P2: The Changing Economic World Flashcards
1Development
Long-term improvement in peoples quality of life and standard of living
Social Development
Economic Development
Social development is an improvement in the well-being of a population, while economic development is a growth in the economy and wages.
3 Important indications of development
Global GDP per capita
Life expectancy
Literacy Rate
Composite Index
e.g. HDI. Combines multiple indicators to make one number
Problems with indicators
It is an average which means it generalises the geographic boundaries, generalises inequality
Doesn’t take other factors into account
Human Development Index
The HDI is a combination of life expectancy, education and income from 0 being lowest and 1 the highest.
Good because takes social and economic factors into account. Simple, readable and easy to compare
GNI per capita brackets
HIC - more than $12,736
NEE - $1,046 - $12,735
LIC - below $1,046
Types of jobs
Primary - Exploiting natural resources
Secondary - Processing raw materials
Tertiary - Services to people
Demographic Transition Model
Explains how and why population changes, through natural increases and decrease overtime.
DTM at every stage
Stage 1 - High birth rates and death rates
Stage 2 - Death rates fall rapidly
Stage 3 - Birth Rates fall rapidly
Stage 4 - Birth and death rates stabilise
Stage 5 - Death rates slightly increase, Birth Rates slightly decrease
Population pyramid
Shows the age structure and sex of a population on a graph
Dependency Ratio
no. 0-14 + no. 65+ / no 15-64
Causes of Uneven Development - Natural Resources
Countries rich in resources e.g. Qatar with gas. GDP in 1988 was 5 billion and is now around 190 billion. Whereas Rwanda. GDP in 1988 was 4 billion and in 2020 is 10 billion
Countries without resources will not be able to export them and make an income. Some countries can not afford the infrastructure to export resources.
Causes of Uneven Development - climate
Bad weather can cause limited crops to grow so that they will not be able to export as much reducing their income and food.
Causes of Uneven Development - Natural Hazards
Countries with lots of natural hazards will focus on rebuilding their country and are not able to focus on developing their country.
Causes of Uneven Development - Coastlines
Countries without a coastline are less likely to develop because they find it harder to export materials out of the country. Of the bottom 15 HDI countries 8 don’t have access to the coast.
Causes of Uneven Development - Debts
Poor countries have to take loans from rich countries to cover their costs and over time this can lead to the country coming into tremendous debt that they are not able to develop.
Causes of Uneven Development - Conflict/ War
Countries will go into war and money is spent on the army and training and this will not be spent on development.
Consequences of Uneven Development
Wealth - HIC’s are more wealthier than LIC’s and the gap continues to spread out.
Health - In HIC’s people have higher life expectancy due to development of medicines which is not present in LIC’s
International Migration - People move to improve their quality of life, supporting the economy of the country they move to, increasing the development gap.
Reducing Development Gap - Investment
Foreign Direct Investment - people and companies come and set up their manufacteuring in these LIC’s which creates jobs and promotes the multiplier effect.
Reducing Development Gap - Aid
Aid can be given from rich countries to poor countries and will help progress their development however, it can be stolen by corrupt governments.
Reducing Development Gap - Fair Trade
So that farmers are paid the right amount for their products and can make a living out of their products. Producers being paid fair prices means that they are given premiums such as tea farmers in Malawi who used their premiums to add a water pipeline to their village.
Reducing Development Gap - Intermediate Technology
Can improve quality of life with these more improved tools you can allow life to develop and produce more goods.
Reducing Development Gap - Microfinance Loans
Given to small businesses so that they can start getting bigger and pay more taxes to the government and fund them more to improve development
Reducing Development Gap - Debt Relief
Zambia had $4 billion debt removed in 2005 and in 2006 they were able to start free healthcare. Removes stress on business funds and allows development in other aspects of the country.
Tourism in Jamaica to reduce Development Gap
4 million tourists annually
Locations: Montego bay, Negril, Manchester Club Golf Course, Bob Marley Museum, Mystic Mountain Eco-park.
Problems :
- over-reliant on tourism -> seasonality
- Cruise Ship pollution -> smoke and GHG’s from cruise ships, lost 80% of coral in last 30 years.
Nigeria’s Current Economy
78% Crude Petroleum
9% Petroleum Gas
7% Refined Petroleum
What is happening to Nigeria’s economy
1991: large primary sector, 25% secondary
2019 : 50 % primar, small secondary and larger tertiary.
Higher incomes -> people buy more -> nee more tertiary in retail eg. shopkeepers
Nigeria’s government doesn’t take much taxes.
Corruption - money stolen by politicians.
How could manufacturing in Nigeria help to develop
Kia and VW invested because lower labour costs
increasing income of people means more people can afford
people have very few appliances becasue companies think they can’t afford.
Higher income allows them to spend on appliances.
Higher incomes means more people set up companies in Nigeria.
MULTIPLIER EFFECT
30% corporate taxN
Nigeria’s Oil
Oil discovered in Nigeria in mid 1950s
35 billion barrel of oil reserves found beneath niger delta.
gas reserves of 100 trillion cubic feet
Oil spills - two oil spills in 2008
natural gas flares
7000 oil spills already.
Transnational Corporations in Nigeria
Positives:
Provide jobs in factories
Have charities to help the people
Improved infrastructure
$12 billion spent
$20 billion taxes in 2013
Negatives:
Polluting environment
Oil spills
Human rights abuse
work 12+ hours in poor conditions
Child labour
decrease the amount of tax they are paying.
Nigeria ECOWAS
Nigeria is part of a trading group called (Economic communities of West African States) ECOWAS