Changing Economic World - Overview and Nigeria Flashcards

1
Q

Development

A

The progress of a country in terms of economic growth, the use of technology and human welfare

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2
Q

GNI - Gross National Income

A

The measurement of economic activity that is calculated by dividing the Gross (total) national income by the size of the population.

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3
Q

How are GNI and GDP different

A

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

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4
Q

Quality Of Life

A

Refers to the wide range of human needs that should be met alongside income growth

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5
Q

generally countries are classified by there level of development

A

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

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6
Q

There are a group of fast developing countries

Hint: MINTs and BRICs

A

Mexico
Indonesia
Nigeria
Turkey

Brazil
Russia
India
China

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7
Q

World population by income

A

Low Income - 1billion

Middle Income - 6billion

High Income - 1 billion

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8
Q

What are different development indicators

A

Rates of Disease
Literacy Rate
People per doctor
Life expectancy
Access to safe water

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9
Q

Limitations of Gross National Income per capita

A
  • 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
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10
Q

Gross National Income per capitata limitations

A
  • 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
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11
Q

Birth Rate

A

Number of live birthsa per 1000 population

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12
Q

Birth Rate Limitations

A
  • some countries may have low birth rates but are actually quite poor
  • birth control policies can distort this as a measure of overall development
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13
Q

Death Rate

A

Number of deaths per 1000 people

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14
Q

Death Rate liumitations

A
  • 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
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15
Q

Infant Mortality

A

This refers to the number of deaths of children less than one year of age per 1000 people

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16
Q

Infant Mortality Limitations

A
  • In the poorest countries, not all the deaths of children are reported - especially in remote areas which means rate is higher than calculated
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17
Q

Life expectancy

A

This is the average number of years a person in a country can be expected to live

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18
Q

Life expectancy limitations

A
  • data is not always reliable especially in LICs
  • it can be slightly misleading in countries with very high rates of infant mortality
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19
Q

Literacy Rates

A

The percentage of people with basic reading and writing skills

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20
Q

Limitations of Literacy Rates

A
  • Hard to measure in LICs due to lack of monitoring
  • War zones and squatter settlements are difficult areas to measure literacy rates
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21
Q

Access to Safe Water

A

The percentage of people with access to safe mains water

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22
Q

Limitations of access to safe water

A
  • 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
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23
Q

Human Development Index

A

This is a composite measure using data on income, life expectancy and education to calculate index from 0-1

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24
Q

Human Development Index factors

A

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

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25
Q

Limitations of HDI

A
  • 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
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26
Q

How will countries demography change as it becomes more developed

A

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

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27
Q

Stage 1 of Demographic Transition Model

A

High Birth Rate and Death

Low life expectancy

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28
Q

What factors cause uneven development

A

Historical

Physical

Economic

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29
Q

Historical causes of uneven development

A

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

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30
Q

Causes of Colonialism

A

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

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31
Q

Effects of Colonism

A

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

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32
Q

Physical causes of uneven development

A

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

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33
Q

Impact of Haiti’s earthquake in 2010 on development

A

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

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34
Q

Economic causes of uneven development

A

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

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35
Q

LICs Trade primary goods and rely on single exports

A
  • 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
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36
Q

Factors to consider for the Consequences of uneven development

A

Health

Wealth

International Migration

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37
Q

Consequences of uneven development on Health

A

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

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38
Q

Consequences of uneven development on Wealth

A
  • 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
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39
Q

Consequences of uneven development on international Migration

A
  • people move to imporve quality of life - migrants may become economic migrants or refugees
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40
Q

The Development Gap

A

The widening difference in levels of development between the richest and poorest countries

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41
Q

Strategies to reduce the development gap

A

Investment
Industrial Development
Tourism
Aid
Intermediate Technology
Fairtrade
Debt relief
Microfinance loans

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42
Q

Investments in TNCs

A

Long Term strategy
International Scale

Financial suport for LICs & NEEs
- Increase skill set = job opportunities
- Increases trade market
- Increases taxes

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43
Q

Industrial Development

A

Long term Strategy
Local = primary goods sold
National = GDP/GNI increase

Better jobs = increase income
Opportunities ot improve housing, education, infastructure

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44
Q

Aid

A

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

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45
Q

INtermediate Technology

A

Small scale and Local

Rich countries transfer technology to poor areas

Improves quality of life
Good for enviroment and people

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46
Q

Fairtrade

A

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

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47
Q

Debt Relief

A

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

48
Q

Microfinance Loans

A

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

49
Q

Case study on how groth of tourism in an LIC or NEE helps to reduce development gap

A

Tunisia, North Africa

50
Q

Approximate population of Tunisia

A

11 million

51
Q

Economic classification of tunisia

A

NEE - Newly emerging economy

52
Q

Location of Tunisia

A

North Africa
Coastal
Algeria to the west
Libya to the east
Sahara desert to the south

53
Q

Resons for growth of Tunisias tourism industry

A

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

54
Q

Positive impacts of tourism on development in Tunisia

A

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

55
Q

Negative impacts of tourism on Tunisia

A

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

56
Q

issues assosiated with tunisia that effect tourism

A

Vulnerable

In 2015 there were two terrorist attacks against tourists

The FCO advise against all but essential travel tot eh rest of Tunisia

57
Q

Changing Economic World Case study

58
Q

How does quality of life vary for families in Nigeria

A

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

59
Q

Describe Nigeria’s location

A

West Africa

South Coast on the gulf of Ginea

Part of the South Atlantic Ocean

Shares borders with Benin, Niger, Chad and Cameroon

60
Q

Nigeria’s global importance

A

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

61
Q

Nigeria’s regional importance

A

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

62
Q

Enviromental context in Nigeria

A

Nearest to the North equator
- short grass
- Woodland and long grass
- Tropical rainforests
- freshwater swamp
- mangrove
Nearest to the South equator

63
Q

Enviromental Context for Nigeria

A

Inbalance in water

Nigeria’s natural eviroments form a series of abnds across the country reflecting decreasing rainfall towards the north, towards the Sahel

64
Q

Cultural context in Nigeria

A

Islamic in th north

Christianity in the South

In sport, the Nigerian football team has won the Africal cup of Nations three times

65
Q

Social Context in Nigeria

A

250 minority groups make up 1/3 of Nigeria’s population, each their own languages and traditions

can be hard to communicate

66
Q

Newley Emerging Economy

A

Countries that have begun to experience high rates of economic developmen, usually with rapid industrilisation

67
Q

Potential positives of a youthful population

A

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

68
Q

Potential negative of a youthful population

A

Pressure on schools

More competition for jobs

Work force needs more training

Increased pressure on services

69
Q

Political context in Nigeria

A

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

70
Q

Changin industrial structure in nigeria

A

Increase in service sector

Increase in industry sector

Decrease in Agriculural sector

71
Q

Fastest growing economies in nigeria

A

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

72
Q

Trends in Nigeria’s changing industrial structure

A
  • 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
73
Q

What is cash crops

A

Crops grown for the purpose of selling profit

74
Q

What is free trade zones

A

where goods can be imported and stored - re-exported without costs

75
Q

Dangote Cement

A

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

76
Q

Explain the impact Dangote Cement might have on development in Nigeria

A
  • Jobs working in manufacturing, industries and retailing
  • This provides primary, secondary and tertiary sector jobs
  • Large production means more exports and investments
77
Q

Explain what effect the Dangote Cement industry will have on peoples quality of life

A

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

78
Q

How can manufacturing stimulate the economy?
Example: Shell

A

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

79
Q

Impacts of Nigeria’s growth in Manufacturing

A

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

80
Q

Nigeria’s oil industry

A
  • 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
81
Q

Transnational Coorporation - TNC

A

A large company that operates in several countries

82
Q

Positive Social Impacts of Shell industry in Nigeria

A

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

83
Q

Positive Economic impacts of Shell industry in Nigeria

A

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

84
Q

Positive Enviromental impacts of Shell industry in Nigeria

A

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

85
Q

Example of a global TNC

A

Shell

Largest of all international oil and gas companies operating in Nigeria

86
Q

Negative Enviromental impacts of Shell industry in Nigeria

A

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

87
Q

Negative Economic impacts of Shell industry in Nigeria

A

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

88
Q

Negative Social impacts of Shell industry in Nigeria

A

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

89
Q

Example of a TNC in Nigeria

A

Dangote Cement

90
Q

How is Nigeria’s political relationships with the rest of the world changing

A

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

91
Q

How is Nigeria’s trading relationship with the rest of the world changing

A

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

92
Q

Influence of China on Nigeria

A

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

93
Q

Facts about Nigeria’s imports and exports

A

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

94
Q

Why might Nigeria need aid

A

Financial support

Conflict

Food - starvation

Healthcare - Death from diseases and pandemics

95
Q

AId In Nigeria

A

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

96
Q

Why is aid not always used effectively

A

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

97
Q

Benefits of Aid for Nigeria

A

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

98
Q

UN short term aid includes

A

Supplied emergency food to over 400,000 people in northern Nigeria

Facing starvation as the farmers were unable to grow crops due to conflict

99
Q

UK bilateral tied Aid includes

A

£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

100
Q

China bilateral tied aid includes

A

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

101
Q

‘Top down’ or large scale aid

A

Money given by a donor country to recipient country to spend on big projects e.g new railway line

102
Q

Short term or ermegency aid

A

Aid which lasts a short time usually in response to an emergency such as a natural disaster

103
Q

Aid

A

THe help given by the donor country to the reciptent country

THis can help in the form of money, equipment, goods, people, technology, expertise

104
Q

Bilateral or tied aid

A

Aid given by a donor country to reciptenet country - with conditions attached

105
Q

Multilateral aid

A

Money given by donor countries to organisations such as the World Bank or United Nations who then distribute it to reciptent countries

106
Q

Long term or development aid

A

Aid given over many years to help a country develop politically, economically, socially and enviromentally

107
Q

‘Bottom up’ or small scale aid

A

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

108
Q

Donor country

A

The country giving aid

109
Q

Recipient country

A

The country recieving the aid

110
Q

Enviromental impacts of Industrial growth

A

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

111
Q

Enviromental impacts of urban growth

A

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

112
Q

Enviromental impacts of mineral and oil extraction

A

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

113
Q

postive effects of economic development on the quality of life of people

A

Growht of teritary sector Jobs

GDP has increased

Nigeria’s HDI is increasing

114
Q

negative effects of economic development on the quality of life of people

A

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

115
Q

Stage 2 & 3 of Demographic Transition model

A

Birth rates remain high and death rates decrease

Natural increase

NEE - Nigeria

116
Q

Stage 4 of Demographic transition Model

A

Low birth rates and low death rates

Stable population

HIC - UK

117
Q

Stage 5 of Demographic Transition Model

A

Birth Rate decreases

Death Rate remains the same

Natural Decrease