The Changing Economic World Flashcards

1
Q

What is development

A

The progress of a country in terms of economic growth, the use of
technology and human welfare

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2
Q

What are four factors affecting a country’s development

A

Social factors (eg: access to safe water and education)

Environmental factors (eg: natural hazards)

Economic factors (eg: trade and debt)

Political factors (eg: unstable government and war)

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3
Q

What is the development gap

A

Difference in standards of living and wellbeing between the
world’s richest and poorest countries

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4
Q

What are inequalities

A

Differences between poverty and wealth, as well as wellbeing and
access to jobs, housing and education etc

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5
Q

What are examples of development indicators

A

Access to safe water
Adult literacy
Birth rate
Death rate
GNI per capita
HDI
Infant mortality rate
Life expectancy rate
People per doctor

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6
Q

What are categories of grouping development

A

HICs
NEEs
LICs
Brandt line

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7
Q

What is GNI per capita

A

Gross National Income

The economic measure of the total value of goods or services produced by a country + the money earned from and paid to other countries. It is expressed as per head (per capita) of the population. The total earnings made is divided by the population number

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8
Q

How useful is GNI

A

Economic measures indicative of average wealth within
the country. Average can be distorted by extreme wealth
/ wealth inequality.

A lower value is indicative of a better healthcare system

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9
Q

What is HDI

A

Human Development Index

Aims to show how far people are benefiting from a country’s economic growth.

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10
Q

What three measures does HDI consist of

A

Life expectancy at birth
GNI per head
Number of education years

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11
Q

How useful is HDI

A

Uses social and economic measures to look at a range of measures

Values closer to 1.0 show high levels of development

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12
Q

What makes a good quality of life

A

Different things in different countries such as

Stability
Freedom
Security
Right to vote
Overall happiness

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13
Q

How do we measure quality of life

A

Economic and social measures use broad statistics to measure the quality of life.

They however do not give an accurate measure of the individual’s quality of life

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14
Q

What is the standard of living

A

Refers to the amount and quality of material goods and
services available to a given population.

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15
Q

What is people per doctor

A

The total population divided by the number of doctors in the
country.

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16
Q

How is people per doctor useful

A

Social measure – indicates how easily people are able to
access a doctor / healthcare.

A higher number of doctors per 1,000 population
indicates greater development.

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17
Q

What is adult literacy rate

A

The percentage of adults who can read and write

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18
Q

How is adult literacy rate useful

A

Social measure – indicates how good the education
system is / how many people access universal education.

A higher value indicates better access to education.

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19
Q

What is access to safe drinking water

A

The proportion of people using improved water sources: drinking,
household connection; public standpipe; borehole; protected dug
well; protected spring; rainwater

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20
Q

How is measuring access to safe drinking water useful

A

Social measure – indicates universality of public
sanitation and infrastructure

Higher value indicates greater development

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21
Q

What is death rate

A

Number of deaths per 1000 people per year

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22
Q

How useful is death rate

A

Social measure – provides a good indication of the level
of healthcare.

A lower value is indicative of a better healthcare system.

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23
Q

What is birth rate

A

The number of live births per 1000 people per year

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24
Q

How useful is birth rate

A

Social measure – number of children being born.

More developed countries tend to have lower values, as
people have fewer children.

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25
What is infant mortality
The number of deaths of children under the age of 1 year expressed as 1000 live births per year.
26
Why is measuring infant mortality rate useful
Social measure – provides a good indication of access to healthcare, nutrition etc. A lower value indicates a higher level of development.
27
What is life expectancy
The average number of years from birth that a person can expect to live for.
28
Why is measuring life expectancy useful
Social measure – indicative of access to healthcare, nutrition and other social goods. Higher value indicates greater development.
29
What are the limitations of economic and social measures
1. Data can be out of date 2. Data can be hard to collect 3. Data may be unreliable (eg: infant mortality rate in some locations is often higher than expected) 4. Only focuses on certain aspects of development, may not take other aspects into account 5. Government corruption causes unreliable data
30
What is natural increase
Birth rate - Death rate of population
31
What is the DTM
Demographic Transition Model A model of how population changes over time
32
What happens at Stage 1
High death rates High birth rates A low total population that increases slowly
33
What are the reasons for a high death rate in Stage 1
Lack of doctors and healthcare No sanitation Famine
34
What are the reasons for a high birth rate in Stage 1
Lack of contraception or family planning High infant mortality rate (dying during childhood)
35
What happens at Stage 2
Low, falling death rates High birth rates Total population continues to rise quickly
36
What are the reasons for a low death rate at Stage 2
Improved healthcare and sanitation Lower infant mortality rate Farming
37
What are the reasons for a high birth rate at Stage 2
Stage 1 reasons Religions often promote families
38
What happens at Stage 3
Slow decreasing death rates Low, rapid birth rates The total population quickly increases
39
What are the reasons for a low, rapid birth rate at Stage 3
Available contraception and family planning Lower infant mortality rates due to healthcare
40
What are the reasons for a slow death rate at Stage 3
Medical technology continues to improve, and is more accessible even to poor Women get the vote and prioritise careers
41
What happens at Stage 4
Low birth rates Low death rates Total population rises slowly and begins too peak
42
What are the reasons for a low birth rate at Stage 4
More women attend university, pursue high paying careers Women have children later in life
43
What are the reasons for a low death rate at Stage 4
More children survive for adulthood Cured diseases are more common
44
What happens at Stage 5
Slow, increasing death rates Low, increasing birth rates Population slowly starts to decrease
45
What are the reasons for a low birth rate in Stage 5
More children becomes increasingly expensive Women have fewer children in later life
46
What are the reasons for an increasing death rate in Stage 5
Poor lifestyle choices Increasingly elderly population - unable to have children
47
What country might be in Stage 1
Andaman Islands
48
What country might be in Stage 2
Yemen
49
What country might be in Stage 3
South Africa
50
What country might be in Stage 4
UK
51
What country might be in Stage 5
Japan
52
What is an LIC
A developing country
53
What is a HIC
A developed country
54
How do we calculate dependency ratio
(%population < 15) + (%population > 65)/ working age population % x 100
55
How can Population Pyramids help us
Population pyramids don’t just show you population numbers, but also the structure of your population (e.g. % or number of males / females in each age group).
56
What are the two factors you need to know when using a Population Pyramid
Shape Size of bars
57
What are some causes of uneven development
Poverty Colonialisation War Priorities Climate related diseases Water supply Debt Political instability
58
What is the cycle of poverty
Low wages Little food money Poor nutrition Limited access to clean water Few job opportunities Low standard of living Low farm yields Low education levels Little work energy Poor health
59
What are some physical causes of uneven development
Disease Landlocked countries Extreme weather Lack of adequate supplies
60
What are some economic causes of uneven development
Poverty causing poverty Low life expectancy rates Frequent illness Lack of nutritional diet Rich countries can keep getting richer Poor countries can keep getting poorer
61
What is remittance
Sending money online to someone
62
What are the benefits of sending home remittance
1. Boost the receiving country's GNI 2. In countries such as Somalia, remittances account for more of the country's wealth than international trade
63
What are the drawbacks of sending home remittance
1. Countries become too dependent on remittance and if there is problems sending money to the receiving country, this can have a large knock of effects on the economy 2. Money sent abroad could be used to fund extremism (eg: Al Shabaab in Somalia or Boko Haram in Nigeria)
64
What are the good strategies we can take to reduce the development gap
Debt relief Fairtrade Aid Tourism Industrial development Microfinance loans Investments Intermediate technology
65
What is industrial development
The development of industry, such as factories and infrastructure
66
What is a microfinance loan
The provision of financial help (mainly money) to small businesses and private enterprises which do not have access to banking services
67
What is an investment
The action or process of investing money for profit. Usually from a HIC to a LIC
68
EXAM QUESTION Explain how industrial development can help reduce the development gap
Industrial development can allow the LIC to increase its income as a way to reduce the development gap. It will be producing more profitable value added goods rather than primary products (eg: oil, water, fish)
69
What is migration
The movement of people from place to place
70
What are four different types of migration + meanings
Economic migration: moving to find work or follow a particular career path Social migration: moving somewhere for a better quality of life or to be closer to family or friends Political migration: moving to escape political persecution or war Environmental migration: moving due to environmental reasons, such as escaping natural disasters such as flooding, or climate change
71
What is a push factor
Those that force a person to move/leave a place
72
What is a pull factor
Those that encourage a person to move to a place
73
What is an emigrant
Someone who moves out of their original country permanently
74
What is an immigrant
Someone who moves from one country to another foreign country permanently
75
What is an economic migrant
A person who moves out voluntarily to seek a better life
76
What is the difference between forced migration and voluntary migration
Voluntary focuses on the advantages and disadvantages of moving Forced only focuses on the disadvantages
77
What is a refugee
Someone who is forced to move out of their home due to natural disasters, war, persecution or political instability
78
What is a displaced person
A person forced to move out of their home, but stays in the same country or origin
79
EXAM QUESTION How does uneven development cause international migration
Uneven development can lead to people moving across borders in pursuit of higher wages and a better standard of living / quality of life. This is known as economic migration. Since 2004, more than 1.5 million Polish nationals have moved to the UK because it’s relatively low ~2% unemployment rate (pull-factor), compared with Poland’s high ~10% unemployment rate (push-factor). In addition to a greater chance of employment, higher wages in HICs versus NEEs can be a major contributing factor in people’s decision to move. Other push factors, might include: lack of infrastructure; lack of educational opportunities; and, poor quality healthcare.
80
What is aid
The transfer of resources from a HIC to an LIC. Aid includes money, equipment, food, training, skilled people and loans
81
What are different types of aid
Multilateral International Voluntary Short term Long term Tied Bilateral
82
What is international aid
A gift, which can take the form of money, goods or services, given to a developing country. Unlike a loan, international aid does not have to be repaid at a later date. International aid is managed by a country’s government (e.g. the Department for International Development in the UK).
83
What is voluntary aid
Where individuals, primarily in HICs, donate money or goods to charities like Oxfam. Where international aid is long-term and targeted, voluntary aid is usually short-term and focuses on individual crises (e.g. 2020 Beirut explosion).
84
What is bilateral aid
Aid from one country to another
85
What is tied aid
Aid given with certain conditions eg: the recipient has to spend the aid money on the donor country's products
86
What is multilateral aid
When richer governments give money to an international organisation such as the World Bank, which then redistributes the money as aid to poorer countries
87
What is long term aid
Sustainable aid that seeks to improve resilience (eg: wells to reduce the effect of drought, or improvements in agriculture)
88
What is short term aid
Emergency help usually in response to a natural disaster (eg: earthquake, volcano)
89
What is intermediate technology
Simple, easily learned and maintained technology used in a range of economic activities serving local needs in LICs.
90
What are benefits of intermediate technology
Cheap costs Good reliability Good sustainability Creates opportunities
91
What are drawbacks of intermediate technology
Still costly Must be treated well throughout (needs to be achievable and meet peoples needs)
92
EXAM QUESTION Explain why the use of aid must be sustainable if it is to be effective in raising a poor country's level of development
The most successful forms of international aid are those that are sustainable. In this case, sustainability means that any aid should be able to meet the needs of the current generation without damaging the prospects of future generations. For example, large infrastructure projects like the Grand Inga project in the DRC were to be financed by loans from the World Bank. This means the initial loans and interest have to be repaid, which can increase the time taken for these projects to return a profit to the recipient country. Furthermore, without the right training and equipment, large infrastructure projects can be difficult to maintain, to ensure they provide good value for money. Additionally, large hydropower projects often require the flooding of land, resulting in habitat destruction, which can negatively affect their sustainability. However, projects like Oxfam Goat Aid, are much more sustainable, as: the goats provide a good food source (i.e. milk, cheese and meat); their dung can be used as fertiliser for crops; milk can be sold for profit; goats can be easily bred for profit. All of these factors help improve people’s quality of life and level of development, without the need for complex technology or advanced skills to ensure their long-term sustainability.
93
What is a tariff
Taxes paid on imports by the importer. They make imported goods more expensive and less attractive than home produced goods.
94
What is a quota
Limits on the quantity of goods that can be imported. They are usually applied to primary products, so they mainly affect poorer countries.
95
What is freetrade
When countries do not charge tariffs and quotas to restrict trade with each other. This has the potential to benefit the world’s poorest countries and help reduce the development gap. The World Trade Organisation (WTO) aims to make trade easier and remove barriers.
96
What is agricultural subsidy
A financial barrier to Free trade Financial support from governments to help their farmers. Rich countries can afford to pay subsidies and so their products are cheaper than those produced by poorer countries. This goes against Free Trade.
97
What are trading blocs
Countries which are grouped together to increase the level of trade between them by cutting tariffs and discouraging trading with non members.
98
What is an example of a trading bloc
EU (European Union)
99
What are the benefits of LICs joining a trade group
1. Encourages trade between member countries 2. Richer countries cannot shop around to get cheaper products 3. Members can command a greater share of the market 4. Members are able to get higher prices for their goods
100
What is Fairtrade
A system where agricultural producers in countries at lesser stages of development are paid a fair price for their produce. This helps them to attain a reasonable standard of living
101
What are the advantages of using Fairtrade
Farmer gets all his money back from the sale of his crop Farmers are guaranteed a fair price Part of the price is invested in local community development projects In return, the farmer must agree to farm in an environmentally friendly way The product gains a stronger position in the global market
102
What is debt relief
Forgiving a debt in part or in total (writing it off)
103
What are the benefits of debt relief
HIPC – Heavily Indebted Poor Countries Guyana – public hospitals provide free healthcare, not possible restructuring of national debts In 1999 total foreign debt of HIPC was worth 457% of exports Current rates of borrowing began in 1970s, when commodity prices were high and expected to remain high. Interest rates increased in the 1980s and commodity prices fell. More than 35 countries, including Guyana, are receiving over $117 billion of debt relief from creditors (part of their debts is being cancelled) Guyana reduced interest payments by £60 million a year, and increased social spending by 25%. Uganda is receiving $3.7 billion in multilateral debt relief. In 1990s, Uganda spent 20% of export revenues paying off debts, as of 2010, it pays just 5% of export revenues. Uganda’s rural transpiration budget has doubled over the past decade to $15.5 million per year to help facilitate the movement of goods. This has helped to increase income, as people are able to transport goods to market more easily. Debt stock of 35 HIPCs has dropped from $141 billion to $23 billion as a result of debt relief initiatives.
104
What is tourism
The movement of people to places outside their normal places of work and community, the activities carried out during their holiday, and the facilities created to meet to their needs
105
What are benefits of tourism
Foreign currency spent by tourists can be invested in improving local education, health and other services. Jobs for local people are created and people can learn new skills in tourism services. Construction creates jobs and develops skills for local people. Local infrastructure is improved as water and sanitation facilities, roads, buses, taxis and airports are provided for tourists. Visitors get an insight into local customs and traditions. Tourists see beautiful landscapes, wildlife and plants. They can also be educated about the dangers to fragile ecosystems in the modern world.
106
What are drawbacks of tourism
Profits go to foreign companies, such as tour operators and hotel chains, rather than to the local community. Foreign companies may bring foreign workers to do the skilled jobs; so local people only do low skilled, poorly paid work. House prices rise when foreign companies and investors buy property for hotels and holiday homes. This often makes houses too expensive for locals. Important projects for local communities might be side-lined as infrastructure developments are focused on tourists. If the aim of activities is to entertain, rather than educate tourists, this may belittle the local people. Pollution and disruption to wildlife habitats could occur if tourism isn't sustainable