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.
Influences upon Nigeria’s development : Environmental Impacts
The 2008/09 oil spills devastated swamps and its ecosystems.
Industry has caused toxic chemicals to be discharged in open sewers - risking human health.
80% of forest have been cut down. This also increases CO² emissions.
Influences upon Nigeria’s development : Aid & Debt Relief
+ Receives $5billion per year in aid.
+ Aid groups (ActionAid) have improved health centres, provided anti-mosquito nets and helped to protect people against AIDS/HIV.
- Some aid fails to reach the people who need it due to corruption.
Effects of Economic Development Nigeria
Life expectancy has increased from 46 to 53 years. 64% have access to safe water. Typical schooling years has increased from 7 to 9.
UK In the wider world
The UK has one of the largest economies in the world.
The UK has huge political, economic and cultural influences.
The UK is highly regarded for its fairness and tolerance.
The UK has global transport links i.e. Heathrow and the Eurostar.
Causes of Economic Change UK
De-industrialisation and the decline of the UK’s industrial base.
Globalisation has meant many industries have moved overseas, where labour costs are lower.
Government investing in supporting vital businesses.
UK towards Post - Industrial
The quaternary industry has increased, whilst secondary has decreased.
Numbers in primary and tertiary industry has stayed the steady.
Big increase in professional and technical jobs.
Development of Science Parks in the UK
Science Parks are groups of scientific and technical knowledge based businesses on a single site.
Access to transport routes.
Highly educated workers.
Staff benefit from attractive working conditions.
Attracts clusters of related high-tech businesses.
CS : UK car Industry
Every year the UK makes 1.5 million cars. These factories are owned by large TNCs. i.e. Nissan.
7% of energy used there factories is from wind energy.
New cars are more energy efficient and lighter.
Nissan produces electric and hybrid cars.
Changes to a Rural Landscape : Social
Rising house prices have caused tensions in villages.
Villages are unpopulated during the day causing loss of identity.
Resentment towards poor migrant communities.
Changes to a Rural Landscape : Economic
Lack of affordable housing for local first time buyers.
Sales of farmland has increased rural unemployment.
Influx of poor migrants puts pressures on local services.
Changes to a Rural Landscape : Improvements to Transport
A £15 billion ‘Road Improvement Strategy’. This will involve 10 new roads and 1,600 extra lanes.
£50 billion HS2 railway to improve connections between key UK cities.
£18 billion on Heathrow’s controversial third runway.
UK has many large ports for importing and exporting goods.
Changes to a Rural Landscape : UK North / South Divide
- Wages are lower in the North.
- Health is better in the South.
- Education is worse in the North.
+ The government is aiming to support a Northern Powerhouse project to resolve regional differences.
+ More devolving of powers to disadvantaged regions.
