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Geography > Economic World > Flashcards

Economic World Flashcards

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

How well people’s needs are met.

When a country or an area gets more developed, the quality of life of the people there improves.

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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 - 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?)

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25
Q

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

A

Number of years in education.

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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.

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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

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28
Q

Fertility rate

A

Average number of children per woman.

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29
Q

Access to safe water

A

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

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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)

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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).

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32
Q

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

A

By looking at wealth.

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33
Q

HICs

A

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

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34
Q

HIC examples

A

UK, USA, Canada, France

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35
Q

LICs

A

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

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36
Q

LIC examples

A

Afghanistan, Somalia, Uganda

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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).

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38
Q

NEE examples

A

Brazil
Russia
India
China

Mexico
Indonesia
Nigeria
Turkey

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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 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.

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.

60
Q

What are the consequences of international migration?

A

-Disparities in wealth and health
-International migration

61
Q

Inequalities

A

Differences between places with high and low levels of social and economic wellbeing.

62
Q

Consequences of uneven development - disparities in wealth between countries

A

People in more developed countries have a higher income than those in less developed countries e.g. GNI per head is over 40x higher in the UK than in Chad.

Wealth influences standard of living - the wealthy can afford goods and services that make their lives more comfortable e.g. quality food and convenient e.g. cars.

63
Q

Consequences of uneven development - disparities in health

A

Healthcare in more developed countries is usually better than in less developed countries.

This means that people in HICs tend to live longer e.g. the UK’s life expectancy is 81 compared to only 53 in Chad.

It also means that infant mortality is much higher in less developed countries e.g. its 73/1000 births in Chad vs 3.7/1000 births in the UK.

In LICs and NEEs, a lack of adequate healthcare can mean that people die from diseases that could be easily treated in HICs e.g. in 2016 diarrhoea is estimated to have killed over 1.4 million people in South Asia and sub-Saharan Africa.

64
Q

Consequences of uneven development - international migration

A

Many people from LICs or LICs move to HICs to escape conflict/improve their quality of life.

For example, over 130 000 people move from Mexico (an NEE) to the USA (a HIC) legally each year (& thousands more illegally) in search of better paid jobs and a higher quality of life.

Migrant workers contribute to the economies of the HICs they move to instead of the LICs they leave, which further increases the development gap.

65
Q

Consequences of uneven development - disparities in wealth within countries

A

Uneven development can also lead to big inequalities in wealth within countries e.g. in 2017 the richest 10% of Kenya’s population earned 23x more than the poorest 10% on average.

66
Q

Apart from HIC, NEE, LIC, what can country’s be classified as?

A

Developing, developed.

67
Q

What does DTM stand for?

A

Demographic Transition Model

68
Q

What does the Demographic Transition Model show?

A

How birth rates and death rates affect population growth.

69
Q

When the death rate is higher than the birth rate, this is called…?

A

Natural decrease.

70
Q

Explain stage 1 of the DTM

A

-Least developed

-Very few places are at this stage

-Birth rate is high due to no use of contraception, and because infant mortality is high

-Death rate is high due to poor healthcare or famine

-Life expectancy is low

71
Q

Explain stage 2 of the DMT

A

-Mot very developed

-Many LICs are in this stage

-Birth rate is high because as the economy is agriculture-based, people have lots of children to work on farms

-Better healthcare increases life expectancy, so death rate falls

72
Q

Explain stage 3 of the DTM

A

-More developed

-Most NEEs are in this stage

-Birth rate falls rapidly as contraception increases and more women work instead of having children

-The economy changes from farming to manufacturing so fewer children are needed to work on the farms

-Improved healthcare means the death rate falls and life expectancy increases

73
Q

Explain stages 4 and 5 of the DTM

A

-The most developed

-most HICs are at one of these stages

-Birth rates are low - people expect a high standard of living and may have elderly relatives, so there is less money available to care for children

-Healthcare is good so the death rate is low and life expectancy is high

-Stage 5 is a projection

74
Q

Name the strategies used to reduce the development gap

A

-Investment
-Industrial development
-Fairtrade
-Aid
-Microfinance loans
-Debt relief
-Intermediate technology
-Tourism

75
Q

Investment (top-down)

A

People or companies in one country invest in in infrastructure in another. This is known as FDI.

FDI leads to better finance, technology, expertise, and an increase in services.

It creates jobs and the government do not have to pay for the developments.

However, TNCs often take profits out of the country, and wages are low.

76
Q

Investment example

A

Between 1987 and 2018, Vietnam received FDI worth move than $182 billion and has developed globally important motorbike and telecommunications industries.

77
Q

Industrial development (top-down)

A

The government of a country encourages businesses to set up and grow.

Having more large businesses means more tax money for the government.

However, countries often borrow money to fund this = debt.

78
Q

Industrial development example

A

South Korea’s government invited TNCs to set up industry and schools to educate its workforce.

Now, it has a large workforce of highly educated people and its own TNC’s (Samsung). Standard of living is high.

79
Q

Tourism (bottom-up)

A

People visiting bring money from other counties which goes into the local economy.

A tourism industry can be set up anywhere and creates jobs for locals.

However, money can be lost to foreign tourist companies.

80
Q

Aid (top-down)

A

A developed country or NGO donates resources like money, tools, or even skilled people to another country.

A negative is that countries can become reliant on the support.

81
Q

Aid example

A

The UK provided South Sudan with £180 million in 2018-2019, which helped to fund 17 projects

This included improving water supply.

82
Q

Intermediate technology (bottom-up)

A

Low cost equipment and techniques that require little skill or money to build and maintain.

-only small scale :(

83
Q

Intermediate technology example

A

Solar powered LED lightbulbs are used in parts of Nepal where the only other options are polluting and dangerous kerosene lamps/wooden fires.

This means that people can work and children can study after dark.

Which means that skills, incomes, and industrial output can increase.

84
Q

Fairtrade (bottom-up)

A

A global organisation that makes sure farmers and other workers are paid fairly for the goods they produce.

Guaranteed prices=stable income, and more money in poorer countries - positive multiplier effect, benefits consumers

However, non-fairtrade farmers may go out of business.

85
Q

Fairtrade example

A

In 2016, group of fairtrade tea farmers in Malawi used their extra profits to build a new hospital, school, and install a clean water pipe system!

86
Q

Debt relief (top-down)

A

Reducing the debts of LICs and NEEs so that governments can spend their money on developing (hospitals/schools/sanitation facilities etc.)

87
Q

Debt relief example

A

In 2005, Zambia had $4 billion of their debt cancelled. By 2006, they had enough money to start a free healthcare system for millions of people in rural areas.

88
Q

Microfinance loans (bottom-up)

A

Small loans are given to local people in order to improve their situation or set up new businesses.

These are eventually paid back.

Small-scale so the development gap closes slowly.

89
Q

Microfinance loan example

A

50% of jobs in Mongolia are related to businesses started by microfinance loans.

90
Q

What is our example of the growth of tourism in an LIC/NEE helping to reduce the development gap?

A

Kenya, an LIC in East Africa

91
Q

What is the development gap?

A

The bid gap in development between the world’s wealthiest and poorest countries.

92
Q

How did Kenya’s government work to increase tourism in the country?

A

-Visa fees for adults were cut by 50% in 2009 and scrapped for U16s toe encourage more visitors

-Landing fees at airports on the Kenyan coast were scrapped

93
Q

How much has tourism in Kenya increased?

A

0.9 million to 1.4 million visitors from 1995 to 2017.

94
Q

Negatives of tourism in Kenya

A

-Only a small proportion of money goes to locals: the rest goes to large tourism companies based in HICs - this doesn’t help in reducing the development gap

-Tourist vehicles destroy vegetation and disturb wildlife (in national parks)

-Tourism has fluctuated in the past couple of years due to conflict hence isn’t a stable source of jobs and income

95
Q

Positives of tourism in Kenya

A

-Contributes 4% of Kenya’s GDP -money that can be spent on development and improving q of life

-Over 1.1. million people are directly employed by the industry (9% total pop)

-Businesses and the local government have invested in transport which benefits local people e.g. the Madaraka express railway links Nairobi to the coast

-24 national parks generate income for maintenance and conservation

96
Q

How much has Kenya’s HDI increased by since 2000?

A

It’s increased from 0.45 to 0.59

Geography (23 decks)

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