the changing economic world Flashcards
1
Q
define development:
A
Positive progress that makes things better. As a country develops, people’s standard of living and quality of life will usually improve. Different factors affect a country’s level and speed of development.
2
Q
what is the development gap?
A
The difference in standard of living between the richest and poorest countries.
3
Q
describe GNI:
A
GNI = Gross National Income
- economic measure.
- a common measure of wealth and income, used by the World Bank.
- the total value of the goods and services produced by a country, plus money earned from and paid to other countries. It is expressed as per capita (per person) of the population.
4
Q
what are the GNI per capita’s that classify a country as an HIC or an LIC?
A
HIC GNI per capita: $14,005 or above.
LIC GNI per capita: $1,145 or less.
5
Q
how do you calculate GNI per capita?
A
money a country earns per year / country’s population.
6
Q
describe HDI:
A
HDI = Human Development Index
- social measure.
- created by the United Nations.
- composite index (made up of many different elements).
7
Q
what are the three indicators that HDI uses to show a country’s development?
A
- GNI per capita.
- number of years of education.
- life expectancy at birth.
8
Q
describe the indicator - death rate:
A
- the number of people who die in a year for every 1000 people in a population.
- low number in an HIC.
- less reliable. some more developed countries (e.g. UK, Germany, Japan) have older populations and death rates will be high. less developed countries (e.g. Ivory Coast, Bangladesh) have younger populations, so death rates may be lower.
9
Q
describe the indicator - literacy rate:
A
- the percentage of people who have basic reading and writing skills.
- high percentage in an HIC.
- high rate shows that a country has a good education system.
10
Q
describe the indicator - life expectancy:
A
- the average number of years a person may expect to live when born.
- high number in an HIC.
11
Q
describe the indicator - number of doctors:
A
- the number of doctors for every 1000 people.
- high number in an HIC.
- indicates how much money a country has to spend on medical services.
12
Q
describe the indicator - birth rate:
A
- the number of children born in a year for every 1000 people in a population.
- low number in an HIC.
- reliable measure. as a country develops, women are more likely to be educated and want a career rather than stay at home. they marry later and have fewer children.
13
Q
describe the indicator - infant mortality:
A
- the number of deaths of infants under one years old per 1000 live births in a given year.
- low number in an HIC.
- useful measure of the country’s healthcare system.
14
Q
describe the indicator - access to safe water:
A
- the percentage of the population that has access to safe water.
- high percentage in an HIC.
- a high percentage of access to clean water shows a country has modern infrastructure, such as dams, reservoirs, and water treatment plants.
15
Q
what are some limitations of development data?
A
- data could be out of date or hard to collect (e.g. due to a disaster/war).
- data could be unreliable (e.g. infant mortality rates could be much higher than a country reports).
- government corruption may mean that data is unreliable.
- rapid migration can make it hard to accurately record population and earnings.
- indicators mainly focus on the formal sectors (e.g. the capital city, which is much more developed) than on the informal sectors. this is very important in LICs.
16
Q
define the DTM:
A
DTM = Demographic Transition Model
- A graph of changing population structure and development.
17
Q
what are some limitations of the DTM?
A
- based on European countries.
- assumes all countries will pass through all of the stages (some countries may never reach every stage).
- does not factor in migration in/out of the country.
18
Q
describe stage 1 of the DTM:
A
- highly fluctuating birth and death rates. giving no or hardly any population growth.
- limited birth control and family planning.
- children are the source of future income.
- high incidence of disease.
- poor nutrition and famine.
- poor levels of hygiene.
- the UK was at this point up to 1760.
19
Q
describe stage 2 of the DTM:
A
- birth rates remain high but death rates fall rapidly, giving a rapidly expanding population.
- improved public health.
- decrease in child mortality.
- improved medical provision and vaccinations.
- improvement in food production (better nutrition).
- improved transport to move food, doctors, etc.
- the UK was at this point between 1760 and 1880.
20
Q
describe stage 3 of the DTM:
A
- birth rates fall rapidly, death rates continue to fall even more than the birth rates, giving a slowly increasing population.
- women are now educated and having their own careers and therefore are having children later on or not at all.
- preference for small families.
- the UK was at this point between 1880 and 1940.
21
Q
describe stage 4 of the DTM:
A
- low birth rates and even lower death rates, which fluctuate slightly to give a steady population but a slight increase.
- population growth is small.
- fertility is dropping in men and women.
- more women in the work force.
- the UK has been at this point since 1940.
22
Q
describe stage 5 of the DTM:
A
- death rate slightly exceeds birth rate. population declines.
- greater financial independence of women.
- concerns of population growth and resources.
- increase in same sex relationships.
- rise in the concept of childlessness.
- ageing population causes an increased death rate.
- the UK has not yet reached this point, but Japan and Italy has.
23
Q
what are some physical causes of uneven development?
A
- landlocked countries have no coastline and so can’t trade effectively via ports like Southampton. this affects their economy.
- extreme weather such as droughts can cause famine. damages from tropical storms in the Philippines cost the country 5% of their GDP.
- tropical areas have more climate related diseases (e.g. malaria transmitting mosquitoes), meaning people are unable to work and earn money.
24
Q
what are some historical causes of uneven development?
A
- many former African colonies have found it difficult to cope after independence. civil unrest and war has been common. this affects the economy.
- many European nations became richer as they formed colonies in Africa and North America. plantations were set up, using slave labour. the profits went to the rich countries.
25
what are some economic causes of uneven development?
- most LICs have a lot of primary industry like fishing and farming. products like tea and coffee are grown in African countries, but are sold for very low prices. often, growers make little profit.
- lack of clean water can damage health and be a basic barrier to economic development.
- most of the world's trade is between rich countries in power. LICs often sell raw materials to HICs and NEEs for a very low price do it is very difficult for them to become richer. HICs and NEEs export manufactured products which can be sold for high prices.
- prices for raw materials like coffee, rice and copper vary greatly from year to year, so there is no reliable income for poor countries which sell these primary products.
- HICs and NEEs have many more secondary (factories) and tertiary (services) industries which command high prices.
26
what are some consequences of uneven development?
- wealth is unevenly distributed between people and regions - some are rich, the rest are poor.
- health care and life expectancy is lower in poorer countries.
- education is poor in LICs as the money isn't available to invest in schools, so literacy levels are low. people can't get qualifications they need to get better paid jobs in the tertiary and quaternary sectors.
- quality of life in poorer countries is poorer (housing, health, education, living conditions).
- international migration occurs as people move away from poor and into rich countries (push and pull factors). this puts pressure on HIC cities (e.g. Southampton) with housing shortages, pressure on schools and health services, and unemployment.
27
describe global wealth inequalities statistics:
- USA isn't the wealthiest country (Qatar is), but it is the world's most important economic 'engine of growth'.
- in 2014, fastest growth in wealth was in North America, which now holds 35% of the world's total wealth. this is held by just over 5% of the world's adult population.
- China has recorded the highest economy growth since 2000. personal wealth in India and China has quadrupled since 2000.
- Africa has a 1% share of global wealth.
28
describe the health situation in LICs:
- 4 in every 10 deaths are among children under 15.
- childbirth complications are among one of the main causes of death for children under 5.
- infectious diseases are among the main causes of death: lung infections, HIV/AIDs, malaria and TB account for 1/3 of all deaths.
29
describe the health situation in HICs:
- only 1 in every 100 deaths are among children under 15.
- 7 in 10 deaths are among people aged 70 and over.
- lung infections are the only main infectious causes of death.
- the main causes of death are chronic diseases: heart and lung diseases, cancer, dementia, diabetes.
30
describe malaria:
- life threatening disease caused by parasites transmitted to people by infected mosquitoes.
- in Africa, one child dies every minute from malaria, although it's preventable and curable.
- in 2013, malaria caused over half a million deaths, mostly among African children (this is 80% of all malaria deaths worldwide).
- malaria is concentrated on the tropics, where the climate allows malarial mosquitoes to thrive.
- the wealthier and more developed African countries have fewer malaria cases as they have vaccination programmes.
31
describe international migration:
- international migration reached a high in 2015. poverty and conflict meant 14 million people were forced from their homes.
- African immigrants are trying to reach Europe by boat. in the first half of 2015, 50,000 immigrants landed in Italy - many of these refugees were fleeing conflict and persecution.
- the UK receives computer engineers and doctors from Poland and India. these are highly skilled people. the rate of development of their NEE home countries as a result begins to slow ('brain drain').
- migrants from LICs send home remittances. for Nepal, remittances make up 25% of its GDP.
32
describe the development gap and technology:
- people in LICs are now more aware of the development gap between them and HICs. many people in LICs are finding out about the 'bright lights' of richer countries as technology spreads.
- in 2015, there were 7 mobile phones for every 10 people in Africa.
33
how does a country's weather, soil fertility and its proximity to a plate boundary affect its development?
- calm predictable weather means countries can plan their crop growth throughout the year for maximum efficiency, and also reduces the chance of extreme weather events.
- good soil fertility also means crop yields are higher: countries can sell some of these crops to other countries for profit.
- if a country is far away from a plate boundary, it isn't as subject to damaging earthquakes and volcanic eruptions.
34
describe microfinance loans, and their advantages and disadvantages:
- small scale financial support direct from banks or members of the public to help individuals or families set up businesses.
- loans are usually less than $100 with very low interest. loans will be paid back when the business eventually kicks off.
- it creates jobs and stimulates the LIC economy.
advantages:
- helps people who don't normally borrow from big banks.
- the loans are small and easy to pay back with the profits of their business.
- helps people to earn more money which they can invest into their family, their community, and in helping the area to develop.
disadvantages:
- a loan still needs to be paid back with interest. what if the person can't afford that, or what if their business fails? they are then once again in personal debt.
35
describe debt relief, and its advantages and disadvantages:
- during the great recession of the 1980s, many LICs borrowed money from organisations such as the World Bank, in order to continue developing their country.
- these came with interest rates applied.
- now, these LIC economies cannot keep up, and are spending the majority of their GDP repaying their loan, and can't use it for their own development.
- debts are either reorganised to be more manageable or are reduced.
advantages:
- if debt relief means LICs ca now afford to pay back their loan, therefore they can now use their GDP for their own development.
disadvantages:
- deferring payments doesn't cut the debt, it just puts it off for a while.
- banks and other countries do not like to lose money by writing off huge million or billion dollar debts.
36
describe fair trade, and its advantages and disadvantages:
- HIC businesses buy raw materials from LIC farmers, as cheaply as possible for maximum profit. Farmers have no choice but to sell these products to these unfair businesses. the farmers feel powerless, as if they have no choice.
- many countries rely on farming as their main source of income and trade but crop prices can vary as they're based on weather and climate variations.
- farmers cannot invest in the future.
- fairtrade schemes give them a consistent market price every year.
advantages:
- having a guaranteed price for a product every year means farmers can plan and invest in a more positive future for themselves and their family. they can improve their health, education, and quality of life.
disadvantages:
- you must work cooperatively with other farmers, you cannot work by yourself.
- fairtrade products cost more in shops and rely on people being willing to pay that higher price.
37
describe using intermediate technology, and its advantages and disadvantages:
- small scale projects such as farming and making clean water.
- these projects involve the locals and use technology they can fix and maintain, which is not too high-tech or complex.
- it improves the development of the country by helping the people.
advantages:
- if technology is correct, it can save people hours of work, improving the quality of life for the whole of the community.
- hand pumps provide clean water to a whole village or community. it improves health, freeing up money to spend on something other than healthcare.
- cheap, not much energy required, easy to repair and maintain.
disadvantages:
- only helps a small number of people.
- LIC governments could become to dependent on NGOs, instead of developing their own solutions to their country's problems.
38
describe aid, and its advantages and disadvantages:
- help that is given by HIC governments or by NGOs such as Oxfam.
- help can be money, skills training, food, technology, or emergency supplies.
- aid can be short term or long term.
advantages:
- can provide vital help when needed quickly after a natural disaster.
- if done well, can improve infrastructure for people, teaching them life skills and educating them, and can impact their quality of life positively.
disadvantages:
- some aid is a loan, not a gift, and means the LIC country now owes the HIC country,
- some aid is only given if LIC countries do favours for HIC countries.
- some aid never even reaches the poorest, due to government corruption.
39
describe investment, and its advantages and disadvantages:
- investment from abroad in a country can make jobs, e.g. building a new damn or basing your large company there.
- this is not a loan, it simply builds infrastructure, and can improve ports.
- e.g. Google has opened a new office in Uganda
advantages:
- provides jobs, raising people out of poverty
- gives LICs the facilities to improve quality of life/trading ability
disadvantages:
- companies expect to get money back, so money will leave the LIC
- companies are accused of exploiting LIC's natural resources for profit
- better paid jobs aren't given to the LICs, but to the people from the HIC origin country
40
describe industrial development, and its advantages and disadvantages:
- moving away from primary and into secondary industry will increase the profits that a country makes, as products sell for more than food
- this profit could then be put to education, housing, health, developing the country further
advantages:
- governments increasing secondary manufacturing can increase their GNI via tax
- individuals will be wealthier (paid more) and can improve their quality of life
disadvantages:
- slow process, moves country from primary to secondary. money is needed to start building factories and training workers.
- countries borrow money to do this, leading to debt/relying on other countries/companies
- a company's main aim is profit, can be lost to the company. they can leave at any time
41
give some tourism statistics in Kenya:
- travel and tourism make up 8.5% of total jobs.
- tourism adds $7.9 billion to Kenya's GDP.
- tourists have spent $1.9 billion in Kenya.
- in 2019, it had 2.04 million overnight visitors.
42
how does tourism in Kenya reduce the development gap between it and other countries?
- the Kenyan government can tax the Kenyan tourist workers and companies so this tax is used by the Government to help develop the country. they can spend money on hospitals, schools, and electrical supplies nationwide. therefore, even villages that don't experience tourism benefit from tourism.
- foreign currency brought to the region by tourists can be invested improving local education, health, and other services so improved health means lower infant mortality rates, healthier workers and higher life expectancies. economic input also raises the GNI. the development gap reduces.
- this only happens in tourist areas, though, to look good.
- jobs for local people are created from tourism, giving people the chance to learn new skills in tourism services. these are better paid. they spend these wages in their local shops, so tourist businesses are paid better wages, which they can spend on other local shops, boosting their businesses, and so on.
- POSITIVE MULTIPLIER EFFECT.
43
describe the different sources of aid to LICs:
- bilateral aid: HIC governments can provide aid to LIC governments.
- humanitarian aid: NGOs (e.g. Oxfam, Red Cross) provide aid to LIC governments.
- multilateral aid: the World Bank and the UN provide aid to LIC governments.
