Chapter 20: Economic Inequality

Question 1

Economic inequality categories

Answer 1

Developed economies
Economies in transition
Developing economies

Question 2

Developed economies

Answer 2

These countries are well-developed and wealthy
They are also heavily industrialised
The majority of the workforce is employed in the secondary and tertiary sectors.
Developed countries have good healthcare, a high standard of education and a high-quality infrastructue.

Question 3

Economies in transition

Answer 3

Industrialisation is occuring rapidly in these countries because of a growth in employment in the secondary sector
The focus in these countries is mainly on exporting goods
Wages are increasing slowly
Increased wealth has led to an improved standard of living.

Question 4

Devolping economies

Answer 4

The economies of these countries are reliant on primary-sector activities such as farming.
They have little or no involvement in secondary and tertiary sectors, and poor infrastructure makes it difficult to attract industry.
Large numbers of their populations are living in extreme poverty
These countries tend to be affected by famine, war and high birth rates.

Question 5

Measuring economic development

Answer 5

The world bank categories, it measures a countrys Gross National Income (GNI) per person.
Another way to meassure economic development is the Human Development Index (HDI).
Literacy
Life expectancy at birth
Standard of living

Question 6

Reasons for economic inequality

Answer 6

Trade: many countries buy raw materials from developing countries at low prices.
Colonialism: at the Age of Exploration, the colonists exploited the raw materials.
Debt: many developing countries owe foreign banks huge sums of money because they borrow money to help develop the country.
Corruption: Corrupt leaders often take money and use it to increase their own personal wealth or buy weapons instead.

Question 7

Solutions to economic inequality

Answer 7

Fair trade
Debt
Aid

Question 8

Fair trade

Answer 8

People in the developing world should receive a fair price for their produce

Question 9

Debt

Answer 9

The loans given to developing countries could be cleared. These loans come with high interest rates, and many countries cannot afford the repayments.

Question 10

Aid

Answer 10

The developing world needs assistance from richer countries

Question 11

Types of aid

Answer 11

Emergency aid / humanitarian aid
Development aid
Tied aid
Bilateral aid
Multilateral aid

Question 12

Emergency aid / humanitarian aid

Answer 12

This is aid in the form of food, water, medicines and basic supplies given following a natural disaster such as an earthquake or famine. It could also be given in times of war.

Question 13

Development aid

Answer 13

This types of aid provides help over a long period of time. It focuses on the development of healthcare, education and infrastructure in a country. It can be form of money or personnel, such as teachers and nurses.

Question 14

Tied aid

Answer 14

This type of aid comes with conditions. It may mean the poorer, developing country will have to purchase certain products from the richer, developed country in order to receive aid. These products can include weapons and ammunition. This type of aid is not always good for a developing country.

Question 15

Bilateral aid

Answer 15

Aid from one country directly to another country is called bilateral aid. The aid the Irish government provides to Ethiopia is an example of this type of aid.

Question 16

Multilateral aid

Answer 16

Aid provides by organisations such as the United Nations, the World Bank and the European Union is called multilateral aid. Government of member states contribute money for development programmes run all over the world.

Question 17

Positives of aid

Answer 17

In times of natural disasters, emergency aid is vital in saving lives.
Healthcare and education improve drastically when development aid is given, and the money is spelt in the right way.
Relationships can be forged between two countries, creating better links and improvements within the poorer country.
NGOs can help develop the skills of local people

Question 18

Negatives of aid

Answer 18

Countries can become very dependent on aid. This can result in countries not developing themselves.
Corruption can lead to aid being stolen and not reaching its intended target.
Tied aid can result in the richer, developed country benefiting, rather than the poorer, developing country.
Aid can lead to huge amounts of money being spent on arms and weapons. This in turn can lead to wars.

Question 19

An example of an Irish Aid progammes

Answer 19

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