Understanding the Last Fifty Years of Global Development
Is the world better off than it was fifty years ago, and what drives these changes?
On average, global development has been on the rise over the last fifty years. Humans are living longer, literacy rates are up, and the world is a healthier and wealthier place. In China alone, one billion people have been lifted out of poverty thanks to their country’s rapid development, and extreme poverty rates are declining worldwide.
But development is more than just the absence of poverty and not everyone in the world is better off.
For starters, no one can really agree on what development is.
Development deals with the overall well-being of people in a given country. But what exactly does someone need to live well? Is a steady income enough, or does someone need other things like access to education and health care? Can a country be considered developed if some of its citizens fare much better than many others? Because there are no clear answers to these complex questions, there is no single definition of development.
Nonetheless, some of the world’s leading institutions, such as the United Nations, have taken up the task of defining development. The UN Development Program (UNDP), one of the largest “programs” within the United Nations, works with countries to reduce poverty and inequality. (Entities in the UN system are classified as funds, programs, specialized agencies, and others.) Here’s how the UNDP defines and measures development:
On examining the basic measures of development similar to the UNDP’s three dimensions, it would appear that everything is improving. The world today is a healthier, better educated, and wealthier place than it was fifty years ago.
Three Dimensions of Development: A Global Look
Click on the buttons to explore the trends.
But these trends do not tell the whole story. While average global development is on the rise, not everyone has benefited equally. Roughly 85 percent of the world’s poor live in either sub-Saharan Africa or South Asia, although these regions are home to only 38 percent of the world’s total population.
Just as extreme inequality can exist between regions, extreme inequality can also exist between countries in the same region. Twenty-three of the world’s twenty-five poorest countries are in sub-Saharan Africa. But some countries in the southern part of the region, such as South Africa, Botswana, and Namibia, have a higher gross domestic product (GDP) per capita than countries in the northern part, near the Sahara.
Similarly, inequality can exist within countries, just as it does between them. South Africa has one of the largest economies and highest measures of GDP per capita in its region, but it is also one of the most unequal countries there. Just because a country has high GDP or GDP per capita does not mean that the wealth is shared equitably among its citizens.
So why do some countries develop faster or more equally than others?
Development is a complex and varied process.
It can be difficult to determine why some regions and countries have developed faster than others because so many factors can contribute to a better or worse off living standard for people in a given country.
To get a sense of factors that lead to development, it’s helpful to look at both developed and developing countries as case studies.
Singapore’s economic miracle
In just fifty years, Singapore went from a small country with scarce natural resources and a GDP per capita of $320 to a major global economy with a GDP per capita of $60,000, just behind the United States. Much of this success can be attributed to Singapore’s first prime minister, Lee Kuan Yew, who welcomed foreign trade and investment. He also established a strong rule of law, stamping out corruption and further attracting business. Singapore also focused on developing its people by investing in education. In the past few decades, literacy rates have risen to nearly 98 percent, and life expectancy has grown from sixty-five years in 1960 to nearly eighty-three years in 2016.
Haiti’s development troubles
Few countries have had as much trouble with development as Haiti, the poorest in the Western Hemisphere. As part of an independence agreement with France in 1804, Haiti agreed to pay $22 billion in today’s value to the former colonial power. This foreign debt severely set back the young country’s economy. Foreign interventions in the early twentieth century did little to help matters, as foreign powers controlled Haiti’s finances at times. Concerned with protecting its economic interests in Haiti, the United States occupied the country from 1915 to 1934, during which the occupying force rewrote the Haitian constitution to allow for foreign landowners and moved Haiti’s financial reserves to the United States. More recently, internal political instability has spooked potential investors and has continued to hold back development and investment, and natural disasters like the 2010 earthquake destroyed crucial infrastructure.
Syria’s disastrous war
Development also doesn’t just go in one direction. A breakdown in the rule of law or a lasting, devastating conflict can hold back or even reverse development. Since 2011, the Middle Eastern country Syria has been embroiled in a destructive civil war, which some experts estimate has claimed over half a million lives and forced half of the country’s population to flee their homes. A significant amount of physical infrastructure—such as roads and hospitals, which are crucial to communities and the economy—has also been destroyed in the fighting. Beyond the loss of life and human suffering, the result has been catastrophic to the Syrian economy: between 2011 and 2016, Syria lost an estimated $226 billion from its economy, or four times its GDP in 2010. Syria was never an economic leader even before the war, and the recent conflict has set back the country’s development even further.
The road map to development remains elusive.
History, natural resources, demographics, governance, geopolitics, conflict, and climate can drive—or hold back—development. People generally want their countries, and even other countries, to develop. But as these case studies illustrate, though there are recommended policies, there is no clear road map.