p2 Section B : The changing economic world Flashcards
What is development
-Development is the progress in economic growth , use of technology and imporving welfare that a country has made . When a country develops , it basically gets better for the people lliving there - thier quality of life imporves (e.g their welath , health and safety).
-The level of development is different in different counties (e.g france is m ore devloped then thiopia .
What is global development gap ?
The difference in development between more and less developed countries .
Measures of development .
-Development is pretty hard to measure becuase it includes so many things .
-But you can compare the development of different countries using measures of developemnt .
-Some measures look at a country’s level of conomic development , while others look at social factors that provide information about people’s life quality of life .
Way of developing measuring of development ; Gross Nationial Income
What it is - THe totala value of goods and services produced by a country in a year , including including income fromo berseas . It’s often given in us dollars .
-It is a measure of WEALTH .
-As a country develops it gets HIGHER .
Way of developing measuring of development ; GNI per head
What it is ; the GNI divided by the population of a country . It’s also often given in US dollars , and is sometimes called GNI per capita .
-A measure of WEALTH .
-As a country develops it gets HIGHER .
Way of developing measuring of development ; Birth rate
-What it is ; the number of live birth per thousand of the populaiton per year .
-A measure of Education
-As a country develops , it gets Lower
Way of developing measuring of development ; Death rate
What it is ; the number of deaths per thousand of the population per year .
- A mesure of HEALTH .
-As a country develops it gets lower .
Way of developing measuring of development ; Infant mortality rate .
What it is ; the number of babies who die before they are one year old , per thousand babies born .
-A measure of health .
-As a country develops it gets lower .
Way of developing measuring of development ; People per doctor .
What it is l the average number of people for each doctor .
- A measure of Health .
-As a counry develops , it gets lower .
Ways of measuring of developemnt - Lieracy rates .
What i is 0 the percentgae of adults that can read and wrtie .
-A MEASURE OF EDUCATION
-As a country develops , it gets higher .
Ways of measuring of development - Acess to safe water .
What it is - the percentgae of people who can get clean drinking wter .
-A measure of Health
-As a country develops it gets higher
Wyas of development - life expectancy
-What it is - the average age a person an expect to live to .
-A measure of health .
-As a country develops , it gets higher .
Limitiations of Gni Per head ..
-Gni per head can be isleading when used on its own becuase it is an average - variation within the country don’t show up .
-EXAMPLE - th GNI per person in Quatar is a high as some HICs , but wuatar actually has a small number of extremely welathy people and a lot of relatiely poor people .
LIMITAIONS OF SOCIAL Indicators ?
-Social indiacotrs can also be misleading if they are used on their ownbecause , as a country develops some aspects evelops befoe others . So it might seem loike a countr is more developed than it is actually is .
-EXAMPLE - Cuba has a low birth rate , which is suggests thaat it is more developed , but relatvely high death rate , which suggests that is less developed .
Counties are often Classified based on HOW WELATHy they are …
-Despite the problems with using one measure of development on its on , the msot common wy of classifying a country’s level of development is by looking at its welath .
HICS
-HICS are the welathiest countires in the world ,w here the GNI per head is high . EXAMPLES ; UK , Usa , Canada , France.
Lics
-Lics are the poorest countires in the wolrd , where the GNI per head is very low .
-Examples Afghanitan , Somalia and Uganda .
NEES
-A country’s wealth dosen’t stay te same . Some countires (NEEs) are rapidly getting richer , as thier ecno moves from being based on primary industry (e.g agriculture to secondary industry (manufactueing) .
-Examples ; the BRICS (Brazil , RuSSIA , INDIA , China and SOuth Africa)
-+THe MINT COUNTIRES (Mexico , Indonesia , Nigeria nd Turkey .)
-However , not all countires fit into this classification - many countires have a medium - GNI per head , this puts them somewhere between LICs and NEEs in the classificatio e,g Namibia .
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The human development Index combines different measures .
-One way to avoid some of the problems of using indiviudls measures is to use Human Development Index (HDI)
The HDI (1)
-The HDI is calculated using income (GNI per head ) , life expectancy and education lvel , (e.g average numbers of years of schooling ). Every country has an HDI valu between 0 (least dveloped) and 1 (most developed).
The HDI (2)
-The ocmbination of measures means that a country’s HDI value tells you about both the country’s level of economic development and the quality of lie for people who live there .
The HDI (3)
-The classification of countrie by HDI mostl looks similar to GNI per head , but there are some differences - e,g Nigeria is an NEE according to its welath but it has a low HDI .
Development is linked to the Demogrpahic Transition Model .
-The Demographic Transition Model (DTM) shows how birth rates and death rates affect population growth .
-When the birthrate is hgher than the death rate , the population grows - this is called natural icnrease . It’s called natural decrease when the death rate is higher than the birth rate .
-Birth rate and deths rate differ from country to coutnry depending on level of development They als change within a countryo vertime as it develops .
What is a populaiton pyramid .
-Population pyramids show the population of a country b age . The number of men and women goes on the horizontal axis and thier age groups go ont he vertical axis .
Demographic Transition Model . STAGE 1
-Stage 1 is the least developed - very few places are at whestages 1 now .
-Th birth rate is high becuase there’s no use of contraception .
-People also have lots of childrenbecause infant morality rates are high .
-The death rate is high due to poor helatcare or faminen and life expectancy is low .
Demographic Transition Model . STAGE 2
-Stage 2 i not very developed - LICs are in stage 2 .
-Thebirth rateis high - the economy is based on agriculture , so peoplle have lots of chilren to work on farms .
-Better healthcare increases life expectancy , so death rates fall .
Demographic Transiiton Model . STAGE 3
-Stage 3 is more developed - more NEEs re at stage 3 .
-The birt rate falls rapidly as the use of contraception increases and more women work insted of having children . The economy changes from farming to manufacturiing , so fewer children are needed to work on farms .
-Improved healthcare means that the deth rate falls and life expectancy increases .
Demographic Transition Model STAGE 4 AND 5
-Stages 4 and 5 are the most developed - most HICs are at one of these stages .
-Birthr ates are low - people expec a high standard of living , and may have dependent eldelry relaives , so there is less monyavaible for having children .
-Healthcare is good , so the death rate is low and he life expectancy s hihg .
Physical factors can affect how developed a country is ; POOR CLIMATE
Poor Climate
-Some countires ahve a really hot , reallyc old , or really dry climate where not much ill grow , This mean not much food can produced , which can lead to malnutirion
-Like in LIC COUNTIRES - Popele who are malnourished have a low QUALITY OF LIFE .
Physical factors can affect how developed a country is ; POOR CLIMATE (2)
-People also have fewer crops to sell , so they have less omney to spend on goods and services . As less is sold and bough ,t he government gets less money from taxes . This mens there’s less moenyt o spend on developingt he country , eg by imporving healthcare and education .
Physical factors can affect how developed a country is POOR FARMING LAND
-If the land in a country is steep or has poor soil (or no soil) ,t hen it will be difficult to fro crops or grazw aniamls to produce food , This can have the same effect s a poor climat .
Physical factors can affect how developed a country is FEW RAW MATERIAS
-Countries withut many raw materials (like coal oil or meta ores ) , have fewer produts to export to other countires .
-This means they tend to make lessmoney , and so aren’t able to spend as much on development projects .
-Some developing countires have a lot of raw materials but can’t afford to develop the infrasturcutre needed to xploit them (e.g road and ports .)
Physical factors can affect how developed a country is LOTS OF NATURAL DISASTERS
-cOUNTIRES THAT HAVE A LOT OF NATURAL DISASTERS (E.g Bangldesh which often has floods have to spend a lot of money rebuilidng after disasters occur .
-Nautral disasters reduces reduce the quality of life of the people affected , and reeuce the amount of moen , the governemnt has to spend on development projects .
Economic factors that cause uneven development .
-A coutnry is more likely to be at lower level of development if it has ; POOR TRADE LINKS
-Trade is the exchange of goods and services between countires .
-World trade patterns (who trade with whom) , influence a coutry’s economy and so affect its level of devlelopment .
-If a coutnry ahs a poor trade links (it trades a small amount with onl a few countries) , it won’t make a lot of money so there’lll be ess to spend on developemnt .
Economic factors that cause uneven development .
-A coutnry is more likely to be at lower level of development if it has ; LOTS OF DEBT
-Very poor countires borrow moeny from other countires and international organisations eg to help cop with the aftermath of natural disaster .
-This moeny has to be pad back (sometimes with interest sothere;s less for development .)
Economic factors that cause uneven development .
-A coutnry is more likely to be at lower level of development if it has ; AN ECONOMY BASED ON PRIMARY PRODUCTS
-coutnries that most export primary products (raw materials like timber nd metal ) . Tend developement than countires that exort manufacutred foods . This is becuase primamry porducts are sold for less profit than manufctured good .
Economic factors that cause uneven development .
-A coutnry is more likely to be at lower level of development if it has ; AN ECONOMY BASED ON PRIMARY PRODUCTS (2)
-The prices of primary also fluctuate - sometims the price flals below the cost of prodcution . For example , in 2018 , the prices of cocoa dropped below the cost of productionin GAHAN , abd nanny farer rely on subsidies from the government , welathyc outnires cna also force down the prices of the raw materials they buy from poorer countries .
Historical causes of uneven developement . COLONISATION (1)
-Countries that were colonised (ruled by another country) , are often at a lower development level when they gain independence than they would be if they hadn;t been colonised .
Historical causes of uneven developement . COLONISATION (2)
-Eurpoean coutires colonised many countires in Asia , Africa , Ausrealaisia , and the Americas between the th and the th ceuntires ..
-The colonisers removed raw mateirals and sold back manufactured goods .
- This means that profits went to the colonisers rather than the colonised countries , incereasing inequality . Colonisation aso prevented the colonsied countires from developing hteir own industries .
Historical causes of uneven developement . Conflict
-War epecially civil war , can slow or reduce devwelopment , even after the war is over .
Historical causes of uneven developement . Conflict (2)
-Money is spent on arms , and on trianing soliders isntead of development , people are killed and damage is done to infrastrucutre and property . Important services such as healthcare and education are distrupted which can lead to an increase in infant mortality rates and a decline in literacy rates .
Historical causes of uneven developement . Conflict (3)
-For example in 2008 Syreai ahd a HDI value of 0.65 . In 2016 , agter five years of war this had dropped to0.54
Uneven developmen has consequences WEALTH
-People in mroe developed countries have a higher income gthan those in less developed countires - e.g GNI per head in theUK is over 40 times higher than in CHAD .
Uneven developmen has consequences WEALTH (2)
-Unevnen development can also lead ot big inequalitiies in welath within countires , e.g in 2017 the richest 10% of Kenya;s populaiton is earned , on avergae 23 times more than the poorest 10 % .
Uneven development has consequences WEALTH (3)
Welath can impact people’s standard of living - the welthy can afford goods and services that ake their livs more comfortable and convenient e.g cars .
Uneven development has conequences HEALTH (1)
-Healthcare in more developed countires is usally better than in less developed countries .
-People in Hics live longer - e.g the UK’ life expectacny is 81 , but in chad but in Chad it’s only 53.
Uneven development has conequences HEALTH (2)
-Infant mortality is much hiher in les developed countries - e.g its 73% per 1000 in Chad , compared to 3.7 per 1000 births in the uk .
Uneven development has conequences HEALTH (3)
-In LICs and NEEs , the lack of adequate healthcare can mean that people die from diseses that could be easily reated in HICS - e,g in 2016 , diarrhoea is estimated to hae killed over 1.4 milion people in South Asia and Sub-Saharan Africa .
Uneven development has conequences - INTERNATIONAL MIGRATION .
-mANY PEOPLE FROM lics AND nEES MOVE TO hic TO ESCAPE CONFLICT OR TO IMPROVE THEIR QUALITY .
2.fOR EXAMPLE , OVER 130,000 OEOPLE MOVE FROM mEXICO (AN nee) to the USA , (an (HIC) leglly each year (and thousdands more enter illegally ) in search of bettr paid jobs and higher quality of life .
3. Migrant workers contribute to the economies of the HICS to move to instead f the LICS they leave , which further increases the development gap.
There are lots of strategies that can reduce the development gap . (INVESTEMENT)
-Foregin-direct investement (FDI) , is when people or companies in one country buy property or invest infrastructure in another .
-FDI leads to better acess to fiancne , technology and expertise as ell as improved infrasturucutre and industry , and an increase ins ervices .
There are lots of strategies that can reduce the development gap . (AID)
-Money resources (e.g food medicine) are given to country bua charity or foreign goernemnt .
-The money is sued for development projects , e.g for constructig schools , building dams and wells and provid farming knowedge and eequipment . )in 2018 uk proivded 180mil id to Sudan and funding porject to improve htie rwater , healthcare n education.)
There are lots of strategies that can reduce the development gap . Fair trade (1)
-The fair trade movement is all about farmers in LICS getting a fir price for the goods they rpdocue , e.g cofee and bananas , allowing them to rpovide for thier families .
-COmpanies who wnt to sell products labelled as ‘fair trade’ hve to pay producers a fair price .
There are lots of strategies that can reduce the development gap . Fair trade (2)
-Buyers pay extra on top of that so that farmers receive a premium to help develop their local area e.g in 2016 , fairtrade tea farmers in Malwai used some of their premium to expand hteir local hospital , build a new school and isntall a pipeline for clean water .
-But ehre are PROBLEMS - in some cases , only tiny proprtion of the extra money reaches the producers while the rest boosts retailers profits .
There are lots of strategies that can reduce the development gap . Using intermediate technolgy (1).
-Intermedaite technology includes tools , mchines and stems that improve quality of lfie but are also ismple to use , affordable to by or build and cheap to maintain .
there are lots of strategies that can reduce the development gap . Using intermediate technolgy (2).
-Example of solar powered LED lighbuls are used in partso f Nepal where the only other lighting options are polluting and dangeorus kerosen lamps or wood fires . This allows people to work nd children ot study after drk . As a result , skills , incomes and indusrial output can increase .
There are lots of strategies that can reduce the development gap . Microfinance Loans (1)
Microfinance is when small loans are given to pepole in LICS who many not be able tog et loans from banks . This enables them to start their own businesses and become financially independent .
There are lots of strategies that can reduce the development gap . Microfinance Loans (2)
-Although microinance works for some people , it can also cause problems by encouraging people to get into debt . It’s also not clear that it can reduce poverty on a large scale .
Reducing the development gap - INDUSTRIAL DEVELOPEMNT
-In countires , with a very low level of development , agriculture makes upa large portion of the economy . Developing industry boots GNI and developemtn , as productivity , skills nad infrastrucurtre are improved.
Reducing the development gap - DEBT RELIEF
-Debt releif is when someor all of a country’s debt is cancelled or reduced interest rates , meaning hte country ahs more to spend on development .
-For example , Zambia , had 4 billion of debt cancelled i 222005 . In 2006 , the country had enoguh money to start a free healthcare scheme for those millions of people living in rural areas .
on urban challenges DO CRD 65 ONWRDS THTS TO DO WITH THIS .
