8.4 Flashcards
What are the 4 external factors of spatial inequality
- colonialism/ history
- trade imbalances due to colonialism
- transnational cooperations
- dependency on development assistance
Colonialism context in terms of spatial inequality
Even though after WW2 most colonial powers gave up their territories, the legacy of of colonialism remained and influenced the development path for many of these disadvantaged countries.
What limitations did these European powers put on the colonies
- restrictions on what they were allowed to produce ( if same as colonial power)
- not allowed to trade freely with other nations
- severe limits on the country’s economic activities
How has this influenced the spatial inequality between nations
The uneven distribution of
wealth between countries is thus shaped by relationships
established in the colonial era. As these nations are still dependant on their old colonial powers for critical trade relationships.
Trade imbalances context in terms of spatial inequality
Many poor countries are still dependent on the
industrialised, wealthy countries for numerous
high-cost imported goods. Meanwhile, these poor
countries rely heavily on the exploitation of their
natural resources
and the production of agricultural produce for their
export earnings.
Why are cash crops so bad
farmers foregoing important and dependable subsistence production in doing so, they become dependent on export income, which in turn depends
on continued and consistent demand for cash crops.
Their country also becomes highly dependent on
unreliable sources of export earnings.
why do countries with trade imbalances typically go into debt
the value of their imports often exceeds
the income earned from their exports.
Transnational Cooperations definition
Transnational corporations (TNCs) are large
organisations that have operations in several
countries. The parent company is usually based
in a developed country. TNCs frequently operate
subsidiary companies in developing countries.
why are developing nations attractive to TNC’s
their abundant supply of cheap labour, often
accompanied by less stringent industrial relations laws
regarding wages, hours of employment and working
conditions.
dependency on development assistance
- definition
- 3 types (sub topics)
- Many poor countries are heavily dependent on
development assistance (or overseas aid) supplied by
wealthy countries. - Bilateral aid
- Multilateral aid
- Non-governmental aid
Bilateral aid
This is development assistance
provided by governments of wealthy countries to
governments of developing countries.
Multilateral aid
Multilateral aid is given by
international institutions, such as the World Bank,
the International Monetary Fund (IMF) and the
Asian Development Bank. This aid is frequently
provided in the form of loans.
Non-governmental aid
This is distributed by non-
governmental, non-profit organisations (NGOs),
which receive most of their income from donations
by the general public.
