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