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
Trade in Nigeria
Exports - 72.4% Crude Petroleum, 14.8% Petroleum Gas, 1.8% Refined Petroleum.
15.5% of exports to India and 15.5% to USA and 10.3% to Spain.
Imports - 11.1% Refined Petroleum, 4.52% Passenger and Cargo Ships, 4.12% Wheat
31.1% from China, 7.37% from Netherlands, 6.5% from USA.
Chinese aid in Nigeria
Building railway from lagos to calabar
deepest port in africa - biggest ships most goods. Free trade zone - no tax. 17000 jobs
more imports for nigeria and exports for china
$16 billion in nigerias oil
chinese influence - forced to buy chinese products.
Types of aid
multilateral aid - given from governments through international organisations like the world bank.
bilateral aid - given directly from one government to another as aid
short term emergency relief - is given by individuals and companies and distributed by charities to cope with disasters
long term development assistance - is given by individuals and companies through charities to help improve the lives of others
What will impact nigerias export incomes
- demand for oil
- switching to sustainable energy
- international agreements + pressures
- non-renewables
Effects of economic development in Nigeria - income inequality
- corruption
- taxes spent on machinery not on the people
- government is oil rich - no interest in improving other industries.
Effects of economic development in Nigeria - Impacts on people
Squatter settlements are more common in towns, very densely populated with poor services
traffic congestion is more of a problem in Nigerian cities such as lagos.
Economic development in niger delta has cause conflict with locals.
Effects of economic development in Nigeria - impact on water
Many harmful pollutants go directly into open drains and water channels.
some industries dispose chemical waste polluting ground water
Oil spills in Niger delta have had disastrous impacts on freshwater and marine ecosystems
Effects of economic development in Nigeria - Impacts on soil and vegetation
96% of Nigeria’s forests have been destroyed through logging, agriculture, urban expansion, roads and industrial development.
desertification is a major problem in Nigeria, made worse by large scale dams and irrigation scheme
oil spills cause acid rain which pollutes plants.
tin mining leads to soil erosion
Privitisation definition
when govenment owned companies become owned by non - governmental organisations to make profit.
Government policies in UK
1945-1979 - state run industries created (British steel cooperation)
1984 - Privatisation of BT
1984- 1985 - Margret thatcher closes most coal mines
1994 - privatisation of British rail
2009 - Eu common fisheries policy aims to prevent over fishing
2023 - £4.3bn invested into high - value manufacturing
Impacts of Government policies in UK
Soc:
- job losses since they weren’t safe
- reduction in amenities
eco:
- reduction in taxes
- less taxes spent in other industries
env:
- makes climate change worse in other countries
- reduces overfishing
Globalisation definition
Globalisation is when the world becomes increasingly interconnected ( e.g by trade, migration or communication)
Effects of globalisation
Higher GDP,
Cheaper products
Increasing primary import
increasing tertiary export.
Post industrial economy definition
A post industrial economy is one where the manufacturing industry is replaced by the tertiary sector ( and then the tertiary sector)
Sustainability definition
Sustainability is meeting the needs without compromising the ability of the future to meet their own needs.
Environmental impacts of Industry
- Steam - local clouds - rain
- fossil fuels plants - risk of acid rain
- visual impact
- greenhouse effect
- pollution + runoff into rivers - toxins
Sustainable industry methods
Green technology
Desulphurisation
Uk Clean Air Act of 1968 - all chimneys must be 30m tall
Fines - unlimited fines if you break the rules - instead of £250,000
Torr Quarry, Somerset
Outside Mendiphill - 100 employees - mine limestone
75% of limestone leaves by train - less GHG’s releases + reduces traffic
200 acres of previous quarry was replanted and regenerated.
Monitoring + acting on Water Pollution, Vibrations, Noise pollution, light pollution, dust pollution.
Counter Urbanisation definition
When people move from urban to rurla areas.
Rural Buckinghamshire
- Good transport to london and Oxford - chiltern railways + M40
- Commuter towns busy at 8am and 6pm
- Picturesque countryside - chilterns
- Good school system - grammar schools
- From 2010 - 2020 there is a 9.5% population increase
- Population of 550,000.
Only 9% of southern Buckinghamshire is urban
Outer Hebridies
Population Stonoway: 4500
Impact on services:
Number of school children expected to fall
post offices closing
Impact on dependant population :
Fewer working people as they move away
Increase in elderly population 45+ years. Decrease in youth population.
Devolution definition
transfer of powers and funding from national to local government
Causes of North South divide
- Deindustrialisation
- Accessible for trade - close to europe in south
- Closer to capital
- Climate
- 50% more investment in south than in the north.
Closing the divide - Devolution
1.4bn investment deal for the north england
Adv: 48mil per year for north covering 2 million people. 563m transport budget.
Disadvantage - not much progress made towards improving the north south divide since then. Regional divide is getting worse. Increases social and identity divides within the country.
Closing the divide - Northern Powerhouse
Government will invest in transport infrastructure to improve connections between tand withing the north.
Examples:
London to Newcastle A1(M): This £380m upgrade of the A1(M) will reduce journey times by 20. £1billion boost to the economy
North Wales to Liverpool : £16m development of the Halton cureve will allow direct trains between north wales and liverpool fior the first time in decades.
Adv: employment increased by 7%, 34,520 more professional tertiary jobs
Disadv: geographically fuzzy with insufficient funding
200,000 children living in poverty
150,000 in jobs below living wage.
Uk exports
Countries: United States, Germany, Ireland.
Goods: Cars, mechanical power generators, medicinal and pharmaceutical products
Uk imports
Countries: United States, Netherlands, Sweden,
Goods: Cars, Refined oil, Crude oil,
examples of main
Uk transport
Anglesey to Ireland
Portsmouth to spain and France
Chanel tunnel - 20 million use it each year
Heathrow - 2nd busiest international airport in the world. 60million passenger/ year
Felix stone - Uks largest container port
Uk culture
Tv: £1.4bn in 2023
Music : exports of £4bn in 2023
Festivals : Noting hill carnival
Fashion L e.g. London Fashion week
Food : Balti triangle
Demographics : 20% non-white
Uk electonic communication
Uk has 50 undersea internet connections
UK has more than EU
Artic fibre connection - £1.2bn
The UK and EU
1973 - UK join ECC - European Economic Community
1985 - Schengen - allowed migration - Uk didn’t want immigrants
1992 - The EU was formed
2002 - The euro was introduced - Uk didn’t
2007 - The lisbon treaty - EU laws went over UK laws - UK didn’t like this
2016 - 51.9% didn’t like this - North South divide
2020 - Brexit happened on January 31st - 3 year pulling out period
The Uk and Commonwealth
- 56 countries most of which are former territories fo the British empire
- the monarch - head of commonwealth - uks biggest influence
Adv: - easier to vote if you come from commonwealth
- got a visa, to get a job, to study,
- all english speaking
Charter of the commonwealth - equality for all, right to vote, freedom
Commonwealth games.
Facts about UK roads
2014 - Government announced road investment strategy with £15 bn.
100 new road schemes
1300 new lane miles added to motorways
extra lanes added to motorways to turn them into smart motorways
Southwest super highway
£2billion road widening project will create jobs in construction
involves digging 3km tunnel beneath stonehenge
Northern Powerhouse road infrastructure
London to Newcastle A1(M): This £380m upgrade of the A1(M) will reduce journey times by 20. £1billion boost to the economy
North Wales to Liverpool : £16m development of the Halton cureve will allow direct trains between north wales and liverpool fior the first time in decades
Ways improving roads improves development
Links producers to customers
workers to jobs
students to school
ill to hospitals
HS2
£50 Billion plan to connect London to Birmingham and then sheffield and then liverpool
Started in 2017 and will finish in 2033
London Crossrail
Carries 200 million passenger every year
cost 14.8 billion
from reading to abbey wood
of london underground Challenges
Space - will be underground and can ruin the terrain
price - will be very expensive and questions asked on investments
Ways improving rail causes development
Allows produce like milk and egg to be transported quickly
allows longer distance commutes to work
Heathrow third runway
cost 18.6 billion
set to be built closer to the M25 junction and the M25 will be going underneath it.
Advantages of Heathrow third runway
increases total capacity to 130 million
increase total flights to 747,000
Disadvantages of Heathrow third runway
increases noise pollution for neighbour and will increase footfall in the area making it more busy.
Ways improving airports causes development
Will allow more workers to come from abroad
Allows more travel and more revenue
Facts about UK shipping
32 million passengers travel through UK ports every year
Ports employ 120,000 people
Liverpool 2
Will create a large port in liverpool that will create lots of jobs, boost the economy of the north west, and reduce the amount of freight traffic in the north west
Top 5 ports
Felixstowe - around 3,500 employees
Southampton - Located 16km inland
Tilbury -
London -
Immingham -
Ways improving ports causes development
Allows more goods to be traded
Allow creation of more jobs
