Changing economic world Flashcards
define development gap
the difference in standards of living and wellbeing between the world’s richest and poorest countries e.g HIC vs LIC
what is GNI
Gross national income - measurement of economic activity that is calculated by dividing the gross national income by the size of the population - it takes into account the value of goods and services AND the income earned from investments overseas
define development
the progress of a country in terms of economic growth, the use of technology and human welfare
what is HDI
Human development index is a method of measuring development in which GDP per capita and life expectancy are combined to give an overview using social and economic indicators.
what is GDP
Gross domestic income - is the value of a countries output from within it’s borders
6 NEE countries
(BRIC + MINT)
Brazil
Russia
India
China
Mexico
Indonesia
Nigeria
Turkey
List 8 economic and social measures
GNI
Birth rate
Death rate
Infant mortality
Life expectancy
Literacy rates
Access to piped water
people per doctor
GNI
This is expressed as GNI per capita and is the total income of a country divided by the number of people.
Limitations:
The measure only takes into account one factor - income.
The measure is an average calculation so a few wealthy people could distort the whole figures. Data about income is sensitive so people may not always be honest about their earnings.
People working in the informal sector (of which there are many) may not be taken into account
Birth rate
This refers to the number of live births per
1000 population.
Generally high birth rates are associated with poor countries. Large families ensure a decent income for the family and provide support for ageing parents. As a country develops, birth rates generally decrease.
Women are likely to be educated and seek a career. Therefore, they marry later and have fewer children. In addition, better access to healthcare means that family size decreases as children are less likely to die in infancy.
Limitations;
Some countries may have low birth rates but are actually quite poor (e.g. Cuba at 10 per 1000 - this is due to political decisions to invest more money in healthcare over other sectors).
Birth control policies can distort this as a measure of overall development (e.g. China, 12 per 1000)
Death rate
This refers to the number of deaths per
1000 population.
Death rates are generally low throughout the world due to improvements in healthcare. The highest rates are in Africa and parts of the Middle East. Some of the lowest death rates are in NEEs where improved quality of life means people are starting to live longer.
Limitations;
By comparison, death rate is a less reliable measure of development to the birth rate Birth rates can be high in some LICs due to poverty but also high in HICs where many people are dying of old age.
Infant mortality
This refers to the number of deaths of children less than one year of age per 1000.
Figures for this vary enormously with the highest values in African countries (Angola, 96 per 1000) and lowest in HICs (Germany, 3 per 1000).
It is recognised as a good measure of development as it reflects the level of healthcare and service provision in a country.
Limitations ;
In the poorest countries, not all the deaths of children are reported, especially in remote areas, meaning the true rates may be even higher.
Life expectancy
This is the average
number of years a person in a country can be expected to live.
SOCIAL.
In HICs life expectancy can be over 80 years. In NEEs, life expectancy is between 65 and 75.
In LICs, life expectancy is typically in the 50s.
This is regarded as a good measure of development as it reflects healthcare and service provision.
Limitations;
Data is not always reliable, especially in LICs
It can be slightly misleading in countries with very high rates of infant mortality as people surviving infancy may live longer than expected thereafter.
Literacy rates
This can also be expressed
as the percentage of people with basic reading and writing skills.
This varies widely. Most HICs have literacy rates of 99%. However, in LICs, the figure can be below 50% (Afghanistan, 38%). This is a good measure as it reflects the provision of education within a country.
Limitations ;
This can be hard to measure in LICs due to lack of monitoring
War zones and squatter settlements are difficult areas to measure literacy rates.
Access to piped water
The percentage of people with access to safe mains water.
There is much variation with safe water access across the globe.
In the EU which includes many HICs, all people should have access to safe water by law. Access in many LICs however, is poor (Angola, 34%)
Limitations;
Data collection in LICs is not likely to be accurate and so official figures may underestimate the problem
People may technically have access but high costs may force them to use water that is not safe
Human development index
This is a composite measure using data on income, life expectancy and education to calculate an index from 0-1. It was developed by the UN to show how far people benefit from economic growth.
SOCIAL.
A country’s HDI is expressed as a value between 0-I (I being the highest and O being the lowest).
Limitations of this measure
It is still a narrow measure and only takes into account 3 indicators. There are lots of other indicators of human development which are important but not considered.
* It is a general measure based on average calculations so doesn’t take into account the massive disparities (differences) that may exist within a country.
◦ Although the three measures included are weighted equally in the calculations, the weighting is subjective and therefore unreliable.
◦ The statistics provided by some countries may be unreliable.
What factors have caused uneven development
Historical
Physical
Economic
Physical causes of uneven development
Landlocked: Countries are cut-off from seaborne trade important to economic growth. Africa has some of the most landlocked countries on earth. E.g. Chad
Climate related diseases and pests: Diseases (like Malaria) affect the ability of the population to stay healthy enough to work. Locust swarms can decimate crops.
Extreme weather: Extreme weather events such as droughts, floods and tropical storms can slow development and can incur costly repairs to infrastructure. E.g. Bangladesh
Limited access to clean water: Lack of safe water can stifle development by making people sick and unable to work. E.g. Angola
Historical factors that have lead to uneven development
Colonialism = many LICs were colonised by powerful trading nations.
Africa/Asia/South America were exploited for their raw materials and over 10million people were exported from Africa to North America to work as slaves. Many countries became independent in 20th century but were affected by power struggles/civil wars.
Effects of colonialism
When the DR Congo gained independence from Belgium, they only had 14 university graduates.
The modern borders of many Middle Eastern and central
African countries affect ethnic groups across the regions, creating conflict.
Education was introduced to a lot of countries where they were taught the global languages like English, and institutions like a proper government emerged.
Europeans brought a lot of new technology to African countries to help them with farming, build better infrastructure etc.
Power struggles took place in newly independent countries, especially if resources like diamonds were at stake.
South American, Asian and African cultures were affected and became part of the transatlantic slave trade
economic causes of uneven development
Poverty: lack of money in a country slows development. It prevents improvements to living standards, education, sanitation and infrastructure. Without these, development in agriculture and industry will be slow and the economy cannot get going.
Trade: Wealthier regions, such as Asia, Europe and North America, dominate trade because they export secondary (processed) goods which earn more income. As these countries accumulate wealth they become more powerful. This means they are able to dictate the terms of trade to their advantage.
LICs trade primary products
LICs trade mostly primary goods.
These goods have low value and earn them little money.
This means they have limited funds to invest in infrastructure and services that would enable them to develop.
LICs rely heavily on single exports
LICs rely mostly on single exports
Examples: Asia, Europe
These are subject to fluctuations in market price.
This means that a drop in the market value, risks them losing a high proportion of their income that would enable them to develop.
Social consequences of uneven development
In LICs, 40% of deaths are in children under 15, compared to 1% in HICs.
4 in every 10 deaths
are among children under 15 years, and only 2 in every 10 deaths among people aged 70 years and over.
Complications of
childbirth are one of the main causes of death among children under
5 years old.
Infectious diseases are main
cause of death: lung infections, HIV/AIDS. diarrhoea-related diseases, malaria and tuberculosis together account for one third of deaths.
7 in every 10
deaths are amongst people aged 70 years and over.
Main causes of death are chronic diseases, such as heart and lung diseases, cancer, dementia. or diabetes.
Lung infections are the only main infectious cause of death.
Only 1 in every 100 deaths is among childr under 15 years.
Economic consequences of uneven development
35% of total wealth is held in North America - by just 5% of the World’s population
Another global-scale consecuence of uneven development is how LIes have become dependent on HICs and some NEEs for aid. Many LICs have had to borrow money from the World Bank to pay for hospirals and health care and are now heavily in debt. The shortcomings of health care in some West
African countries was shown by the Ebola outbreak of 2014-15, which resulted in over 11.000 people dying from the virus (see Section 19.2). Most deaths were in Siere Leone, Guinea and Liberia, Sierra Leone’s hospitals have deteriorated over time due to the country’s low income indebtedness and its civil war. This reminds us that many of the problems experienced by LICs are connected with one anotner.
Strategies to reduce the development gap
Investment by TNCs
Industrial development
Aid
Intermediate technology
Fairtrade
Debt relief
Microfinance loans
Consequences - migration from uneven development
International migration is one of the main consequences of uneven development, as people move to improve the quality of their life. Migrants may be economic migrants or refugees.
Economic migration to the UK
The UK has a long history of accepting migrants from all over the world. The country is known for its tolerant approach and many parts of the UK benefit from being multicultural.
Since 2004 over 1.5 million economic migrants have moved to the UK, two-thirds of whom are Polish. The unemployment rate in Poland is over 10 per cent, and they can earn up to five times as much in the UK. Money is often sent home to friends and relatives.
Most migrants pay tax, which is good for the UK economy. They are prepared to work hard, often doing manual jobs such as working on farms (photo Dj. However, they do put pressure on services such as health and education.
NEE definition
Countries which have begun to experience high rates of economic development usually rapid industrialization. They differ from low income countries in that they no longer primarily rely on agriculture, have made gains in infrastructure and industrial growth, and are experiencing increased levels of investment.
Nigeria global importance
2.7% of the World’s oil supply is supplied by Nigeria
The Nigerian diaspora has 1.24 million Nigerians living in other countries
Nigeria regional importance
Nigerian film industry is the 2nd largest in the world - Nollywood
Nigeria has the highest agricultural output in Africa
Nigeria is the largest economy in West Africa
social context of Nigeria
250 minority groups make up a third of Nigerai’s population, each with their own languages and traditions
In the north, the main ethnic groups are the Hausa and Fulani (29% of Nigeria’s total population)
Yoruba people (21% of the population) live in the south-west - the most developed area (including Lagos)
Igbo people (18% of the population) come from the south-east, but many have migrated as it has few resources
cultural context of nigeria
Nigerian music is enjoyed across
Africa and beyond
In sport, the
Nigerian football team has won the African Cup of Nations three times.
There are several well-known
Nigerian writers, including
Chimamanda Ngozi Adichie and Chinua
Achebe
environmental context of nigeria
Nigeria’s natural environments form a series of bands across the country, reflecting decreasing rainfall towards the north, towards the
Sahel
potential positives of young population
More active work force = high productivity + more tax paid as people have more durability
Less government expenditure on health care
More attractive for international investments
Demographic dividend - more population working than not working
potential negatives of young population
Work force need more training as they are less experienced
Pressure on teaching systems to provide enough resources
More competition for similar jobs due to lots of economically active people
Nigeria’s political context
- 1884: European powers, without African representation, divided Africa at the Berlin Conference, creating Nigeria as a British colony.
- 1790-1840: Britain engaged in slave trade from Lagos (1790-1807) and later developed a palm oil trade (1815-1840), introducing cash crops.
- 1960: Nigeria gained independence.
- 1966: A military coup occurred.
- 1967-1970: The Biafra civil war caused mass migration, military casualties, and a food crisis.
- 1979: The military lost power, and Nigeria experienced an oil boom in the 1970s.
- 2011 & 2015: Elections were declared free and fair, leading to political stability and economic transformation from a low-income country (LIC) to a newly emerging economy (NEE).
Trends in Nigeria’s changing industrial structure
% employed in agriculture (primary sector) has fallen
◦ Increasing use of farm machinery and better pay/conditions in other sectors of the economy
◦ Manufacturing/services add more value and are more profitable than agriculture, so overall the economy makes more money
◦ % employed in services has increased by 50%
◦ Industrialisation has grown under a stable government and growing economy
◦ Modernising economy has lead to increase in communications, retail, finance
◦ % employed in industry (including oil and manufacturing) has trebled
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