Changing economic world Flashcards
what does development mean?
Development means positive change that improves the lives of people in a country. It can be measured using a number of economic & social measures/indicators:
what are development indicators?
GNI- Gross National Income (Money earned by residents of a country including money earned abroad).
HDI- Human Development Index.
Calculated using life expectancy, education, and per capita income.
Infant Mortality- How many children per 1000 die before they are 1.
Literacy Rate- The % of adults that read and write acceptably.
what is a disadvantage of a single measure like GNI?
This could be that they are averages and so don’t represent spatial variations, different aspects develop at different rates, or a country might score well one aspect and not another.
what is standard of living ?
Standard of living refers to material wealth e.g.
Income, whether they own a car, house etc.
The economic level of their daily lives. $£
what is quality of life ?
Quality of life includes standard of living and other things that aren’t easy to measure, how much space they have, safety, access to clean water, environmental factors etc (Composite Measure).
what does the demographic transition model show
The Demographic Transition model shows how a country’s population changes as it becomes more developed, from subsistence farming (LICs) to HICs
what is stage 1 of the Demographic Transition Model?
BR- high
DR- high
pop change- static
e.g- remote tribes
what is stage 2 of the demographic transition model?
BR- high
DR- falls rapidly
pop change- rapid rise
e.g- kenya
what is stage 3 of the Demographic Transition Model?
BR- falling
DR- falls slowly
pop change- increase slowly
e.g- Brazil
what is stage 4 of the Demographic Transition Model?
BR- low
DR- low
pop change- stable
e.g- Uk
what is stage 5 of the Demographic Transition Model?
BR- very low
DR- low
pop change- slow decrease
e.g- Germany
how do population pyramids change over time?
from having a high birth rate (a wide base), to good healthcare and more elderly people (a wide top).
what is stage 1?
Stage 1 - Hunter-gathers. Insecure supplies of water and food and no modern medicine. Family sizes are large, children play a key role in the family.
what is stage 2?
Stage 2 - Primary industry e.g. farming. Children are useful for this. In addition, lack of contraception means high birth rates.
what is stage 3?
Stage 3 - Secondary industry e.g. Manufacturing.
Children are less useful and there are increasing laws around child labour.
what is stage 4&5?
Stage 4 and 5 - Tertiary Industries e.g. Services, teachers, doctors, lawyers, electrician, plumbers.
Also children are expensive to raise. Women have education, careers and are marrying later having fewer children.
what are the 4 causes of uneven development?
physical environment- soil erosion, desertification
health- disease
trade- sold by lics for low
history- colonisation
disparities in wealth:
positives-
negatives-
Positives
All countries are developing and increasing their
GNI.
In 2014 the fastest growth of wealth was North America which now hold 35% of the global wealth.
Negatives
There are large disparities, Africa has the smallest share of global wealth of about 1%.
There are disparities within countries. China has the highest growth rate since 2000 but half its population are still in poverty
disparities in health:
LIC’s
HIC’s
LIC’s: People are more likely to die from infectious diseases such as HIV/ Aids, Malaria, Cholera.
Complications in child birth is the main cause of death in under 5s.
HIC’s: People in HIC have longer life expectancy (80) but are more likely to have lifestyle diseases.
Lung infections are the only major infectious cause of death -often caused by smoking.
what are the 3 types of migration?
-migration
-economic migration
-forced migration
what is aid?
Aid: is the transfer of money, goods and expertise from the donor country to the recipient country.
what is top-down aid?
Top down, long-term aid provides the country with large scale projects that encourage investment.
Example: Lesotho Water Transfer Project
Lesotho has a low GDP per capita of US$988. This project provides safe water for the 10% of the South African population without safe access.
what is bottom-up aid?
Bottom-up aid is small scale and will meet the needs of the people. This usually involves intermediate technology.
Example: Wakel River Basin Project, India United States Agency for International Development (USAID) funded a project called:
The Global Water Sustainability Program (2004-
2014). USAID is an example of a non-government organisation (NGO).
Fair Trade:
Example:
Fair Trade: Farmers receive a fair and stable price for their cash crops which enables them to plan for the future and invest.
Example: Over 90% of small coffee farmers in eastern Uganda have joined the Gumutindo Coffee Cooperative to gain economies of scale.
Debt Relief:
Example:
Debt Relief: HIC’s will work with the World Bank to cancel LIC’s debts to other countries and banks.
Example: In 2006, the world’s richest countries (known as the G8) agreed to cancel the debts of many of the Highly Indebted Poor Countries (HIPC’s).
Microfinance Loans:
Example:
Microfinance loans: These are small loans ($100) and for low income people start a small business, such as mending clothes.
Example: The Grameen Bank in Bangladesh was set up in 1976. The bank was founded to help people, especially women, use skills to develop small businesses, like a mobile phone business.
what is investment?
Investment: When countries or TNCs invest money and set up an industry or business in another country.
what is TNC investment?
TNC investment: TNCs and HICs may invest such as China in Africa, these give people jobs and income.
It can also stimulate industrial development such as
Shell in Nigeria.
what is the positive multiplier effect?
industrial development brings employment and opportunities to invest in housing, education and infrastructure.
Tourist Growth in LIC:
Jamaica
Background:
LIC in Caribbean. Independent from the LK in
1962. Tourism has helped to reduce the development gap for some countries e.g.
Bahamas and Jamaica. Jamaica is a relatively small island in the Caribbean with a GDP of 14 billion.
Attractions: Countries with tropical beaches, spectacular landscapes or abundant wildlife have become tourist destinations.
This has led to investment and increased income from abroad, which can be used for improving education, infrastructure and housing.
Positive Impacts
Tourism has led to a high level of investment on the North Coast, this includes new hotels, ports and cruise liner facilities at Trelawny & expansion of the airport. There are 200,00 jobs. Tourism contributed to 34% of Jamaica’s GDP.
Negative Impacts
Mass tourism can create excessive waste, harmful emission, habitat destruction and degradation if it is not managed carefully.
Not all Jamaicans benefit from tourism, there is still high levels of deprivation.
What is the global importance of Nigeria?
• 2014: world’s 21st largest economy (due to oil
• Fifth largest contributor to UN peacekeeping
missions.
• NEE: with fastest growing economy in Africa.
• Still very poor with average per capita incomes around $5,000 per year (compare to $32,000 per person per year in UK)
• 60% population live on less than a $1 a day
Context of Nigeria:
political context:
Nigeria was a UK colony, becoming independent in 1960. Political instability followed and affected Nigeria’s development and led to widespread corruption and Civil war 1967-70. Since 1999 it has had a stable government. Increasing foreign investment in Nigeria e.g. China is boosting economic growth.
Social context
Multi-ethnic, multi-faith country
This is a strength but has also been a source of conflict e.g. 1967-70 civil war
Economic inequality between the Islamic north and Christian south has led to new tensions.
Cultural context
Nigerian music - e.g. musician Fela Kuti
Nollywood - Nigerian film industry 2nd largest in the world
Nigerian football team v. successful - has won the African cup of nations 3 times
Environmental context
Natural environments form a series of E-W bands because of decreasing rainfall towards the north. Semi-desert in the north, grasslands and forests further south.
changes in employment structure: Nigeria
1999 large agriculture sector
2012 a more balanced economy, industry and services have grown
what is a TNC ?
A TNC is a Transnational Corporation. They tend to have a major headquarters in HICs and regional sub-offices and factories in other LIC and NEE countries to take advantage of labour, lower environmental standards and raw material costs.
Two big TNCs in Nigeria are:
what are the 2 main TNC’s in Nigeria?
Unilever: HQ in London and Rotterdam. In Nigeria since 1923. Makes toothpaste, soap etc. Employs 1500 people in Nigeria.
Shell Oil: oil found in Niger Delta in 1958. Since then major contributor to taxes and export revenue. 65,000 workers and 250,000 jobs in related industries
Social issues of TNC’s in Nigeria:
Fish farms affected by oil spills therefore jobs affected.
Oil thefts and sabotage
Workers poorly paid
Economic issues of TNC’s in Nigeria:
Profits do not remain in Nigeria, they return to the HICs (Netherlands and UK)
what is emergency aid?
Emergency aid is short term, following natural disaster or famine. Development aid is charity based, long term support such as roads, schools or health centres
Nigeria receives 4% of the aid sent to Africa, mostly from the USA and UK.
Examples of long term development aid in Nigeria:
Aduwan Health centre: 2010 clinic to educate mothers about immunisations (polio), HIV and
AIDS, aim to reduce Infant Mortlaity Rate.
NGO nets for life - educates on malaria prevention and issues free anti-mosquito nets to many households.
What problem is industry causing in cities like Kano and Lagos?
In Kano and Lagos, industrial pollutants go directly into rivers. Also, air pollution from industry.
70-80% of Nigeria’s forests have been destroyed by farming, industrial development and urban growth.
Unplanned urban growth, waste disposal and traffic congestion are major issues in urban areas Mining & oil extraction has caused significant water pollution e.g. on the Niger delta
why are 60% of Nigerians still in poverty?
60% of Nigerians still live in poverty, the country is still unstable, still a religious divide and kidnappings by terrorist group Boko Haram still affect inward investment and confidence in the country.
when did industrialisation take place in the UK?
Industrialisation took place in the UK during the 1800s. Most early manufacturing industry took place in areas with coal fields which provided energy. This was a ‘break of bulk location’, reducing transport costs.
what is de-industrialisation?
the reduction of industrial activity or capacity in a region or economy, especially of heavy industry or manufacturing industry
Cambridge science park:
Located to the north-east of Cambridge, the site is home to over 1,500 IT and bio-technology (quaternary) companies. Location factors include closeness to a major junction of the A14 which provides rapid access to the M11, and thereafter Heathrow and London. It is on cheaper land at the edge of the city. This land is flat and there is room for expansion. The proximity to Cambridge University promotes strong working relationships and access to the best University graduates.
what are the impacts of industry on the physical environment?
• Negative visual impact of factories
• Air, water & soil pollution
• Pollution from road transport
quarrying impacts:
• Destroys natural habitats
• Pollutes streams & rivers
• Scars landscape
• Noise & dust pollution
• Increased road traffic
Torr Quarry, Somerset, SW England - making quarrying more sustainable
Limestone quarry for roads, buildings, cement €
100 people work at Torr Quarry
• Quarry being restored to create wildlife lakes
• Tree planting and grass to blend in with environment
• Monitoring - noise, air, dust, vibrations
• Rail transport of stone instead of road
what an example of an area of population growth:
South Cambridgeshire (close to London)
Population of 150,000 due to migration into the area
Social effects: young people cannot afford the high housing costs so move away, large edge-of-village estates means loss of community Economic effects: loss of employment in agriculture as land is sold for housing
what is an area of population decline:
the Outer Hebrides (remote location)
The population has declined by 50% since 1901
Social effects: outmigration of younger people means falling numbers of children and therefore school closures. Also, ageing population as young leave
Economic effects: services closing, limited employment opportunities
what areas of the UK have been most affected by de-industrialisation?
the north and west of the UK. The areas of industrial growth today tend to be in the south and west. The divide has led to social and economic differences. Unemployment in the north east is 5.5% higher than the south east. Average pay is £4,000 higher in the south and life expectancy is 2.5 years longer. In attempt to reduce the differences between the north and south governments have supported a number of schemes:
what is HS2?
HS2 is a High Speed rail link that will run from London to Birmingham (northern link to Manchester & Leeds cancelled in 2023)
Benefits - 100,000 jobs will be created.
Problems - The scheme will cost £100 billion
UK global links:
EU - Trade bloc
The UK joined the EU in 1973 with the aim of becoming part of the common market and improving trade between countries.
The UK opted to leave in 2016. The future is uncertain but Britain is now free to arrange its own trade agreements.
42% of all UK trade is with the EU
