap refers to the widening difference in levels of economic and social development between the world's richest and poorest countries. CCEA examiners expect you to explain why the gap exists and to assess its consequences.

What is the development gap?

The development gap can be seen in:

• The difference in GDP per capita between the USA ($80,000) and Mali ($900).
• Life expectancy: 83 years in Japan vs 53 years in Sierra Leone.
• Infant mortality: 3/1,000 in Finland vs 80+/1,000 in Central African Republic.
• Access to clean water, education, and political freedom.

The gap is not just between North and South — it also exists within countries (e.g. wealthy Mumbai vs rural Bihar in India; London vs former coalfield communities in Wales and NI's own pockets of deprivation in north and west Belfast).

Causes of the development gap

Physical/environmental factors

• Climate and disease: tropical regions face malaria, dengue fever, and other diseases that reduce labour productivity. Sub-Saharan Africa loses billions of dollars to preventable diseases.
• Natural hazards: frequent floods, droughts, and storms destroy infrastructure and disrupt economies.
• Landlocked countries: lack of coastline increases trade costs (transport costs are higher without seaport access). Mali, Niger, Chad, Burkina Faso are landlocked and among the world's poorest.
• Resource distribution: some countries have valuable resources (oil in Saudi Arabia; copper in Chile); others have few. However, the "resource curse" shows this is not straightforward.

Historical factors

• Colonialism: European powers extracted raw materials and wealth from colonies in Africa, Asia and the Americas for centuries. Colonial infrastructure (railways, ports) was built to export resources, not to connect local economies. Arbitrary borders cut across ethnic groups, creating post-independence conflict. The legacy of colonialism is widely seen as a key driver of the development gap.
• Debt: many LICs borrowed heavily in the 1970s-80s (often for development projects or to survive crises). Interest payments on debt trap countries in poverty — paying interest to rich-country banks rather than investing in schools or hospitals. The Jubilee 2000 campaign and subsequent debt relief programmes cancelled billions in LIC debt.

Economic and political factors

• Trade disadvantage: HICs have historically imposed tariffs on manufactured goods from LICs while allowing raw material imports freely — trapping LICs in primary sector dependency.
• Corrupt governance: in some countries, ruling elites extract resources for personal benefit rather than investing in development.
• Conflict and political instability: wars destroy infrastructure, displace populations, and deter investment.

Consequences of the development gap

• Poverty trap: LICs cannot afford to invest in healthcare and education → low productivity → low tax revenues → cannot invest in development → stays poor. A self-reinforcing cycle.
• Health inequality: 5.4 million children under 5 die every year from preventable diseases — almost all in LICs.
• Education inequality: millions of children in LICs never complete primary school.
• Migration pressure: the development gap is a major driver of economic migration and refugee movements (push factor of poverty).
• Environmental consequences: LICs often exploit natural environments (deforestation, overfishing) out of immediate necessity, worsening long-term sustainability.