characterisitic of countries at diff develpment Flashcards
Demographers
Demographers are people who study changes in the structure of human population
birth rate
Birth rate are the number of live births per thousand of the population in one year the rate
It is calculated by dividing the number of live births by the population and then multiplying by 1000.
death rate
is the number of deaths per thousand of the population in one year. If the birth rate exceeds the death rate, a country is said to
experience a natural increase in population
infant mortality rate
infant mortality rate is the number of deaths of children under one per thousand live births in one year
net migration/positive net migration
If immigration into the country is greater than emigration out of the country, the country is said to experience positive net
migration.
causes of changes in population
- As countries develop, high income per head and high development the growth in their populations tend to decline.
While their death rate decreases, their birth rates fall at a greater rate.
Better healthcare, education, sanitation, housing and nutrition contribute
to people living longer. A decline in infant mortality, increased cost of
bringing up children and an increase in women’s participation in the labour force usually result in a decline in the birth rate - still experience a rise in population because they attract net
immigration. People may want to move to the country to gain higher
income and to enjoy a higher living standard - Low development is often associated with high rates of population
growth. This is due to increases in
the birth rate exceeding the death rate.
need to have children to support parents in their old age, lack of availability of methods of birth control, the relatively low
costs of raising children and lack of education of women. High infant
mortality rates also encourage families to have more children as they
will not expect all of them to survive - The higher birth rate of countries with low development results in a
relatively low average age of population. This creates a high proportion
of dependent, non-productive members of the population. They are said
to have very high dependency ratios. This means that a proportionally
small working population has to produce enough goods and services to
sustain not only themselves but also a large number of young people
who are economically dependent upon them(economic inactive proportion of labor force)
5.However, high development The most common problem is an ageing population. This arises from a decreasing birth rate
and a decreasing death rate. Again, dependency ratios are high, a high proportion of old people who are reliant upon the productive proportion of the population for support. With people
living longer, the cost of health care and pensions have been rising. To
reduce the cost of pensions, a number of governments of developed
countries have increased the retirement age
optimum population
Optimum population is the size of population that maximize the GDP per head
The optimum population is said to exist when output per head is the greatest, given
existing quantities of the other factors of production and the current
state of technical knowledge.
As the population grows, it can make better use of the stock of the other
factors of production such as land and capital. This is because
increasing returns are enjoyed as the population grows
. If population is below the optimum level, the country can be described as
underpopulated.
When the population is beyond the optimum level and
decreasing returns are being experienced, the country is said to be
overpopulated.
In the real world, the situation is more dynamic and the
state of technical knowledge is constantly improving. The quantity of
the other factors also continuously changes so that the optimum
population for a country is not fixed
examples on income distribution
This is partly because income-generating assets, especially land, are owned by a few people. As a result, wealth and poverty.
Income is particularly unevenly distributed in Latin America and in South Africa
The transition Poland and
Russia, from centrally planned to market economies has increased
inequality as a small number of people have benefited enormously from
the new opportunities that have resulted. Two exceptions are Slovenia
and the Ukraine, which have two of the least uneven distributions
gini coefficient
The Gini coefficient is a numerical measure of the extent of inequality.
45° line, the line of equality (x- cumulative percenage of population y- cumulative percentage of income), which shows income being evenly distributed with e.g. 10% of the population receiving 10%
of the income, 20% of the population would receiving 20% of the
income etc.
. 0 would mean that (0/50)
the income distribution is equal. There would be no gap between the actual income distribution and the line of equality
In contrast, 1 (50% / 50%). would mean there is complete inequality. All
income would go to one person. Both extremes do not occur in practice.
The coefficient will be between the two. The higher the figure the more
unequal the distribution of income
lorenz curve
Lorenz curve visual indicator Close Lorenz curve to line of equality perfect equality equal distribution is
Poorest 20 percent population 5 percent toal income but far away last 10 percent have 50 percent income
Gini coefficient distance Lorenz curve and line equality
A (between Lorenz and line equality)/A+B(total area below line of equality )=0 lorenz is line equality perfectly distribute 1 unequal 1 perso entire income no B no lorenz curve closer 0 equal distribution income
Show shift Lorenz closer and closer to zero if govt uses policy redistbute
employment in different structures
Countries with high income per head it labour force tertiary sector.
In contrast, economies with lower income per head the primary sector. A high dependency on agricultural output and employment makes these economies vulnerable to the forces of nature.
In economies that are
dependent agricultural output for subsistence, a drought can
quickly lead to famine a drought can wipe out their foreign currency earnings.
As an economy develops. The secondary sector becomes the
major source of employment and as the economy develops further, the
tertiary sector usually makes the largest contribution to employment. In
some cases, employment moves to a greater extent from the primary
sector to the tertiary sector. This can occur
when there is a growth in, for instance, tourism. It is also the case that a
smaller proportion of the economy’s labour force may be employed in
the primary sector in a country with high development, but the total
value of the sector’s output may increase given higher labour and
capital productivity.
Pattern of trade at different levels of employment
economies with low development and low
income per head, primary products most of the export revenue earned. This makes them vulnerable in their trading relations
because demand and especially supply can change significantly. For
example, demand may decrease due to a health scare, and supply may
increase due to a good harvest is subject to frequent and large fluctuations in price
The demand for primary products, especially food, is income inelastic. This means that as world income rises there is little impact upon the demand for primary products. In contrast, demand for
manufactured goods is income elastic. This means that primary goods
tend to become relatively cheaper than manufactured goods. so for the terms of trade of primary goods to
decline relative to manufactured goods. Those countries that are
dependent upon agricultural products may receive relatively low prices
for their exports while having to pay relatively high prices for their
imports.
Countries with high development and high income tend to export
mainly manufactured goods and services. They also tend to export a
wide range of products. Some low-income countries, in contrast, rely
heavily on exporting a narrow range of products. For example, in 2019
exports of coffee accounted for 35% of Ethiopia’s export revenue
