Section B- The changing economic world Flashcards
What is gross national income (GNI)?
the total value of goods and services people of that nationality produce in a year (GDP+money from people living abroad)
What is Gross domestic product (GDP)?
The total value of goods and services a country produces in a year
What is GNI per head
The GNI divided by population of country
What is Human development index (HDI)?
This is a number that is calculated using life expectancy, literacy rate, education level (eg degree) and income per head.
What are the limitations of economic measures
Using GDP/GNP can hide inequalities as it does not show the distribution of wealth
Can be manipulated by governments who want to appear poor to collect more aid and doesn’t take into account subsistence or informal economies which are very important in less developed countries.
What are the limitations of using infant mortality?
Many births in LDC would be un-registered and political factors such as China= High level because of 2 child policy
What are the limitations of using Birth and Death rate?
Birth- affected by population policy such as one child in china and inaccurate figures in
Death-Does not tell us what is responsible for high death rate could be natural disaster not poor health care, and difficult to get accurate figure from LDCs
Disadvantages of using Literacy rate
Doesn’t tell us if its due too few schools or that children have to work
Takes no notice of other skills eg- good understanding of farming techniques.
What are the stages of the demographic transition model?
1-high stationary= high birth and death rate
2-Early expanding=high birth rate and low death rate
3-Late expanding=falling birth and death rate(dr slower)
4-Low stationary- Low birth and death rate
5-Declining - very low birth rate and low death rate
What is the demographic transition model?
Measures population change over time, by studying birth and death rate. Includes main period of a country’s development and shows link between demographic and economic changes.
What are the reasons for changes in birth rate
1+2= Many children needed for farming and many children die at a young age, no family planning.
3= Improved medical care and diet, fewer children needed
4+5=Family planning, good health, improving status of women, later marriages
What are the reasons for changes in death rate
1= Disease, famine and poor medical knowledge, many children die
2+3=Improvements in medical care, water supply and sanitation, fewer children die
4+5=Good health care and reliable food supply
Why is dividing the world useless
Large differences within countries in continents, eg- Dubai is in the middle east which is classified as 3rd world
What is the Brandt line
After the 3 worlds idea, the next thought was the North/South wealth divide
Does the Brandt line work?
Unreliable because of contrast and differences within continents, there are areas of high and low wealth evenly spread throughout world. Eg- Detroit in NORTH America has a low Income
How can Birth rate show development
As birth rate decreases the more developed it is
How can death rate show development
Lower death rate= better access to healthcare and therefore is more developed
What are the limitations of the demographic transition model
It is a general model and doesn’t show details and specifics
No time line
Only shows population, not any other factors therefore we have to assume and infer- inaccurate
What 3 factors influence development
Historical
Economic
Physical
How do physical factors cause uneven development
Natural disasters, amount of money they have to recover LIC’s but HIC’s like USA are affected, cannot always link the 2.
Coastlines LIC’s are often in inland countries, cannot easily trade goods.
Climate- Influence of development isn’t clear as for every poor, hot desert country like Chad, there is rich one like Saudi Arabia
All physical factors can be overcome with human ingenuity and money.
How do Historical factors cause uneven development
In 17-1800’s most of the global south was colonised by european nations. Their aim was to build a global influence in order to better compete against the rival europeanstates and access better raw materials and labour. South American and African cultures were badly affected, especially those involved in the slave trade.
Colonism ended for the most part in the 20th century, independence can cause problems. When democratic republic of congo gained freedom from belgium in 1960s there were only 14 university graduates in the education system. Power struggles also often took place especially if rich natural resources were at stake.
How do economic factors cause uneven development?
In 1800’s European powers just took raw materials they needed from other countries. Presently their TNC’s buy materials+food from LIC’s, low prices that jeopordise economic development. Reasons for low prices can be corrupt leaders in LIC’s trying to make profit and Food prices fluctuating depending on competition and quality of crops, eg- Price of cocoa beans halved in 1990’s due to overproduction, slowing down economic development for Ghana and Ivory coast.
What 3 consequences are there from uneven development
Disparities in wealth, health and international migration
Explain effects of uneven development on Nigeria
Newfound trading wealth has helped Nigeria get ‘promoted’ from LIC to NEE status, but this wealth hasn’t been distributed fairly. Nigeria is now one of the most uneven societies on earth
Explain disparities in health
There is a disparity in health between LIC’s and HIC’s eg- in LIC’s 40% of deaths are in children under age of 15 but 1% under 15 in HIC’s. Only 20% of deaths are in people aged over 70 however in HIC’s 70% of deaths are in people over age 70.
LIC’s- complications in child birth is main cause of death in under 5 year olds.
LIC’s- infectious diseases are main cause of death eg- HIV, diarrhea, malaria and others account for 1/3 of deaths, however in HIC’s main cause of death are in chronic diseases eg- heart and lung cancer.
Explain the disparities in wealth
A measure of internal disparities (within one country) eg- score of 0 means that everyone in the same place has exactly the same income, but a score of 1 means that ll in come in one place is controlled by a single person.
National statistics hide a huge amount of internal wealth inequality. eg- In UK there is a noticeable N/S divide, shown in incomes, employment and life expectantcy.
Explain how international migration was caused by uneven development
On a global scale, uneven development leads to unequal flows of people between places. Some migrants move voluntarily in search of a better life. These are economic migrants, others who are forced to flee persecution or disease are called refugees.
Reasons for disparities in health
Countries cannot afford to spend on healthcare which means that people die from preventable illnesses.
Some illness survive in certain parts of the world where conditions are just right- physical
Give example of voluntary/economic situation involving migrants
West Indian Immigrants to the UK and Retirement moves to Spain from the UK
Give example of forced/Refugee situaiton
Emigration of Jews from Germany and Migration of Ethiopians into Sudan- due to famin
Give example push and pull factors in Physical reasons for migrating
push- harsh climate/natural disasters, isolated/inaccessible
pull- cheap, fertile and safe land
Give example push and pull factors in Demographic reasons for migrating
push-divorce, ill health and children leaving home
pull-Marriage, family ties, lower pop density
Give example push and pull factors in Economic reasons for migrating
push- unemployment, poverty and high taxation
pull-high standard of living, jobs, promotion/transfer
Give example push and pull factors in Social reasons for migrating
push-rise in crime, shortage of affordable housing, downsize/upsize
pull- better/good welfare services, upward mobility and safety
Give example push and pull factors in Political reasons for migrating
push- ethnic cleansing, war/civil unrest, planning laws
pull-freedom of speech, asylum, propaganda
Explain link between primary and secondary products
Primary products are low in value, Secondary industry where the products (cocoa beans) are turned into a consumable product (chocolate) adds HUGE value
Why do primary products get low prices
Over production - when too much of one products is produced it reduces competition and increases availability therefore decreasing prices- this can cause problems for producer communities.
Import taxes-Eu tries to protects its own farmers therefore farmers from Kenya (non eu) find it harder to get good prices for food to sell.
Manufactured goods can be sold at higher prices- make more profit, this profit can be taxed to pay education and health services
List the strategies used to reduce the development gap
Investment Industrial development Tourism Aid Using intermediate technology Fair trade Debt relief Micro finance loans
How can investment reduce development gap
Large companies can locate part of their business in other countries. This helps a country to develop as the companies build factories, lay roads and install internet cables
How can Aid reduce development gap
Aid is when one ore more countries give money to other countries. The money HAS to be spent on things that will benefit the population
How can using intermediate technology reduce development gap
Intermediate technology is using equipment and techniques that are suitable for their country of use. Many poorer countries do not have the skills to maintain expensive equipment. Small-scale, basic solutions are usually more appropriate.
How can fair trade reduce development gap
Fair trade is paying producers a reasonable price for the goods that they produce. Many farmers in LIC’s are paid very low wages, this means that they cannot escape poverty. Fair trade givers farmers a better chance in life
How can debt relief reduce development gap
Many LIC’s owe money to other countries. Often the repayments and interest are so expensive that indebted countries have no money left to spend on development projects. Debt relief is when debts are reorganized to make them more manageable or are reduced
How can micro finance loans reduce development gap
Micro finance loans are when money is lent to LIC’s to help them develop. They are often small loans with reasonable interest rates. They are available to people and businesses who may normally struggle to get credit.
What country is our case study example of on how the growth of tourism in an LIC or NEE helps to reduce the development gap
Kenya
What country is our case study example of on how the growth of tourism in an LIC or NEE helps to reduce the development gap
Kenya
Tourism has boomed over the last 20 years
0.9 million visitors per year in 1995 to 1.8 million visitors per year in 2011
What has helped make tourism boom in Kenya
Tribal culture, safari wildlife, warm climate and beautiful scenery.
Helped by landing fees being dropped for charter airlines and Visa fees for adults were cut by 50% in 2009 to make it cheaper to visit the country
How has tourism benefited Kenya and it’s development
600,000 people are directly or indirectly employed by the tourism industry, more jobs=more taxes
Tourism now contributes to over 12% of Kenya’s GDP- money that can now be spent on development
The 24 national parks charge entry fee’s for tourists - money is spent to maintain these parks and protect environment/wildlife
Since 2000 what has Kenya’s score on the human development index increased from
increased from 0.45 to 0.55
What problems has Kenya faced due to tourism
Tourists vehicles damage the environment eg- safari vehicles destroying vegetation and disturbing animals
Only a small amount of money earned goes to locals- rest goes to big companies often based over seas therefore doesn’t help close development gap
Some tribes were forced off the land to create national parks for tourists
