Changing economic world Flashcards
what does development measure
how advanced a country is
what are the areas a country could be developed in
social, economic, cultural or technological
what are economic indicators of development
money, jobs and business
what are social indicators of development
health and education
limitations of GNI per head
takes an average of a country so therefore isn’t accurate and not a good representative of a country
limitations of death rate
as if a country has an ageing population, then it will have a higher death rate than a young population
how to measure economic development
GNI per head
human development index
how to measure social development
birth rate
death rate
infant mortality
people per doctor
literacy rate
access to safe water
life expectancy
human development index
how many stages of the demographic transition are there
5
describe stage 1 of the DTM
low fluctuating
high birth rate as there is no contraception and people have lots of children due to poor healthcare and lack of sanitation means there is high infant mortality
death rate is high and fluctuating because of poor healthcare and life expectancy is low as there are no vaccines or medecines
overall the population growth is zero
these countries are often LICs
describe stage 2 of the DTM
early expanding
birth rate is high because agriculture and the rural economy develops and people need lots of children to work on their farms - they are seen as economic assets in countries with low levels of economic development
death rate is falling rapidly as healthcare and sanitation improve. diets are also improving so life expectancy rises and vaccines mean that children survive more diseases
population growth rate is high
countries are LICs
describe stage 3 of the DTM
late expanding
birth rate is falling rapidly as women have a more equal place in society and better education. contraception is available and more women are going to work instead of having children. economic shift to manufacturing means that children aren’t economic assets and the cost of raising a child is increasing
death rate is low as healthcare has improved and medical advancements as well as better treatment mean people survive more illnesses and diseases
population growth rate is high
counties are NEEs
describe stage 4 of the DTM
high fluctuating
birth rate is low and fluctuating as people want possessions and experiences to improve their quality of life and there isn’t a need for large families and there is more family planning. later marriages due to increased education also reduced birth rate
death rate is low as healthcare is excellent
population growth rate is low
countries are HICs
describe stage 5 of the DTM
natural decrease
birth rate is falling slowly as people have less disposable incomes as they are caring for elderly relatives who are living longer and people are focused on material wealth rather than large, expensive families
death rate is low due to excellent healthcare
population growth rate is excellent
countries are HICs
physical causes of uneven development
some places suffer from extreme weather events which can restrict agricultural output
some countries are landlocked and can often find it hard to trade by sea
some places suffer from natural hazards which can destroy buildings, kill people and set back development
some countries have few natural resources and therefore have fewer products to sell
contaminated water can cause diseases like cholera, dysentery and diarrhoea
some areas have extreme climates and poor soils which makes farming difficult
some parts of the world are affected by tropical diseases and pests due to geographical location which can affect work
economic causes of uneven development
tariffs make trade more difficult
some countries are in debt, and rather than use their income on development, they have to pay back the debt
global trade policies impose quotas and tariffs that don’t favour poor countries
countries that produce mainly primary products don’t make much money
corrupt politicians take money for themselves rather than invest in development
foreign countries are unwilling to invest in countries that have an unstable government
some countries have poor trade links and therefore income is restricted for economic development
political instability holds back development as decisions are delayed and development projects are restricted
historical causes of uneven development
colonisation and slavery went hand in hand and from 1650 - 1900, over 10 million people were transported from Africa to North America as slaves
Colonisation led to a history of dependence, where the colony depended on the European country instead of developing for itself
some countries have a long history of conflict and civil war within the country which leads to no economic stability
lengthy civil wars mean that money is spent on weapons and fighting rather than improving the economy
since 1950, many former colonies have gained independence and this have often led to political instability for power
a history of conflict leaves a lasting legacy of lack of money and investment - education and health are both likely to be poor as there would have been little investment in these areas
colonisation meant that the county’s economy was developed just to produce raw materials and goods for the colonising country
what is investment
when businesses choose to locate part of their operation in a LIC and the money they invest there can develop infrastructure, build dams for electricity and improve harbours and ports
how does investment reduce the development gap
as it supports a county’s development by providing employment and income from abroad and as economies grow, poverty decreases and education improves
advantages and disadvantages of investment
advantages:
- supports a county’s development
- provides employment and income
- decreases poverty
- better government
disadvantages:
- relies on companies being willing to invest in a country which often doesn’t happen due to corrupt government
- if infrastructure is poor, companies may not want to invest as it will cost them more money to get set up before they can start the business and earn profit
what is industrial development
investment by the government by manufacturing industries
manufactured goods can be sold at higher prices then primary products which most LICs rely upon and value is added to the primary products when they are processed to make things
how does industrial development reduce the development gap
it increases employment and leads to higher incomes for both people and the government and in turn, people can afford better housing, healthcare, education and food (this is called the multiplier effect)
advantages and disadvantages of industrial development
Advantages:
- manufactured goods can be sold at a higher price then primary products
- this increases employment and people can afford better housing, healthcare and education
- higher GNI leads to improved infrastructure
Disadvantages:
- industrial development can only be achieved when a government creates policies which encourages companies to invest in their country or invests themselves in building factories and power stations to encourage this growth
what is aid
a gift of money, goods or services to a developing country. the donor may be a group of countries or non-governmental organisation and there are different types of aid which have different conditions attached to them
how does aid help reduce the development gap
it enables a country to invest in development projects such as improving transport or power infrastructure, providing clean water supplies and sanitation or funding health and education and these long-scale projects bring long-term benefit to the country and its people
advantages and disadvantages of aid
Advantages:
- most international aid is targeted at long-term development goals for people living in LICs and NEEs
Disadvantages:
- there are different types of aid, some of which have particular conditions attached to the aid which can restrict how the money can be used
what is intermediate technology
sustainable technology that is appropriate to the needs, skills, knowledge and wealth of local people
it must be suited to the local environment
it usually takes the form of small-scale projects that are often associated with agriculture, water or health
how does intermediate technology help reduce the development gap
people are trained to use the simple technology so that if it breaks, they can repair it themselves - it can therefore make a real different to the quality of people’s lives
advantages and disadvantages of intermediate technology
Advantages:
- when people have a more secure food or water supply they are more able to improve their health and this means children can go to school and because they are healthier and no longer have to walk miles each day to collect clean water, there is less disease in the family and adults can work more
Disadvantages:
- must be suited to the local environment
what are microfinance loans
small-scale financial support available directly from banks set up especially to help the poor
how do microfinance loans help reduce the development gap
these loans help individuals or families to start up small businesses. Success will boost the family income which leads to education, health and housing improvements. The family might also be successful enough to other local people and this leads to economic development of whole countries
advantages and disadvantages of microfinance loans
Advantages:
- people feel they can stand on their own two feet rather than depend on others or on aid
Disadvantages:
- must be paid back, it is not a ‘free hand-out’
what is debt relief
means that loans are cancelled as the world’s poorest countries pay more than USD$1.5 billion a day to richer countries and global financial institutions
how does debt relief help reduce the development gap
because loans are cancelled, poor countries can invest the money that would have gone to pay off their loans into development projects, such as industry, resources or infrastructure to reduce poverty
advantages and disadvantages of debt relief
Advantages:
- money can be used to improve quality of life
Disadvantages:
- debt relief can lead to some countries assuming that if they get into further debt, then these loans will be cancelled as well
- some countries have corrupt governments who may keep the money rather than using it to help the poor
what is fair trade
giving farmers a better price for the agricultural goods they produce and it offers a price guarantee so that if the global price falls, the farmer will still get a minimum guaranteed price for their products
how does fair trade help reduce the development gap
farmers rely on regular income so they can invest in their farms to become more profitable and they can then afford to send their children to school and can improve housing and health. part of the work is also to invest in local community development projects and farming in more eco-friendly ways
advantages and disadvantages of fair trade
Advantages:
- gives farmers a fair price for their produce and means they can rely on a regular income
Disadvantages:
- they cost consumers more, so not everyone buys them and this limits the number of farmers that can be helped
where is Jamaica
north of South America
northern hemisphere
in Carribean sea
in Atlantic Ocean
next to Haiti and Cayman Islands
why is Jamaica a popular tourist destination
it has high temperatures all year round and long sunshine hours which means that tourists can enjoy the beach and other recreational activities e.g swimming. It also has many beaches and bays which attracts tourists there for leisure activities
how has tourism helped reduce the development gap in Jamaica by contributing to economic development
- there are international hotel chains which means some profits ‘leak out’ of Jamaica and back into the home country but the Jamaican government has kept 71% of every dollar spent so the government income is higher so there are more funds for development
- the number of cruise passengers has increased to 1/3 of all visitors but they spend less than other tourists
- tourism contributed to 30% of Jamaica’s GNI in 2016 and by 2027, it is estimated to grow to 45% however, this reliance on tourism can be dangerous as tourism can easily be affected
- tourism provides over 20% governmental income which can be used for education, health and infrastructure
- tourism in Jamaica drives the rest of the economy (10% finance, 15% construction, 20% utilities and agriculture)
how has tourism helped reduce the development gap in Jamaica by contributing to social development
- tourism provides over 20% governmental income which can be used for education, health and infrastructure
- northern tourist areas such as Montego Bay and Ochos have wealthy Jamaicans with high quality housing and high standard of living have benefited most from tourism but many people live inland in poor housing with limited food, freshwater supply and access to health and education
- in Jamaican owned hotels (e.g Sandals) profits stay in Jamaica and they work with local communities to employ local people and employs local farmers to supply their food which has increased to 3,000 farmers
- tourism employs over 300,000 Jamaicans but many of these jobs are seasonal and are only based on the northern coast only
why is Nigeria important regionally
- Nigeria is part of the African Union, an economic planning and peacekeeping group which prevents war so countries can invest money in development
- Nigeria has the largest agricultural output and largest number of cattle in Africa so they can supply beef/ cattle to the rest of Africa to reduce inequalities
- Nigeria is a member of ECOWAS which is a trading group that allows Nigeria to trade products for economic gain as well as easily importing products
- Nigeria has the highest GNI in Africa and 3rd largest manufacturing sector which provides many products to Africa as well as the rest of the world which causes an economic boost
why is Nigeria important internationally
- Nigeria supplies 2.7% of all the world’s oil and is the 12th largest producer which supplies many other countries which rely on oil and therefore gives Nigeria power
- Nigeria is currently the 5th largest contributor to the UN peacekeeping missions and this prevents war and allows Nigeria to invest more into development
- in 2014, Nigeria became the world’s fastest growing economy and this means that they are producing more and gaining more money to invest in development
- Nigeria is predicted to have to world’s highest average GNI growth rate and it can then invest this money into development
how has Nigeria’s political context promoted development?
it has had a government for 24 years which causes a stable economy with it’s country’s best interests at heart which leads to development
how has Nigeria’s political context hindered development?
it was run by Britain and when it left, it had a power vacuum which caused many people to fight over who should run/ own it and left no one running it
how has Nigeria’s cultural context promoted development?
as the interest in culture brings in money to the economy and gives it popularity across the globe which may also attract tourists
how has Nigeria’s cultural context hindered development?
as it can lead to terrorist attacks and it can also cause Nigeria to be seen as really good and advanced even though 40% of the population live on less that $1 per day