The Changing Economic World Flashcards

1
Q

What is development?

A

The progress in a country in terms of:

  • economic growth
  • the use of technology
  • quality of life
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2
Q

What economic factors can affect quality of life?

A
  • income
  • job security
  • standard of living
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3
Q

What physical factors can affect quality of life?

A
  • natural disasters
  • diet/nutrition
  • climate
  • environmental quality
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4
Q

What social factors can affect quality of life?

A
  • crime
  • relationships e.g. arranged marriage
  • education
  • health
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5
Q

What psychological factors can affect quality of life?

A
  • happiness
  • security
  • freedom
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6
Q

What does LIC stand for?

A

Low income county

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7
Q

What does HIC stand for?

A

High income country

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8
Q

What is a LIC?

A

A poorer country with a gross national income of $1045 or less

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9
Q

What is a HIC?

A

A richer country with an income per person of $12746 or above

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10
Q

What does NEE stand for?

A

Newly emerging economy

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11
Q

What are NEEs?

A

Countries that are experiencing high rates of economic development and rapid industrialisation

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12
Q

Examples of NEEs?

A
  • Brazil
  • Russia
  • India
  • China
  • South Africa

(BRICS countries)

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13
Q

How is GNI calculated?

A
  • by adding together the value of all good and services produced by a country as well as income
  • then dividing by the population
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14
Q

What does GNI stand for?

A

Gross national income

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15
Q

How is GNI used to measure development?

A

Shows the average wealth of a country’s citizens

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16
Q

What are the limitations of GNI?

A
  • misleading - figures include those who don’t work e.g. elderly
  • inaccurate data - people lie about earnings
  • rapid migration makes it hard to know where people live
  • measured in US dollars - currency values change daily
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17
Q

How is literacy rate used to measure development?

A

Shows the percentage of people with basic reading and writing skills

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18
Q

Limitations of using literacy rate to measure development?

A

Carrying out surveys in LICs and conflict zones is difficult

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19
Q

What are the social ways of measuring development?

A
  • literacy rate
  • people per doctor
  • access to safe water
  • infant mortality rate (IMR)
  • life expectancy
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20
Q

What are the economic ways of measuring development?

A

Gross national income (GNI)

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21
Q

How is people per doctor used to measure development?

A

The number of people who depend on a single doctor

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22
Q

Limitations of measuring development using people per doctor?

A

In NEEs people use phones for healthcare advice so this is not taken into account

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23
Q

How is access to safe water used to measure development?

A

Shows the percentage of people who have access to water that doesn’t carry a health risk

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24
Q

Limitations of measuring development using access to safe water?

A
  • water quality can decline due to flooding/poor maintenance

* rising costs of water in cities forces people to start using unsafe sources

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25
Q

How is IMR used to measure development?

A

Shows the number of deaths of children under one year per 1000 births

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26
Q

What does IMR stand for?

A

Infant mortality rate

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27
Q

Limitations of measuring development using IMR?

A

Not all infant deaths are recorded and many children are buried in unmarked graves

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28
Q

How is life expectancy used to measure development?

A

Shows the average number of years a person can be expected to live

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29
Q

Limitations of measuring development using life expectancy?

A

Where IMR is high, average life expectancy will be lower than it actually is

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30
Q

What does HDI stand for?

A

Human development index

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31
Q

What does HDI take into account?

A
  • income
  • life expectancy
  • education
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32
Q

How does HDI use education to measure development?

A

The HDI uses an education index based on the average number of years of schooling each person has in a country

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33
Q

What is the Brandt Line?

A

A visual depiction of the North-South divide between their economies

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34
Q

When was the Brandt Line proposed?

A

1980s

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35
Q

What is the Brandt Line based on?

A

GDP per capita

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36
Q

What is natural increase the difference between?

A

Birth and death rate

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37
Q

What is the DTM?

A

The demographic transition model

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38
Q

What is the first stage in the DTM?

A

High birth rate, high death rate, low population

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39
Q

What is the second stage in the DTM?

A

High birth rate, fall in death rate

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40
Q

What is the third stage in the DTM?

A

Declining birth rate, low death rate, population increasing

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41
Q

What is the fourth stage in the DTM?

A

Low birth rate, low death rate, longer LI

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42
Q

What is the fifth stage in the DTM?

A

Higher death rate due to ageing population

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43
Q

An example of a country that doesn’t fit the DTM?

A

Botswana - AIDS/HIV means death rate hasn’t dropped although birth rate has

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44
Q

Advantages of the DTM?

A
  • shows change through time
  • model was adapted to include a fifth stage - and other countries are following this pattern
  • explains why things have happened in a particular order
  • shows what has happened in the UK, European and North American countries
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45
Q

Disadvantages of the DTM?

A
  • some NEEs have gone through the stages faster
  • some African countries have seen a rise in death rate due to HIV
  • assumes birth rate fell as a consequence of changes in death rate - but some countries may be more affected by culture
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46
Q

What are the physical causes of uneven development?

A
  • landlocked countries - no sebourne trade and have to pay tax transport goods through other countries
  • extreme weather - damaged infrastructure
  • climate-related diseases - fewer people able to work
  • lack of adequate supplies e.g. water
  • climate change - flooding and more severe storms
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47
Q

What are the economic causes of uneven development?

A
  • poverty - illness and lack of nutritious diet make development hard
  • reliant on primary products
  • debt
48
Q

Case study to show how trade can slow down the economic development of countries?

A

Zambian copper - government bought all of the copper mines, borrowing money from the World Bank. other countries started selling copper as well; the demand and price dropped

49
Q

Case study to show how physical causes can slow down economic development?

A

Haiti - 7.0 earthquake

  • 300 000 people died - loss of workforce
  • 300 000 injured - needed healthcare, no hospitals
  • 25% of schools damaged - lack of education
  • damaged infrastructure
50
Q

What are the historical causes of uneven development?

A
  • trade bloc e.g. EU - free trade between countries
  • colonialism - European countries grew rich from slave trade - when colonies become independent they have a weak economic base
51
Q

Why did European colonies have a weak economic base when they became independent in the 60s?

A

Many were primary product producers - leads to civil war and army taking over = corruption

52
Q

What are the social causes of uneven development?

A
  • rapid population growth
  • poor water supply
  • poor education means uneducated workforce
  • poor health
53
Q

What are the political cause of uneven development?

A
  • corrupt governments
  • civil war
  • colonial past
  • dictatorships
54
Q

What is the Gini coefficient?

A

A ratio with values between 0 and 1 that show how equally wealth is distributed within a country (0 means wealth would be spread equally between everyone)

55
Q

Which countries generally have a higher Gini coefficient?

A

LICs and NEEs, as well as China and the U.S.

56
Q

Which countries generally have lower Gini coefficients?

A

European countries

57
Q

What are the consequences of uneven economic development?

A
  • lack of social opportunity - stuck in poverty
  • lower growth of wealth
  • political unstability - due to inequality
  • poverty
  • more international migration
58
Q

What are economic migrants?

A

Poor people moving elsewhere to find work

59
Q

What are refugees?

A

People who are poor or rich, fleeing war or persecution

60
Q

Why does Europe need migrants?

A

Falling birth rates and lack of workers

61
Q

Why do Europeans like to work in Britain?

A

They can earn a lot more than in their home countries

62
Q

What are the main places that migrants have travelled from?

A

Places suffering from war e.g. Syria, Afghanistan, Iraq

63
Q

What are the push factors of migration?

A
  • cramped safe houses
  • desertification - population too big for the food that is grown at farms
  • war, conflict
64
Q

What are the pull factors of migration?

A
  • better, safer life

* more jobs = money

65
Q

Why are places in Europe receiving more migrants?

A
  • LI rising - people reaching retirement means a shortage of workers in some areas
  • EU means more migration as well as influx of economic migrants and refugees from Africa and the MIddle East
  • female employment has risen, and fewer multi-generational households
  • few countries in the EU have birth rates that above the retirement rate
66
Q

What does NGO stand for?

A

Non-governmental organisation

67
Q

What is an NGO?

A

An aid charity

68
Q

What is aid?

A

When a country or NGO donates resources to another country

69
Q

What is short term aid?

A

Emergency help, usually after a natural disaster

70
Q

What is long term aid?

A

Sustainable aid - improve resillience

71
Q

What is multilateral aid?

A

When rich governments give money to an international organisation e.g. world bank and is redistributed to poorer countries

72
Q

What is bilateral aid?

A

Aid from one country to another - often tied

73
Q

What is tied aid?

A

Aid given with certain conditions e.g. the recipient country has to buy certain goods from the donor country

74
Q

What is voluntary aid?

A

Money donated by the general public in richer countries and distributed by NGOs

75
Q

Limitations of short term aid?

A

Reaches people in cities but not in rural areas

76
Q

Limitations of long term aid?

A

People become dependant on it

77
Q

Limitations of tied aid?

A

Poor countries may be able to buy products cheaper elsewhere

78
Q

Limitations of voluntary aid?

A

People may not give if they believe their money won’t go to the right place

79
Q

How can economic investment and industrial development help to close the development gap?

A
  • developing industry increases GNI
  • processing raw materials adds value
  • trade leads to trickle down of wealth

e.g. hydropower

80
Q

How can allowing TNCs into poorer countries help to close the development gap?

A

Bring in FDI which pays for factories and provides jobs

81
Q

What is FDI?

A

Foreign direct investment - when people in one country pay for property in another. this injects cash into economies so better access to industry & finance

82
Q

What are the limitations of allowing TNCs into LICs?

A

Only pay low wages - will only invest if they make a good profit

83
Q

What are some ways of closing the development gap?

A
  • aid
  • economic investment and industrial development
  • allowing TNCs into LICs
  • fair trade
  • microfinance
  • intermediate technology
  • debt relief
84
Q

How can economic fair trade help to close the development gap?

A

Consumers pay more to ensure the farmer earns a good wage. If global price for bananas goes down, then the farmers will still get a regular income

85
Q

What are the limitations of fair trade?

A
  • higher cost

* most of profit still goes to the shop and importer

86
Q

What is microfinance?

A

Small loans that can be made available to people in LICs

87
Q

How can microfinance help to close the development gap?

A

People in LICs can start businesses and become independent

88
Q

What are the limitations of microfinance?

A

May not be able to reduce poverty on a large scale

89
Q

What is intermediate technology?

A

Tools, machines and systems to improve QOL and are simple to use

90
Q

What is an example of how intermediate technology can help to close the development gap?

A

Solar-powerered LED bulbs in Nepal - allows people to study and work at home - skills and income which helps to boost economy and development gap

91
Q

What is debt relief?

A

When some or all of a country’s debt is cancelled so they have money to develop

92
Q

Case study for debt relief?

A

Zambia - $4 billion debt cancelledin 2005. In 2006 they had enough money to start a free healthcare scheme for people in rural areas

93
Q

Limitations of debt relief?

A

Sometimes the money borrowed beforehand had not been used wisely e.g. PM of DR of Congo pocketed $4 billion that had been lent to his country

94
Q

What is the case study for how tourism can help to reduce the development gap in a LIC?

A

Bhutan

95
Q

What are the challenges that Bhutan faces?

A
  • povery - 25% live in poverty
  • climate change - malaria, floods, drought
  • has no fossil fuels and must import oil
  • poor roads - hard to transport goods
  • rural-urban migration - shanty towns
96
Q

In Bhutan, what does the money raised by the TDF go towards?

A
  • education and healthcare
  • protecting the environment
  • protecting culture
97
Q

Where is Bhutan located?

A

Between India and Tibet in China

98
Q

What is gross national happiness?

A

4 principles that Bhutan’s tourism industry follows

99
Q

What are the principles of GNH?

A
  • sustainable and equal development
  • environmental preservation
  • good governance
  • preservation of culture
100
Q

How does tourism benefit Bhutan?

A
  • bring jobs
  • ecotourism funds conservation
  • volunteer tourism brings skills and time
  • improve infrastructure`
101
Q

What is the TDF in Bhutan?

A

Tourism development fund - income generated from tourism tax which is spent on education, healthcare, environment and protecting culture

102
Q

What is Nigeria’s recent economic growth mainly due to?

A

The money made from oil

103
Q

What is helping Nigeria to diversify?

A

The growth of the manufacturing industry

104
Q

How is the growth of the manufacturing industry in Nigeria helping it to develop?

A
  • gives people a secure income and tax increases so there is more income for the government
  • manufactured goods available to buy
  • attracts foreign companies to invest in Nigeria
105
Q

How has Unilever helped economic development in Nigeria?

A
  • creates jobs
  • workers cared for - fair trade
  • promoted improvements in healthcare, education and water supply
106
Q

What trade does Britain do with Nigeria now?

A

Nigeria exports raw materials and imports manufactured goods form Britain

107
Q

How did Nigeria get in and out of debt?

A
  • 60s - after it colonised, it spent lots of money on infrastructure
  • 70-80s - ran out of money and couldn’t pay for public services
  • 90s - Nigeria is Africa’s most indebted country
  • 2000 - Nigeria’s debt is cancelled
  • 2010 - growing economy again
108
Q

Why isn’t aid always used effectively in Nigeria?

A
  • corruption in government means aid is lost

* donors of aid may have political influence over who receives it

109
Q

How does Nigeria benefit from aid?

A
  • nets for life - education on malaria and provide mosquito nets
  • world band - funds loans for businesses to help diversify economy
  • uk government - funded health and HIV programme providing health and education in rural areas
110
Q

How has industrial growth affected the environment in Nigeria?

A
  • pollution of nearby land and rivers as toxic waste is dumped
  • harmful pollutants go into open drains - people and ecosystems harmed
  • lung problems from fumes
111
Q

How has urban growth affected the environment in Nigeria?

A
  • squats in most cities
  • services have not kept up with growth of cities
  • domestic waste is dumped on the streets
  • traffic congestion means high levels of pollution
  • forests have been destroyed through logging and agriculture
112
Q

How has mineral and oil extraction affected the environment in Nigeria?

A
  • tin mining - soil erosion so local water supplies polluted with chemicals
  • oil spills - damage to freshwater and marine ecosystems
  • oil spills - cause fires which release CO2 and cause acid rain
113
Q

Who are the gaps in development between in Nigeria?

A
  • the north and south
  • the rural and urban areas
  • the educated and uneducated people
114
Q

How many migrants left Africa in 2014?

A

100 000 - 9000 travelling to Europe

115
Q

What type of migrants are Nigerian migrants?

A

Economic migrants - escaping poverty

116
Q

What is de-industrialisation?

A

The decline of a country’s manufacturing industry due to exhaustion of raw materials and competition from NEEs