changing economic world (Nigeria) Flashcards
what is Gross Domestic Product?
the total value of goods and services produced by a country in one year (per capita = divided by its total population)
what is migration?
the movement of people from one permanent home to another with the intention of staying for at least a year. this move may be within a country (national) or between countries (international)
what is a TNC?
initial investment and jobs lead to a knock on effect. this knock on effect creates more jobs and money which are then reinvested
what is industrial structure?
the relative proportion of the workforce employed in different sectors of the economy (primary, secondary, tertiary and quaternary)
what is development?
the progress of a country in terms of economic growth, the use of technology and human welfare
what is the development gap?
the difference in standards of living and wellbeing between the world’s richest and poorest countries (HIC versus LIC)
what is gross national income?
measurement of economic activity that is calculated by dividing the gross national income by the size of the population. GNI takes into account the value of the goods and services as well as the income earned from investment overseas
what is human development index?
a method of measuring development in which GDP per capita, life expectancy are combined to give an overview using social and economic indicators.
what is meant by quality of life?
refers to the wide range of human needs that should be met alongside income growth
what countries make up the BRICs?
Brazil, Russia, India and China
what countries make up the MINTs?
Mexico, Indonesia, Nigeria and Turkey
how can we measure development?
calorie intake
HDI
Life expectancy
healthcare
happiness index
unemployment rate
literacy rates
what are the limitations of GNI?
only takes into account one factor (income)
average calculation- wealthy people could distort the figures
data about income is sensitive- people may not be honest about their earnings
people working in the informal sector may not be taken into account
what is birth rate?
the number of live births per 1000 population
what are the limitations of birth rate?
some countries may have low birth rate but are poor- e.g. Cuba- 10 births per 1000- 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
what is death rate?
the number of deaths per 1000 population
what are the limitations of death rate?
death rate is a less reliable measure of development than birth rate
birth rates can be high in some LIC’s due to poverty but also high in HIC’s where many people are dying of old age
what is infant mortality rate?
the number of deaths of children less than one year of age per 1000
why is infant mortality rate a good measure of development?
reflects the level of healthcare and service provision in a country
what are the limitations of the infant mortality rate?
in the poorest countries, not all the deaths of children are reported, especially in remote areas- the true rates may be even higher
what is life expectancy?
average number of years a person in a country can be expected to live
why is life expectancy a good measure of development?
reflects healthcare and service provision
what are the limitations of life expectancy?
data is not always reliable, especially in LIC’s
can be slightly misleading in countries with very high rates of infant mortality as people surviving infancy may live longer than expected afterwards
what are literacy rates?
the % of people with basic reading and writing skills
why is literacy rates a good measure of development?
reflects the provision of education within a country
what are the limitations of literacy rates?
can be hard to measure in LIC’s due to lack of monitoring
war zones and squatter settlements are difficult areas to measure literacy rates
what is % of access to safe water?
% of people with access to safe mains water
what are the limitations of % of access to safe water?
data collection in LIC’s 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
what are the limitations of HDI?
a narrow measure and only takes into account 3 indicators (life expectancy, income GNI and education)
a general measure based on average calculations so doesn’t take into account differences that may exist within a country
the stats provided by some countries may be unreliable
what does the demographic transition model graph?
birth rate, death rate and natural increase
what does demographic mean?
population
when does natural increase happen?
if birth rate is greater than death rate
when does natural decrease occur?
if death rate is greater than birth rate
what stages are LIC’s in?
stages 1 and 2 and are growing rapidly with low life expectancies
what stages are NEE’s in?
stage 3- birth rates are falling, growth is slower and people are living longer
what stages are HIC’s in?
stages 4 and 5- with slow growing populations or populations in decline
what factors have caused uneven development?
political unrest
lack of education
lack of fertile soils
colonisation
civil wars/ conflict
how is historical causes a cause of uneven development?
many LIC’s were colonised by powerful trading countries e.g. the UK, Spain, France
much of Africa, South America and Asia were exploited for their raw materials and over 10 million people were exported from Africa to North America to work as slaves
many have now struggled with power struggles and civil wards
what is an example of historical causes being a cause of uneven development?
before British colonisation, India’s share of the global economy was 27%- by the time India gained independance, it was 3%
what is a cause of colonialism?
Europe wanted to build global influence
what is an effect of colonialism?
when the DR Congo gained independence from Belgium. they only had 14 university graduates
what are some physical causes of uneven development?
landlocked countries
climate related diseases and pests
extreme weather
limited access to clean water
how is landlocked a cause of uneven development?
countries are cut off from searborne trade important to economic growth. Africa has some of the most landlocked countries e.g. Chad
how are climate related diseases and pests a cause of uneven development?
diseases (like malaria) affect the ability of the population to stay healthy enough to work. Locust swarms can decimate crops
how is extreme weather a cause of uneven development?
extreme weather events such as droughts, floods and tropical storms can slow development and can incur costly repairs to infrastructure e.g. Bangladesh
how is limited access to clean water a cause of uneven development?
lack of safe water can stifle development by making people sick and unable to work e.g. in Angola
what were the key features of Haiti’s earthquake in 2010?
7.0 earthquake near the capital- Port-au-Prince
25% schools destroyed
300,000 homes damaged
300,000 injured
300,000 dead
what are some examples of economic causes of uneven development?
poverty
trade
how is poverty a cause of uneven development?
lack of money in a country slows development
it prevents improvements to living standards, education, sanitation and infrastructure
without these, development in agriculture and infrastructure will be slow and the economy will suffer
how is trade a cause of uneven development?
wealthier regions such as Asia, Europe and North America dominate trade because they export secondary (processed) goods which earn more income
these countries accumulate wealth which makes them more powerful- they are able to dictate the terms of trade to their advantage
what do LIC’s mostly trade?
primary goods- these goods have low value and earn them little money
they then have limited funds to invest in infrastructure and services that would enable them to develop
what do LIC’s mainly rely on?
single exports- 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
what is an example of an LIC relying heavily on a single export?
Zambia- copper
how much of exports does copper account for in Zambia?
over 60%
what other exports does Zambia have?
sugar, tobacco, gemstones and cotton
who is Zambia’s main trading partner?
Switzerland- 45% of total exports
what is Zambia’s HDI?
0.39
what is the rate of deaths of children under 15 in LIC’s compared to HIC’s?
40% of deaths are in children under 15 in LIC’s compared to 1% in HIC’s
in LIC’s what accounts for 1/3 of deaths?
infectious diseases e.g. HIV/aids, malaria and tuberculosis
how many deaths out of 10 are 70 years and over in LIC’s?
2 in every 10
how many deaths out of 10 are 70 years and over in HIC’s?
7 in every 10
what are the main causes of death in HIC’s?
chronic diseases- heart and lung diseases, cancer or diabetes
how many children die under 15 years old in HIC’s?
1 in every 100
how much of the world’s total wealth is in North America?
35% of total wealth- by just 5% of the total population
what is brain drain?
young, clever, healthy people leave their countries in order to gain a better QOL
what is one of the main consequences of uneven development?
international migration- people move to improve the QOL
what are some of the global goals for sustainable development?
no poverty, zero hunger, quality education, reduced inequalities and life below water
what is sustainable economic growth?
economic development that attempts to grow economies and satisfy the needs of humans but in a manner that sustains natural resources and the environment for future generations
what strategies can be used to reduce the development gap?
aid, fairtrade, tourism, debt relief and investment by TNC’s
how does investment by TNC’s work?
FDI where TNC’s locate their factories/ research and development facilities in another country
how does investment by TNC’s help?
helps people in poorer countries by giving them new skills
increases trade for the LIC
new job opportunities
new technology and ideas
what is an example of investment by TNC’s
apple- HQ in the USA
they have data centres, main facilities all around the world
what is industrial development?
a wealthy company e.g. Shell invests in Nigeria or starts refining oil
local firms then provide SHELL’s refinery with components/ products- SHELL provides jobs for the local people
how is industrial development good?
local people earn a salary- more than they would earn doing an informal job- with their income, they spend more money in local businesses- boots the economy and increases people’s SOL
government spends the money improving infrastructure and attractions to bring in more manufacturing industries
who are the main leaders of FDI?
the USA and China
what are the cons of industrial development?
the company may not pay the LIC workers a fair wage and there may be damage to the environment e.g. pollution
what is aid?
a form of help given from one country to another or from NGO’s to a country
what are the different types of aid?
short term aid
development aid
tied aid
untied aid
what is short term aid?
e.g. the Boxing Day Tsunami
what is development aid?
longer term- helps countries raise their poor standards of living
what is tied aid?
host country may have to trade more with the donor country (they expect something in return)
what is untied aid?
doesn’t expect anything e.g. the UK gives Pakistan 375 million aid in 2015
what can aid be used for?
to help the country, develop in terms of healthcare, education/ schooling, technology infrastructure- better standards of living for the people- happier and healthier- boots the economy
what are the cons of aid?
wars/tensions with other countries may impact the global scale of it
why might some people disagree with aid?
should use the money to develop and improve your own country