Economic Development 💰 Flashcards
What is development
Development is a positive change that makes things better
What does HDI account for
Multiple factors in order to increase development:
Life expectancy
Literacy rate
Education level
Income per head
What was the earliest method of dividing the world and how did it work
First , second & third worlds
Classified from a western perspective - based on WEALTH only
How do we divide the world now
HIC, NEE & LIC
Splitting countries by earnings
What does the demographic transition model measure
Population change over time by birth and death rates
What could an ageing population suggest
Better health and social care
Birth rates have decreased
Why did European countries want to build empires to increase development ?
Competition for power
To build global influence
Access to raw materials and labour
** These countries gained a profit and could further develop their own counties **
What difficulties do countries experience once given independence
Conflicts between religions and faiths
Deciding on a leader (often falls to dictatorship)
No support
Many had little education (not qualified for positions of power)
Deprivation economies
How does a coastline influence the rate and level of development
Can’t trade easily without ports
(Less developed counties often have no coastline)
How does a country being prone to natural hazards influence the rate and level of development
Long term impacts of natural disasters
(Haiti - struggled to redevelop since earthquake)
How does climate influence the rate and level of development
Unclear some thrive and some struggle
What are 2 issues uneven development might cause
Exploitation of resources
Increasing wealth gap
What is the Gini coefficient
A measure of internal disparities (within one country)
e.g. a score of 0 means everyone has exactly the same income but the score of 1 means that all income in one place is controlled by a single person
(LICs and NEEs have a high gini coefficient)
In LICs what percentage of deaths are in children under the age of 15
40%
In LICs what is the main cause of death in children under the age of 5
Complications in childbirth
In HICs what percentage of deaths are in people over the age of 70
70%
In HICs what percentage of deaths is among the children under the age of 5
1%
What could the disparity in health be to do with
Lack of health workers in LICs
Less money to put into healthcare and to fund medicines
What are primary products
They are low value products as there is a large market for these goods
What are secondary products
Products turned into a consumable product which adds huge income
What is China nicknamed following its move towards manufacturing form primary production
‘The workshop of the world’
What are TNCs
Transnational corporations - produce goods and services inside many different countries
eg. Mac Donald’s
What is FDI
Foreign direct investment - the cash injected into countries from TNCs
What is the multiplier effect
Investment in an in a business helps it to thrive, creating work.
This can in turn help other businesses
How do TNCs reducing transport and import costs affect quality of life in NEEs
By assembling the products close to the people they will be selling them to, companies can reduce transport costs
Investment brings employment to the country 
How can TNCs looking for new markets affect the quality of life of NEEs
By TNCs building retail stores in NEEs= worldwide over 1 billion people in NEEs now have a ‘middle class’ income and lifestyle
How does looking for cheap labour affect the quality of life in LICs and NEEs
TNCs have invested in the creation of new factories and offices as cost of labour is cheaper. However workers are sometimes exploited and they have a low quality of life
What might be a concern with regards to so much investment by TNCs in LICs
Workers could be exploited and may have a lower quality of life.
This could be due to low pay, low workers rights and bad working conditions
What are 6 different types of aid to reduce the development gap
Send skilled people to train people
Equipment such as machinery, hospital equipment and education materials
Money
Food
Projects such as building new roads, factories etc.
Emergency assistance to disaster areas
How does sending skilled people to LICs help reduce the development gap
Educates and trains people which provides them with long-term security and prepares the country for the future
Give 5 ways in which tourism helps development
Literacy rates
GDP per capita
Number of doctors per 1000 people
Access to clean water
Life expectancy
How much of Kenya’s GDP does tourism contribute to
12%
How many people in Kenya are either directly or indirectly employed by the tourism industry
600,000
(10% of all employment in Kenya)
In 2011 how many visitors did Kenya have a year
1.8 million
Since 2000 how much has Kenya’s score on the Human Development Index increased by
Increased from 0.45 to 0.55
What is intermediate technology
The simple, easily learned and maintained technology used in a range of economic activities serving local needs in LIC‘s
Why might fair trade be considered better than offering financial aid
So countries doesn’t become reliant on aid
Long term impacts
Social premium
Gives farmers more freedom
What is fair trade
The company paying a farmer a fair and guaranteed price for their goods
What is social premium
Extra income from fare prices can then be spent on things the community need
What are the cons of financial loans
Not reliable
Corruption
LICs might end up in debt 
What are the benefits of a microfinance loan over aid given by the world bank
Sustainable
No corruption
Loan is easier to repay
What is the primary sector
Produces the raw materials through extraction
What is the secondary sector
Manufacturing of primary materials into finished products
What is the tertiary sector
Selling of services in skills e.g. finance/medicine
What is the quaternary sector
Industries providing information services such as ICT and the media
What is globalisation
The growth and the spread of ideas around the world and the world becoming more interconnected
What is deindustrialisation
The reduction of industrial activity or capacity in a region or economy
What are the causes of deindustrialisation in the UK
NEE’s opening their countries to TNCs in the 1980s
Industries like coal have shut down - cheaper to import
Strict laws for environmental pollution - expensive to make products here
Primary resources have declined and have become uneconomic to mine -employment declined
What are the impacts of deindustrialisation
More segregation
Small businesses affected
More abandoned brown field sites
Unemployment
(Government have more work to counter for this)
Why did globalisation mean there was a push towards privatisation
More profitable to sell industries to private stakeholders
Allowed industries to become more competitive on a global scale
How many of the UKs jobs does the quaternary sector account for
15%
What is footloose
Industries that don’t need raw materials and make use of information & technology instead
Name 4 ways technology has changed the UK working practices
Recruiting is easier
geographical boundaries are broken
filing is easier
flexible working arrangements
How much of the UKs GDP does financial services account for
10%
How many people does the UKs financial services employ
2 million + people
What are the 4 environmental issues with industry
Industrial waste
Air pollution
Resource exploitation
Energy use
Fo an industry to become sustainable they must…
Recycle the product
Reduce waste production
Reduce need for fossil fuels
Conserve natural resources
What is sustainable about Jaguars engine plant
Solar panels on roof for electricity
Underground water collector
Efficient compressor systems
What is useful about Jaguar using carbon offsetting
By producing energy via solar panels they are not using carbon
(Equivalent to 1 million miles of car travel)
Why is using lightweight and recyclable materials at Jaguar so important
Less carbon used in transporting materials (only from a 50 mile radius)
Less materials are needed for production
What are 3 positives of population growth in small villages
Local businesses are thriving
Local healthcare is well used and to a high standard
Historical sites/ buildings get enough money to remain open
What are 3 negatives of population growth in villages
Air pollution from increased vehicles
New residents are unaware of new cultures - risk dying out
Rising house prices in area - historic families are being priced out
Cycle of rural decline
Young leave — hard to recruit — less investment/businesses shut — less people = services declining — lower quality of life
What is better south of the north-south divide
Higher employment levels
Faster pop. growth
Higher house prices
Deindustrialisation is less of an issue
What strategies can be used to reduce differences between the north and the south
Assisted areas — provide money in areas that need extra help
Improving transport infrastructure— HS2 links cities to the north
Giving more power to individual cities
What are 4 reasons why we should continually improve infrastructure
Population growth
Economic growth
Changed industries
Global trade
What historic links does the uk have
Former British empire
—- Connection is now seen via migration cultures and trade
Name the 6 ways the uk is connected to the wider world
Culture
Trade
EU (political & economic)
Transport
Electronic connections
Commonwealth (political & economic)
