structural economic change - H Flashcards
what is structural economic change
a dramatic shift i the way a country operates, usually brought on by major economic or technical developments
what 6 factors can spark structural change
technological innovation
global shifts in pools of capital and labour
changes in political landscape
new economic developments
changes in resource availability
changes in supply and demand of resources
what is decentralised production
production happening in different places which specialise in various aspects of the production process
e.g. vehicle manufacturing - one country makes engine, another makes windows etc.
why is decentralised production possible
due to improvements in communication and transportation
what is the Clarke Fisher Model
model which aims to show the general changes in a country’s economic sectors through a period of time
what are the limitations of the Clarke Fisher Model
speed of development varies between places
no indication of what happens next
one size doesn’t fit all - tourism can lead counties to bypass the industry stage.
what is cyclical economic change
the frequent periods of growth (“boom”) and recession (“bust”) that most economies experience.
what do boom and bust cycles involve
1 - rapid economic growth and inflation (a boom) followed by:
2 - a period of economic contraction/recession (falling GDP, rising unemployment) a bust
what causes cyclical economic change
changes to supply and demand
what does the money people choose to spend affect
the economy
what influences what people spend their money on
government policies, actions of banks and general confidence in a country
what happened in 2008 - economic change
the global financial crisis
what did the global financial crisis trigger in the UK
the conservative government to loan £137 billion to banks however they then had to reduce public spending
what 3 things did reducing public spending lead to
cuts and freezes to benefits
reduced arts and culture grants
public sector pay freezes and redundancies
in Britain what do more deprived areas have (public sector)
a larger workforce in the public sector
what does a larger workforce in the north mean (2008 global crisis)
that in the north they rely more on public sector jobs - so they had disproportional negative effects which widen the north south divide creating further regional inequalities.
what amount of cuts did London receive (2008 global crisis)
£3.9 bn - 30% of national total
how big were the cuts in Liverpool (2008 global crisis)
hit with the deepest cuts per person (£816 a head)
which chains closed down on high streets due to 2008 global crisis
Woolworths, Dixons and BHS -as they couldn’t adapt to harsh trading conditions
how many High streets were still suffering from the 2008 global crisis in 2017
25% of all highstreets in the UK
which places had the most high street shop closures due to the 2008 global crisis
Blackpool - had the greatest negative impact
what is a terminal town
places with the worst performing high streets. They are struggling to find either public or private finance to spur future growth
what happens when towns reach the tipping point in high streets
when the tipping point is reached they are sent into a downward spiral from which recovery is unlikely
how is change brought about (at any scale)
by players (stakeholders)
what is a player
an individual, group of people or formal organisations who can influence or can be influenced by, the processes of change.
do some players have more power
yes some players have more power or influence than others, especially in economic terms.
what are the three public sector players
trans-national governments
national governments
local governments
what is a trans-national government
an international group which include representatives from national governments. e.g. the EU
what is a national government
have departments and agencies responsible for strategic planning such as education and training, major transport links and environmental management.
what is a local government
similar responsibilities to a national government but carries out planning and implementation on a local scale
what does the private sector players often provide
economic investment towards driving economics change
what are the private sector players primary aims
to generate money to make a profit on their investment
what are the two private sector players
local communities
non-governmental organisation (NGO’s)
what are local communities
generally concerned about their immediate area, these can resident, heritage or digital groups. They are interested in economic change it also social and environmental matters.
what are non-governmental organisations (NGO’s)
tend to have a particular focus. Some are small groups while others cover the whole country e.g. National Trust
