changing economic world Flashcards
what are the methods of classifying countries using development indicators?
GDI-gross national income
wealth & income used to describe a countrys level of economic development common measure used by the world bank. (total amount of goods & services produced by a country)
HDI-human development index
devised by united nations, HDI links wealth to health & education, aims to show how far people benefiting from countrys economic growth (life expectancy, GNI per head, number of years of education)
how useful are different developmental indicators?
birth rate- reliable, as country develops women more likely to be educated & want career instead of staying home, marry later with fewer children
death rate- less effective measure, developed countries have older populations and high death rates, less developed more youthful community so death rate is lower
infant motality- useful indicator of countrys healthcare system
literacy rate- good education system
what are the limitations of single measures for development?
could give false picture, as gives the average for the whole country
other factors limiting social and economic measures of development are:
-out of date & hard to collect data
-unreliable data
-focus on certain aspects of development, dont take into account subsistence or informal economies important to many countries
-government corruption so unreliable data
using the demographic transition model explain the link between changing population structure and level of development.
as a country becomes more developed its population characteristics change. start, population is low and stable, then begins to grow, then still grows often not as fast, then finally starts to decrease again.
what are the physical, historical and economic causes of uneven development?
Physical:
-harsh climates make agriculture & infrastructure difficult limit economic growth
-natural disasters floods, droughts can disrupt or slow the progress of development
-natural recources countrys rich in oil, minerals, fertile land experience more development
Historical:
-colonized countrys often exploited for resources, poor infrastructure and economies focused on raw material extraction, hindered development of diverse industries & long-term economic growth
-wars & conflicts destroy infrastructure, disrupt trade & deplete recources, slowing development
Economic:
-industrializationregions industrialized early developed stronger economies
-access to capital mean wealthier countries can invest in education and technology that promote development
what are the impacts of uneven development on people (disparities in wealth and health; international migration)?
wealth:
most developed countries enjoy greatest wealth, in 2014 fastest wealth growth was north america holding 35% global wealth, this is held by 5% of worlds adult population
usa is worlds most important economic ‘engine of growth’
of NEEs china recorded highest growth since 2000 where personal wealth has quadroupled since, global wealth still below share of population
health:
LICs=4 in 10 deaths kids under 15 and 2 in 10 over 70. complications of childbirth main cause of death in under 5s. infectious diseases main cause of death
HICs=7 in 10 deaths over 70. main causes of death cronic heart diseases, cancer, demntia. lung infections only main infectious cause of death. 1 in 100 deaths children under 15
how can the development gap be reduced?
Investment-TNCs & countries invest money into LICs to inc profits this involves, development of infrastructure (roads,water), dams constructed for electricity, improved harbours & ports, new industries developed. provide employment and income abroad
Industrial development- employment, higher incomes, opportunities to invest in housing, education, infrastructure (multiplier effect)
Tourism-reduce gap investment & increased income from abroad due to leisure
Aid- enables countries to invest in projects like roads, electricity and water long-term benefits management
Using intermediate technology- takes form of small-scale projects eften associated with agri, water or health involving local communities and improve QOL
Fairtrade- sets standards for trade with poorer countries, reduces gap by improving QOL of ordinary farmers (fair price, all money from crop, invest some in local community)
Debt relief- helps poor countries invest money into development projects, such as industry, resources or infrastructure by cancelling their debts
Microfinance loans- helps individuals or families start up businesses and become self-sufficient if small business thrives increases income and opportunities
what is an example to show how tourism in an LIC can help to reduce the development gap?
JAMAICA
tourism one of few growth sectors of their economy. popular tourist destination, generates taxes, employment & income over last few decades reduced gap
