Changing Economic World - Overview and Nigeria Flashcards
Development
The progress of a country in terms of economic growth, the use of technology and human welfare
GNI - Gross National Income
The measurement of economic activity that is calculated by dividing the Gross (total) national income by the size of the population.
How are GNI and GDP different
GDP - Value of country’s output from within the borders of a cuntry
GNI - total value of all the goods and services produced by it’s population and the income earned from investments overseas
Quality Of Life
Refers to the wide range of human needs that should be met alongside income growth
generally countries are classified by there level of development
Low income countries - poor quality of life, inadequate servixes and few opportunities
Middle income countries/newly emerging economies - rapid economy growth/development, reasonable standard of living
Hihg income countries - good standard of living, modern industries, most people working in the service sector
There are a group of fast developing countries
Hint: MINTs and BRICs
Mexico
Indonesia
Nigeria
Turkey
Brazil
Russia
India
China
World population by income
Low Income - 1billion
Middle Income - 6billion
High Income - 1 billion
What are different development indicators
Rates of Disease
Literacy Rate
People per doctor
Life expectancy
Access to safe water
Limitations of Gross National Income per capita
- only takes into account income
- Average caluclation - wealthy people distort whole figures
- Data about income is sensitive - people may not be honest
- informal sector may not be taken into account
Gross National Income per capitata limitations
- only takes into account income
- Average caluclation - wealthy people distort whole figures
- Data about income is sensitive - people may not be honest
- informal sector may not be taken into account
Birth Rate
Number of live birthsa per 1000 population
Birth Rate Limitations
- some countries may have low birth rates but are actually quite poor
- birth control policies can distort this as a measure of overall development
Death Rate
Number of deaths per 1000 people
Death Rate limitations
- By comparison death rate is less reliable measure of development to the birth rate
- Birth rates can be high in some LICs due to poverty but also high in HICs where many people are dying of old age
Infant Mortality
This refers to the number of deaths of children less than one year of age per 1000 people
Infant Mortality Limitations
- In the poorest countries, not all the deaths of children are reported - especially in remote areas which means rate is higher than calculated
Life expectancy
This is the average number of years a person in a country can be expected to live
Life expectancy limitations
- data is not always reliable especially in LICs
- it can be slightly misleading in countries with very high rates of infant mortality
Literacy Rates
The percentage of people with basic reading and writing skills
Limitations of Literacy Rates
- Hard to measure in LICs due to lack of monitoring
- War zones and squatter settlements are difficult areas to measure literacy rates
Access to Safe Water
The percentage of people with access to safe mains water
Limitations of access to safe water
- Data collection in LICs is not likely to be accurate and so official figures may underestimate the probelm
- people may technically have access but high costs may force them to use water that is not safe
Human Development Index
This is a composite measure using data on income, life expectancy and education to calculate index from 0-1
Human Development Index factors
Income - estimated GNI per capita of a country
Life expectancy - Number years a perosn is expected to live from birth
Education - average number of years of schoolin for people in country
Limitations of HDI
- It is still a narrow measure and only takes into account 3 indicators
- It is a general measure based on average calculations - doesnt take into account differences
- The weighting is subjective and therefore unreliable
- The statistics provided by some countries may be unreliable
How will countries demography change as it becomes more developed
Birth Rates decrease - education increase, infant mortality decreases, health care imrpoves
Population initially increases then will decrease
Death rates decrease as healthcare improves
Life expectancy increases - better health care, education, access to clean safe water
Stage 1 of Demographic Transition Model
High Birth Rate and Death
Low life expectancy
What factors cause uneven development
Historical
Physical
Economic
Historical causes of uneven development
Many LICs were colonised by powerful trading Nations - UK, France, Spain and Portugal
Much of Africa, South America and Asia were exploited for their raw materials and over 10 million people were exported to work as slaves
Global development became uneven
Currently many countries are affected by civil wars and power struggles
Causes of Colonialism
Europe wanted to build global influence
Europe wanted to compete against other rival states and to access raw materils and labour
The discovery of the new sea route meant different countries could now be colonised
Effects of Colonism
Europeans brought a lot of new technology to African countries ot imporve farming by builiding better infastructure
Power struggles to place in newly independent countries
Cultures were affected and became part if the transatlantic slave trade
Physical causes of uneven development
Land Locked - Countries are cut off from sea borne trade important to economic growth = decreases imports whihc lowers GNI
Climate related diseases and pests - affect population that are able to stay healthy and work
Extreme weather - slow development and costly repairs to infastructure
Limited access to clean water - lack of safe water can make people sick and unable to work
Impact of Haiti’s earthquake in 2010 on development
300,000 dead - children being orphaned = families lose a wage earner
300,000 injured - people are unable to work = Decrease in GDP & stress on Doctors/Healthcare
300,000 homes damaged - homeless people = deaths from exposure - less people working
25% schools destroyed - less children in school = literacy rates decrease, quality of life decreases
Economic causes of uneven development
Poverty - lack of money prevents improvements to living standards, education, sanitation, infastructure = agriculture and industry slow
Trade - wealthier regions dominate trade because they export secondary goods for more income - increase in wealth means more power to dictate the terms of trade tot ehre advantage
LICs Trade primary goods and rely on single exports
- trade mostly primary goods
- goods have low value and earn them little money
- limited funds to invest in infastructure and services
- single exports are subject to flucuations in the market place
- drop in maket value risks losing a high proportin of income
Factors to consider for the Consequences of uneven development
Health
Wealth
International Migration
Consequences of uneven development on Health
LICs
- 40% of deaths are in children under 15
- infectious diseases are main causes of death
- complications of childbirth leads to a large sector of deaths
HICs
- 7 in every 10 deaths are amongst people aged 70 and over
- Main causes of death are chronic diseases
- Lung infections are the only main infectious cause of death
Consequences of uneven development on Wealth
- 35% of total wealth is held in North America - by just 5% of the worlds population
- LICs are dependent of HICs for aid
- LICs have to borrow money from the World Bank ot pay for health care - in debt
Consequences of uneven development on international Migration
- people move to imporve quality of life - migrants may become economic migrants or refugees
The Development Gap
The widening difference in levels of development between the richest and poorest countries
Strategies to reduce the development gap
Investment
Industrial Development
Tourism
Aid
Intermediate Technology
Fairtrade
Debt relief
Microfinance loans
Investments in TNCs
Long Term strategy
International Scale
Financial suport for LICs & NEEs
- Increase skill set = job opportunities
- Increases trade market
- Increases taxes
Industrial Development
Long term Strategy
Local = primary goods sold
National = GDP/GNI increase
Better jobs = increase income
Opportunities ot improve housing, education, infastructure
Aid
Short Term - Response to natural Disasters
Long Term - Financial support for development projects
Gift of money, goods or services to a developing country
Offers support and creates opportunities
INtermediate Technology
Small scale and Local
Rich countries transfer technology to poor areas
Improves quality of life
Good for enviroment and people
Fairtrade
Short term - farmers are paid minimum wage
Long term - farmers have economic stability reducing vulnerability to flucuations
Farmers have better standard of living
LIC farmers can excape poverty
Debt Relief
High Debts become managable
Countries cap spend money on reducing the gap
HICs loan money to LICs
It is limited by the countries income - not enough = debt relief is uabe to provide them with income
Microfinance Loans
Poor subsitence farmers in LICs are offerend microfinance lones by the bank
Small loans to help on a local scale
escape cycle of poverty
Provide a starting point for families to start development
Case study on how groth of tourism in an LIC or NEE helps to reduce development gap
Tunisia, North Africa
Approximate population of Tunisia
11 million
Economic classification of tunisia
NEE - Newly emerging economy
Location of Tunisia
North Africa
Coastal
Algeria to the west
Libya to the east
Sahara desert to the south
Resons for growth of Tunisias tourism industry
Climate - Mediterranean climate = hot summers and mild winters
Links with Europe - Easily accesible by low-cost airlines to mainland Europe
History and Culture - ancient remains and films lie star wars have been filmed there
Rise of cheap package holidays - governement work with companies liek TUI to develop a tourist destination
Physical landscape - varied and diverse - beaches, mountains and sahara desert
Positive impacts of tourism on development in Tunisia
Higher income = better health & diet = increases life expectancy
Governemnet invests 4% into healthcare
Literacy Rates have increased
Job creation = 464, 000 jobs (2017)
Tourism connects Tunsia to other places and cultures
Negative impacts of tourism on Tunisia
Growth in hospitality industry = migration from agriculture/fishing = impairment of agricultural production
Builidng of roads and expansion of hotels = alters the physical enviroment
Problems of sewage treatment and refuse control
Competition for water between locals and tourists
Economic growth in coast leaves little investment in centre and south areas
issues assosiated with tunisia that effect tourism
Vulnerable
In 2015 there were two terrorist attacks against tourists
The FCO advise against all but essential travel tot eh rest of Tunisia
Changing Economic World Case study
Nigeria
How does quality of life vary for families in Nigeria
Low Income Family - no electricity, limited food, poor quality roof, no toilet, cooking on open fire
Middle Income Family - living in Makoko, better constructed homes, more variety of food
High Income Family - Refrigeration, 4by4 cars, electric stove, clean and tapped water
Describe Nigeria’s location
West Africa
South Coast on the gulf of Ginea
Part of the South Atlantic Ocean
Shares borders with Benin, Niger, Chad and Cameroon
Nigeria’s global importance
By 2050, Nigeria’s economy will be in the top 20 largest economies in the world
2.7% of the world’s oil is supplied by Nigeria
Nigeria’s regional importance
The nigerian film industry - Nollywood - is the third largest in the world
Nigeria has the largest population in Africa with 218 million people
Nigeria is the largest economy in West Africa
Enviromental context in Nigeria
Nearest to the North equator
- short grass
- Woodland and long grass
- Tropical rainforests
- freshwater swamp
- mangrove
Nearest to the South equator
Enviromental Context for Nigeria
Inbalance in water
Nigeria’s natural eviroments form a series of abnds across the country reflecting decreasing rainfall towards the north, towards the Sahel
Cultural context in Nigeria
Islamic in th north
Christianity in the South
In sport, the Nigerian football team has won the Africal cup of Nations three times
Social Context in Nigeria
250 minority groups make up 1/3 of Nigeria’s population, each their own languages and traditions
can be hard to communicate
Newley Emerging Economy
Countries that have begun to experience high rates of economic developmen, usually with rapid industrilisation
Potential positives of a youthful population
Healthy - able to work which contributes to the economy
Attractive ot international investors (TNCs)
Better education, increases employment = more money
Large economically active population
Less money spent on healthcare
Potential negative of a youthful population
Pressure on schools
More competition for jobs
Work force needs more training
Increased pressure on services
Political context in Nigeria
Nigeria was created as a British colony
British and Nigeria remain in linked through the commonwealth
Process of growing cash crops was introduced as there was a develop in trade of palm oil
Nigeria became indepedent leading to increasing political stability in the country
Changin industrial structure in nigeria
Increase in service sector
Increase in industry sector
Decrease in Agriculural sector
Fastest growing economies in nigeria
Telocommunications - over 115 million mobile phone users
Retail and Wholesale - many once informal businesses are now in the formal economy and included in the GDP calculation
Film Industry - ‘Nollywood’ is the 3rd largest film industry in the world
Trends in Nigeria’s changing industrial structure
- Increasing use of farm machinery and better pay/conditions in other sectors of the economy
- Manufacturing/services add more value and are more profitable than agriculture
- industrilisation has grown under a stable governement and growing economy
- modernising economy has lead to increase in communications, retail, finance
What is cash crops
Crops grown for the purpose of selling profit
What is free trade zones
where goods can be imported and stored - re-exported without costs
Dangote Cement
Secondary Industry
Rapid urbanisation has meant demand for cement is high
Production Capacity - 48.6 million tonnes per year across ten countries
The largest cement producer in sub-saharan Africa
Explain the impact Dangote Cement might have on development in Nigeria
- Jobs working in manufacturing, industries and retailing
- This provides primary, secondary and tertiary sector jobs
- Large production means more exports and investments
Explain what effect the Dangote Cement industry will have on peoples quality of life
More money means economy improves
Government invests in improvements to buildings, houses and public services
Better employment means more income for foos and better diet and health care which increases life expectancy
How can manufacturing stimulate the economy?
Example: Shell
A new manufacturer such as Shell, start refining Oil in Nigeria
Local firms provide Shell’s refinery with components of products
Local people earn more money from working in shell or local firms
Local people then spend more money in local businesses
Taxes to the governmnet from businesses and people goes up
Governemnet spends the money improving the infastructure and attractions to bring in more manufacturing industries
Impacts of Nigeria’s growth in Manufacturing
Employment/Jobs gives people a secure income - income from government from taxes increases
Manufactured good are available to buy
Manufacturing things relies on lots of parts - supports other businesses
Attraacts foreign companies ot establish and invest in Nigeria creating more jobs
Nigeria’s oil industry
- Backbone of Nigerian economy
- 90% of the countries export revenues
- Oil production brings around a billioon investments into the countries economy
- Primary investors = US, UK, Germany and China
Transnational Coorporation - TNC
A large company that operates in several countries
Positive Social Impacts of Shell industry in Nigeria
shell foundation is a charity that supports workers and helps to make it sustainable
Improvements in healthcare, education, water supply
Companies work with local cultural markets
Positive Economic impacts of Shell industry in Nigeria
provide jobs for making supplies and in services
spent 12 billion in LICs
provide new technology and expertise
palm oil industry in Nigeria employs 1500 people
Multiplier effect - helps countries by investing/encouraging development
Positive Enviromental impacts of Shell industry in Nigeria
Palm oil comes from a sustainable sources to protect the enviroment
Clean up after they accidently damage the enviroment
Charities to help sustainability and biodiversity
Example of a global TNC
Shell
Largest of all international oil and gas companies operating in Nigeria
Negative Enviromental impacts of Shell industry in Nigeria
Oil spills have caused water pollution and damaged the land reducing agricultural and fishing yields
Toxic fumes polluting th air
Oil spills pollute the enviroment
Negative Economic impacts of Shell industry in Nigeria
Leakage of profits
Oil theft is costing the governemnet and TNCs billions of dollars every year
Withdraw investments without warning
TNCs have power over government
Negative Social impacts of Shell industry in Nigeria
Accused of right abuses and of crimes against Ogoni people
Employees work long hours in poor conditions - paid less for high intensity jobs
militant groups disrupt the oil supply
Example of a TNC in Nigeria
Dangote Cement
How is Nigeria’s political relationships with the rest of the world changing
Nigeria was originally part of the Britisih empire - has trading links with the UK and others
Nigeria became independetn in 1960
Part of the commonwealth - mainted links with UK and developed links with other countries
Leading political role in Africa in terms of economic planning
Links with China are growing - Nigeria benefit from increased investment
How is Nigeria’s trading relationship with the rest of the world changing
Imports - mainly refined petroleum products from the European union
Exports - almost 50% are to the EU
Several trading groups and alliances formed with other countries
Influence of China on Nigeria
Main import partner for manufactured goods
The China railway construction co-orporation won a 12billion contract ot build a 1400km railway along the coast of Nigeria
China needs more resources than it has so uses Nigerias
China agreed to invest 10billion in exploration and drilling of oil in Nigeria
Facts about Nigeria’s imports and exports
Oil is Nigeria’s main export
Main imports are from China 19% and USA 11%
Main exports are to USA 17% and India 11%
Still trades with the UK and other countries
Why might Nigeria need aid
Financial support
Conflict
Food - starvation
Healthcare - Death from diseases and pandemics
AId In Nigeria
Nigeria recieves international aid
Areas still remain in poverty, with limited access to safe water, electricity, health and education services
Birth rates and infant mortality rates are and life expectancy is low
Why is aid not always used effectively
Corruption in government = aid is lost or not given
Claims that aid money is used ot support the Navy
Donors of Aid have political influence over who benefits
Benefits of Aid for Nigeria
Nets for Life - education on Malaria & mosquuito nets to prevent the speading of disease
World Bank funds loans to businesses to help develop new businesses and industries
The UK governement - funded health and HIV programmes provided health and education - prevent infection and improve lives
UN short term aid includes
Supplied emergency food to over 400,000 people in northern Nigeria
Facing starvation as the farmers were unable to grow crops due to conflict
UK bilateral tied Aid includes
£300 million in aid to Nigeria each year
Health
- £100 million spent on training doctors
- £10 million spent on fighting Malaria
Water and Sanitation
- £7 million spent on 5.5million people using safe water and toilets
China bilateral tied aid includes
Weapons - supplied equipment = in return Nigeria imports cheap chinas goods (some electrical goods have caused fires)
Infastructure - £11billion loan to improve railway network = Nigeria supply PetroChina with 3000 barrels of oil a day
‘Top down’ or large scale aid
Money given by a donor country to recipient country to spend on big projects e.g new railway line
Short term or ermegency aid
Aid which lasts a short time usually in response to an emergency such as a natural disaster
Aid
THe help given by the donor country to the reciptent country
THis can help in the form of money, equipment, goods, people, technology, expertise
Bilateral or tied aid
Aid given by a donor country to reciptenet country - with conditions attached
Multilateral aid
Money given by donor countries to organisations such as the World Bank or United Nations who then distribute it to reciptent countries
Long term or development aid
Aid given over many years to help a country develop politically, economically, socially and enviromentally
‘Bottom up’ or small scale aid
Money given by a donor organisation such as a charity to a local community organisation to spend on small projects such as building a new well or installing solar panels
Donor country
The country giving aid
Recipient country
The country recieving the aid
Enviromental impacts of Industrial growth
pollution of nearby land and rivers as toxic waste is dumped or leaked
Harmful pollutants go into open drains putting people and ecosystems at risk
Breathing and lung problems come from the huge number of fumes
Enviromental impacts of urban growth
Services cant keep up with growing population
Waste disposal is a major issure as collection services are poor so it is dumped on the streets
Traffic congestion creates high levels of pollution
70-80% of forests destroyed trhough logging, agriculture and urban development
Enviromental impacts of mineral and oil extraction
Tin mining has led to soil erosion and local water supplies were polluted with toxic chemicals
Oil spills have damaged freshwater and marine ecosystems = loss of species + unhealthy ecosytems
Oil spills can cause fires - realeses CO2 & acid rain
postive effects of economic development on the quality of life of people
Growht of teritary sector Jobs
GDP has increased
Nigeria’s HDI is increasing
negative effects of economic development on the quality of life of people
Industrial growth has enviromental problems - pollution of toxic waste in ecosytem
Squatter settlements are still common
Urban growth - poor services, traffic congestion
57million Nigerians lack safe water
3/4 of poorest woman have never been to school - 94% are illeterate
Stage 2 & 3 of Demographic Transition model
Birth rates remain high and death rates decrease
Natural increase
NEE - Nigeria
Stage 4 of Demographic transition Model
Low birth rates and low death rates
Stable population
HIC - UK
Stage 5 of Demographic Transition Model
Birth Rate decreases
Death Rate remains the same
Natural Decrease
