1.3 Regional development within countries Flashcards
What are core/periphery regions?
-Core regions tend to be metropolitcan centres with potential for innovation and growth, urban government, social elites, financial power, wealth, t and q, living costs, etc.
Periphery areas are spread around the core region with p industry, lower wages, brain drain, little power, low living costs and standards, limited job opportunities
What are spread/backwash effects?
- Periphery areas may grow due to spread effects in upward transition regions
- Development encouraged in adjacent areas which enjoy the core benefits like proximity to the services it provides
- May result in backwash affects as those which attract capital, jobs and people from the periphery move to the core for labour or residency, creating greater inequalities in services and infrastructure
What are the spread/backwash effects in services and investment
Services: reduced investment and jobs in periphery, smaller purchasing power and tax returns, decline in local services, wider gap between core and periphery
Investment: capital in core, lack of investment in periphery, wider gap between two, slower growth in periphery.
What is the cumulative causation theory?
Change in one aspect of a region leads to changes in others, creating circular change.
- Cumulative causation creates a multiplier as if an area
- Builds new shit, workers go into the area and work there, stimulates demand for services and shit, attracts more shit
- Works the other way as when businesses shut down can create a negative multiplier
What is the Lorenz curve?
Demonstrates equality by comparing cumulative income as a percentage in comparison to cumulative population
- Uses gap between complete 1:1 economy to what the actual proportions are
- Gini coefficient of 0 means 1:1, and 1 means everyone has the same income
What is Mydrals theory?
-Regional divergence occurs then regional convergence in the long run.
Periphery declines due to deindustrialisation, scarce resources, educated population, outsourcing, risk of costs, brain drain, North more hilly and harder to build on
Spread effects occur due to backwash effects (jobs, people and investment attracted to core from periphery), new technology, t and q sector, more money, business growth, tax revenues, cost of living high, education, investment, higher spending and population, ports, tourism - starts to slow due to high cost of living, decentralisation and devolution, high production cost
What are ancillary industries
Non trade activity not associated with activities of a firm such of provision and consulting services of manufacturing firm, school lawyers often grow with growth of core industries
Theory suggests core has much higher value areas with more innovation and growth, spreading out to other areas
The core however takes the value from peripheral areas causing a brain drain, creating low costs an living standards and low wage areas with few opportunities
What is the core/periphery model?
Peripheral areas given high profit consumer goods from provision of low wage labour and materials
In return peripheral areas get low wages and prices as cannot afford high value goods - stay at low growth rates and exploited for labout and resources, staying in poverty
What factors may affect regional disparity?
Residence - slums, overpop=ulation, urban poor live in terrible conditions without basic needs
- In migration forms slums
- Lack of economic growth, income inequality
Challenges of slums - low incomes, those unable to work, low human capital value - low health, low social capital, lack of assets to generate income
Ethnicity and employment - racial discrimination and status created, creates inequality of wealth distribution and employment
Education - those with higher levels get better paid, hence wages are low in LICs where education levels lower - educated families tend to be smaller and save and invest more for the future
Land ownership - fails in distribution of land - if own more likely to work better.
