The changing economic world Flashcards
1
Q
LIC
A
Low Income Country
2
Q
NEE
A
Newly Emerging Economy
3
Q
HIC
A
High Income Country
4
Q
GDP
A
Gross Domestic Product
A measure of the size of an economy.
5
Q
Socio-Economic
A
Relating to the interaction of social and economic factors such as education and wealth.
6
Q
Development indicators
A
Usually, a numerical measure of quality of life in a country.
7
Q
Development
A
The process of change whereby peoples lives get better.
8
Q
The development gap
A
The widening difference in levels of development between the world’s richest and poorest countries.
9
Q
Birth rate
A
Number of babies born per 1000 people per year.
10
Q
Death rate
A
Number of deaths per year per 1000 people.
11
Q
GNI
A
- Gross National Income
- A measure of economic activity that is calculated by dividing the total national income by the size of the population.
- It includes overseas investments, goods, and services.
12
Q
Life expectancy
A
Average number of years someone is expected to live from the year they were born.
13
Q
Infant mortality
A
Average number of deaths of infants under 1 year old per 1000 live births.
14
Q
Literacy rate
A
The percentage of people in the population that have basic reading and writing skills.
15
Q
Demographic data
A
- Statistical data about the characteristics of a population.
- Age, gender, health, employment, and income of the people within the population.
16
Q
HDI
A
- Human development index.
- A composite indicator
- Takes into account health (life expectancy), education (literacy rate), and wealth (GNI per capita).
17
Q
According to the 2022 census, which countries have the highest HDI?
A
- Switzerland - 0.967
- Norway - 0.966
- Iceland - 0.959
18
Q
According to the 2022 census, which countries have the lowest HDI?
A
- Somalia - 0.380
- South Sudan - 0.381
- Central African Republic - 0.387
19
Q
LIC examples
A
Haiti
Mali
Myanmar
20
Q
NEE examples
A
China
India
Brazil
21
Q
HIC examples
A
UK
Germany
Japan
22
Q
Primary sector
A
Extracting raw materials from the earth (Fisherman)
23
Q
Secondary sector
A
Manufacturing (Baker)
24
Q
Tertiary sector
A
Providing a service (Teacher)
25
Quaternary sector
High tech, research roles (Coder)
26
DTM
Demographic Transition Model
Shows how population may change over time & space.
27
Stage 1 of the DTM
* Most people work as subsistence farmers.
* High birth rates and death rates because of bad healthcare.
* Pre-industrialization
28
Stage 2 of the DTM
* Less famine and higher living standards.
* Agricultural based economy.
* Industrial revolution
29
Stage 3 of the DTM
* Rural to urban migration
* Advancements in production and trade.
* Birth rate declines as a result of RUM.
30
Stage 4 of the DTM
* Post industrial economy
* People working in the tertiary sector.
* Equality and quality of life is the highest it has ever been.
31
Stage 5 of the DTM
Very low birth rate:
* Women choosing careers
* Smaller families due to high
cost of living.
* Ageing population
* Sedentary lifestyle
* Increase in obesity, heart disease, diabetes
32
Population pyramids
Shows the structure of the people in a country in terms of age and gender.
33
Causes of inequality
Colonialism
* Often at a lower level of development after gaining independence.
* Foreign countries controlled economies and sell raw materials.
* Become dependent on richer countries.
34
Causes of inequality
Neo colonialism
* Richer countries exploit cheaper labour and raw materials.
* Offer conditional loans so the country develops how others want it to.
35
Causes of inequality
Topography
* Country is steep then it is harder to produce food/develop infrastructure.
* Limit trade, no basic services.
36
Causes of inequality
Education
* Educated people can produce better goods/services.
* Earn more and pay more tax.
37
Causes of inequality
International relations
* Good relations mean better trade agreements.
* Loans can be on offer.
38
Causes of inequality
System of governance
* Corrupt governments can steal money.
* Authoritarian governments can put in place any policies.
* Democratic governments are usually least extreme.
39
Causes of inequality
Health
* More people get sick because of a lack of healthcare and therefore can't work.
40
Causes of inequality
Climate
* Intense climate means less crops will grow.
* Malnutrition and less crops to sell.
41
Causes of inequality
Landlocked countries
* Harder to trade.
* Must rely on relations with other countries.
42
Causes of inequality
Natural resources
* Creates short term income
* Money generated can go towards development.
43
Causes of inequality
Natural hazards
* Destroy infrastructure
* Money not going to development.
44
What are the strategies for reducing the development gap
- Investment
- Industrial development
- Aid
- Dept reduction
- Fair-trade
- Intermediate technology
- Micro-finance loans
45
Reducing the development gap
Aid + example
Money or resources given by a country that can be spent on development projects.
One laptop per child (funded by google)
46
How does aid reduce the development gap?
+ negatives
* Can reduce health inequalities
* Countries become dependent
* Does't necessarily tackle wealth inequalities.
47
Reducing the development gap
Industrial development + example
Country moving away from primary sector and into secondary.
China's development since 1980.
48
How does industrial development reduce the development gap?
+ negatives
* Higher wages and incomes so more tax.
* Can lead to a multiplier effect.
* Can be made vulnerable to exploitation.
49
Reducing the development gap
Investment + example
Trans national companies put money into other countries development.
Over 2000 Chinese companies have invested billions into African countries.
50
How does investment reduce the development gap?
+ negatives
* Increased middle class
* More local people can be employed.
* Cheaper labour to get more profit.
51
Reducing the development gap
Dept relief + example
When dept is canceled or interest rates are lowered.
Zambia had $4 billion canceled in 2005 (enough to start free healthcare).
52
How does dept relief reduce the development gap?
+ negatives
* Countries can spend more money on services and infrastructure.
* Money can sometimes go missing.
53
Reducing the development gap
Fair-trade + example
Farmers getting a fair price for their goods.
Divine chocolate bars (44% owned by cocoa farmers)
54
How does fair-trade reduce the development gap?
+ negatives
* Invests in communities which can cultivate skills.
* If global price falls , farmers still receive regular income.
* Most still goes to retail.
55
Reducing the development gap
Intermediate technology + example
Systems that improve quality of life but are also simple to use.
Afrider hand pump provides clean water that the community can easily fix.
56
How does intermediate technology reduce the development gap?
+ negatives
* Industrial and skills output can increase.
* Not very sophisticated technologies.
* Not done on a large scale.
57
Reducing the development gap
Microfinance loans + example
Small loans are given out.
The Grameen Bank lends $200 to village women to buy a phone.
58
How do microfinance loans reduce the development gap?
+ negatives
* Poorer people can stand on their own feet.
* Loans must be paid back
* Not a big scale impact.
59
Bottom up aid
* Given by NGOs
* Helps smaller communities
* Lower cost
* E.g. goat aid in Tanzania
60
Top down aid
* Given by TNCs
* Larger scale
* High cost
* E.g. building a HEP dam
61
How much does tourism contribute to Jamaica's GDP
34%
62
Where is Jamaica located
It sits above the equator 140 km south of Cuba.
It is on the Caribbean plate and Gonave micro-plate.
Just under 11,000 square km.
63
What is the total income each year from tourism in Jamaica
$2 billion
64
How many people on average visit Jamaica per year
Around 2.4 million visit the island plus 1.9 million cruise passengers.
65
Economy in Jamaica due to tourism
* Contributes a 3rd of the country's GDP
* Income plus taxes are high and can be put towards development
66
Employment in Jamaica due to tourism
* Provides 200,000 jobs.
* Provides formal income
67
Infrastructure in Jamaica due to tourism
* New ports and cruise facilities have been built
* Roads and airports slower so some parts are isolated still.
68
Quality of life in Jamaica due to tourism
* Northern areas - high quality housing.
* Large number still live with limited supply of necessities.
69
The environment in Jamaica due to tourism
* Path erosion, excessive waste, harmful emissions
* Eco-tourism is expanding.
