changing economic world Flashcards
where is Nigeria found?
Nigeria is in west Africa, next to Cameroon and Benin on the west coast.
why is Nigeria economically influential in the world?
Nigeria has the largest GDP in Africa and it has a large supply of oil to sell.
how big is Nigeria’s population?
7th largest population in the world, with approximately 200 million people living there
what is special about Nigeria’s film industry?
Nigeria’s film industry - ‘Nollywood’ - is the second largest film industry in the world.
does Nigeria have a good government?
the government is corrupt, as many officials take bribes. therefore Nigerians have lost trust in their government
what is the biggest industry in Nigeria?
agriculture since 70% of the population are farmers.
what is the life expectancy in Nigeria? how does this compare with the rest of the world?
54 years which is 19 years less than the average life expectancy for the world
what is the literacy rates in Nigeria? how does this compare to the rest of the world?
65.1% which is low as the UK has 100% literacy rates.
what is Nigeria’s rank in the human development index?
158 out of 188
why is oil important to Nigeria?
oil can be traded to make large profits
name two TNC’s in Nigeria
Shell - an oil and gas company
Total - a French oil company
name an NGO that gives aid in Nigeria, and how do they help Nigerians?
christian aid - protecting displaced Nigerians , supporting people with HIV, medical treatment for children
action aid - helping girls go to school, food parcels during COVID, pressuring TNCs to pay taxes.
demographic transition model
a model which describes how the population, birth and death rates change as a population develops. overall, the death rate then birth rate falls, whilst total population increases.
what is development
the progress of a country as it becomes more economically and technologically advanced
- can also be applied to improvements in people’s quality of life e.g. educational opp. increased incomes, human rights and good living conditions
LIC
low-income country
HIC
high-income country
NEE
newly emerging economy
GNI
total value of goods and services made in a country + investments made abroad. measured as GNI per capita
literacy rates
percentage of adults that can read and write to a basic level
access to safe water
percentage of population that has access to water that does not carry a health risk
infant mortality rate
number of babies that die before the first year of birth per 1000 live births
limitations of GNI
hides inequalities because it is a mean, does not include the informal sector (large problems in LICs and NEEs)
limitations of literacy rates`
hard to compare across diff. countries as there is no standardised test, data particularly hard to collect in rural LICs and slums
limitations of access to safe water
data particularly hard to collect in rural LICs and slums
limitations of infant mortality rate
- requires countries to have good administrative systems that register births + deaths
- data particularly hard to collect in rural LICs and slums
human development index
composite measure using data from income (GDP/capita), life expectancy and education (literacy rates) to calculate an index from 0-1
stage 1 of demographic transition model
birth and death rates are both high and fluctuating. they tend to cancel each other out, accounting for a low but stable pop. high birth rate reflects high infant mortality resulting from poor healthcare, diets, etc. high death rate results from disease and very poor health care and living conditions.
stage 2 of demographic transition model
in stage 2, countries are not very developed and they have high birth rates and falling death rates. the economy is mainly agricultural-based so people have lots of children to work on the farms. infant mortality is still high because of an under-developed vaccination programme and poorly funded maternal care system. healthcare overall is improving due to economic development and so death rates are falling.
stage 3 of demographic transition model
death rate continues to fall before levelling off. birth rate starts to fall rapidly. the total population grows as the birth rate exceeds the death rate. further improvements in health care and living conditions (safe water and sanitation) cause the death rate to fall further and then level off. fewer children are needed to work the land and higher survival rates cause the birth rate to fall.
stage 4 of demographic transition model
In Stage 4, birth rate is low as women prioritise their careers and have less children and there are more service jobs that are better paid so women give birth to less children. the death rate is also low as better paid jobs increase the quality life and there is more tax money that can be reinvested in public services so there is very good healthcare and high education levels. there is a stable population and there is a large workforce to grow the economy. this means this stage is where high income countries are found with most working in the tertiary sector.
stage 5 of demographic transition model
the birth rate dips below the death rate as more woman choose to follow careers rather than having large families. this results in a natural decrease creating and ageing and declining pop.
physical causes of uneven development
land locked/location of country:
- stops trade with other countries, have to rely on neighbours
- africa has the most landlocked countries in the world which limits development
tropical diseases:
- limits development due to higher death rate - less people go to work or get an education
- DRC has climate related diseases like malaria
- stops growth of a country
extreme weather:
- can cost money to rebuild from it and causes a high death rate - limits development and growth
- Sudan in east Africa experiences years of drought
- however this isn’t always the case e.g. Australia and USA are rich and have extreme weather.
economic causes of uneven development
unfair trade agreements:
- powerful TNCs and HICs dictate terms of trade
reliance on sale of raw materials:
- raw materials when processed makes lot of money > so value is made in HICs + NEEs
- overproduction
- the price of cocoa beans halved in 1980s due to overproduction leading to an economic crash
- zambia is very dependent on copper . fluctuation of price of copper caused a 2% decrease on all exports
- don’t have the ability to process their own raw materials
historical causes of uneven development
colonialism resulted in:
>taking raw materials
- this didn’t leave colonised countries with enough resources to begin to develop which meant they couldn’t progress
- colonial powers in Europe took resources from Africa for free that made them rich
> slave trade
- this meant that there wasn’t a strong workforce that could bring income for the country so they couldn’t develop further.
- people were taken from Africa and sold into the slave trade
- 1650 - 1900s, 10 million people were taken
- didn’t invest in infrastructure, healthcare + schools
- didn’t have money to invest in good healthcare so their birth and death rate increases as well and they struggle to develop
> dividing up countries
- badly divided countries forced rival tribes together which caused civil wars that are ongoing today
what happened in 2016 (uneven development)
the bottom 99% and top 1% owned the same amount of wealth
what has the trend of uneven development been like? (wealth)
since 2009, the top 1% has been getting richer whilst everyone else has been getting poorer. the wealthiest regions of the world remain USA and Europe but Europe is about to be overtaken by China who, as recently as 1980, had less than 2% of the world’s wealth. Africa’s share of world wealth remains less than 1%
what has happened to the world’s wealth
+ health gap
over the last 200 years, the world’s wealth gap has increased, over the same time the world’s health gap has also increased. there is a positive correlation between wealth and health.
distribution of AIDS deaths around the world.
mainly occur in Africa and India, part of the reason for this is Anti- Retroviral Treatments are very expensive.
how has migration changed?
since 2004, the number of Polish economic migrants to the UK has increased significantly, there are now more than 750,000 poles in the UK.
what was the reason for the influx of polish migrants.
- high unemployment rates in Poland (PUSH)
- UK had a skills gap particularly in construction (PULL)
where did most asylum seekers to Europe come from
Syria where a civil war has been raging since 2011. - greatest no. went to Germany.
what country were the vast majority of asylum claims rejected
Kosovo, Albania and Serbia.
foreign investment
TNC’s set up a business and employ local workers
how does foreign investment help development
- business creation and investment in
- this then creates a multiplier effect due to more businesses setting up around it.
what are the problems with foreign investment
- exploitation of workers - can reduce people’s quality of life
- host countries can be left vulnerable if TNCs pull out quickly
examples of foreign investment
- in 2020, shell awarded contracts worth more than $0.8 bn to Nigerian registered businesses
- China needs resources so has invested in oil fields
industrial development
the building and growing of industries within an economy
how does industrial development help
- you move your economy from primary to secondary to tertiary so that he country can earn more money
- these profitable countries are then taxed which can then pay for education and healthcare.
- more affordable goods can be made for the home market
what are the problems with industrial development
- requires investment in education, expertise and investment in industry which is sometimes unaffordable
examples of industrial development
- Dangote is the richest man in Africa - his company is called Dangote cement
- Nigeria is in need of cement as it has a rapidly growing urban pop.
aid
a gift of money, goods or services to a developing country
how does aid help development
- money can be invested in economic and social development to improve quality of life in poorer countries
- builds relations between two countries
what is the problem with aid
- corrupt governments can waste aid money
- risk of mismanagement of money
- creates a reliance on aid
- if aid money is removed, projects can stop
- aid is quite unreliable
examples of aid
- 60 million mosquito nets distributed by the world bank, IMF and US government in Nigeria to stop malaria - multilateral aid
- Oxfam works in North Eastern Nigeria to support displaced people from conflict with Boko Haram
what is fair trade
the aim to give better prices and guarantees for the goods farmers produce, protecting their quality of life
how does fair trade help
- ensures a fair price for farmers
- social premium is used to invest in the local community e.g. schools and health clinics
- improves farmer’s quality of life
what are the problems with fair trade
- fair trade is more expensive to but so the market is smaller
- especially during current cost of living crisis
examples of fair trade
- 1.5 million farmers on the fair trade scheme
- company half owned by farmers in LICs
intermediate technology
technology that the local community can take ownership of and use
how does intermediate technology help development
- it’s technology that can be use and maintained by the poorest people in a country
- adapts to locals’ needs so they can combat extreme weather
- reduces poverty
- can spur economic development
what are the problems with intermediate technology
- small scale
examples of intermediate technology
- floating hyacinth gardens in Bangladesh
microfinance loans
where poor people borrow very small sums of money
how do microfinance loans help development
- very small amounts of money are loaned to the poorest people in society
- 97% women who wouldn’t usually have access to loans
- helps the very poorest people start a business and potentially lift them out of poverty
what are the problems with microfinance loans
- if the business fails they find themselves in debt
- small scale
> the loans are so small, the returns can be small and not reduce poverty enough
examples of microfinance loans
Gramteen Bank in Bangladesh - recovery rate of 96%
ecotourism
a type of sustainable development that aims to reduce the impact that tourism has on beautiful climates
how does ecotourism help development
- protects the environment and so will continue to attract people
- more expensive so locals earn more money from it
- ensures better local employment > paid better + better rights
what are the problems with ecotourism
- more expensive to stay in an eco-touristic hotel/accommodation
debt relief
issues of LICs paying off interest but never paying off debt - unable to develop
how does debt relief help development
- the debt was cancelled for a number of the world’s most indebted countries
- that money could now be spent on development projects such as infrastructure, schools + hospitals
what are the problems with debt relief
- only a small amount of countries that have had their debt cut
examples of debt relief
in 2005 Nigeria’s debt was cut
socio-economic advantages of tourism in Kenya
- in 2018, travel and tourism grew by 5.9% to contribute $7.51 billion to the Kenyan economy
- tourism now provides 1.1 million jobs
- travel and tourism supported 8.8% of the nation’s GDP in 2018 (a relatively large percentage) and it is expected to continue growing
- this money can be invested in services and infrastructure to improve quality of life.
environmental advantages of tourism in Kenya
- positive side effect of encouraging wildlife conservation efforts
- forests, games parks, and cultural heritage sites are preserved as possible sources of income
- 24 national parks charge entry fees so money can be used to maintain parks
socio-economic disadvantages of tourism in Kenya
- jobs are usually seasonal, and often menial
- employment is unsteady
- big companies bring workers from home for high paying jobs - low quality jobs left for locals
- gov. prioritises helping areas for tourism so local miss out on essential funding
- most money made goes straight to big industry players in HICs instead of locals
environmental disadvantages of tourism in Kenya
- tourist visits can disrupt natural wildlife as they are invaded by tourists wanting to take pictures
- some local tribes have been forced out of their land by gov for tourism
why is nigeria important regionally
it has the largest pop. and economy in Africa, it also offers a peace-keeping service
pop. growth will continue into the future
assessment of nigeria’s importance regionally
- very important regionally and likely to get more important as the pop. grows
- will impact local trade given large size of the economy
why is nigeria important globally?
- transport hub
- has international relationships w/ TNCs e.g. Shell
- large producer of oil
- 7th largest pop. in the world
- helps grow economy + more power
assesment of nigeria’s importance internationally
- not as important as it is regionally
- however as the economy grows it will get more important
- by 2050 predicted to have larger economy than France and Canada
important dates in Nigeria history
1960 - Nigeria independence
1967-70: civil war after Biafra independence
war ended and nearly 2 mil died
example of terrorist acts in Nigeria
kidnapped 270 school girls, massacred civilians in Borno, burning down villages
what do Boko Haram want and where do they operate
they operate in the north-East, wants to replace the gov with an extremist theocracy
what is nigerias land composed of
mangrove, fresh water swamps, rainforest, fertile highlands, savannah
- savannah - pastoral agriculture in the north
- FH produce oil plants and rubber
how has Nigeria’s economy changed
in the 1990s, Nigeria was mainly agricultural society. now over half the country’s GDP comes from services.
Nollywood is Nigeria’s film industry - 3rd largest in the world
how does industry stimulate economic development?
a company creates employment and taxes are paid to gov. => money is investes in services and infrastructure => the pop. become better educated and healthier=> more businesses set up here and more opportunities
nigeria’s changing trading relationships
pre independence: britain is main trading partner
1960: nigerian independence
post independence: main trading partners are USA and China - export value - 95% oil
HIPCs
highly indebted poor countries
how did Nigeria get into debt?
1960: economy increased so borrowed money
1970: recession so economy shrinks - so can’t pay off debt, debt increases and cripples the economy stopping development
ODA
official development assistance is given by gov. and paid for by taxed
voluntary aid
given by individuals and companies
why does Nigeria still receive aid
60% of pop. lives in extreme poverty.
nigeria GNI/capita
$5086
nigeria life expectancy
54.5 years
average number of schooling years in Nigeria
6.5 years
nigeria HDI
0.534 (158/189 - not good) classified as NEE bc of growing economy
push factors for nigeria
33% youth unemployment
19% overall unemployment
50% in extreme poverty
Boko Haram - conflict
Climate change
overpopulation
fact ab migration journey
25,00 people have died since 2014 trying to cross the Mediterranean
how many differnet ethnic groups are there
over 500
what kinds of vegetation does Nigeria have
mangroves, freshwater swamps, rainforests, savannah (s->N)
how long has Nigeria been a democracy?
since 1998
what is the name of the extremist organisation that controls north-east Nigeria
Boko Haram
hoe much of nigeria’s export earnings come from oil
95%
what percentage of nigeria’s pop. live on less than $1.25 a day
60%
nigeria’s pop. is 180 million, how many have mobile phone
115 mil
what is nigeria’s literacy rate
60% (male=69% female=50%)
socio-economic advantages of TNCs
- bring new investments into a country’s economy
- provides better paid jobs
- brings expertise and new skills
- have international links that bring access to trade markets
- provides new technology helping economic development
- multiplier effect
socio-economic disadvantages of TNCs
- takes profits out of the country to pay shareholders or invest so,ewhere else
- wage levels often lower in LICs + NEEs than HICs
- TNCs can withdraw their investments in a country if they wish
- powerful so can exert political influence over local government
environmental disadvantages of TNCs
- can cause environmental damage
> oil spills and pollution (shell in ogoniland) - depletes natural resources
facts about shell
operates in about 100 countries. headquarters in London and the Netherlands
produce 2% of world’s oil and 3% of world’s gas
what are the three causes of industrial change
government policy
de-industrialisation
globalisation
globalisation
increasing integration of people, businesses and governments driven by trade and foreign investment
deindustrialisation
decrease in the amount of manufacturing and heavy industry taking place in a country and a growth in the tertiary and quartenary sectors.
when did deindustrialisation start in the UK
1970s
why has there been a global shift in manufacturing
- lower wages = more profit
- laxer regulations = more profit as lower production costs
how did the gov. encourage economic growth
1) finance was deregulated
- resulted in large growth in financial trades and finance sector => benefitted LONDON
2) joined trading blocs such s the EU
- allowed free movemnt of goods and people resulting in increased trade
3) joined world trade organisation
- decreased tariffs on imports resulting in increased trade w/ member countries
which areas of the UK benefited from a post industrial economy
- large number of quaternary industries
- highly skilled workforce educated to degree level or above
- new start-up businessses
- good transport links
south east has these features
cambridge
locates in East Anglia
what is Cambridge famous for
its world famous for its university
what is the science park
19 1970. trinity college set up the science park making it a global centre for footloose industries
what are footlose insudtries
very small technology that doesn’t need to be near an energy source e.g. electronics, scientific instruments and medical drugs
how big is the park
more than 100 start-up businesses employing 5000 people
characteristics of science parks
- near Cambridge university =local skilled workforce and scientific research
- edge of city location = less congestion
- M11 motorway = direct links to London, good links for community workers
- goof transport links, stansted airport = export finished products and import component parts
judgement of science parks
- house prices tend to be high by rising demand
- road and rail need to be improved or people rely on cars to travel
impacts of car manufacturing on physical environment
- materials used to make cars were often toxic and difficult to recycle
- production process was energy intensive
- engines were inefficient producing high quantities of harmful pollutants
- burned petrol or diesel
how can the car industry be made sustainable
- new car models are designed to be much more fuel efficient
- tighter restrictions on exhaust gas emissions
- Nissan car plant obtains 7% of its energy from wind turbines
- designed using materials that can be recycled reducing wast going to landfill sites
what percentage of UK live in rural areas? why
20% - result of counterurbanisation
what are greenbelts
around major cities that restricts further building development and attempts to stop urban sprawl
how fast has the area of Dullingham grown since 1991?
35%
why is the Dullingham area attractive
- large houses, bigger gardens = better access to green space
- excellent schools e.g. kettlefields primary
- excellent transport connections e.g. M11
- local jobs in the quaternary sector
where is Dullingham
in England, East Cambridgeshire
what positive impacts will a growing pop. have on dullingham
- encourages businesses to set up
- positive multiplier effect
- increase in local diversity
- increased local employment
- more investment in local services
- more investment in transport
- younger demographic - stop pop. decline
what does the growth of Dullingham have to do with recent economic changes
- growth in quaternary jobs + out-of-town science parks
- increase in online working means more people can live further away
- improvements in road + rail network in SE
where is Blaenavon
Blaenavon is in South Wales
why is Blaenavon unattractive
- area decline of -1%
- poor quality housing with little value
- lack of schools; schools closing down due to pop. decline
- derelict buildings
- poor transport connections- no major roads
- less businesses set-up
- lack of services due to pop. decline
- lack of infrastructure
- lack of jobs - local coal mine BIg Pit closed in 1980
LAck of cultural activities
what impact will pop. decline have on Blaenavon
- demographic is increasingly ageing
- decrease in working-age pop. so less taxes so less investment in services and infrastructure
- decreasing house prices
- schools closing
- loss in local culture
what does the decline of Blaenavon have to do with recent economic changes?
- this is to do with deindustrialisation and the closing of mines
- government policy: margaret thatcher sped up closure of mines
- globalisation they became uncompetitive with foreign coal
what percentage of our trade is by boat
90%
