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)