Development Dynamics Flashcards
Name an economic development indicator
- GDP or PPP
- Poverty line
- Clarke Fisher model
- GNI
Name a social development indicator
- HDI
- Gender inequality index
- Literacy rates
What is PPP?
Purchasing power parity measures what $1 can buy you in certain countries. For example, you can buy more for $1 in Malawi than in the UK.
What is GNI?
Gross national income (per capita) measures national wealth and includes the debt a country is in
What is GDP?
Gross domestic product (per capita) measures economic development.
What is the HDI?
The human development index is a number between 0 and 1 which is affected by four factors:
- Life Expectancy
- Education (Literacy)
- Education (Average length of schooling)
- GDP per capita (Using purchasing power parity)
What is the Gini Coefficient?
A measurement of the extent of inequality and income distribution. This is between 1 and 0 where 0 would mean that everybody earns the same amount of money and 1 would mean that a single person had all of the income.
What is the Corruption Perceptions Index?
Devised to help investors know where their money is safe, it’s a rank between 0 (very corrupt) to 10 (honest).
What is birth rate?
Number of live births per 1000 people per year.
What is death rate?
Number of deaths per 1000 people per year.
What is dependency ratio?
The ratio of dependent people in the country to the number of workers. The higher the ratio, the more dependent people.
(Total number of people aged younger than 14 and older than 65 divided by the number of 15-64 year olds, multiplied by 100.)
What is fertility rate?
Average number of births per woman.
What is infant mortality?
Number of children per 1000 live births who die before their first birthday.
What is life expectancy?
The average number of years a person can expect to live.
What is maternal mortality rate?
The number of mothers per 100,000 people who die during childbirth.
What is an NIC?
Newly industrialising country
What is the Brandt line?
The 1980 line which divides the rich and poor countries geographically. Except Australia and New Zealand primarily, the richest countries are in the Northern Hemisphere.
What is an RIC?
Recently industrialised country
Name the Asian Tigers (NICs)
Hong Kong, Singapore, South Korea and Taiwan
1960s - 1990s
What is a HIC?
High income country
Who are the BRICS?
Brazil, Russia, India and China (2001)
South Africa was added later
Name the MINT economies
Mexico, Indonesia, Nigeria, Turkey
2014 - present
What are the reasons for global inequality?
Physical- access to sea for trade
Historical- a history of colonialism means development occurred later. Neo- colonialism happens today with cash crops
Political- open economies develop faster as they encourage foreign investment
Social- access to education and healthcare
Name one economic consequence of poverty
1/5 people live on less than $1 a day
Name one environmental consequence of poverty
Poor farming leads to environmental degradation
Name one political consequence of poverty
Many developing countries have non- democratic governments making it difficult for minority’s groups
Name the Tiger Cub economies
Indonesia, Malaysia, Philippines and Thailand
1990s - present
What is Frank’s dependency theory?
A theory based on colonialism stating that rich countries exploit poorer ones.
It is a socialist view
What are Malawi’s economic barriers?
It imports high value products, but exports low value products. It’s exports are worth less than its imports.
What is Rostow’s theory and what are the different stages in it?
Theory of modernisation: based on capitalism
1) Traditional Society
2) Pre-take off stage
3) Take off stage
4) Drive to maturity
5) High mass consumption
What’s in a traditional society?
- Most people in agriculture
- Subsistence Economy
Name one social consequence of poverty
775 million people in developing countries can’t read or write
What’s in the pre-take off stage?
- Shift from farming to manufacturing
- Trade increases profits
- Profits invested into new industries and infrastructure
- Agriculture produces cash crops for sale
What’s in the take-off stage?
- Rapid growth, investment and tech
- Requires increased profits from overseas trade
What’s in the high mass consumption stage?
- A period of comfort
- Consumers enjoy a wide range of goods
- Societal disposable income to be spent on military, education, welfare or luxuries
What is a TNC?
Trans-national corporation. A company which conducts its business in multiple countries.
What is an NGO?
An NGO is a Non-Governmental organisation. For example, Water Aid
What’s in the drive to maturity?
- Growth
- Tech used throughout economy
- Industries produce consumer goods
Name a bottom up approach to development (NGOs)
ASTRA biogas scheme
What are the benefits of biogas generators and are they local or national?
- provides jobs
- provides a quick supply of heat for cooking
- no longer have to collect wood
Local as nationally it contributes to global warming
Name a top down approach to development (TNCs)
The Sardar Sarovar Dam
What are the benefits of the SS dam and are they local or national ?
- provides electricity when the dam overflows
- provides 3.5 billion litres of drinking water
National benefits as it forces local people out of their homes
What is globalisation?
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange.
How can globalisation help Malawi?
If Malawi had more phone lines and more internet uses, it could have increased international trade, which could boost its economy.
When a UK based company invests money into India, for example, what is this type of investment called?
FDI - Foreign Direct Investment
What does the Clark-Fisher model show?
The stage of economic development of a country and the percentage of workers employed in different sectors.
As the model goes from pre-industrial to post-industrial, mechanisation increases.
How does the Clark-Fisher model show MICs or Industrial countries?
They will have almost half of the workforce in secondary sector jobs (manufacturing). And the rest is made up from an even split of primary and tertiary jobs.
How does the Clark-Fisher model show HICs or Post-Industrial countries?
They will have most of the workforce in tertiary sector jobs (services), then secondary sector jobs and a low amount of primary and quaternary sector jobs (research and development).
What is the primary sector?
Primary industries extract raw materials. For example, farming and mining.
What is the secondary sector?
Secondary industries take raw materials and process them into manufactured goods and products. For example, food processing, oil refining and energy production.
What is the quaternary sector?
The quaternary sector consists of providing information services, such as computing, ICT and consultancy; it focuses on research and development - especially scientific.
What is the population of India?
1.324 billion people (2016)
What is India’s average economic growth rate?
7% per year since 1997
What is the tertiary sector?
The tertiary industry involves the selling of services and skills. They can also involve selling goods and products from primary and secondary industries. For example, the health service, transportation, education, entertainment, tourism, finance, sales and retail.
What is India’s HDI score?
0.624 - Medium to high human development
Life expectancy in India?
68.3 years
Average years of schooling?
11.7 years
How many people live in India’s urban slums?
40 million people - a quarter of its urban population
Where are the most advanced Indian states?
North- west
How is India socially diverse?
More than 1500 languages spoken
Caste system
India’s wealth is unequally shared. Name one state which has a lot of wealth and name another that is very poor.
Maharashtra (Wealthy)
Bihar (Poor)
Why is India benefiting from globalisation?
It has a cheap labour force, therefore TNCs are likely to invest for good profit margins.
What attracts TNCs to India?
Cheap labour
Large number of English speakers
Reduced taxes
Name regional and national links that India has
Regional- China (neighbour)
National- World trade organisation, commonwealth, United Nations
Which 7 things influence the change in India’s economy?
-Trade
-Aid
-FDI
-Government policy
-Globalisation
-Outsourcing services
-Transport and communication
How is the GDP in each sector changing in India?
1980-2011: services sector is highest
1980-2010: agriculture is second highest
2010-2011: industry is second highest
How does India’s geography influence its growth?
India is situated between a large proportion of the world’s top trading countries and shipping routes.
It is surrounded by ocean so can access many major trade routes
How much has India’s GDP per capita is increased by since 1991?
500%
What is crucial to India’s increased trade?
- Containerisation
- Shipping
- Aircraft technology
How many of the top ten outsourcing cities are in India?
6
These Include: Bangalore, Mumbai, Dehli, Chennai, Hyderabad and Pune.
What happens in urban expansion?
Cities build things like apartment blocks that offer reasonably affordable housing on the outskirts of cities.
How does the Clark-Fisher model show LICs or Pre-industrial countries?
They will have a large majority of their workforce in the primary sector (farming, mining and fishing). With very few secondary and tertiary sector workers.
Name a demographic impact of economic growth in India
The population is aging
Main reasons that Malawi is so underdeveloped?
- Landlocked
- Rural Isolation
- Changing Climate
- Increased Pollution
Name an urbanisation impact of the economic growth in India
More people are migrating to urban areas for higher living standards
What is an LIC?
Low income country
Name a socio-economic impact of economic growth in India
A decrease in gender inequality. More literate females
Name 4 environmental impacts of development in India
Air pollution (13/20 main cities are polluted)
Land pollution (deforestation and desertification cause flooding)
Water pollution (275 rivers are polluted)
Greenhouse gas emissions and climate change (3rd largest carbon dioxide emitter)
What are foreign exchange reserves?
The amount of money in USD held by the banks. 300 billion in India
What is geopolitical influence?
How the geography and economy of a country affects its relationships with other countries
What is G20?
A group of 20 countries tackling global issues internationally
What is COP21?
A deal signed at the Paris talks to reduce carbon emissions globally. It was signed by more than 150 worldwide leaders
What 5 things are still a problem in development for India?
Poverty
Low levels of economic freedom
Foreign investment is unreliable
Changing international relations
Rural and urban lifestyles
