L.2. Growth and decline of cities Flashcards
international (national) migration
the movement of people from one country to another
Knowledge economy
an economy based on specialised knowledge and skill
Informal economy
an unofficial economy, where no records are kept. People in the informal economy have no contracts or employment rights
Deindustrialisation
decreased activity in manufacturing and closure of industries, leading to unemployment
Internal migration
movement of people within the same country
Formal economy
means one which is official, meets legal standards for accounts, taxes, and workers’ pay and conditions
Deindustrialisation and Global Shift
Deindustrialisation happened in the western countries and the global shift occurred when developing countries started to become industrialised.
Growth in a developing city
-Kampala, Uganda
reasons for pop. growth
- internal migration -rural-urban migration
- natural increase
- pull factors/economic changes- jobs became available bc of a new TNC.
POPULATION GROWTH
Kampala’s growth is mainly due to internal migration (but natural increase also plays a part.)
It is mostly rural to urban migration influenced by push and pull factors.
Pull Factors/economic changes: jobs in growing businesses. A newly opened steel works in southern Kampala, owned by a TNC -now employs 2000 people, jobs in infrastructure, better services (e.g. health and education) which make life easier than in rural areas and better life chances, with more opportunities.
Growth in a developed city
-NYC, USA
reasons for pop. growth
- natural increase
- growth in knowledge economy attracted ppl
POPULATION GROWTH
Usually, we would find population in cities in HICs is slowing down, but NYs population is speeding up.
NY grew by 316 000 between 2010 and 2014, even though 307 000 people left the city to live elsewhere in the USA.
The increase came from 343 000 net growth from overseas and 280 000 from natural increase.
A major cause of growth is he knowledge economy. NY is two of the world cities with is focus on expertise in finance.
It needs well-qualified people with university degrees and specialised training, it has to import experts from overseas. This has increased international migration. With 37% of its population foreign-born. NY has the largest urban immigrant population.
Growth in a developed city
-Detroit, USA
reasons for pop. decline:
- white flight to suburbs- resulting in reduced tax income.
- unemployment- mechanisation & deindustrialisation
POPULATION DECLINE
Between 2000-10, Detroit’s population fell by 25%.
Detroit is home to General Motors, the world’s largest vehicle company. Its growth created thousands of jobs, so that by 1950 its population was 1.85 million.
Between 1960 and 2000, its wealthier population left to live in the suburbs outside the city.
This left a poorer population so income from local taxes was reduced.
Unable to provide enough services, Detroit went bankrupt in 2013.
Between 2000-10 General Motors managed to survive but by making cars using robotics- needing fewer people. It buys parts from overseas, putting local supply companies out of work, leading to de-industrialisation.
Unemployment is high –15% in 2015 because people left to find work elsewhere. Between 2000-10, Detroit’s population fell by 25%. Many could no longer afford mortgages and in 2015, 62 000 homes were sold because of debts.
Employment in Kampala (Developing)
% of GDP from informal economy: 50%
Most people work in the informal economy as opportunities in the formal economy are limited. This means they don’t pay tax. 80% people work in it.
Value in US$:
Worth US$33 billion dollars a year.
Main jobs:
Selling goods on the street, mending car tyres.
Manufacturing is small only employing 5% of Uganda’s population.
Working conditions;
Informal workers have no employment rights.
Employment in Delhi (Emerging)
% of GDP from informal economy: 50%
Value in US$
Worth US$3.6 trillion.
Main jobs:
Most people work in services (tertiary sector). This earns 78% of its GDP. Manufacturing contributes 20%. Much of the informal economy is in factories but also includes selling food, cigarettes and clothing on the street
Working conditions:
Informal workers have no protection and often have to work long hours for less than minimum wage.
Employment in New York (Developed)
% of GDP from informal economy:
7% (migrants and self-employed workers who may or may not declare income to tax officials).
More people work in formal jobs so more money is gathered in taxes.
Value in US$: Worth US$1 trillion.
Main jobs: Manufacturing (factories) is a smaller industry than in poorer countries (only 10%) of employment). This is because there is more of a focus on services and financial industries based on the ‘knowledge economy’. Informal jobs in cleaning, construction, hotel/catering, street selling.
Working conditions:
Informal workers have no protection and often have to work long hours for less than minimum wage.
EXAM QUESTION
Explain two reasons why the economies of developed and developing world cities differ. (4 marks)
In developing countries, more ppl work in the informal economy (1) as opportunities in the formal economy are limited (1).
cities in developed countries will gather more taxes (1) bc most ppl are in the formal economy and automatically pay taxes, where as many as 80% of workers in developing counrties are in the formal economy and may not pay taxes. (1)
Manufacturing in developed countries is often a smaller industry that in developing countries (1) bc developed countries have more of a focus on services and financial industries, based on the knowledge economy.
main topics in this lesson
- different economies (in countries)(why they differ and how this effects the country and their economy)
- Detroit population decline case study
- NY population growth case study
- Kampala population growth case study
