Chapter 21 - Economic Inequality Flashcards

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1
Q

Describe developed countries

A
►Northern hemisphere and Australia & New Zealand
►Strong economies
►Well developed
►Wealthy
►Industrialised
►Secondary and tertiary sectors
►High standard of living and education
►High-quality infrastructure
►High GNP
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2
Q

Describe quickly developing countries

A
►Tiger economies
►Rapid industrialisation → increased employment in secondary sector
►Focus on exporting goods
►Wages increasing
►Improvement in standard of living
►Brazil, China, Mexico
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3
Q

Describe slowly developing countries

A
►Third World countries
►Southern hemisphere 
►Over-reliant on primary sector
►Little manufacturing or services
►Famine
►War
►High birth rates
►Sudan, Ethiopia, Mali, Somalia
►Low GNP
►Aids epidemic
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4
Q

What is GNP?

A

GNP stands for Gross National Product and is the total value of goods produced and services provided in a country in one year, plus the total value of exports

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5
Q

What is the formula for GNP per person?

A

GNP
GNP per person = ———————-
Total Population

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6
Q

What are the reasons for economic inequality?

A

○Colonialism
○Unfair trade
○Debt
○Corruption

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7
Q

Explain how colonialism is a reason for economic inequality

A

○15th - 17th century was the Age of Exploration
○European countries conquered South America and Africa
○Exploited raw materials and mineral wealth
○Stripped countries of natural resources

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8
Q

Explain how unfair trade is a reason for economic inequality

A

○Developed countries often pay developing countries low prices for their raw materials, like coffee and cotton
○Then process these into high-value goods
○MNCs often locate in Third World countries because of low labour costs

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9
Q

Explain how debt is a reason for economic inequality

A

○Development is difficult because of debt
○Have huge debts due to unfair trade and political leaders’ mismanagement of their economies
○Foreign debt is a vicious cycle - Foreign banks charge very high interest on loans which developing countries struggle to pay back. This leaves very little money to spend on education and health care. Thus the government needs to borrow more money, further increasing their debt

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10
Q

Explain how corruption is a reason for economic inequality

A

○Corrupt leaders take money for their personal wealth
○Many resources don’t get through to the people who need them most
○Money for infrastructure and services is often spent on the millitary

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11
Q

Cash crop

A

Grown for sale, rather than for personal use as food

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12
Q

How was Ireland exploited through the Plantations?

A

English and Scottish settlers grew cash crops, set up towns and developed trade. But the landlords didn’t live in Ireland and spent and invested the profits in England. This benefited Britain’s economy, while Ireland remained poor

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13
Q

After gaining independence in 1921, who was most of Ireland’s trade with?

A

Britain

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14
Q

When did Ireland join the EEC/EU?

A

1973

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15
Q

Commodities

A

Raw materials sold on the world market

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16
Q

Coffee is a cash crop. Next to _____, it is the most important commodity in the world.

A

oil

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17
Q

Where is coffee mainly grown?

A

Coffee is grown in tropical regions, mainly in the developing world, in places like Mexico, Colombia, Brazil, Uganda, Ivory Coast and Kenya

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18
Q

How many people depend on the coffee trade for income?

A

Approximately 20 million depend on the coffee trade for their income

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19
Q

How is coffee grown?

A
  • Beans are picked by hand in developing countries
  • Beans are dried, bagged and exported to the North
  • Further processing and packaging takes place in the North
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20
Q

How are coffee-producing countries exploited?

A

○All the profits are made in the North
○Protectionism - Businesses in the developing world cannot compete with the MNCs
○Falling and changing price of coffee beans

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21
Q

Where does aid come from?

A
  1. NGOs
  2. Bilateral aid
  3. Multilateral aid
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22
Q

What are NGOs?

A

Organisations that provide aid on a voluntary basis. NGO stands for Non-Governmental Organisation

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23
Q

What is bilateral aid?

A

Aid given from one government to another

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24
Q

What is multilateral aid?

A

Aid given when governments contribute money to international organisations like the UN or EU

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25
Q

What are the main types of aid?

A

Development aid
Emergency aid
Tied aid

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26
Q

What is development aid?

A

Given over a long period of time. Can be used to improve health, agriculture, education, industry and infrastructure. It can be in the form of machinery, or people like teachers or doctors

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27
Q

What is emergency aid?

A

Given during crises, such as famine, flood, earthquake or tsunami. Emergency food, shelter and medicine is provided

28
Q

What is tied aid?

A

Aid given with ‘strings attached’. E.g the country receiving aid may be forced to buy machinery or even weapons from the donor country.

29
Q

What are some of the arguments for aid?

A
✔Emergency aid saves lives
✔Development aid 
✔Helps communities help themselves
✔Lead to economic development
✔Can create links between North and South
30
Q

What are some of the arguments against aid?

A
✘Recipients can become dependent
✘Tied aid often benefits donor more
✘Sometimes spent on military equipment
✘Can be stolen by corrupt governments
✘Some argue fair trade is better than aid
31
Q

Give an example of an Irish government aid programme

A

Official Development Assistance (ODA)

32
Q

What is the aim of Ireland giving aid?

A

The aim of Ireland giving aid is to help poorer countries help themselves and promote sustainable development

33
Q

What is ‘Irish Aid’?

A

The governments programme for overseas development

34
Q

What is the population of Ethiopia?

A

Over 94 million

35
Q

What percentage of the Ethiopian population is living on less than $1.25 a day?

A

25%

36
Q

What fraction of Ethiopia’s children experience malnutrition and hunger?

A

 ⅓

37
Q

Irish Aid has been providing aid to Ethiopia since…

A

1994

38
Q

How much aid did Ireland give to Ethiopia in 2013?

A

€26 milion

39
Q

What issues does Irish Aid focus on in Ethiopia?

A
○Food Security
○Health
○Education
○HIV/AIDS
○Governance
40
Q

Give an example of emergency aid given by Ireland

A

Indian Ocean Earthquake & Tsunami

41
Q

Give examples of Ireland’s NGOs

A

Trócaire, Concern, Bóthar, Gaol

42
Q

Other than unfair trade, colonialism, debt and corruption, what other factors hinder economic development?

A

Climate change
Population growth
Arms expenditure and war

43
Q

How did climate change hinder economic growth in Ethiopia?

A

There was drought:
✘Animals die and crops fail
✘Leads to famine. People become sick and can’t work. Famine has killed hundreds of thousands of Ethiopians
✘Affected area will need emergency aid

44
Q

How did population growth hinder economic growth in Ethiopia?

A

✘Increased population creates the extra need for food and housing. Puts pressure on already limited resources
✘More land is cleared for farming and housing. This leads to soil erosion and drought
✘Drought causes famine. People become weak and can’t work. This hinders economic development even more
✘Rural-to-urban migration. Cities may not have the resources to cope

45
Q

How did arms expenditure and war hinder economic growth in Ethiopia?

A

Ethiopia has experiences conflict with both neighbouring countries and amongst various ethnic groups in Ethiopia:
✘Many injured or killed
✘Crops destroyed and infrastructure damaged
✘Money spent on the military , rather than development. Ethiopia’s government borrowed around $3 billion from Western banks. The repayments have affected the countries economic development

46
Q

The ROI can be split into two economic divisions. What are they?

A
  1. Southern & Eastern regions

2. Border, Midlands & Western (BMW) regions

47
Q

Describe the population of the South & East region of Ireland

A
○High population density
○High immigration
○3 million people
○70% of the population
○High standard of living
48
Q

Describe the population of the BMW region of Ireland

A
○Low population density
○High emmigration
○1 million people
○30% of the population
○Lack of services and jobs
49
Q

Describe the landscape and relief of the South & East region of Ireland

A

○Mainly lowlands
○Brown Earth soils
○Very fertile in the southeast

50
Q

Describe the landscape and relief of the BMW region of Ireland

A
○Mountainous
○Blanket bogland
○Heavily leached soils
○Poor quality podzols, gley and peat soils
○Boggy
○Infertile
51
Q

Describe the infrastructure of the South & East region of Ireland

A
○Well developed infrastructure
○Roads, rail, many good airports →Dublin, Shannon, Cork
○Dublin is a nodal point
○Good road network
○Luas, DART
○Dublin Port
○Ideal for attracting industry
52
Q

Describe the infrastructure of the BMW region of Ireland

A

○Infrastructure not as developed as South & East
○One major airport →Knock, Co. Mayo
○Poor road network
○One motorway from Galway to Limerick

53
Q

Describe the economic activity of the South & East region of Ireland

A
○95% in service industry
○High income
○High standard of living
○Variety of services
○Educated workers
○Very attractive for industry
54
Q

Describe the economic activity BMW region of Ireland

A
○A lot of small farms
○25% in subsistence agriculture
○Part-time farmers
○Lack of services
○Uttractive for industry
○However Galway is becoming more attractive due to good universities, labour force etc
55
Q

Describe the climate of the South & East region of Ireland

A

○Less rain, as the clouds have ‘released’ most of their precipitation by the time they reach the east (from the Atlantic)
○700mm of rain
○Cool Temperate Oceanic
○Mild, wet climate

56
Q

Describe the climate BMW region of Ireland

A
○High rainfall
○Wet and windy conditions coming from the Atlantic
○1500mm of rain
○Cool Temperate Oceanic
○Relief rainfall
○Mild, wet climate
57
Q

Italy can be split into two economic divisions. What are they?

A
  1. North of Italy

2. South of Italy (Mezzogiorno)

58
Q

Describe the population of the North Italian Plain

A

○High population density
○Large urban centres
○High immigration

59
Q

Describe the population of the Mezzogiorno

A

○Low population density
○High emigration
○Young people leaving
○Ageing population

60
Q

Describe the landscape and relief of the North Italian Plain

A
○Low-lying northern plains
○Very fertile soils
○Floodplains of the River Po
○Cereal farming
○Continental climate (hot and wet summers)
61
Q

Describe the landscape and relief of the Mezzogiorno

A

○85% mountainous
○Poor soils - terra Rossa
○Mediterranean climate
○Summer drought

62
Q

Describe the infrastructure of the North Italian Plain

A

○Good road network
○Excellent rail network
○Major airports
○Good access to markets

63
Q

Describe the infrastructure of the Mezzogiorno

A

○Poor infrastructure

○Autostrada motorway links the north to the south

64
Q

Describe the economic activity of the North Italian Plain

A
○Highly industrialised
○HEP
○High standard of living
○Low unemployment
○Good services
○Industrial triangle: Milan, Turin, genoa
65
Q

Describe the economic activity of the Mezzogiorno

A
○High unemployment
○Lower standard of living
○Subsistence farming
○Cash crops
○Tourism
○Textile
 ○Steel
○Sheep farming
○Industrial triangle: Bari, Brindisi, Taranto
66
Q

What was the cassa per il Mezzogiorno?

A
  • Funding scheme for the south
  • Introduced in the 1950s by the Italian government
  • Irrigation schemes
  • Autostrada roads built
  • New airports opened
  • State owned companies told to invest
  • Industrial triangle developed
  • Received EU funding
67
Q

What issues must be addressed in order to solve economic inequality?

A
  • International aid
  • Fair trade
  • Debt