Places - Economic change Flashcards
social inequality (income, housing, education, employment, healthcare, access to services) Quality of life (income, housing, health, education) economic change and globalisation impacts of structural economic change (ACs and LIDCs/EDCs positive and negative) booms & recessions role of government in social inequality
define: Social inequality:
the uneven distribution of opportunities and rewards for different social groups, defined by factors such as age, gender, class, sexuality, religion or ethnicity.
define: Quality of life:
how far people’s general wellbeing is met, including access to services such as health, education and leisure.
define: Standard of living:
People’s income and and ability to afford material things such as food and water, housing and clothing and personal mobility.
define: Poverty:
Not having enough money to pay for a decent standard of living; buying food, water, clothes, housing and personal mobility.
Income
world bank absolute poverty level: $1.25 PPP (purchasing power parity - cost of obtaining goods at local costs)
Gini coefficient - 1 = all income in the hand of 1 person . 0 = all equal. UK 0.33
Housing
housing tenure e.g. owner-occupied… Mortgages… options: renting, local authorities, housing….
squatters are illegal. slums are not illegal.
Education
literacy rate. ACs and EDCs 90%+
LIDCs - 60%>
informal education - milk a cow - more important
employment
= decent standard of living. low wages in rural areas = inequality in ACs. EDCs and LIDCs have many employed in the informal sector - hard to measure
Healthcare
doctors per 1000 people
clean water, sanitation… quality of diet…
Access to services
Law enforcement
number of services, access, quantity, quality, transport
rural -urban divide - shrinking though (mobile technologies)
china - limited internet access
HDI combines economic and social indicators to give a measure of social inequality.
Why do patterns of quality of life and standards of living vary?
Income, housing, education & health
Income
pay for goods and services. purchase essentials. disposable income. unemployment or irregular employment
housing
cold, damp, overcrowded… slum… shanty town
aren’t enough houses for the growing population
housing needs to be affordable through renting or purchasing.
disadvantaged when house price increase exceeds income increase
renting out a 2nd home - drives up local prices, locals have to move out.
health
sub-standard housing, dangerous working conditions. poor diet, unhealthy lifestyle.
ACs have lots of H&S legislation.
access to healthcare facilities - docs per 1000
inner city vs suburbs vs rural
education
raises standards of living and quality of life.
Millenium development goals: each child primary education. females disadvantaged. differences between rural and urban education.
define globalisation
increasing flow of ideas, capital, goods, services and people. driven by economic changes. increasing interdependence of human life. governments, societies, individuals, events, decisions, activities.
Global shift:
locational movement of manufacturing production from ACs to EDCs and LIDCs from 1970…. consequence of globalisation.
NIDL New international division of labour
reorganization of production at the global scale. deindustrialisation & global spread of MNCs. managerial high paid jobs in ACs and low paid production in LIDCs. Primary sector in ACs has declined and tertiary is increasing.
economic restructuring
changes in transport (containerisation). costs down - shrinking world.
ACs - finance, health, insurance, education. so loss of employment in primary and secondary areas. moved to tertiary and quaternary.
the impact of deindustrialisation
factories closed down = unemployment. vicious downward spiral - less spending - shops close. Skills weren’t transferable to tertiary sector. Environment poor - abandoned mills, waterways, land, pollution.
London 2012 olympics & toxic remains.
Benefits for ACs of economic change
cheaper imports of labour intensive products
growth in LIDCs gives a demand for exports
industrial efficiency = technologies, entrepreneurship, foreign investment.
environmental quality improves
disadvantages for ACs of economic change
morem job losses (technology)
Unskilled workers unemployed.
bigger gaps
employment gains from new efficiencies will only happen if industrialised countries can keep their wages down.
jobs concentrated in some areas. some deprived regions.
Positive impacts for EDCs and LIDCs of economic change
promotes export led growth - multiplier effect
new highly paid jobs
reduces negative trade balances
exposes to new technology
spreads wealth and addresses the development gap.
Negative impacts fro EDCs and LIDCs of economic change
unlikely to decrease inequality as jobs are concentrated in core regions. Has disruptive social impacts. can lead to overdependence on a narrow economic base. less food supplies as people give up agriculture. environment suffers with rapid industrialisation . health and safety issues because of tax legislation.
globalisation….
…. creates greater international opportunities, firms can specialise in areas where they have a comparative advantage e.g. South Korea in ship building.
booms & recession and their impacts
economy is rarely static. growth, stagnation & decline.
levels of inequality in a capitalist system.
Prices are determined by supply and demand for factors of production - land labour and capital.
Capitalist system
goes through kondratieff cycles - 50 year cycles of booms and recessions. growth and prosperity with new periods of technological development,
households cut back on non-essentials….
some places attract investment and become centres of economic growth and raise standards of living.
Role of taxation
income tax used ot redistribute wealth. sliding scale so the rich pay more. Food and clothes are exempt from tax.
subsidies
reduce inequality - poorer groups get benefits. council housing, free school meals, free bus passes for over 60s, child care, disability car.
planning
governments, charities and housing agencies. upgrading poorer areas.
law
legislation for discrimination to give equal opportunities. minimum wage gives everyone enough money to live off.
UK government spending
20% pensions, 12% education. spending on pensions has doubled in the past 12 years.
increase in life expectancy and ageing population.
Other government stuff
state pension: the people who don’t need it get it and those who do get it its not enough
NHS free at point of delivery - quality and accessibility of the service varies .Rural areas have less access.
Each servic ein a major area is supported by its threshold of smaller settlements around.
