3.1 Development Flashcards
Development
Development is the progress a country makes over time, and it includes both economic and social dimensions.
Quality of life
The general well-being of people and societies. It is the standard of happiness, comfort, and health that a person or group of people experience.
Standard of living
The degree of wealth and material comfort available to a person or community.
Wealthy countries –> acronyms
HIC - High Income Country
MEDC - More Economically Developed Country
Medium wealthy countries
MIC - Middle Income Country
NIC - Newly Industrialising Country
ŃEE - Newly Emerging Economy
Poor countries - Acronyms
LIC - Low Income Countries
LEDC - Less Economically Developed Country
LIC
- Group of approx. 30 countries.
- Primary industry = agriculture –> vulnerable to natural hazards eg. flooding
- Often need economic support to recover bc they don’t have the finances to support themselves.
eg. Mali, Niger, Chad
NEE’s
- Approx. 80 countries
- Beginning to experience higher rates of economic growth bc of industrialisation + factory expansion.
- TNC’s begin investing in these NEE’s
- Subgroups = BRICs and MINTs
- Average income has increased in recent decades
- Economies are heavily reliant on secodary industries (but some agriculture (primary industries) are still present)
Eg. China, Russia
HICs
- Approx 80 countries.
- High GNI per capita
- Developed countries
- Postindustrial economy with mainly tertiary industry.
Eg. Uk and Australia.
Physical factors influencing development - List
Climate - Droughts –> cause crop failure + diseases thrive in topical climates bc of hot and humid conditions.
Natural hazards - Natural hazards destroy buildings –> divert money to rebuild.
Landlocked countries - Difficult to trade bc no ports –> also fibre optic cables are laid under the ocean –> hard to integrate new technology.
Natural resources - eg. minerals, gas and oil help improve a country’s level of development. Japan however, doesn’t have many natural resrouces and instead base their development on human factors eg. education + skill.
Human factors influencing development - List
Historical development - Colonialism helped develop MEDC’s but only some money invested in developing countries. Borders of countries established also caused political tensions due to ignoring tribal lands.
Political factors - Poor governments eg. money spent on military / corruption instead of development.
Economic factors - LEDC’s sell primary produce –> high competition + low profits + instability bc of harvest. many LEDC’s are in debt to MEDC’s. Foreign investrs are less likely in LEDC’s. MEDC’s also control world trade often.
Social factors - LEDC’s can’t invest in education there is a large dependency ratio. Healthcare system is low-developed + unsafe water –> limits development.
Types of development
Economic development
Human development
Economic development
A measure of a country’s wealth and how it is generated (for example agriculture
is considered less economically advanced then banking).
Human development
Measures the access the population has to wealth, jobs, education, nutrition, health, leisure and safety - as well as political and cultural freedom.
Material elements, such as wealth and nutrition, are described as the standard of living. Health and leisure are often referred to as quality of life.
Health - Development indicators
Do the population have access to medical care? What level of healthcare is available - basic or
advanced? Is it free? How many people per doctor?
Industry - Development indicator
What type of industry dominates?
LEDCs focus on primary industries, such as farming, fishing and mining. MEDCs focus on secondary industries, such as manufacturing. The most advanced countries tend to focus more on tertiary or service industries, such as banking and information technology.
North South divide
Most of the southern hemisphere is less developed, while
countries in the northern hemisphere are more developed.
(Not entirely true, eg. Australia)
Economic development indicators
GNI
GNI per capita
Inequality of wealth
Unemployment
Economic structure (primary vs secondary vs tertiary industry)
GNI
Gross national income
The total amount of money earned by a nation’s people and businesses.
GNI per capita
The total amount of money earned by a nation’s people and
businesses divided by the total population to give an indication of average income per person.
Human development indicators
Life expectancy
Infant mortality rate (per 1000 live births)
Access to basic services (eg. clean water + sanitation)
Access to healthcare
Access to education
Literacy rate
Access to technology
Problems with development indices
- Statistics are often averages –> don’t always show the inequalities in society eg. distribution of wealth.
- Statistics can be out of date/ hard to collect. Countries may not publish certain statistics eg. migrant numbers.
HDI
Weighted mix of development indices to show total development in a country.
- Life expectancy
- Knowledge
- Standard of living (GDP per capita)
(Numebr between 0 and 1)
1 is the best
Advantages of HDI
- Uses a range of indicators (both social and economic)
- Easy statistical comparisons between countries
- Allows changes in development over time to be observed
Uneven development
Uneven development means that development takes place at different rates in different regions.
Eg. China, east vs west.
Primary industry
Industries that extract raw materials directly from the earth/ sea. (LICS)
- Farmers
- Coal-miners
- Fishing
Secondary industry
Industries that process and manufacture products from raw materials. (MICs)
- Car manufacturing
- Iron and steel industry
Tertiary industry
Industries that provide a service. (HICs)
- Doctor
- Lawyer
- Cleaner
- Banker
- Waiter
- Retailing
Quaternary
Industries that incorporate a high degree of research and technology in their processes and employ highly qualified people.
- Biotechnology
- Computer programing
More common in HIC’s
System diagram for industrial activity
Inputs –> Processes –> Outputs –> Feedback
Inputs - Industry
Physical inputs - Raw materials (secondary industries)
Labour
Capital - Money invested in business to pay for raw materials, staff, machines etc.
Processes - Industry
Production - Eg. the manufacturing of cars, or the sewing of textiles
Factory maintenance, - Ensures machines are kept in working order.
Packaging - Protects products, when transported, and also presents them in a way that makes customers want to buy them.
Transport - Needed to move products from the factory to the warehouse and then to the shops.
Outputs - Industry
Profits
Wages
Product
Pollution?
Feedback - industry
Customer feedback
Profits
Clark Fisher Model
A graph showing the shift in unemployment in the different industry sectors throughout time.
It is divided up into three sections.
Pre-industrial (LIC)
Industrial (MIC)
Post-industrial (HIC)
Pre-industrial
The primary sector leads the economy.
Agriculture is the most important
Industrial phase
The secondary and tertiary sectors increase in importance.
The primary sector declines
Post-industrial phase
Tertiary sector increases largely.
Quaternary sector begins increasing.
Secondary sector decreases.
Primary sector is also declining.
Sector shifts
Changes in the relative importance of economic sectors (Primary, Secondary, Tertiary and Quaternary) over time.
Reasons for a decline in employment in the primary sector
- Food begins being imported
- Labour is replaced by machines –> mechanisation
- Agribusiness –> Intensive farming –> machines + genetic modification.
Reasons for a decrease in employment in the secondary industry
- Secondary industry production shifted to other countries bc cheaper eg. China (globalisation)
- Fast and cheap transport to move goods from country to country.
- Modern communication methods –> easier to keep in touch with production in other countries.
- Labour replaced by machines
TNC
Transnational corporation
MNC
Multi- national cooperation
Globalisation
The process, led by transnational companies, whereby the world’s countries are all becoming part of one vast
global economy.
Reasons for globalisation
- Firms can keep in contact with producers easily and quickly using the internet
- Developments in transport technology: goods can be moved around the world quickly and easily
- Development of aircraft and containers, efficient motorway networks which cross Europe.
GDP
Gross Domestic Product
The total market value of goods and services
produced by workers within a country during a period of 1 year.
Location of industry - Physical factors
Relief - Easier to build on flat land
Available land - Industries will want to expand –> need areas with available land
Unpolluted land (greenfield sites) - No clean up costs before building
Natural transport links - eg. rivers / coast –> globalisation (products sold worldwide)
Available raw materials - Important to be close to materials needed
Renewable energy sources - Important for TNCs to show sustainability –> solar/wind available
Nice environment - Quaternary/ Tertiary –> attract labour
Water supply - Especially manufacturing need water supply nearby
Climate - Climate needs to suit industry. eg. sun at solar panel farm.
Location of industry - Human factors
Skilled labour - Availability (eg. quaternary)
Cheap labour - (eg. secondary in LEDCs)
Available capital - Cost of factories/offices etc. vs available money
Market - Near potential market
Supply network - Help being close to supplier
Good housing nearby - Attracts labour (quality depends on industry)
Good social services - eg. schools/ hospitals
Nearby universities - Quaternary –> need skilled workers + available labs
Transport links - Goods roads/rail link distribute + recieve supplies.
Good communication - Ability to contact suppliers
Reliable electricity and water supply
Why have high-tech industries located themselves in Silicon Valley, California?
- Close to San Fransisco + airport (get products)
- Companies clustered together to share ideas
- Close to universities for highly educated workforce + research
Hollywood location reasons
Tax cuts in area
Foxconn factory - Company + location
Foxconn = Taiwanese electronics company manufacturing products for TNCs eg. Apple.
- Largest factory complex located in Shenzhen (city in southern China) –> 450,000 workers employed at Foxconn City (walled campus)
- Employed work on assembly lines, putting together iphones + ipads, etc…
Foxconn city - Reasons for location (Case study - Secondary industry area)
- Found on outskirts of Shenzhen bc of flat land + available space for expansion (eg. dorms for workers)
- Special economic zones (SEZ) found in this area to attract foreign investment. –> SEZ’s experience tax cuts, duty-free imporation + no export taxes.
- Transport links - well connected via roads + rail links. + Coastal city with large container port –> goods can be distributed easily overseas etc.
- Supply Network - Many compnents needed for production of iphone = located within 50-mile radius.
- Low-cost labour - Available in Shenzhen bc large supply of young rural-urban migrants.
Causes of gloabalisation
- Tech improvements –> easy for people, goods money, info etc. to travel the world
- Better communications –> phones etc. = easier to trade
- Transport = cheap + quick –> allows importation etc.
Trade liberalisation - Gov. around the world = relaxed laws restricting foreign trade. Some countries even offer tax incentives to persaude foreign investment.
Factors attracting TNCs to a country
- Cheap raw materials
- Cheap labour supply
- Good transport
- Access to market, where the goods are sold
- Friendly government policies
Advantages of globalisation
- Inward investment by TNC’s –> provide new jobs + skills for local people
- TNCs bring wealth to local economies –> can be invested in infrastructure/ social services
- More mixing of people + culture from around the world.
- Makes people aware of events in different parts of the world. eg. fast international response to the Turkey earthquake.
- Spreads awareness on global issues eg. deforestation + need for sustainable development
Disadvantages of globalisation
- Operates in interest of richest countries at expense of LEDCs (eg. cheap labour + raw materials = exploited)
- Wealth from inward investment doesn’t benefit local communities –> profits sent back to MEDC where TNC is based.
- Large TNCs outcompete local businesses –> + so if TNC moves = large unemployment
- No strict international laws –> allows TNC to pollute environment / violate human rights eg. poor working conditions/ low wages.
- Globalisation threatens culture. eg. Hollywood film = more successful worldwide than movie from India etc.
Apple - TNC case study
- US based TNC manufacturing phones.
- Research and development occurs in Silicon valley, California (HQ)
- Raw materials sourced from mines in Democratic Republic of Congo (LEDC)
- Mining = pollutes lakes/rivers, threatens gorilla habitats + led by rebel groups using profits to pruchase weapons + child labour
- Component suppliers = Samsung (silicon chips = outsourced) + Sony (cameras)
Assembly
- Manufactured componenets sent to China for final assembly (Outsourced)
- Foxconn city
- Assembled + packaged phones = air-freighted to distribution centers.
Advantages of Foxconn city production - Local
- Wages are higher than most other Chinese factory jobs
- More people + money in area –> business/services boom eg. restaurants to serve workers.
- Housing provided for workers
- Quality of life in Shenzhen = better than in the countryside + helps them support their family
Advantages of Foxconn city production - National
- Foxconn = countries largest employer
- Jobs generated from supplying expensive componenets to foxconn
Disadvantages of Foxconn city production - Local
- Series of employee suicides bc of poor working conditions
- Cramped dormitories for workers
- Child labour (16 years old) enforced in local schools + illegal overtime being worked.
Disadvantages of Foxconn city production - National
- Part of the production has been moved from China to Vietnam due to the trade war between the US and China.
