Development Gap Flashcards
Trade
The exchange of good and services between countries
Primary Products
products which are produced without manufacturing (e.g.fruit and metal ores)
Secondary Products
Goods which require processing (e.g. cars or phones)
Visible Products
The trade of actual things e.g. cars
invisible Products
The trade of services and intellectual property rather than goods
Quality of life
an average of 3 social indicators: literacy rate, life expectancy and infant mortality (happiness and opportunity)
Standard of living
the economic level of your life
HDI
Human Development Index is a number that is calculated using life expectancy literacy rate education level income per head
GDP
Gross Domestic Product is the total value of goods and services a country produces in a year.
GNI/GNP
Gross National Income/ Gross National Product is the total value of goods and services people of that nationality produce a year. ( GNP+ money from people living abroad)
Trade Block
a type of intergovernmental agreement where regional barriers of trade are reduced or eliminated among the participating states
Fairtrade
Fairtrade provides better prices for farmers and improved working conditions in the developing world
Aid to the top
money is given to governments and used by wealthy workers such as engineers and planners to increase exports
Aid to the bottom
Aid is sent directly to the poorest people, increasing standard of living
Bilateral aid
when one country donates money or resources to another but with conditions attached, the conditions are normally in the MEDCs favour
Multilateral aid
governments give money to international agencies such as the world bank which decide how the money is spent
Emergency aid
given after sudden disasters
development aid
involves providing local communities with education and skills for sustainable development
Charitable (NGO) aid
based and funded in industrialised countries, money is raised through public appeals, donation and charity shops. They work closely with the community allowing aid to be closely targeted on local need.
Economic core
the wealthiest countries with the most advanced industry, services and communications
Economic periphery
the poorer countries of a trade block
What is economic development?
a measure of a countries wealth and how its generated
What is human development?
measures the access the population has to wealth, jobs, education, leisure, health, safety, nutrition
What is the 1st, 2nd and 3rd world model?
where the world is split into 3 parts.
made from a western perspective and doesn’t account for recent development or migration
What is the Brandt line?
a north south divide with works for categorising the extremes
What is the 5 categories model?
- rich industrialising e.g UK and USA
- oil exporting countries e.g. UAE
- newly industrialising e.g. China
- former centrally planned e.g. Russia
- Heavily indebted countries e.g. Chile
Loan
the giving of money and resources which has to be repaid
What are the advantages of loans?
- boosts economy and aids development
- used to improve services
- immediate access
- improves infrastructure and methods
What are the disadvantages of loans?
- countries may not know how to use the money correctly
- interest means that the debt constantly grows
What are the benefits of micro enterprises?
- business opportunities
What are the benefits of micro conservation swaps?
- targets areas at risk
- gets rid of debt
What are the issues of micro enterprises?
- small scale
What are the issues of micro conservation swaps?
- no additional money/aid
- hard to moniter
What are benefits of trade blocks?
- free movement of people
- improved standard of living
- can set environmental standards and regulations
- jobs are created
- protects economies and companies from competition
- reduces chance of conflict
What are Drawbacks of trade blocks?
- easy movement of illegal immigrants
- increased food miles
- less global trade
- disputes between trade blocks
- they cost a lot of money
- adds complications
What are 6 ways to give aid?
- skilled people
- equipment
- food
- money
- projects
- emergency aid
What is CAP?
Common agricultural policy
- set up after the second world war
- pays money for farmers/ subsidies to the poorest farmers in the EU
What are the goals of CAP?
- guarantee food production
- stabilise food prices
- guarantee agricultural employment and wages
What are the negatives of CAP?
- lead to over production of food
- damaged the environment
- cost a lot of the EUs bugdet
What is the European investment bank?
provides finance and expertise for sustainable investment projects in Europe and beyond
What structural funds?
a way to narrow gaps in development amoung regions in the member states. provides money for social and economic oppurtunities
What is Urban 11 fund?
combats social and economic problems in cities. e.g. new castle
CAUSES OF INEQUALITY, ENVIRONMENTAL FACTOR: drought
kills livestock. Causes chest infections and infectious disease.
CAUSES OF INEQUALITY, ENVIRONMENTAL FACTOR: climate related disease
health care from diseases such as malaria costs Africa $12 billion a year which they can’t afford
CAUSES OF INEQUALITY, ENVIRONMENTAL FACTOR: Malnutrition
causes economics loss (country has to buy food supplies, pay for hospital treatment and also there would be less people working).
CAUSES OF INEQUALITY, ENVIRONMENTAL FACTOR: Natural hazards
reduced workforce and costs for rebuilding
CAUSES OF INEQUALITY, ENVIRONMENTAL FACTOR: Desertification
climate change, deforestation and overgrazing have led to desertification. Means the country can’t sell crops which is the bulk of what LEDC’s get their income from
CAUSES OF INEQUALITY, ECONOMIC FACTOR: Interdepedence
LEDCs rely on MEDCs for secondary products such as machinery and computers. However MEDCs rely on LEDCs for primary products and raw materials.
CAUSES OF INEQUALITY, ECONOMIC FACTOR: Trade
Global trade deals do not favour LEDCs and tariffs are often placed on primary products. Also history of famine and war makes trade difficult.
CAUSES OF INEQUALITY, ECONOMIC FACTOR: Exports
LEDCs mostly only export only primary products meaning they spend more money than the country has coming in.
CAUSES OF INEQUALITY, ECONOMIC FACTOR: Workforce
if the workforce has low skill and productivity it reduces the amount of export and decreases the countries income. This is effected by not having a reliable energy supply and lack of infrastructure.
CAUSES OF INEQUALITY, SOCIAL FACTOR: Water
lack of water limits the crop yields and therefore the food supply. If there is not enough or the water is contaminated it can cause disease and dehydration resulting is less economic development.
CAUSES OF INEQUALITY, SOCIAL FACTOR: Education
LEDC countries have less schools as they are expensive to run and set up this leads to low skilled workers with low income. This puts any possible investors off because of the lack of the skilled workforce.
CAUSES OF INEQUALITY, SOCIAL FACTOR: Health
Diseases can be carried in unreliable water sources for example bilharzia. It costs hospitals a lot of money to treat these diseases and also means they cannot improve or focus on treating a more major things.
CAUSES OF INEQUALITY, POLITICAL FACTOR: Democracy
some people make money at the expense of those they are supposed to represent.
e.g. zimbabwe
CAUSES OF INEQUALITY, POLITICAL FACTOR: Historic Trade
allied countries are more likely to trade e.g. UK & Australia however LEDCs have not got these strong historic trade links making trade more difficult.
CAUSES OF INEQUALITY, POLITICAL FACTOR: Political Stability
countries coming out of civil war are often very poor. Companies are less likely to invest in unstable governments.
CAUSES OF INEQUALITY, POLITICAL FACTOR: Access
If a country is landlocked and surrounded by bad neighbours it limits development
