Economic World Flashcards

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1
Q

What are there global variations in?

A

Economic development and quality of life.

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2
Q

Development

A

The progress in economic growth, use of technology, and improving welfare that a country has made.

Countries develop as they get better both economically and socially.

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3
Q

Standard of living

A

A measure of wealth.

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4
Q

A high standard of living likely leads to what?

A

A better quality of life.

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5
Q

Quality of life

A

A concept of social, political, and spiritual freedoms.

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6
Q

When countries develop, the quality of life of the people there does what?

A

It improves.

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7
Q

What can quality of life not be?

A

Measured.

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8
Q

What are the economic indicators/measures of development?

A

GNI
GNI per Capita (per head)

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9
Q

What are the social indicators/measures of development? These give information about peoples’ quality of life!!

A

-Birth rate
-Death rate
-Infant mortality
-Life expectancy
-People per doctor
-Literacy rate
-Access to safe water
-(Fertility rate)

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10
Q

Positives of using ‘measures of development’.

A

Can compare the development of different countries.

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11
Q

Development gap

A

The difference in development between more and less developed countries.

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12
Q

Gross National Income (GNI)

A

The total value of goods and services produced by a country in a year, including from overseas. Often in US dollars.

As a country develops, this measure of wealth gets higher.

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13
Q

Limitations of GNI

A

Doesn’t tell us if individuals are rich or poor.

Usually misses out informal employment which can account for a large proportion of national income.

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14
Q

GNI per Capita (per head)

A

The GNI divided by the population of a country, giving average income. Often given in US dollars.

As a country develops, this measure of wealth gets higher.

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15
Q

Birth rate

A

The number of live births per 1000 of the population per year.

As a country develops, this measure of education gets lower.

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16
Q

Why is birth rate a measure of education?

A

The higher the birth rate, the more likely it is that girls aren’t completing education.

This is because young girls in LICs are married off to provide children, which means that they won’t finish school.

For example in Niger 1 in 8 girls finish primary education.

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17
Q

Why do people need lots of children in developing countries?

A

-High infant mortality (hence they start giving birth veeeery young)

-No contraception or education about pregnancy

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18
Q

Limitations of GNI per head/capita

A

Doesn’t show the distribution of wealth in a country as it’s only an average.

For example, the GNI per head in Qatar is as high as in some HICs but only due to a few extremely wealthy people. There is a large population of relatively poor people.

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19
Q

Death rate

A

The number of deaths per thousand of the population per year.

As a country develops, this measure of health gets lower as people (particularly women as they can now make associations)

are educated on hygiene and healthcare systems are improved.

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20
Q

Infant mortality rate

A

The number of babies who die before they are 1 year old, per thousand babies born.

As a country develops, this measure of health gets lower

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21
Q

People per doctor

A

The average number of people for each doctor.

As a country develops, this measure of health gets lower

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22
Q

People per doctor limitations

A

-Not all doctors are the same/ some may have a higher level of education than others/ be experienced in a specific field.

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23
Q

Literacy rate

A

The percentage of the adult population who can read and write.

As a country develops, this measure of education gets higher.

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24
Q

Limitations of literacy rate

A

-standard of the rate is unclear (abc vs GCSE English?)

25
Q

What is literacy rate being changed to for the H.D.I?

A

Number of years in education.

26
Q

Life expectancy

A

The average age a person can expect to live to.

As a country develops, this measure of health gets higher as it increases with education e.g. to not smoke, access to healthcare, clean water.

27
Q

Limitations of life expectancy

A

-Calculated at birth so most are expected to live past their life expectancy (HICs)

-Little meaning withing countries

28
Q

Fertility rate

A

Average number of children per woman.

29
Q

Access to safe water

A

The percentage of people in a country who can get clean drinking water.

30
Q

What are the limitations of economic and social measures of development?

A

-Data could be hard to collect (from large populations)

-Data could be out of date/unreliable e.g. for the Census in India (2011) data was only collected from certain regions then multiplied

-Data can be manipulated e.g. due to government policy (China’s two child policy)

-All only look at one factor (however others can be inferred)

31
Q

Limitations of SOCIAL indicators

A

-Can be misleading if used on their own because as a country develops some aspects might develop before others.

-For example, Cuba has a low birth rate suggesting it’s developed but a relatively high death rate (suggesting it’s less developed).

32
Q

What is the most common way of classifying parts of the world on their development?

A

By looking at wealth.

33
Q

HICs

A

The wealthiest countries in the world, where the GNI per Capita is high.

34
Q

HIC examples

A

UK, USA, Canada, France

35
Q

LICs

A

The poorest countries in the world, where the GNI per Capita is very low.

36
Q

LIC examples

A

Afghanistan, Somalia, Uganda

37
Q

NEEs

A

Countries which are rapidly getting wealthier.

So, their economy moves from being based on primary industry (e.g. agriculture) to secondary industry (manufacturing).

38
Q

NEE examples

A

Brazil
Russia
India
China

Mexico
Indonesia
Nigeria
Turkey

39
Q

How are countries with a medium GNI per Capita classified?

A

Between LICs and NEES e.g. Nambia

40
Q

Why is H.D.I good?

A

It helps avoid some of the problems of using individual measures.

41
Q

H.D.I

A

Health Development Index

42
Q

How is H.D.I calculated?

A

It uses GNI per Capita, life expectancy, and literacy rate rated from 0 to 1.

A mean average is then taken. The closer a country’s H.D.I is to 1, the more developed it is considered.

43
Q

What does H.D.I do?

A

The combination of measures means a country’s H.D.I value tells you about both the country’s level of economic development and the quality of life for people who live there.

44
Q

H.D.I vs GNI per Capita (per head)

A

-Mostly the same but some differences

-For example, Nigeria is an NEE according to its wealth but has a low H.D.I (0.535)

45
Q

What are the physical factors leading to uneven development?

A

-A poor climate
-Poor farming land
-Few raw materials
-Lots of natural disasters

46
Q

How can a poor climate lead a country to be less developed?

A

Some countries have a really hot, cold, or dry climate. This means that not much food can be produced which cam lead to malnutrition, which means that the quality of life is low for those suffering it.

People also have fewer crops to sell, reducing their income. This means that they have less money to spend on goods and services, which means that the government get less money from taxes. As a result, there is less money to spend on developing the country e.g. by improving healthcare and education.

47
Q

How can poor soils lead a country to be less developed?

A

If the land in a country is steep or has poor soil this makes it difficult to grow crops or graze animals to produce food.

This can lead to malnutrition, which means that the quality of life is low for those suffering it.

People also have fewer crops to sell, reducing their income. This means that they have less money to spend on goods and services, which means that the government get less money from taxes. As a result, there is less money to spend on developing the country e.g. by improving healthcare and education.

48
Q

How can few raw materials lead a country to be less developed?

A

Countries without many raw materials (like coal, oil, or metal ores) have fewer products to export to other countries.

This means that they tend to make less money, which means that they aren’t able to invest as much in development projects.

Alternatively, some developing countries may have lots of raw materials but can’t afford to develop the infrastructure needed to exploit them (e.g. roads, ports).

49
Q

How can lots of natural disasters lead a country to be less developed?

A

Countries that have a lot of natural disasters (e.g. Bangladesh, which often has floods) have to spend a lot of money rebuilding after disasters occur. This reduces the amount of money the government has to spend on development projects.

Natural disasters also reduce the quality of life of the people affected.

50
Q

What are the economic factors leading to uneven development?

A

-Poor trade links
-Lots of debt
-An economy based on primary products

51
Q

How can poor trade links lead a country to be less developed?

A

If a country has poor trade links (i.e. it trades a small amount with only a few countries) it won’t make a lot of money, so there’ll be less to spend on development.

52
Q

What is trade?

A

The exchange of goods and services between countries.

53
Q

World trade patterns.

A

Who trades with whom.

These influence as country’s economy and thereby its level of development.

54
Q

How can lots of debt lead a country to be less developed?

A

Very poor countries borrow money from other countries and international organisations, for example to help cope with the aftermath of a natural disaster.

This money has to be paid back (sometimes with interest) so there’s less for development.

55
Q

How can having an economy based on primary products lead a country to be less developed?

A

Primary products (e.g. metal, timber) are sold for less profit than manufactured goods.

This means that the country won’t make a lot of money, so there’ll be less to spend on development.

This problem can be accentuated by wealthy countries forcing down the prices of raw materials they buy.

Furthermore, the prices of primary products sometimes fluctuates to below the cost of production, meaning farmers have to rely on subsidies from the government.

For example in 2018, the price of cocoa dropped below the cost of production in Ghana.

56
Q

What are the historical factors leading to uneven development?

A

-Colonisation
-Conflict

57
Q

How can colonisation lead to uneven development?

A

Colonisers are very likely to remove raw materials and sell back manufactured goods.

This means that profit goes to the colonisers rather than the colonised countries which increased inequality.

For example, this happened when European countries colonised many countries in Africa, Asia, Australia and the Americas between the 16th and 21st century.

Colonisation also prevents the colonised countries from developing their own industries.

58
Q

When countries gain ____________ after being colonised they are often at a _____ development level than if they _____ ____ ________.

A

independence
lower
hadn’t been colonised.

59
Q

How can conflict lead a country to be less developed?

A

War (especially civil war) can reduce development even after the war is over.

Money must be spent on weaponry, training soldiers, and repairing damaged infrastructure which reduces the amount of money for development.

Furthermore, important services like healthcare and education are disrupted, which can lead to an increase in death/infant mortality rates and a decrease in literacy rate.

For example, in 2008 Syria had a HDI of 0.65, but in 2016, after five years of war, this dropped to 0.54.