Changing Economic World Flashcards
What is the human development index?
A composite indicator of development, including indicators such as gross national income, adult literacy rate and life expectancy.
How do you calculate population change?
BR + IR - DR - ER
Describe stage 1 of the DTM.
High Stationary
Birth rate around 40
Death rate around 40
Steady population
Describe stage 2 of the DTM.
Early Expanding (LIC)
Birth rate around 40
Death rate around 40 to 20
Growing population
Describe stage 3 of the DTM.
Late Expanding (NEE)
Birth rate around 40 to 20
Death rate around 20 to 10
Increasing population growth
Describe stage 4 of the (DTM)
Low Stationary (HIC)
Birth rate around 20 to 10
Death rate around <10
Decreasing population growth
Describe stage 5 of the (DTM)
Declining
Birth rate around <10
Death rate increasing?
Slight population decrease
Give some historical reasons for unequal development.
- Colonialism: between the 1870s and 1900s, European countries began to take control of Asian and African countries in order to gain access to the natural resources there. Wealth from raw materials went straight to colonial powers, leaving the colony poor.
- Long term conflict in some countries has destroyed infrastructure, as well as resulting in huge losses to the population.
Give some economic reasons for unequal development.
- LIC’s have little manufacturing industry to add value to their raw materials.
- Rich countries hold a lot of the trading power, setting the conditions for trade.
Give physical reasons for unequal development.
- Landlocked countries depend on other countries’ cooperation to move goods into their country.
- Tropical areas have more climate related diseases and pests than cooler parts of the world.
- Extreme weather, such as tropical storms, droughts and floods most often hit tropical areas.
What is foreign direct investment (FDI)?
When money is injected into other countries from TNCs.
Give an example of how TNC investment has helped develop a country.
Dyson, in around 2003, moved its manufacturing from the UK to Malaysia.
Benefits for Malaysia: investment helps the country develop, with the increased workers’ earnings helping to boost the Malaysian economy.
Benefits for the UK: Dyson’s profits increase, and the increased corporate taxes mean more money is available for public services in the UK, such as health and education.
Malaysia’s GDP rise does seem to have accelerated a little since 2003.
Name and describe the three different kinds of aid.
Voluntary aid: money is collected from organisations such as Oxfam, which is spent on a variety of schemes. Governments may also contribute.
Bilateral aid: money from one country to another, e.g. Britain sent money and experts to build a dam in Turkey.
Multilateral aid: organisations such as the WHO and UNESCO include man countries in giving help.
What are some problems with aid?
- International aid schemes have been criticised, as the building of expensive, prestigious buildings like hospitals mainly help the urban rich.
- Many involve inappropriate technology – e.g. a tractor is no use without fuel or spare parts.
- Some projects may suffer from corruption.
What is appropriate aid?
- Affordable for the poor
- Includes locals in the design and planning of it
- Easy to build and use
- Easy and cheap to maintain
- Uses local materials where possible
What are some examples of water aid?
Water takes a lot of time and effort to collect in LICs, so water aid makes a big difference.
Rainwater harvesting: captures and collects rainwater for future use. Uses gutters directing to water tanks.
Hand-pump borehole: a borehole is drilled into the ground, then water is pumped from groundwater using a hand pump. The water is clean and disease-free.
Hippo rollers: large rollable tanks that can carry 90L of water long distances. They are easy and cheap to use and maintain, although water collected is not necessarily clean.
Bike-powered water pump: the rear wheel of the bike is attached to the pump of the well, and can bring up 40L of water per minute. The bike can then speed up transport back and forth.
How has tourism helped development of a LIC?
Tourism has boomed in Kenya recently. In 2007, over 1.8 million visited. Since 2000, its HDI has increased by 0.13 to 0.58.
What tourist attractions does Kenya have to offer?
- Snorkelling and beach holidays in Lamu
- Culture with the Maasai Mara
- Elephants in Tsavo
- Forests in Nairobi
- Mountaineering and hiking at Mount Kenya
- Sightseeing at Lake Victoria
What are the advantages of tourism in Kenya?
- Tourism now contributes to over 12% of Kenya’s GDP
- The money spent in seeing national parks gives money to be spend on preserving the wildlife there
- Nearly 600,000 people are directly employed by tourism
- Money can be used to develop the country – e.g. Mombassa now has a reliable water supply
What are the disadvantages of tourism in Kenya?
- Only a small proportion of the money earned goes to locals. The rest goes to big companies, often based in HICs overseas. This is known as leakage.
- Some tribes were forced off the land to create national parks for tourists.
- Tourists’ vehicles damage the environment, such as during safaris.
- The tourism industry is vulnerable: natural hazards or terror attacks could put an end to it (Tunisia experienced a huge drop in tourists after a terror attack in 2015)
- Animal behaviour is changing due to interferences from tourists
What is the primary sector of the economy?
Extracting and selling raw materials.
What is the secondary sector of the economy?
Turning raw materials into manufactured goods.
What is the tertiary sector of the economy?
Selling services and skills, such as finance, medicine, office staff and teaching.
What is the quaternary sector of the economy?
Information services such as computing, research and development, and the media.
