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
