The Changing Economic World Flashcards
What is development
A positive change that makes things better.
As a country develops, it usually means that their quality of life and standard of living will Improve
What is a HIC
Higher income country
Wealthy nations - more than $11,456 (gni per person)
What is NEE
Newly emerging economy - experiencing higher rates of economic development and a rapid growth of industry
What is LIC
Lower income country
Poor nation - less that $975 (GNI per person)
Examples of HICs
England, USA, Canada, Iceland, japan
Examples of NEEs
China, Brazil, India, Nigeria
Examples of LICs
Chad, Mali, Tanzania, most of Africa
What is GNI
Gross national income, total amount of goods + services produced by a county- expressed per head (per capita) of the population
Problems with using just GNI
It is an average - wealth will not be evenly spread across a country
Wealthy might be unevenly distributed
GNI is an economic measure, doesn’t consider social factors such as health care and education
What are the three components of HDI (human development index)
- GNI per capita
- adult literacy rate
- life expectancy
What does holistic mean
Covers all areas
What is life expectancy
The average age a person can expect to live to
What is adult literacy rate
The % of adults who can read or write
What is HDI
The number calculated using life expectancy, education level + income per head
HDI values between 0(least developed) and 1 (most)
What is access to safe water
The % of people who can get clean drinking water
What is people per doctor
The average number of people for each doctor
What is infant mortality
The number of lives babies born per 1000 of the population per yeR
What is death rates
The number of deaths per 1000 of the population per year
What are the limitations of only using one measure of development
- data could be hard to collect or out of date
- data might be unreliable as the government may be corrupt
- one measure can give a false picture of a country (its an average)
(Doesn’t consider both social and economic factors)
What does life expectancy increase with GDP
If the GDP is higher the county has more Money to spend on health care and therefore life expectancy will be higher.
People are less likely to die from disease amd there will be less people per doctor so Life expectancy increases
What are the 3 category’s of causes of uneven development
Physical
Historical
Economic
Examples of physical factors that cause uneven development
Poor climate
Poor farming land
Few raw materials
Lots of natural hazards
Examples of historical reasons for causes of uneven development
Colonisation
Conflict
Examples of economic reasons of causes of uneven development
Poor trade links
Lots of debt
An economy based on primary products
How does a poor climate hinder development
Poor climate means that it’s difficult to grow crops so there are less jobs so people can’t make money or pay taxes so the gov. Gets less money and can’t spend money on helping the county develop
How does poor farming land hinder development
Crops can’t grow properly (infertile soil) so less jobs, Less money, less tax, less money for gov to spend on development
How does few raw materials hinder development
Have to import them so it costs extra money so gov has less ones to spend on development
How does lots of natural hazards hinder development
If there are lots of natural hazards it damages buildings, Crops ect,
So they have to spend money on rebuilding so less money can be put into development
How does colonisation hinder development
Colonisation means natural resources are taken away so the country has to spend ones on importing Materials so less money to spend on developing country
How does conflict hinder development
Country could be putting lots of money into recourses or people could invade and cause destruction which needs money to rebuilt so less ones for development
Eg, Russia, Ukraine
How does poor trade like hinder development
A country may have to pay more to import materials so they country has less money going into developing the country
How does lots of debt hinder development
It won’t be able to pour money into development as it is paying of debt so a country won’t have the money to develop
How does an economy based on primary products hinder development.
They will eventually run out of products and so people will pay less money to gov. So they will have less money to spend of development
When was stage one of the demographic transition model for the uk and what country’s are currently in it
Uk - pre 1760
Amazon basin tribes (lics)
When was stage two of the demographic transition model for the uk and what country’s are currently in it
Uk - 1760 to 1870
Ethiopia (LIC)
When was stage three of the demographic transition model for the uk and what country’s are currently in it
Uk - 1870 - 1950
India, Brazil (NEES)
When was stage four of the demographic transition model for the uk and what country’s are currently in it
Uk - post 1950
UK USA (HIC)
When was stage five of the demographic transition model for the uk and what country’s are currently in it
Uk - soon
Russia, Germany, Japan (HIC)
What is the birth and death rate like in stage one of the demography transition model
Is there a natural increase?
Birth rate - high
Death rate - high
No
What is the birth and death rate like in stage two of the demography transition model
Is there a natural increase?
Birth rate - high
Death rate - decreasing
Yes
What is the birth and death rate like in stage three of the demography transition model
Is there a natural increase?
Birth rates - decrease
Death rates - low
Yes
What is the birth and death rate like in stage four of the demography transition model
Is there a natural increase?
Birth rates - low
Death rates - low
No
What is the birth and death rate like in stage five of the demography transition model
Is there a natural increase?
Birth rates - decreasing
Death rates - slight increase
No ( decrease)
Why would birth rate be high in the demographic transition model between stage 1 and 2
Religious values - promote larger families
Children required for work
High infant mortality rate - high replacement rate
Lack of contraception
Why would death rate be high in the demographic transition model in stage one
Disease
Plague and famine because of poor medical knowlage
Why would death rate change in the demographic transition model between stage2 and 3
Decrease
Improvements in medical care (vaccines)
Better sanitation’s + sewers
Improved food supply and education
Why would birth rate be low in the demographic transition model in stage 3
Laws against child work
Lower infant mortality
Improvements in diet and medical care
Why would birth rate be low / decrease in the demographic transition model between stage 4 and 5
Emancipation, education for women
Women have babies later as they can have carreers
Later and fewer marriages
Materialistic ( money > children)
Lots of contraception
Why would death rate Be low in the demographic transition model in stage 4 and 5
Medical advances
Eg. Transplants, operations
Better food supply
Describe the population pyramid shape for stage one of the demographic transition model
Large base and thins as it goes up
Describe the population pyramid shape for stage two of the demographic transition model
Triangle with a large base
Describe the population pyramid shape for stage three of the demographic transition model
Young and working force age are higher / constant with a lower population of elderly
Describe the population pyramid shape for stage four of the demographic transition model
Large young, working force and a higher elderly population than 3
Describe the population pyramid shape for stage 5 of the demographic transition model
Lower young, higher working age and elderly
(Issue is when the young grow to be working age there will be large impacts as not enough )
What is the population structure of a country
How many people there are of each age group in the population, and how many there are of each sex
Consequences of uneven development
- more international migration (as people move globally from areas that have very little to wealthier, more developed areas)
- lack of social opportunities (children in poorer areas get stuck in poverty - with little to no chance of working their way out)
- counties with high inequality (often have lower growth in the wealth of the country)
- inequality can lead to political instability ( civil wars and riots are more likely when the rich are far richer than the poor)
- forces billions to live in poverty ( without access to safe water, education, inadequate food supplies and unsafe shelters)
- increases Rick of illness disease and death due to poor health care
Ways to manage disparities in development
Investment
Aid
Intermediate technology
Free trade
Fair trade
Debt relief
Micro finance loans
What is an investment ( to help countries develop) + an examples
When money and expertise are put in LICs. Large companies called TNC choose to invest. Investment can involve the development of infrastructure, the construction of dams, harbours or ports
Unilever (employs people in India)
What does TNC stand for
Trans national corporation
What is aid ( to help countries develop) + an examples
Aid is given by one country to another. It can be in the form of money or recourses. Aid is often given by NGOs. Aid can be either short or long therm
Goat aid, oxfam (set up to help families in African counties, eg Malawi. Money donated used to by family a goat - which can produce food)
What is an NGO
Non government organisation
What is intermediate technology (to help countries develop) + an examples
A sustainable technology that is appropriate to the needs, skills, knowledge and wealth of the local people. It Must be suitable for the local environment and not put people out of work.
Water aid, Mali (teacher local people about hygiene + how to build water pumps)
What is free trade ( to help countries develop) + an examples
When countries do not charge tariffs or quotas that restrict trade, trading groups are countries which have grouped together to increase the level of trade between them
EU - counties which have grouped together to increase level of trade between them
What is fair trade ( to help countries develop) + an examples
Sets standards for trade with poorer counties. It seeks to reduce the development gap by improving the QOL for ordinary farmers. Farmers get all the money from the sale of their crops at a fair price
Gumutindo coffee corporation - 90% of small coffee farmers in Uganda have joined gumutindo coffee corporation to gain economy or sales
What is debt relief ( to help countries develop) + an examples
One country can borrow money from another, or from an international organisation such as the world bank, I’m order to invest in development projects, this loan has to be repaid with interest
Eg. Tanzania - enables to provide education to all children - resulted in a 66% increase
What is a microfinance loans ( to help countries develop) + an examples
A small scale financial support directly available from banks set up especially to help the poor. S,all loans enable individuals or families to start up small businesses and helps them to become self - sufficient
Eg. The Grameen bank
Set up in 1926 - bank founded to help locals (especial women)
To use skills to develop small businesses
Borrowers have a share of ownership of bank so good rate of repayment
Loans often $100 with low interest
The bank has lent $11 bill to 7 million members
Bank lends US $200 to village of women to buy phone - villagers pay woman to use phone
A positive of investment ( to help countries develop)
TNCs provide employment Unilever employs 16,000 people in India - so tax revenue is inc. - more money for india to spend on infrastructure,
Unilever worked with charities to help hygiene - education + robbed sanitation to 115 mill people in India - inc. health
Negatives of investment ( to help countries develop)
Some profits made in India leaves India,
Eg, Unilever is a Dutch British company so some profits return to Netherlands /UK
TNCs - environmental prpblems.
TNC can move around countries + take advantage of local governments
Unilever have been accused of closing factories in Dharwad
Positives of aid ( to help countries develop)
Goat aid - oxfam — goats produce food, manure for fertilisers, milk, can be bread easily
Can help keep families alive in emergency, help a countries long term development aid. Eg. Money can be spent on schools — improved literacy rate
Can also improve dams to inc clean water wich decreases disease and inc life expectancy
Negatives of aid ( to help countries develop)
Countries can become dependent on aid - unable to develop themselves
Aid my be misused if gov is corrupt
Tied aid can mean country has to pay back the country or agree to buy there exports
Positives of intermediate technology ( to help countries develop)
Reduce development gap - involves local communities in projects that can make a difference to QOL.
Negative so intermediate technology ( to help countries develop)
May put people out of work
Positives of free trade (to help countries develop)
Encourages trade between member countries
Richer countries cannot shop around for cheaper prices
Members can command a greater share of the market
Members are able to get higher prices for goods
Negatives of free trade ( to help countries develop)
Difficult to set up