Development Gap - the EU Flashcards
Reasons for joining the EU?
To trade wth other EU countries
To hope that the EU will help them develop and improve the standar of living of their citizens
The core?
Rich economic hub of Europe
- Skilled workforce
- High population density
- Has lots of transport routes
- Centre of economic activity
The periphery?
The poorer part
- Hot/cold climate
- Remote mountainous
- Poor infrastructure
- Declining/ageing population
- Outward migration
What is the multiplier effect?
An increase in skilled workforce (high level of economic activity)
More Investment in transport/infrastructure = high population density
= gets richer
What is the spiral of decline?
Outward migration, population ages, poorer infrastructure then poor levels of investment and the area gets trapped in poverty
What fraction of the EU budget is spend on regional aid?
1/3
What is the idea of regional aid within the EU?
The idea is that regional aid will help them develop and benefit the people there, and then as they become better-off - the wealthier parts of the EU will benefit
What is The European Development Fund used for?
Big infrastructire projects
What is the European Social Fund spent on?
Things like training, jobs and skills in poorer
What is the Conesion find spent on?
Sustainable development, covers environment + transport projecys /9that are economically friendly)
→ Only used on countries with a HDI 90% below the EU average (eg Portugal, Greece, Poland)
3 ways in which the EU is trying to reduce inequality in and between its member countries?
- Using Urban Commuity initiative
- Using the Common Agricultural Policy
- Structural funds
What is the Urban Community Initiative/
Money is given to certain EU cities to:
- Create jobs
- Reduce crime
- Increase areas of green space
What is the CAP?
Common Agricultural Policy
Farmers are subsidised (paid) to grow certain producs
→Also when world food prices are low, the EU buys produce and guarentees farmers a reasonable income
→ The CAP also puts a high import tax on foreign produce so people in the EU are more likely to buy fod produces in the EU (eg New Zeland lamb is very expensive compared to sheep raised in England)
All these improve the quality of life for farmer
Aims of CAP when it was set up in 1962?
- Increase food supply within the EU
- Create a single marker in which food could move around freely
- Increase the average size of field/farms/farmers income
- Portect farmers incomes by giving them subsidies to encourage unlimited production
What happened in the 970’s & 1980’s because of CAP?
- 70% of EU’s budget spent on the CAP but farming only contributed to 5% of the income
- Farmers overproduced certain foods eg beef, cereal, butter (created wine and milk lakes)
- Very high duties were imposed on imports into the EU (MEDC’s priced out)
- As farmers got bigger, the environment suffered and only rich farmers benefitted
