Changing Economic World 2 KO 2 Flashcards
What are the ways to reduce the development gap
. Microfinance loans
. Foreign-direct investments
. Aid
. Debt relief
. Fair trade
. Technology
Microfinance Loans
This involves people in LICs receiving smalls loans from traditional banks.
+ Loans enable people to begin their own businesses
- Its not clear they can reduce poverty at a large scale.
Foreign direct investments
This is when one country buys property or infrastructure in another country.
+ Leads to better access to finance, technology & expertise.
- Investment can come with strings attached that country’s will need to comply with.
Aid
This is 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.
Debt relief
This is when 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 condition from donor country.
Fair trade
This is a movement where farmers get a fair price for the goods produced.
+ Paid fairly so they can develop schools & health centres.
-Only a tiny proportion of the extra money reaches producers.
Technology
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
Location and Importance of Nigeria
Nigeria is a NEE in West Africa. Nigeria is just north of the Equator and experiences a range of environments.
Nigeria is the most populous and economically powerful country in Africa. Economic growth has been base on oil exports.
Influences upon Nigeria’s development
. Political
. Social
. Cultural
. Industrial Structures
. The role of TNC’s
. Changing relationships
. Environmental impacts
. Aid & Debt relief
Influences upon Nigeria’s development : Political
Suffered instability with a civil war between 1967-1970.
From 1999, the country became stable with free and fair elections.
Stability has encouraged global investment from China and USA.
Influences upon Nigeria’s development : Social
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.
Influences upon Nigeria’s development : Cultural
Nigeria’s diversity has created rich and varied artistic culture.
The country has a rich music, literacy and film industry (i.e. Nollywood).
A successful national football side.
Influences upon Nigeria’s development : Industrial Structures
Once mainly based on agriculture, 50% of its economy is now manufacturing and services.
A thriving manufacturing industry is increasing foreign investment and employment opportunities.
Influences upon Nigeria’s development : The Role of TNC’s
TNCs such as Shell have played an important role in its economy.
+ Investment has increased employment and income.
- Profits move to HICs.
- Many oil spills have damaged fragile environments.
Influences upon Nigeria’s development : Changing Relationships
Nigeria plays a leading role with the African Union and UN.
Growing links with China with huge investment in infrastructure.
Main import includes petrol from the EU, cars from Brazil and phones from China.
