Economic World Flashcards
What is development
Progress in economic growth, use of technology and improving welfare that a country has made
How do we measure development
Birth rate
GNI
Life expectancy
Individual indicators are misleading so need to be looked at together
What is wrong with just using GNI to measure a countries development
It doesn’t show variation between classes
Eg Russia has a high GNI with very few very wealthy but majority are poor
Examples of HICs
UK
USA
Examples of LICs
Nepal
Uganda
Examples of NEEs
China
Brazil
Russia
What is the demographic transition model
Shows how changing birth and death rates affect population
What is natural increase
When the birth rate is higher than the death rate
What does the different stages of the demographic transition model show
- Least developed, high BR and DR
- Low development, LICs here, based on agriculture, high BR, death rate decreasing
- More developed, NEEs here, low BR from contraception and education
4 and 5. Most developed, HICs here, low BR, low DR from healthcare, high income
What are the physical causes of uneven development
Poor climate so difficult to grow food
Poor farming land so difficult to grow food
Few raw materials so make less money
Natural hazards so have to spend money rebuilding
Colonisation so when gains independence has less money
Conflict reduces development
Economic causes of uneven development
Poor trade links
Lots of debt
An economy based on primary products so don’t make much profit
What are the consequences of uneven development
Large flows of international migration as people in LICs want better healthcare and education
Eg 130,000 Mexicans move to USA each year
What are the ways to reduce the development gap
Aid- given by one country to another
Debt relief- cancelled debt eg in Zambia so had enough money to start free healthcare
Fair Trade- farmers get fair price for crops
Intermediate technology- eg solar panels for energy
Investment - people in HICs buy property in LICs and build area up
Tourism- more money enters country eg Kenya
Micro finance loans - allows people to become financially independently
What is a TNC
A trans national co operation
They have factories all over the world especially poor countries and improve development in them as it is cheaper
What are the advantages of TNCs
Create jobs Reliable income for workers Improves infrastructure in LIC Bring new technology Teach new skills
Disadvantages of TNCs
Low wages
Poor working conditions
Jobs that aren’t secure