Changing economic world-Overview Flashcards
What is GNI?
- Gross national income
-a measurement of economic activity calculated by dividing total national income by the size of the population
-(money made abroad bt TNCs accounts for GNI)
What is quality of life?
- The wide range of human needs that should be met alongside economic growth
What is HDI
- Human development index
-Composite measure using data on GNI, life expectancy and education (2 social, 1 economic) to calculate an index from 0-1
Nigeria HDI (2021)
0.535
What is the demographic transition model
- Graphs birth rate, death rate and natural increase- proposes what should happen to a population over time and how it changes
Stage 1 of demographic transition model (DTM)
- High fluctuating
-Birth and death rates fluctuating
-population low
stage 2 of DTM
- Early expanding
-Death rates drop drastically, birth rates remain high- natural increase
-population on rise
Stage 3 of DTM
- Late expanding
- Death rates remain low, Birth rates begin to fall
-Population large- still on rise
Stage 4 of DTM
- Low fluctuating
-Birth and death rates both low and fluctuating
-Population large and plateauing
Stage 5 of DTM
- Decline
-birth rate goes below death rate- natural decline
-population slowly decreases
Causes of uneven development
- Historical
- Physical
- Economic
what are historical causes of uneven development
- LICs colonised by powerful trading nations- much of Africa and south America
- Only recently become independent and so are affected by power struggles and civil wars
what are physical causes of uneven development
- Landlocked- countries are cut off from seaborne trade
- Extreme weather- droughts, floods and tropical storms can slow development
- Climate related diseases/pests- Diseases (eg malaria) affect ability of population to stay healthy for work, pests (eg locusts) can decimate crops
What are economic causes of uneven development
- Poverty- Lack of money in a country slows development
- Trade- wealthier regions are able to dominate trade as they export secondary goods for more income- meaning they are able to dictate terms of trade for their advantage, whereas LICs trade mostly primary goods which have low value/demand
what does uneven development lead to?
- global inequalities in:
-Wealth
-health - global migration
Stats showing global inequalities in health
- In LICs, 40% of deaths are in children under 15, compared to under 1% in HICs
- In LICs, only 20% of deaths from people 70 or over, in HICs this is 70% of deaths
Stats showing global inequalities in wealth
- 35% of total wealth is held in North America, only 5% of population
how many economic migrants in UK since 2004?
1.5 million
Different strategies to reduce development gap
- Investment from TNCs
- Industrial development
- Aid
- Intermediate/appropriate technology
- Fairtrade
- Debt relief
- Microfinance loans
What is investment from TNCs- how does it work?
- Large companies produce goods and services in many different countries as there is a low cost in short term
- Cash injected helps countries develop- Multiplier effect etc
examples of TNCs
- Mcdonalds
- Shell
- Apple
Problems with TNC investment
- Cheap labour- often leads to poor working conditions
- What is industrial development
- Large scale introduction of factories in order to create manufactured goods which are more valuable than primary goods
- Creates more jobs- less unemployed, taxes payed, multiplier effect etc
Examples of industrial development
- China- known as ‘workshop of world’ as had rapid development since 1800s
Problems with industrial development
- poor working conditions
- factories produce a lot of CO2- environmental impacts
what is aid/how does it work?
- Gift of money, goods or services that doesn’t need repayment, usually from charities e.g Oxfam
- helps struggling areas develop in short term
- can create jobs- multiplier effect
scale of TNC investment?
International
scale of industrial development
National
scale of aid
Local/national
scale of intermediate tech
local/national scale
scale of fairtrade
international scale
scale of Microfinance loans
local scale
problems with aid
- not very long term- funds run out
what is intermediate tech/how does it work?
- providing things, such as sustainable energy or more efficient ways of cooking to help countries reach development goals
- helps countries become developed on small scale, but if done everywhere, becomes large scale
examples of intermediate technology
- fuel efficient stoves- use 50% less wood
- Water Aid- providing improved water supplies installing hand pumps to pump clean water
What is fairtrade/how does it work?
- alternate approach to trade
-producer gets higher proportion of what consumer pays
how many people benefit from fair-trade across Africa
7 Million
problems with Fairtrade
- Not available to all- farmers have to pay initially to be part of scheme- £500 + VAT
what is debt relief/how does it work?
- LICs owing money to international organisations/richer countries have debt dropped if money is ensured to be spent efficiently
What are Microfinance loans/how do they work
- Poor people in LICs/ NEEs borrowing small amounts of money with little interest to help start local development- multiplier effect
- idea to develop small areas everywhere to cause large scale development
Case study for tourism
Tunisia
What economic classification is Tunisia?
NEE
Why is Tunisia tourism industry growing- Climate
- Hot summers and mild winters- attract sun seekers from UK
Why is Tunisia tourism industry growing- Links w Europe
- Easily accessible by low cost airlines to mainland Europe
- ex-colony of France- attracts the French due to language
Why is Tunisia tourism industry growing- Culture/history
- Hosts 7 UNESCO world heritage sites
Why is Tunisia tourism industry growing- Cheap package holidays
- Government worked with tourist operators such as Tui to develop country into tourist destination- hotels, transport etc
Why is Tunisia tourism industry growing- Physical landscape
- Varied and diverse- beaches, mountains and desert
-range of activities for tourists
positive impacts of tourism in Tunisia
- Tunisia one of fastest growing tourism economies worldwide
- one of wealthiest countries in Africa
- literacy rates increased from 66-79% since 1995
- jobs created in hotels- multiplier effect
negative impacts of tourism in Tunisia
- Too much tourism can make area less attractive and reduce the amount of people wanting to travel here in future
- economic growth focused mainly along coast- central and southern areas have less development
- tourist areas use 8x as much water as the average in Tunisia
stats about benefits of tourism in Tunisia
- $900 million contributed to economy from tourism in 2009
- 370,000 jobs directly/indirectly created by tourism in 2009
