THE CHANGING ECONOMIC WORLD Flashcards
What is GNI?
GROSS NATIONAL INCOME
The total value of goods and services produced by a country US$
Measure of wealth
As a country develops it ↑
GNI Per head
The GNI divided by the population of a country also US$
😱When used on it’s own can be misleading, because it is an AVERAGE - variations within a country don’t show up 😱
EG QATAR - GNI is high but small number are very wealthy and many are very poor
Measure of wealth
As a country develops it ↑
Birthrate BR
Number of births per 1000 per year
Measure of education
As a country develops it ↓
Death rate DR
Number of deaths per 1000 per year
Measure of health
As a country develops it ↓
Infant mortality rate IMR
Number of babies who die before 12 months old per 1000 babies born.
Measure of health
As a country develops it ↓
Literacy Rate LR
% adults who can read and write
Access to safe water
% people who can get clean drinking water
Life Expectancy LE
Average age a person can expect to live to
Human Development Index HDI
CALCULATION:
GNI per head, LE & Education level = value between 0-1
1 - most developed
0 - least developed
This measurement shows economic dev and quality of life
DTM
STAGE 1
LEAST DEVELOPED Not many places are ST1 now BR high - little contraception DR high - poor healthcare or famine POP Growth Rate - Zero LE - low Eg - Tribes
DTM
STAGE 2
NOT VERY DEVELOPED Majority are LIC's BR high - agriculture base living - children work on farms DR falls - Better healthcare than ST1 POP Growth Rate - V high Eg - Gambia
DTM
STAGE 3
MORE DEVELOPED Most NEE's are at ST3 BR falls rapidly - more contraception, more women working Economy changes from farming to Manu so less kids needed to work DR falls - better healthcare LE - increases POP Growth Rate - high Eg - India
DTM
STAGE 4&5
MOST DEVELOPED Most HIC's are at one of these stages BR - Low People expect high standard of living DR - low - healthcare is good LE - High Eg - Japan POP Growth Rate - 4 = Zero 5 = Negative
DEVELOPMENT GAP - INVESTMENT
FDI - Foreign Direct Investment
When people or companies in one country buy property or invest in infrastructure in another.
Result - better access to finance, technology and expertise.
DEVELOPMENT GAP - AID
Money or resources given to a country by a charity or foreign government.
Used for Farming equip, constructing schools and dams
Can be open to corruption 😢
DEVELOPMENT GAP - FAIR TRADE
Farmers in LIC’s getting a fair price for their produce.
Buyers pay extra so farmers receive a premium to help develop the area.
Problems - sometimes very little cash gets to the farmers as retailers boost their own profits 😩
DEVELOPMENT GAP - USING INTERMEDIATE TECHNOLOGY
Tools, machinery and systems - affordable, simple to use, cheap to maintain and improve quality of life
DEVELOPMENT GAP - MICRO FINANCE LOANS
Small loans given to people in LIC’s who cannot get loans from banks. Enables them to start a business.
Negative - can cause debt
DEVELOPMENT GAP - INDUSTRIAL DEVELOPMENT
Countries with very low dev, agriculture makes up a large % of the economy. Developing industry boosts GNI as productivity, skills and infrastructure are improved.
DEVELOPMENT GAP - DEBT RELEIF
When some or all of a country’s debt is cancelled OR Interest rates are lowered so they can have more to spend on development.
KENYA - EG HOW TOURISM CAN REDUCE THE DEVELOPMENT GAP - OVERVIEW
LIC - East Africa
Tourist attraction for - wildlife, sun, culture, scenery
Visa fees cut by 50% in 2009 - to make it cheaper to visit the country
and scraped for kids to encourage more families
Tourism has been increasing since 1995
KENYA - EG HOW TOURISM CAN REDUCE THE DEVELOPMENT GAP - BENEFITS
4% of Kenyas GDP - this is used on development.
Its HDI has improved
Over 9% of employed people in Kenya work in Tourism
Investment in transport has encouraged more to visit and benefits locals.
24 National Parks charge entry fees - to generate cash
to maintain them
KENYA - EG HOW TOURISM CAN REDUCE THE DEVELOPMENT GAP - NEGATIVES
Only small proportion goes back to locals - rest to big companies.
Some Maasai communities forced off their land to create national parks.
Tourist vehicles damage environment
Terrorism can threaten tourisms reliability in terms of jobs and income.
