Development Dynamics Flashcards
Life expectancy
Average number of years a person to live in a country
Measures of inequality
Measures how wealth is shared among a population (looking at top and bottom 10% of wealthiest and poorest)
HDI
UNs way of measuring development taking into account education (literacy rate), health (life expectancy) and money (GDP per capita)
Subsistence farmers
% of population who farm to live
Below poverty line
% of population who earn less than $1.25 a day
GDP per capita
Average income of a country divided by its population
Sanitation
% of population that have access to piped water within 1km
Literacy rate
% of population aged 15+ who can read and write
Birth rate
Number of births per 1000 people a year
Death rate
Number of deaths per 1000 people a year
PPP
Purchasing Power Parity - cost of living (how much GDP will buy)
Fertility rate
Average number of births per woman
Maternal mortality
Number of mothers per 100 000 who die in childbirth
Infant mortality
Number of children per 1000 who die before their first birthday
Corruptions Perceptions Index
Uses a scale (0: honest, 10: very corrupt) to measure corruption in a country
Gini coefficient
Measures the distribution of income and how it changes overtime. Ration between 0 (equal) and 1 (only one person has all the wealth)
Population pyramids
Show the population of a country by presenting the number of people in each age group based on gender
Income Quintiles
Five equal segments of the world representing the distribution of wealth (richest: 82.7% of all wealth, poorest: 1.4% of wealth)
What does Rostow’s Development Model show?
Overtime, a country will progress and develop into something better
What are the stages of Rostow’s model?
1) Traditional Society: primary jobs, subsistence farming, little trade
2) Pre-Conditions for Take Off: secondary jobs, powerful person like a president suggests trading, textiles, infrastructure
3) Take Off: open to trade, modernisation
4) Drive to Maturity: high tech jobs, modern technology, industrialisation
5) High Mass Consumption: tertiary/quaternary jobs, manufacturing, luxury goods and necessities
Drawbacks of Rostow’s model
Out of date, assumes all countries start as traditional societies, disregards resources and natural hazards that make the Take Off stage difficult
What does Frank’s Dependency Model show?
Countries all depend and rely on each other to develop
Drawbacks of Frank’s model
Out of date, disregards natural disasters lack of resources and conflict which limit development, assumes that the rich get richer and the poor get poorer
Globalisation
The process of the world becoming increasingly interconnected through the spread of people, ideas and money due to technology, trade and transport developments
Development
A process of change that affects people’s lives e.g. Improving quality of life
(A countries wealth, social and political progress)
Fair trade helping countries develop
Money is spread out equally to workers. Workers family (especially their children) can benefit as they earn more money to be supported, food, education and healthcare. Improve life expectancy, decrease death rate, improve literacy rate and increase profit for farmers
Aid helping countries develop
Charities or NGOs helping countries (in poverty, suffering from disease, lack of resources, struck by natural disasters). They help in the short term or long term. Aid addresses the foreign exchange gap (for desperately needed imports), the savings gap (no savings to invest in infrastructure or industry) and the technical gap (training people, skills or technology)
Causes of global inequality
Gender inequality - women are subservient to men, have less opportunities, less education and high paying jobs, discrimination and sexism. Income inequality - rich get richer, poor get poorer, cycle of poverty. Colonialism (gaining political control over another country) - exploits economy, occupied with settlers, corruption, people have no say, money is taken from them and put to other uses, land and people are exploited to make money, plantations built, profits MNCs. Unfair trade - price fluctuates due to demand and supply, importing is expensive
Causes of inequalities in trade
Developing countries have little purchasing power, making it difficult to pay off debts and escape poverty. Prié of products fluctuates on the world market. Instability makes it difficult to plan improvement locally or in wider government
Tariffs
Taxes imposed on imports (makes foreign goods more expensive to the consumer)
Quotas
Limits on the amount of goods imported and usually work in the developed country’s favour
Trade surplus
Value of exports is greater than imports
Trade deficit
When value of imports is greater than exports
Drawback of aid
Makes countries too reliant on other countries for development. Needs more independence. It could be a waste of time as it could make countries worse since money doesn’t always go straight to people who need it. Money donated could be used to fund for admin and wages rather than the actual cause
Remittances
(Diaspora) Money sent home from economic migrants living away from their home country. It helps the economy grow as frogging money is spent there and help support their families
HIPC
Highly Indebted Poor Countries
Debt relief
Getting rid of debt and starting from scratch. Pays off original money but not interest. Relieves countries of stress of paying back debt, enabling them to focus money on other services. But the countries have to qualify for it first
MDGs
Millenium Development Goals
Gender equality and empower women, combat HIV/AIDS and other diseases, develop a global partnership for development, eradicate extreme poverty and hunger, achieve universal primary education, reduce child mortality, improve maternal health, ensure environmental sustainability.
While some have been addressed and are being tackled, not all are
Indonesia’s connectivity and significant location
Ideal for trade. Archipelago. Not landlocked. Over 1700 islands. Major sea around its territory. Close to large economies such as China and Japan large geographical spread of people. Half of shipping travels through its waters. ASEAN and APEC. Since it is on the equator, the Tropical climate makes rainforests ideal of ecotourism and natural resources such as palm oil
Outsourcing
When companies hire another company to help them in a specific area to save money or time
Examples of outsourcing
Apple hiring other companies to assemble their products.
BT outsourcing their call centres in India as pay if cheaper.
Pos and neg of outsourcing
Neg - unequal pay, quality of goods is compromised.
Pos - investment in infrastructure, positive multiplier effects, job opportunities, greater disposable income and consumer classes rise, encourages trade links, government spending on institutions such as healthcare and education, better training for workers, gain more skills and experience making them more employable
