GCSE 2.B - The Changing Economic World Flashcards
What is Development?
The progress/improvement a country has made in terms of economic growth, use of technology, and human welfare. Quality of life improves.
What 4 factors affect development?
Environmental, Economic, Social and Political
What are the 2 main ways to mesure development?
GNI and HDI
What is GNI?
Gross National Income
The total value of goods and services produced by a country in a year, plus extra money earned from, and paid to other countries. GNI per head is this divided by the population of a country
Economic Indicator
What is HDI?
Human Development Index
- life expectancy at birth
- Number of years of education
- GNI per head
- Value between 0 and 1
Social Mesure
What does the demographic transition model show?
Changes overtime in the population of a country
- Birth rate
- Death rate
- Overall population
What is the gap between birth rate and death rate called?
Natural Change
(increase or decrease)
What do population pyramids show?
The structure (age distribution) of a population.
What are the 3 main causes of Uneven development?
Physical, historical and Economic causes
How does uneven Development impact people?
- Disparities in wealth and health
- International migration
How can the development gap be reduced?
- Investment
- Industrial development and tourism
- Aid
- Using intermediate technology
- Fairtrade
- Debt relief
- Microfinance loans.
Regional Importance of nigeria
Fast growing economy in Africa - Highest GDP and 3rd largest maufacturing sector
Largest population - of any African country with more than 206 people,
Tropical climate creates highest farm output in Africa. 35% of the Population are employed in agriculture.
Diverse economy - Literacy, financial services, telecommunications and media
Global importance of Nigeria
Nigeria’s GDP - was $440 billion and GDP pp $2085 in 2021
One of the world’s biggest oil exporters - (Africa’s biggest oil exporter) Supplies 2.2 percent of the world’s oil
Music industry - worth $73 million in 2021
Film industry - “nollywood” is second largest film industry
**Politically **- 5th Major contributor to UN peecekeeping missions
How have Nigeria’s sources of income changed?
traditionally - Primary Agricultural products
1950s the discovery of oil in the Niger Delta, led to economic change and a transition from an LIC to an NEE
Oil now accounts for 90% of it export earnings
Nigerias current industrial structure
- Employment in agriculture declining but 22% of Nigeria’s GDP due to machinery
- 27% of GDP is from the Industrial sector
- Rapid growth Of service sector, 50% of countrys GDP
- growing manufacturing sector
Nigeria’s economy is becoming more balanced with a shift from primary employment to growth in secondary and tertiary industries
Why is Nigeria’s economy developing?
Growth in manufactoring sector
-> Accounts for 10% of Nigeria’s GDP
Foods, textiles, leather goods, soaps and detergents
This leads to growth economically:
- Regular paid work provides a secure income
- More employment
- Revenue from taxes increase: providing healthcare, education and infrastructure
- Thriving industrial sector attracts foreign investment
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How is manufacturing affecting Nigeria’s economic development?
- increase in regular paid work - secure income
- Stimulating links between companies
- Employment increase
- Foriegn investment
What is a TNC?
A TransNational Corporation is a lage company that operates in several countries
What do TNCs take advantage of in foreign countries?
- Tax incentives
- Laxer ebvironmental laws
- Acess to wider market
- Cheaper labor
TNC advantages for Nigeria
- Employment and development of new skills
- More money spent in the economy
- Investment
- Local providers benefit
- Valuable export revenues
TNC disadvantages for Nigeria
- poor pay and work conditions
- Management jobs often go the foreign employees
- Much of the profit goes abroad
Nigeria’s Political links
Till 1960 it was part of the british empire
Current part of commonwealth and leading member of African Political and economic groups as well as international orgs like the UN
Nigeria’s Global trading relationships
major global trading nation - major exports are crude, refined petroleum
Growing import of telephones- emergin middle class
WHat isa
WHat is a social advantage of shell?
Unilever promotes
healthcare, education
and water supply as part
of its social
responsibility
programme
What is a social disadvantage of Shell?
Traffic congestion leads
to high levels of exhaust
fumes creating a health
hazard
What is an economic advantage of shell?
Shell makes major
contributions in taxes
and exports revenue
What is an economic dis-advantage of shell?
Oil theft and sabotage
are big problems in the
region, reducing
production levels and
costing TNCs and the
government billions of pounds
WHat is an environmental advantage of Shell?
Unilever tries to use
environmentally friendly
materials such as locally
produced palm oil
what is an economic disadvantage of Shell?
Desertification (the
expansion of deserts)
has been made worse
by large-scale dam and
irrigation schemes
The global development gap definition
The difference between more and less developed countrys
Birth rate
Number of live births per 100 of the population per year. As a country develops it gets lower
Death rate
Number of deaths per 1000 of the population per year
Infant mortality rate
Number of babies who die before they are 1 year old, per 100 babies
People per doctor
Average number of people for each doctor
Literacy rate
the percentage of adults who can read and write.
Access to safe water
the percentage of people who can get clean drinking water
Life expectancy
the average age a person can live to
Why can GNI be misleading?
It is an average
For example: the GNI Per Person in Qatar is as high as some HICs, but Qatar has a small number of very wealthy people and alot of relatively poor people.
Why can social development indicators be misleading?
**Some social indicator aspects grow before othes **
For example: Cuba has a low birth rate, which suggests it is more developed, but has a high death rate, which suggests it is less developed
Examples of HICs
Uk, USA, Canada, France
Examples of LICs
Afghanistan, Somalia and Uganda
Examples of NEEs
The BRICS (Brazil, Russia, India, China, and SA)
MINT (Mexico, Indonesia, Nigeria and Turkey)
What is a HIC?
The wealthiest countrys in the world, where the GNI per head is high
What is an LIC
the poorest countrys in the world, where the GNI per head is very low.
What is an NEE?
a country that is rapidly getting richer as their economy moves from being based on the primary industry ( agriculture) to the secondary industry ( manufacturing )
Why is HDI a better indicator of development?
it tells you about the economic development and QOL of a country
What does the DTM show?
How birth rates and death rates affect population growth
DEMOGAPHIC TRANSITION MODEL
What is natural increase?
When the birth rate is higher than the death rate, so the population grows. The opposite is called natural decrease
What is shown in stage 1 of a DTM?
Birth rate and death rate are high and fluctuating, there is no population growth and the size is ow and steady.
What are some countrys in stage 1 of the DTM model?
No countries, some tribes in brazil
What is shown in stage 2 of a DTM?
Birth rate - high and steady
Death rate - Rapidly falling
Pop growth and size - very high and rapidly increasing
1.
What are some countries in stage 2 of the DTM?
Gambia ( HDI = 0.4 )
What is shown in stage 3 of a DTM?
Birth rate - Rapidly falling
Death rate - slowly falling
Pop growth and size - High and increasing
What are some countries in stage 3 of the DTM model?
India ( HDI = 0.9 )
What is shown in stage 4 of a DTM?
Birth rate - Low fluctuating
Death rate - low and fluctuating
Pop growth and size - zero, high and steady
What is a country in stage 4 of the DTM?
UK (HDI = 0.9)
What is shown in stage 5 of a DTM?
Birth rate - Slowly falling
Death rate - low and steady
Pop growth and size - negative, slowly fallling
What is a country in stage 5 of the DTM?
Japan (HDI = 0.9)
Stage 1 of the DTM development description
The least developed - very few places are at stage 1 currently.
Birth rate is high due to no use of contraception
People have lots of children because infant mortality rates are high
Death rate is high due to poor healthcare or famine and life expectancy is low
Stage 2 of the DTM development description
Stage 2 is not very developed - Many LICs are in stage 2.
Birth rate is high - economy is mainly primary (agriculture) , so people have lots of children to work on farms
Better healthcare increases life expectancy, so death rates fall
Stage 3 of the DTM development description
More developed - Most NEEs are in stage 3
Birth rate falls rapidlt as the use of contraception increases and more women work instead of having children. The economy changes from primary to secondary, so fewer children are needed to work on farms.
Improved healthcare means that the death rate falls and life expectancy increases
Stage 4/5 of the DTM development description
Most developed - most HICs are at this stage
Birth rates are low - people expect a high standard of living, and may have dependant elderly relatives, so there is less money avaliable for having children
Healthcare is good, so death rate is low and life expectancy is high
What are the 4 physical factors that can how developed a countrys
- Poor climate
- Poor farming land
- Few raw materials
- Lots of natural disasters
How can poor climate affect how developed a country is?
- Some countries have a really hot, really cold, or really dry climate where much will not grow. This means not much food can be produced, which can lead to malnutrition. E.g. Chad and Ethiopia. People who are malnourish have a bad quality of life
- People also have less crops to sell, so they have less money to spend on goods and services. As less is sold and bought, the government gets less money from taxes. So therefore less money to spend on development
How can Poor farming land affect how developed a country is?
If the land in a country is steep or has poor soil (or none), then it will be difficult to grow crops or graze animals to produce food. This can have the same effects as a poor climate.
How can few raw materials affect how developed a country is?
- Fewer products to export to other countries
- means they make less money, less able to spend on development projects
- Some developing countrieshave alot of raw materials, but cant develop the infrastructure needed to exploit them
Coal, oil or metal ores
How can Lots of natural disaters affect how developed a country is?
- E.g. Bangaladesh often has floods, have to spend alot of money rebuilding after disasters occur
- Reduce the QOL of the people affected, reduce amount of money the gov can spend of development
What Economic factors can cause un-even development?
Poor trade links
Lots of debt
An economy based on primary products
Why can Poor trade links cause un-even development?
- World trade patterns (who trades with who) influence a country’s economy and so affect its level of development
- If a country has poor trade links ( trading a small amount with only a few countries) it wont make alot of money.
What is trade?
the exchange of goods and services between countries
Why can Lots of debt cause un-even development?
very poor countries can borrow money from other countries and international organisations e.g. to help cope with the aftermath of a natural disaster .
This money has to be paid back so there is less money for development
Why can an economy based on primary products cause un-even development?
Countries that mostly exportraw materials like timber and metal tend to be less developed than countries that export manufactured goods. This is because primary products are sold for less profit than manufactured goods.
The prices of primary products also fluctuate - also the price falls below cost of production.
What is an example of an economy based on primary products that can cause un-even development?
For example, in 2018, the price of cocoa dropped below the cost of production on Ghan, and many farmers had to rely of subsidies from goverment. Wealthy countries can also force down the prices of the raw materials they buy from poorer countries
What are the 2 historical causes of Uneven development?
Colonisation
Conflict
How can colonisation cause uneven development?
They are often at a lower developmentt level when they gain independance if they had’nt been colonised.
European countries colonised many countries in Aisa, Africa, Australasia and the Americas between the 16th an 20th centuries. They removed raw materials and exploited the coutnrys for self-profit, inhibiting the colonised country
How can Conflict cause uneven development
War (especially civil ) can slow reduce developement, even after the war is over
Money is spentduring war - arms, training
People are killed and damage is doen to infrastructure and property. Important services such as healthcare and education are disrupted, which can lead to an increase in infant mortality rates and a decline in literacy.
Example of conflict causing uneven development?
In 2008, Syria had an HDI value of 0.65. In 2016, after 5 years of war this had dropped to 0.54
What are the 3 main consequences of Unevendevelopement?
Wealth, Health, International migration
What are the Wealth consequences of uneven development?
- People in more developed countries have a higher income than those in less developed onces E.g GNI in the Uk is 40x higher than Chad
- Unevendevelopment can also cause big inequalities in wealth within countries. E.g In 2017, the richest 10% of Kenya earned 23x more than the poorest 10%
This can impact standard of living
What are the Health consequences of uneven development?
- More healthcare in more developed countries
- People in HICs live longer e.g the Uk’s life expectancy is 81, but in chad is only 53
- Infant mortality and death rate is lower e.g. its 73 per births in chad and 3.7 per 1000 in the UK
What are the International migration consequences of uneven development?
Many people from Lics and NEEs move to Hic to escape conflict or improve QOL.
For example, over 130,000 people move from mexico (NEE) to the USA (HIC) legally each year in search of better paid jobs and higher QOL. The migrant workers now contribute to the economy of the HIC and not the LICs they leave, which further increases the development gap.
How can investment help reduce the development gap?
Foreign direct investment ( FDI ) is when people or companies in one country buy property or invest in infrastructure in another.
FDI leads to better access to finance, technology and expertise as well as improved infrastructure, industry, and increase in services.
What is an example of investment help reduce the development gap?
Between 1987 and 2018, Vietnam received FDI worth more than US 182 billion, which helped to develop many industries, such as motorbike manufacturing and telecommunications
How can Aid help reduce the development gap?
Money or rescources are given to a country by a charity of foreign government.
they money is used for Dev projects e.g. for constructing schools, building dams and wells providing farming knowledge and equipment
Sometimes Aid is wasted by corrupt governments
What is an example of aid reduce the development gap?
in 2018-2019, the Uk provided over 180 million in aid to South Sudan, funding 17 projects that included improving aces to water, healthcare and education
What is an example of how Fair trade can help reduce the development gap?
2016 - Fairtrade tea farmers in malawi used some of their premium to help expand their local hospital, build a new school, and install a pipeline for clean water
How can fair trade help reduce the development gap?
- Farmers in LICS gettign paid fairly for goods they produce e.g. coffe and bananas, allowing them to provide for their families.
- Companies labelled “fair trade” have to pay producers a ffair price.
- Buyers pay extra ontop of that so farmers receive a premium to help develop their local area
- Sometimes only a tiny bit of the extra money reaches farmers and the rest goes to boosting company profits
How can using intermediate technology help reduce the development gap?
This includes tools machines and systems that improve QOL bu are also simple to use, affordablle to buy or build and cheap to maintain.
What is an example of how using intermediate technology can help reduce the development gap?
Solar-powered LED light bulbs are used in parts of Nepal where the only other lighting options are polluting or dangerous kerosene or wood fires. This allows people to work, and children to study after hours. As a result, Skills, incomes, and industrial output can increase
How can using Micro finance loans help reduce the development gap?
Microfinance is when small leans are given to people in LICs who maynot be able to get loans from banks. This enables them to start their own businesses and become financially indepedant.
This may however also cause problems by encouraging people to get into debt, and its also not clear if it can reduce poverty on a large scale
What is an example of how using Microfinance loans can help reduce the development gap?
In the Amhara region of Ethiopia, people who joined a microfinance organisation benefitted form higher incomes and were able to invest in livestock.
How can using industrial development help reduce the development gap?
In countryswith very low levels of development, agriculture makes up a large portion of the economy, Developing industry boosts GNI and development, as productivity, skills and infrastructure are improved.
How can using Debt releif help reduce the development gap?
This is when some or all of a country’s debt is cancelled, or interest rates are lowered, meaning the country can spend more on development
What is an example of how using Debt releif can help reduce the development gap?
Zambia had $4 Billion of debt cancelled in 2005. In 2006, the country had enough money to start a free healthcare sceme for millions of people liing in rurual areas.
What is the LIC/NEE example of how the growth in tourism helps to reduce the development gap?
Jamaica
What is the state of Jamacia’s economy?
Economy based in Primary and some secondary ( Bauxite, oil; Sugar and rum). It is classed as an ‘upper middle-income country” but has suffered from slow growth, debt and high unemployment over a long period.
Where is Jamacia located?
One of the largest islands in the carribean. Pop of 2.9 million, over 1/3 size of London.
What are the 5 main ways tourism has contributed to Jamacia’s development?
- Economy
- Employment
- Infrastructure
- QOL
- The environment
How has tourism contributed to Jamacia’s economy Positively?
- In 2019 tourism contributed to 35% of Jamacia’s GDP - One of the higest proportions in the world and is expected to rise in the future
- Income from tourism is US$2 billion per year and taxes paid furtherly contribute to development.
How has tourism contributed to Jamacia’s economy Negatively?
The increase in tourism from cruises has brought many benefits. However, the annual 1.5 millon (2019) cruise passengers only spend an average of US$70 a day compared with avarage $120 a day from other visitirs
What are the political aspects of Nigeria
Nigeria became fully independant form the UK in 1960, however due to bitter power struggles and civil wars ( 1967 - 1970) it is lacking political stability and nigeria is struggling to develop and this has led to widespread corruption
Since 1999 the coutnry has had a stable government, this has allowed countrys to invest in Nigeria e.g south Africa is investing in business and banking
What are the social aspects of Nigeria?
Multiethic, multifaith country - 21% Yoruba, 29% Fulani, And 17% Igbo. Religions of commonly christianity, islam and traditional african ones. Social Diversity is considered a strength, bu also a source of conflict
What are the cultural aspects of Nigeria?
Music - Fela kuti or afrobeat
Cinema - Nollywood - second largest film industry
Literature - Wole Soyinka and Chimamanda Ngozi
Sport - Won the african nation cup 3 times (football)
What are the environmental aspects of Nigeria?
Natural environment is varied in bands across the country. - decreasing rainfalll towards the north in west africa
Pests and disease - Tsetse fly (warm south) Transmits a parasite fatal to livestock
Deforestation - Loosing 14% of its tropical rainforst between 2005 and 2020
Oil industry - damage to Niger delta
How does industrial growth affect the environment?
5000 registered industrial plants and 10000 illegal small - scale industries
- Kano, Kaduna and Lagos, many harmfull pollutants go directly into open drains and water channels - harm people and damage ecosystems dowstream
- 96% of nigeria’s forests have been destroyed through logging, agriculture, urban expansion, roads and industrial development
How does Urban growth affect the environment?
Waste disposal is a major issue, The 40ha Oluson landfill site in lagos is one of the largest in the world. It receives up to 10000 tons of rubbish a day and 2.1 million tonnes per year.
Traffic conjestion is major issue - 94% of the population is exposed to air pollution that exceeds WHO guidelines - causing respitory and heart problems
How does commercial farming and deforestation affect the environment?
Land degredation, water pollution, soil erosion and silting of river channels. The building of roads and settlements have destroyed habitats and added to CO2 emmisions
How does mining and oil extraction affect the environment?
- Tin mining has lead to soil erosion, local water supplies have been polluted with toxic chemicals
- Oil spills in the Niger delta have had disaterous impacts on freshwater and marine ecosystems. Add to CO2 emmisions due to fires and can cause acid rain, which harms aquatic plants and ecosystems
What have been the benefits of economic development in Nigeria?
Better access to safe water and sanitation and better infrastructure
Improved acess to better diet means higher productivity in work
Reliable better paid jobs in Secondary industries
Higher disposable income
Reliable electricity supplies - can work at night
How has tourism contributed to Jamacia’s employment?
- Main source of employment, providing jobs for 200,000 people
- This provides icome which further helps to boost the local economy as people spend money in shops and on services and recreation. This employment often offers the opportunity to learn new skills which can improve prospect of getting better-paid jobs.
How has tourism contributed to Jamacia’s Infrastructure?
Tourism has increased investment on the north-coast. Pew port and cruise liner facilities have been built but improvements in some roads and airports are slow
How has tourism contributed to Jamacia’s QOL?
In the northern tourist areas, wealthy jamacians live in high QOL. However, nearby large numbers of people live with scarce food and a low QOL with low access to healthcare and education
How has tourism contributed to Jamacia’s environment?
Mass tourism - Footpath erosion, exessive waste and harmful emmisions.
Conservation and landscaping projects provide opportunties and encourage more tourism - Montego bay
How is the UK’s economy changing?
From manufacturing to services - 83% of the UKs workforce is tertiary or quantenary
What are the main 4 industries in the UK?
**Services **- e.g. retail and entertainment retail - 4 million people
**IT **- over 670,000 people work for IT (e.g IBM or Microsoft)
Finance- London is home to many global financial institutions e.g HSBC
Research - Using Uni grads in 2016, over 33 billion was spent on R AND D
What are the 2 main locations of Science and Business parks?
On the outskirts of cities - Near housing and good transport links e.g motorways and airports
Near Universitys- to collaborate with university researchers and use graduates
Why have the number of BnS parks risen?
- Large and growing demand for high-tech products
- They can partner with research universitys
- Clusters of related businesses can boost eachother
What are the 3 main causes of Economic change in the UK?
De-industrialisation
Globalisation
Government policies
How has De-industrialisation caused economic change in the UK?
- Increased automation has decreased primary factor job losses
- As other countrys industrialised, they could produce goods more cheaply than the UK - competition forced UK idnsutrys to close
How has Globalisation caused economic change in the UK?
- Manufacutring has moved overseas where labour costs are lower E.g. M and S Manufactures clothes in india and china
- Some TNCs have moves their tertiary and quatenary operations to the UK e.g Apple employs nearly 6500 people in the UK
- Trade is becoming increasingly important
How have govenment policies caused economic change in the UK?
- Decisions and investment and support for businesses affect the economy
- Since the 1980s, manufacturing industries have been privitised that lead to major job losses but increased efficiency e.g. steel and ship building
- Deregulation - has encourages entrepreneurs and investors to move to the UK
Where is Nigeria located?
Nigeria borders 4 countries: Benin, Chad, Niger and Cameroon in West Africa, just north of the Equator
What conflict does Nigeria’s location cause?
There are a number of different ethnic groups in Nigeria who have religious differences as some are Christian and others Muslim
The religious conflict in Nigeria has led to the rise of the Boko Haram terror group
Why is Nigeria’s dependance on oil make it vunerable?
Nigeria’s dependence on oil is vulnerable due to world oil prices and the rise in renewable energy technologies
