2B: The Changing Economic World Flashcards
what is an LIC?
a low income country
what is a NEE?
a country which is getting richer as their economy is progressing from the primary industry to the secondary industry
what is a HIC?
a high income country
what is the development gap?
the difference in standards of living and wellbeing between LICs and HICs
what is GDP?
the total value of goods and services a country produces in a year
what is Gross National Income (GNI)?
the total value of goods and services that people of that nationality produce in a year (GDP + money from people living abroad)
what is the Human Development Index (HDI)?
a number calculated using life expectancy, number of years of education and GNI
what are the limitations of GNI?
1) Doesn’t show variations that might exist (inequality) between the population especially between rural and urban areas.
2) It can neglect work that isn’t included in the calculation e.g. subsistence farming or informal sector work.
3) Ignores social development.
what is infant mortality?
The number of children who die before reaching 1 per 1000 babies born.
what is the limitation of using infant mortality as a measure of development?
In some LICs, not all infant deaths are recorded so data may be underestimated
what is the literacy rate?
The percentage of population over the age of 15 who can read and write.
what is the limitation of using the literacy rate as a measure of development?
Difficult to be accurate, particularly in rural areas, conflict zones or squatter settlements
what is life expectancy?
The average lifespan of someone born in that country.
what is the limitation of using life expectancy as a measure of development?
In countries, with high infant mortality, the life expectancy will be far higher than the figure suggests.
what is birth rate?
The number of live births per 1000 people per year
what is the limitation of using birth rate as a measure of developemnt?
NONE: This is a reliable measure. As a country develops, women are likely to become educated and want a career rather than staying at home. They marry later and have fewer children.
what is death rate?
The number of deaths per 1000 people per year
what is the limitation of using death rate as a measure of development?
HICs like the UK tend to have older populations and death rates will be high. LICs like Bangladesh, tend to have more young people, so the death rate may be lower
what are the physical causes of uneven development?
1) People in poorer countries are disproportionately affected by climate change and increasingly vulnerable to climate related hazards. Extreme weather and Natural Hazards can slow development and it is costly to repair damaged infrastructure. E.g. Haiti
2) Landlocked countries may find trade difficult which is important for economic growth.
what are the economic causes of uneven development?
1) Government corruption: leaders steal a country’s money which creates lack of investment in infrastructure (building of roads, railways and water networks) and public services such as education and health.
2) LICs are dependent on selling primary products such as minerals and agricultural products. This makes them more vulnerable to dramatic changes in the international prices for raw materials. Processing, which adds value, takes place in the richer developed countries. In this way, the rich countries get richer and the poorer countries are not able to develop.
3) International organisations like the World Trade Organisation have been criticised for not doing more to establish fair terms of global trade.
what are the historical causes of uneven development?
Colonialism: Many countries in Asia, S. America and Africa have spent a lot of time and money on civil wars and political struggles for power since being made separate from European superpowers. Civil war makes countries poor as, on average, civil war reduces GDP by 2.3% per year.
what are the consequences of uneven development?
rich countries are healthier, richer and experience higher levels of immigration
what is short term aid?
emergency help usually in response to a natural disaster
what is long term aid?
substantial aid that seeks to improve resilience
what is bilateral aid?
aid from one country to another (which is often tied)
what is multilateral aid?
when richer governments give money to an international organisation, which redistributes money as aid to poorer countries
what is tied aid?
aid that is given with certain conditions
what is voluntary aid?
money donated by the general public in richer countries and distributed by NGOs (non-governmental organisations)
what is immediate technology?
sustainable technology that is suitable for the local environment and must not put people out of work
what is top down aid?
aid that is well finances but doesn’t consider the needs of the locals