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