The Changing Economic World Flashcards
What is development?
What is the global development gap?
The progress in economic growth, use of technology and improving welfare that a country has made
The difference in development between more and less developed countries
What are some measures of development?
- Gross National Income = total value of goods and services produced in a year, including from overseas
- GNI per capita = GNI divided by population
- Birth rate
- Death rate
- Infant mortality rate = number of babies who die before 1 year old annually per thousand born
- People per doctor
- Literacy rate
- Access to safe water
- Life expectancy
What is a HIC? Give an example
What is an LIC? Give an example
What is an NEE? Give an example
High income country, wealthiest countries e.g Japan
Low income country, poorest countries e.g Somalia
Newly emerging economy, rapidly getting richer e.g India
What is HDI?
Human Development Index, calculated using GNI per capita, life expectancy and education level. Tells you the level of economic development and quality of life
What is the demographic transition model (DTM)?
Shows how birth rates and death rates affect population growth. Can indicate levels of development.
Describe the stages of the DTM
1 - least developed, no countries, high birth rate (no contraception), high death rate (poor healthcare)
2 - not very developed, many LICs, high birth rate (economy mostly agriculture so children work on farms), death rates fall (better healthcare increases life expectancy)
3- more developed, most NEEs, birth rate falls (more contraception + women working), death rate falls (better healthcare)
4/5 - most developed, most HICs, birth rates low (people want high standard of living so less money for children), death rate low (good healthcare)
What are some physical factors towards uneven development?
- Poor climate = poor crop yields = malnutrition, less to sell so lower incomes = less taxes = less development
- Poor farmland = difficult to grow crops, same effects as poor climate
- Few raw materials = less to sell, make less money, lack of infrastructure to exploit them has the same effects
- Frequent natural disasters = money spent on rebuilding not developing, reduce quality of life and the government’s money
What are some economic factors of uneven development?
- Poor trade links = won’t make a lot of money = less to spend on development
- Lots of debt = loans have to be paid back, mostly with interest, so less money is spent on development
- Economy based on primary products = primary products have lower value than manufactured goods, prices fluctuate, sometimes below cost of production so money is lost
What are some historical causes of uneven development?
- Colonisation - colonisers removed raw materials, profits went to colonisers instead of the colonised country, preventing the country from developing their own industries
- Conflict - war slows development, money spent on the war (e.g arms, training) not development, people killed, property damaged and healthcare disrupted, reducing development
What are some consequences of uneven development?
- Disparities in wealth - differences in GDP between HICs and LICs + wealth disparities within countries
- Disparities in health - HICs usually have better healthcare than LICs
- Migration - Many people from LICs/NEEs move to HICs to escape conflict / seek better quality of life. This means they contribute to the HIC’s economy, not the LIC, widening the development gap
What are some ways of reducing the development gap?
- Investment - Foreign Direct Investment (FDI) = companies buying properties abroad = increase in services + better industry
- Aid - money/resources given to increase development
- Fairtrade - helps farmers in LICs get fair prices
- Intermediate technology - improves quality of life, but simple to use and affordable to buy
- Microfinance loans - small loans given to people in LICs to help them start businesses
- Industrial development - boosts GNI
- Debt relief - money can be spent on development not paying back debt
Describe the tourism sector in Jamaica
One of the few growth sectors of the economy, as it is a popular tourist destination (sandy beaches, hot etc). There are good international air connections and it is a hub for cruise ships.
It generates taxes, helps employment, increases income and reduces the development gap
How is tourism in Jamaica improving:
The economy?
Employment?
Infrastructure?
Quality of life?
Tourism generates US $2 billion annually, it makes up 24% of Jamaica’s economy
Tourism employs 200,000 people
There is a high level of investment on the north coast now with new facilities, but some areas are still isolated
Wealthy Jamaicans in tourist areas have high standard of living, but many people have poor housing, limited food/water, education etc
How does tourism in Jamaica impact the environment?
Mass tourism causes footpath erosion, excessive waste and harmful emissions. BUT tourism increases conservation projects. Ecotourism is becoming more common
What is a TNC?
Why do they operate in foreign countries?
How many operate in Nigeria?
A Transnational Corporation is a company that operates in several countries
Tax incentives, cheap labour, access to wider market, laxer environmental laws
Around 40
What are the advantages of Shell Oil in Nigeria?
- Tax contributions
- 65,000 direct jobs
- 250,000 indirect jobs
- 91% of contracts go towards Nigerian companies
- Developing of new skills
What are the disadvantages of Shell Oil in Nigeria?
- Oil spills in Niger Delta = water pollution = reduced agricultural and fishing yields
- Frequent oil flares and fumes released
- Militant groups disrupt oil supply
- Oil theft costs billions of dollars annually
What is emergency aid?
What is developmental aid?
Aid following natural disasters, conflict etc
Long-term support to improve quality of life
How does aid benefit Nigeria?
- Aid from USA protects against HIV
- NGOs distribute mosquito nets
- UK provided health education
What prevents aid in Nigeria?
- Corruption in government
- Donors have political influence
- Government diverts money for other causes
What are some environmental issues in Nigeria?
Industrial:
- harmful pollutants enter air, land and water
- desertification worsened by irrigation schemes
Urban:
- 70-80% of Nigeria’s forests destroyed by expansion
- Squatter settlements common
Mining:
- Oil spills in Niger Delta destroyed marine ecosystems
- Mining leads to soil erosion + water pollution
How is Nigeria’s developing economy improving quality of life?
- Higher disposable income
- Reliable, better paid jobs in manufacturing
- Better quality healthcare / sanitation
Why is Nigeria’s economy developing?
Advancements in science/technology
Greater concern for the environment
IT drives economy rather than oil
What is causing economic change in the UK?
- De-industrialisation - replacing people with machines = job losses, products are cheaper from abroad
- Globalisation - much manufacturing moved overseas (cheaper), some TNCs moved to UK, trade is increasing
- Government policies - removing restrictions and tax on businesses attracts investors, improving tertiary/quaternary industries. Trade agreements allow UK businesses to work abroad
How is the UK improving transport?
- Roads - capacity increasing with smart motorways
- Railways - HS2 line will connect London and Manchester
- Airports - new runway in Heathrow allows for extra 700 planes daily
- Ports - London Gateway handles world’s largest container ships
How is the UK linked to other countries?
- UK trades globally
- Immigration creates a diverse culture
- Transport, Channel Tunnel links UK to Europe
- Electronic communications help link with people abroad
Where is a rural area in the UK experiencing population decline?
Cumbria. People leave due to a lack of jobs, causing shops to close down, causing more unemployment. Young people leave, so it is mostly elderly people, putting strain on health and social services
Where is a rural area in the UK experiencing population growth?
North Somerset. Many people move places with easy access to Bristol. House prices rise but so do the average wages. However, roads are congested and services are oversubscribed.
What is the evidence for a North-South divide in the UK?
Wages generally lower in the north
Health generally worse in the north
Average GCSE results generally worse in the north
However there are outliers
How is the government trying to reduce the north-south divide in the UK?
- Devolving powers - councils can decide what is best for their local community
- Enterprise zones - companies get reduced taxes, simpler planning rules, financial benefits, improved infrastructure.
- Northern Powerhouse - aims to attract investment in the north by adding transport links and superfast broadband
What is an example of a sustainable industry? Give some aspects
Torr Quarry
- Landscaped the quarry to fit with natural environment- allowed habitats to regenerate
- Filled with water to make a lake used for recreation = tourism + jobs
- Transported materials by train = reduce congestion on local roads
- Regularly monitored emissions + air quality
