Changing Economic World(incomplete) Flashcards
What is the meaning behind the cycle of deprivation/ what are both the causes and results of poverty?(9)
Poverty causes poverty:
Poverty causes:
-Low levels of education
-Few job opportunities
-Poor wages
-Little money to buy food
-Poor nutrition
These cause:
-Little energy to work
-Low farm yields
-Low standard of living
-Poverty
Factors leading to a lack of development can be sorted into 3 categories:
-Historical
-Physical
-Economic
How Historical factors influence development(7)
-Countries with a longer economic history are richer
-20M slaves transported from North America to Europe
-Many countries workforces get depleted, whilst the countries who organised the
slave trade like North America and Europe get an enhanced labour force
-Most of Africa, Asia and South America was divided up between Europe
-Many wars for independence
-Money that would’ve been spent on development spent on armaments instead
-Corrupt politicians exploiting money for themselves holding back development
How Physical factors influence development(4)
-Harder to develop on rough, uneven terrain
-Landlocked countries struggle to engage in seaborne trade, setting them at a major disadvantage
-Places with unsuitable climate cannot engage in agricultural trade within the country and must import it, costing more
-Extreme weather like drought, cyclones and floods slow development and cost alot to repair damaged infrastructure
How Economic factors influence development(7)
-Trade: Richer countries in power i.e. North America, Europe, Japan and the NEEs India and China, want to pay as little as possible to LICs for raw materials
-As shown in the cycle of deprivation, poorer countries will struggle to escape the cycle of deprivation and advance, so many countries have to adjust their focus on that instead of development
-More supply than demand causes the price to lower
-Less money for LICs
-Processing(which adds value to goods) only occurs in the richer countries
-Rich countries grow richer and poor countries grow poorer
-Manufacturing products is 80% of NEE exports
Social Reason for Africa’s development gap
Slaves were taken from Sierra Leone between 1650-1807 to provide labour to the Americas
-Lower workforce for development in those countries
Economic Reason for Africa’s development gap
-Nigeria has to pay over 17% of their income from trade into debt repayments
Environmental Reason for Africa’s development gap
Nigeria is landlocked which makes it very difficult to trade goods
Political Reason for Africa’s development gap
Zimbabwe has been ruled by a dictator called Robert Mugabe since 1980
Immigrant
A person who moves into a country
Emmigrant
A person who moves out of their country
Economic migrant
A person who moves voluntarily to seek a better life, such as a better-paid job or benefits such as healthcare
Refugee
A person who is forced to move from their country of origin often as a result of civil war or a natural disaster such as an earthquake
Displaced person
A person forced to move from their home but who stays in their country of origin
Gini Coefficient
A term used to measure how well wealth is distributed within the nation. The values range between 0 and 1.0
What does a Gini Coefficient of 0 mean?
All the country’s wealth is distributed evenly, and everyone has the same income
What does a Gini Coefficient of 1.0 mean?
All the country’s wealth is controlled by 1 person
Aid
When countries or non-governmental organisations(NGOs) such as Oxfam donate resources to other countries to help it develop or improve people’s lives. It can take many forms.
Short term Aid
Emergency help usually in response to a natural disaster, such as a flood or earthquake
Long term Aid
Sustainable aid that seeks to improve resilience, e.g. wells to reduce the effects of drought, or improvements to agriculture
Multilateral Aid
Richer governments give money to an international organisation such as the World Bank, which then redistributes the money as aid to poorer countries
Bilateral Aid
Aid from one country to another (often tied)
Tied Aid
Aid given with certain conditions e.g. the recipient has to spend the aid money on the donor country’s products
Voluntary Aid
Money donated by the general public in richer countries and distributed by NGOs such as Oxfam
Positive impacts of aid(2):
-Generally does assist the country increase its growth
-Establishes connections for the LIC
Negative impacts of aid(2):
-LICs end up becoming heavily reliant on aid
-Corrupt politicians exploit aid and misuse the money instead of using it to help the country like it was meant to
How many deaths in HICs are amongst people over 70?
7 out of 10
How many deaths in LICs are amongst people over 70?
2 out of 10
How many deaths in HICs are amongst people under 15?
1 in 100
How many deaths in LICs are amongst people under 15?
4 in 10
In Africa, how many children die from malaria per minute?
1
In 2013, how many deaths were caused by malaria, and what age range and ethnicity was it mainly composed of?
half a million, mostly African children
How many malaria deaths do African children account for?
80% of them
Where is malaria prevalent?
Hotter regions near the equator, but especially Africa
What are some of the dangers associated with migrating across the open Mediterranean on a boat?
-One sudden movement can capsize the boat
-The lower part of the boat is cramped so much that it is hard to breath
-If the boat were to capsize, almost all of the migrants would drown
Benefits of migrants for host country(3)
-Migrants pay tax, good for the UK economy
-The migrants often work very hard, often performing manual labour jobs like working on farms
-Promotes cultural and ethnics diversity within the UK
Consequences of migrants for host country(2)
-Less job opportunities for the natives
-Puts pressure on services such as health and education
Since 2004, how many economic migrants have moved to the UK, and how many were Polish?
1.5M, 2/3 were Polish
What is the unemployment rate in Poland, and why may they want to move to the UK?
Over 10%, they can earn 5 times as much in the UK
What 2 categories can reducing the development gap be sorted into?
Top Down and Bottom Up
Top Down Development
Large-scale projects with high inputs from governments, global institutions such as IMF and transnational companies(TNCs). The aim is for the benefits to ‘trickle down’ through the economy from the top so everyone benefits
Bottom Up Development
Small-scale projects, on a community or individual level. The aim is for the benefits to grow from the bottom i.e. if someone spends money on a service, that money goes back into the economy and benefits others (multiplier effect)
Methods/Initiative taken to reduce the development gap(4):
-Intermediate technology
-Debt relief
-Tourism
-Fairtrade
Development
Level of growth and improvement of a country, usually income and wealth. However, other factors should be considered, such as social, environmental, cultural and political
Development gap
Difference in standards of living between the world’s richest and poorest countries, mostly in terms of income and economics
Low-income countries(LICs)
Group of around 30 countries ($1045USD GNI per capita in 2015)
Newly Emerging Economy(NEEs)
Around 80 countries that are industrialising and expanding(BRICS and MINTs)
High-income countries(HICs)
Group of around 80 countries ($12,736USD GNI per capita in 2015)
BRICS
Brazil
Russia
India
China
South Africa
MINT
Mexico
Indonesia
Nigeria
Turkey
Features of HICs
-Low infant mortality rate
-High literacy rate
-High GNI per capita
-High life expectancy
-Low unemployment rate
-High doctors per 1000
-Low gender pay gap
-High Happiness index
-Healthy/Ample calory intake per day
Features of LICs
-High infant mortality rate
-Low literacy rate
-Low GNI per capita
-Low life expectancy
-High unemployment rate
-Low doctors per 1000
-High gender pay gap
-Low Happiness index
-Insufficient calory intake per day
GNI(Gross National Income) per capita
Total value of goods and services of a country, and money earned from and paid to other countries
GDP(Gross Domestic Product) per capita
Total value of goods and services produced by a country in a year
Flaw of using GDP to measure development
Only takes income into account, not expenditures
Flaws of using GNI to measure development(3)
-Single economic measure, doesn’t take into account things like social quality of life
-Not an accurate average, as it doesn’t take into account disparities in wealth
-This could mean a country can have a high GNI per capita due to immensely affluent residents, but the average person could be lower than the GNI per capita
