The Changing Economic World Flashcards
What is development?
The progress in a country in terms of:
- economic growth
- the use of technology
- quality of life
What economic factors can affect quality of life?
- income
- job security
- standard of living
What physical factors can affect quality of life?
- natural disasters
- diet/nutrition
- climate
- environmental quality
What social factors can affect quality of life?
- crime
- relationships e.g. arranged marriage
- education
- health
What psychological factors can affect quality of life?
- happiness
- security
- freedom
What does LIC stand for?
Low income county
What does HIC stand for?
High income country
What is a LIC?
A poorer country with a gross national income of $1045 or less
What is a HIC?
A richer country with an income per person of $12746 or above
What does NEE stand for?
Newly emerging economy
What are NEEs?
Countries that are experiencing high rates of economic development and rapid industrialisation
Examples of NEEs?
- Brazil
- Russia
- India
- China
- South Africa
(BRICS countries)
How is GNI calculated?
- by adding together the value of all good and services produced by a country as well as income
- then dividing by the population
What does GNI stand for?
Gross national income
How is GNI used to measure development?
Shows the average wealth of a country’s citizens
What are the limitations of GNI?
- 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
How is literacy rate used to measure development?
Shows the percentage of people with basic reading and writing skills
Limitations of using literacy rate to measure development?
Carrying out surveys in LICs and conflict zones is difficult
What are the social ways of measuring development?
- literacy rate
- people per doctor
- access to safe water
- infant mortality rate (IMR)
- life expectancy
What are the economic ways of measuring development?
Gross national income (GNI)
How is people per doctor used to measure development?
The number of people who depend on a single doctor
Limitations of measuring development using people per doctor?
In NEEs people use phones for healthcare advice so this is not taken into account
How is access to safe water used to measure development?
Shows the percentage of people who have access to water that doesn’t carry a health risk
Limitations of measuring development using access to safe water?
- water quality can decline due to flooding/poor maintenance
* rising costs of water in cities forces people to start using unsafe sources
How is IMR used to measure development?
Shows the number of deaths of children under one year per 1000 births
What does IMR stand for?
Infant mortality rate
Limitations of measuring development using IMR?
Not all infant deaths are recorded and many children are buried in unmarked graves
How is life expectancy used to measure development?
Shows the average number of years a person can be expected to live
Limitations of measuring development using life expectancy?
Where IMR is high, average life expectancy will be lower than it actually is
What does HDI stand for?
Human development index
What does HDI take into account?
- income
- life expectancy
- education
How does HDI use education to measure development?
The HDI uses an education index based on the average number of years of schooling each person has in a country
What is the Brandt Line?
A visual depiction of the North-South divide between their economies
When was the Brandt Line proposed?
1980s
What is the Brandt Line based on?
GDP per capita
What is natural increase the difference between?
Birth and death rate
What is the DTM?
The demographic transition model
What is the first stage in the DTM?
High birth rate, high death rate, low population
What is the second stage in the DTM?
High birth rate, fall in death rate
What is the third stage in the DTM?
Declining birth rate, low death rate, population increasing
What is the fourth stage in the DTM?
Low birth rate, low death rate, longer LI
What is the fifth stage in the DTM?
Higher death rate due to ageing population
An example of a country that doesn’t fit the DTM?
Botswana - AIDS/HIV means death rate hasn’t dropped although birth rate has
Advantages of the DTM?
- 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
Disadvantages of the DTM?
- 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
What are the physical causes of uneven development?
- 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