Changing economic world Flashcards
What is economic development?
The progress in economic growth through levels of industrialisation and use of technology
What is social development?
An improvement in people’s standard of living, e.g. clean water and electricity
What is environmental development?
Advances in the management and protection of the environment
What are 3 examples of economic development indicators?
-Employment type
-Gross Domestic Product per capita (GDP per capita)
-Gross National Income per capita (GNI per capita)
What are 3 examples of social development indicators?
-Infant mortality rate
-Literacy rate
-Life expectancy
What is an example of a mixed indicator?
The Human Development Index (HDI)
Define employment type
The proportion of the population working in primary, secondary, tertiary and quaternary industries
Define Gross Domestic Product (GDP) per capita
This is the total value of goods and services produced in a country per person, per year
Define Gross National Income (GNI) per capita
An average gross national income per person, per year in US dollars
Define infant mortality rate
The number of children who die before reaching 1 per 1000 babies born
Define literacy rate
The percentage of population over the age of 15 who can read and write
Define life expectancy
The average lifespan of someone born in that country
What is the Human Development Index (HDI)
A number that uses life expectancy, education level and income per person, ranked on a scale of 0-1 (1 best, 0 worst)
What are 4 physical factors affecting uneven development?
-Natural resources
-Natural hazards
-Climate
-Location/terrain
What are 6 human factors affecting uneven development?
-Aid
-Trade
-Education
-Health
-Politics
-History
What are examples of natural resources?
-Fuel sources such as oil
-Minerals and metals for fuel
-Availability for timber
-Access to safe water
How do natural hazards affect uneven development?
-Risk of tectonic hazards
-Benefits from volcanic material and floodwater
-Frequent hazards undermines development
How does climate affect uneven development?
-Reliability of rainfall to benefit farming
-Extreme climates limit industry and affects health
-Climate can attract tourists
How does location/terrain affect uneven development?
-Landlocked countries may find trade difficulties
-Mountainous terrain makes farming difficult
-Scenery attracts tourists
How does aid affect uneven development?
-Aid can help some countries develop key projects for infrastructure faster
-Aid can improve services, such as schools, hospitals and roads
-Too much reliance on aid might stop other trade links becoming established
How does trade affect uneven development?
-Countries that export more than they import have a trade surplus. This can improve the national economy
-Having good trade relationships
-Trading goods and services is more profitable than raw materials
How does education affect uneven development?
-Education creates a skilled workforce meaning more goods and services are produced
-Educated people earn more money, meaning they also pay more taxes. This money can help develop the country in the future
How does health affect uneven development?
-Lack of clean water and poor healthcare means a large number of people suffer from diseases
-People who are ill cannot work so there is little contribution to the economy
-More money on healthcare means less money spent on development
How does politics affect uneven development?
-Corruption in local and national governments
-The stability of the government can affect the country’s ability to trade
-Ability of the country to invest into services and infrastructure
How does history affect uneven development?
-Colonialism has helped Europe develop, but slowed down development in many other countries
-Countries that went through industrialisation a while ago develop further
What are 3 consequences of uneven development?
-Wealth
-Health
-Migration
How does uneven development affect wealth?
People in more developed countries have higher incomes than less developed countries
How does uneven development affect health?
better healthcare means that people in more developed countries live longer than those in less developed countries
How does uneven development affect migration?
If nearby countries have higher levels of development or are secure, people will move to seek better opportunities and standard of living
Describe the Demographic Transition Model (DTM)
The DTM shows population change over time. It studies how birth rate and death rate affect the total population of a country
Describe each stage of the Demographic Transition Model
-Stage 1 - High DR, high BR, steady e.g. tribes
-Stage 2 - Declining DR, high BR, very high e.g. Kenya
-Stage 3 - Low DR, rapidly falling BR, high e.g. India
-Stage 4 - Low DR, low BR, zero e.g. UK
-Stage 5 - Slowly falling DR, low BR, negative e.g. Japan
How do microfinance loans help to reduce the development gap?
Involves people in LICs receiving small loans from traditional banks
+Loans enable people to begin their own businesses
-It’s not clear they can reduce poverty on a large scale
How does foreign-direct investment help to reduce the development gap?
One country buys property or infrastructure in another country
+Leads to better access to finance, technology & expertise
-Investment can come with strings attached that countries will need to comply with
How does aid help to reduce the development gap?
Given by one country to another as money or resources
+Improve literacy rates, building dams, improving agriculture
-Can be wasted by corrupt governments or they can become too reliant on aid
How does debt relief help to reduce the development gap?
A country’s debt is cancelled or interest rates are lowered
+Means more money can be spent on development
-Locals might not always get a say. Some aid can be tied under conditions from donor country
How does fair trade help to reduce the development gap?
Farmers get a fair price for the goods they produce
+Paid fairly so they can develop schools & healthcare centres
-Only a tiny proportion of the extra money reaches producers
How does technology help reduce the development gap?
Includes tools, machines and affordable equipment that improve quality of life
+Renewable energy is less expensive and polluting
-Requires initial investment and skills in operating technology
How does tourism affect Jamaica?
-In 2015, 2.12 million visited
-Tourism contributes 27% of GDP and will increase to 38% by 2025
-130,000 jobs rely on tourism
-Global recession 2008 caused decline in tourism. Now tourism is beginning to recover
How has the multiplier effect helped tourism in Jamaica?
-Jobs from tourism have meant more money has been spent in shops and other businesses
-Government has invested infrastructure to support tourism
-New sewage treatment plants have reduced pollution
What are the development problems with tourism in Jamaica?
-Tourists do not always spend much money outside their resorts
-Infrastructure improvements have not spread to the whole island
-Many people in Jamaica still live in poor quality housing and lack basic services such as healthcare
What political influences affected Nigeria’s development?
-Suffered instability with a civil war between 1967-1970
-From 1999, the country became stable and free with free and fair elections
-Stability has encouraged global investment from China and USA
What social influences affected Nigeria’s development?
-Nigeria is a multi-cultural, multi-faith society
-Although mostly a strength, diversity has caused regional conflicts from groups such as the Boko Haram terrorists
What cultural influences affected Nigeria’s development?
-Nigeria’s diversity has created rich and varied artistic culture
-The country has a rich music, literacy and film industry (Nollywood)
-A successful national football side
What industrial structures affected Nigeria’s development?
- 50% of its economy is now manufacturing and services
- A thriving manufacturing industry is increasing foreign investment and employment opportunity
What are the impacts of TNCs in Nigeria?
- TNCs such as shell have played an important role in it’s economy
+ Investment has increased employment and income - Profits move to HICs
- Many oil spills have damaged fragile environments
What influence do changing relationships have on Nigeria’s development?
- Nigeria plays a leading role with the African Union and UN
- Growing links with China with huge investment and infrastructure
- Main imports include petrol from the EU, cars from Brazil and phones from China
What are the environmental impacts of Nigeria’s development?
- 2008/09 oil spills devastated swamps and its ecosystems
- Industry has caused toxic chemicals to be discharged in open sewers - risking human health
- 80% of forest has been cut down, reducing biodiversity and increasing CO2 emissions
What aid & debt relief does Nigeria receive?
+ Receives $5 billion per year in aid
+ Aid groups (ActionAid) have improved health centres, provided anti-mosquito nets and helped to protect people against AIDS/HIV
- Some aid fails to reach the people who need it due to corruption
What are causes of economic change in the UK?
- De-industrialisation and the decline of the UK’s industrial base
- Globalisation has meant many industries have moved overseas, where labour costs are lower
- Government investing in supporting vital businesses
What is pushing the UK towards post-industrial?
- The quaternary industry has increased, whilst secondary has decreased
- Numbers in primary and tertiary industry has stayed steady
- Big increase in professional and technical jobs
What are science parks?
Groups of scientific and technical knowledge based businesses on a single site
What are features of business parks?
- Access to transport routes
- Highly educated workers
- Staff benefit from attractive working conditions
- Attracts clusters of related high-tech businesses
What are the effects of economic development in Nigeria?
- Life expectancy has increased from 46 to 53 years
- 64% have access to safe water
- Typical schooling years has increased from 7 to 9
What is the UK car industry like?
- Every year the UK makes 1.5 million cars
- These factories are owned by large TNCs e.g. Nissan
- 7% of energy used in their factories is from wind energy
- New cars are more energy efficient and lighter
- Nissan produces electric and hybrid cars
What are social changes to rural landscapes?
- Rising house prices have caused tensions in villages
- Villages are unpopulated during the day causing loss of identity
- Resentment towards poor migrant communities
What are economic changes to rural landscapes?
- Lack of affordable housing for local first time buyers
- Sales of farmland has increased rural employment
- Influx of poor migrants puts pressure on local services
What are improvements to transport in the UK?
- £15 billion ‘Road Improvement Strategy’. This will involve 10 new roads and 1600 extra lanes
- £50 billion HS2 railway to improve connections between key UK cities
- £18 billion on Heathrow’s controversial third runway
- UK has many large ports for importing and exporting goods
How is the UK aiming to resolve the North/South divide?
- The government is aiming to support a Northern Powerhouse project to resolve regional differences
- More devolving of powers to disadvantaged regions
What are signs of the UK North/South divide?
- Wages lower in the North
- Health is better in the South
- Education is worse in the North
