The Changing Economic World - Developement Flashcards
What is development?
Development means positive change that makes things better. As a country develops, living standards and quality of life improves
What is ‘the development gap’?
Difference between levels of economic development and growth between countries
Cycle of poverty - 1) Little money to buy food
1) Little money to buy food ➡ poor nutrition ➡ poor health ➡ little energy to work ➡ low farm yields ➡ low standard of living ➡ Poverty
Cycle of poverty - 2) Access to clean water may be a problem
2) Access to clean water may be a problem ➡ Poor health ➡ Little energy to work ➡ low farm yields ➡ low standard of living ➡ Pov
Cycle of poverty - 3) Low levels of education
3) Low levels of education ➡ few job opportunities ➡ poor wages ➡ little energy to work ➡ low farm yields v ➡ low standard of living
Economic factor definition?
Trade and what is traded
Physical factor definition?
How natural conditions contribute to helping a country to become wealthy/ remain poor
Historical factor definition?
Slave trade/ colonialism
Economic causes of uneven development? Trade
Trade - North America and Europe dominate world trade. They want to pay as little as possible for their raw materials, many of which come from LICS
Physical causes of uneven development? landlocked countries
The most landlocked countries on Earth are in Africa. A landlocked country is a country which is only bordered by land. With no access to the seas, a country is cut off from seaborne trade, which is important for economic growth
Physical causes of even development? Climate
Tropical Africa, South America and Asia have more climate-related diseases and pests than cooler parts of the world (such as mosquitoes which can spread Malaria). Disease affects the ability of the population to stay healthy enough to work
Physical causes of uneven development? Adequate supplies
The lack of adequate supplies of safer water is a barrier to economic development. This effects the ability of the pop to stay healthy enough to work
Historical causes of uneven development? Slavery
From 1650 - 1900, over 10 million ppl were transported from Africa to North America to work as slaves on plantations. These ppl were not allowed to remain in their home country and contribute to their own economy
Physical causes of uneven development? Extreme Weather
Extreme weather, such as cyclones, droughts, and floods, often hits tropical regions - North Africa is particularly badly affected. An extreme weather season can slow development and it can be costly to repair damaged infrastructure
Economic causes of development? Food prices
Food prices fluctuate wildly depending on quality of crops. The price of cocoa has halved since 1990’s due to overproduction. This means that LICS, who rely on farming, don’t receive enough money for their exports to develop
Historical causes of development? Power struggles :(
Power struggles took place in newly independent countries, especially if resources like diamonds were at stake. Civil wars broke out and instead of the pop working together, to develop their country, their peeps were fighting each other!!!
Historical causes of uneven development? Colonisation
When European countries colonised countries, their conquered people were not allowed to access education. When the DR Congo gained independence from Belgium, they only had 14 uni graduates
Methods of classifying countries? HICs
Wealthiest countries in the world, where GNI per head is high and most citizens have a high quality of life. E.g. UK, USA, Canada, France
Methods of classifying countries? LICs
Are the poorest countries in the world, where the GNI per capita head very low and most citizens have a low quality of life. E.g. Afghan, Somalia, Uganda, Nepal
Methods of classifying countries? NEEs
Are rapidly getting richer, as their economy is moving from being based on primary industry to secondary industry. E.g. China, Brazil, Russia, India, Nigeria
Measures of development - Birth rate?
Des: No. of babies born per 1000 ppl per yr. Social measure of development.
Is reliable: YES - reliable bc measure of development as women in a richer country will have less babies as focusing on career
IN HIC IS ⬇, IN LIC IS ⬆
Measures of development - Death rate?
Des: No. of deaths per 1000 per year.
Is reliable: Less reliable - Wealthy countries tend to have aging pops. and high death rates. Poor countires have young pops. and so low death rates.
IN HIC IS ⬆, IN LIC IS ⬆
⭐ HDI (Human Development Index)
Des: a measure of quality of life. Includes life expectancy, educational attainment and GNI per capita. The nearer to score of 1 the best
Is reliable: Rel - combines indicators at one
IN HIC ⬆, IN LIC ⬇
GNI per capita - Gross National Income
Des: (The total value of goods and services produced by a county)/ Total no. of ppl. Measured in $
Is reliable: Shows a average wealth for the country whilst some are very rich and some are some are very poor. Gov may be corrupt
IN HIC IS ⬆, IN LIC IS ⬇
Infant mortality rate (per 1000 live births per year)
Des: The number of children who die before age of 1 per live births per 1000.
Is rel: Yes shows how good a country’s healthcare system is (social). It shows if a country has the technology and the medical professionals to keep ill babies alive; it can show the health of the preggos woman and the care she receives too.
IN HIC IS ⬇, IN LIC IS ⬆
Literacy rates
Des: /No. of adults who can read and write as %. This is a social measure of development.
Is rel: Reliable as high illliteracy rates suggests a s good education system. Education is expensive to provide and staff.
Diff between male + female
IN HIC IS ⬆, IN LIC IS ⬇
Number of doctors per 1000 ppl
des: how many doctors there are
is rel: Yes - how much money is invested in healthcare + education
IN HIC IS ⬆, IN LIC IS ⬇
% pop with access to clean waterrrrr
% of pop who can get clean water for drinking,w ashing ect
Reliable: yes - level of infrastructure
- drinking dirty water causes diseases -
can’t work/die
- Wasting time getting water
IN HIC IS ⬆, IN LIC IS ⬇
Consequences of uneven development: LICS - deaths
4 in every 10 deaths are among children under 15 years and 2 in every 10 deaths among ppl aged 70+
Consequences of uneven development LICS - childbirth
Complications of childbirth R one of the main causes of death among children <5 years old
Consequences of uneven development LICS - Infectious diseases
Infectious diseases are main cause of death: lung infections, HIV/ AIDS, malaria nd TB
Consequences of uneven development HICS - deaths
7 in every 10 deaths are amongst people aged 70+
Consequences of uneven development HICS- main causes of deaths
Main causes of death: chronic diseases such as heart and lung diseases, cancer, dementia or diabetes
Consequences of uneven development HICS - lung infections
Lung infections are the only main cause of infectious death
Why causes of deaths are so different between HICS and LICS?
- Healthcare
- Doctor & Nurses
- Research
- Treatment & Equipment
- Mortality rates
- Life expectancy
- How to stay healthy
- Food and diet
- HIV/ AIDS knowledge
- Better healthcare - hospitals, clinics, surgeries, emergency services, ect..
- More doctors and nurses being trained - lower patient per doctor ratio
- More research into diseases and more vaccinations
- Better treatment, better equipment and better quality training
- Lower IMR, lower maternal mortality rates and lower death rates
- Longer life expectancy
- More knowledge on how to stay healthy
- Better quality food and diet
- More knowledgeable on how to protect HIV/ AIDS and malaria
The Demographic Transition Model
- The DTM is a graph that shows change over time in the pop. of a country
- It is based on the changes that took place in the western countries like UK
Stage 1 of DTM?
- High birth rate
- High death rate
- Both fluctuate bc of war, disease and famine
slow pop = steady growth
E.G. TRADITIONAL RAINFOREST TRIBAL GROUPS
Stage 2 of DTM?
- High br
- Death rate decreases
- Pop growth has increased
E.G. AFGHANISTAN
Stage 3 of DTM?
- Falling BR - rapid fall
- Death rate continued to fall but more slowly
- Total pop is still increasing but not as rapidly
E.G. Brazil, India, kenya
Stage 4 of DTM?
- low birth rate
- Low death rate
- Steady and slow pop growth
E.G. UK, USA
Stage 5 of DTM?
- Death rate has increased slightly - aging pop
- Low birth rate still
- Total pop starts to decrease
E.G. Japan, France
Stage 1 of pop pyramid: High stationary
- High birth rate,
- rapi fall in each upward age group due to to high death rates;
- short life expectancy
looks like a sorry triangle bc stage 1 still developing
Stage 2 of pop pyramid: Early expanding
- High birth rate;
- fall in death rate as more living in middle age:
- slightly longer life expectancy
2 firm triangle bc 2 is my lucky number
Stage 3 of pop pyramid: Late Expanding
- Declining death rate;
- low death rate;
- more ppl living to old age
fat hill - middle pregnancy bc stage 3 of 5
Stage 4 of pop pyramid: Low stationary
- Low br;
- low death rate;
- higher dependency ratio;
- longer life expectancy
Hill but curved inwards at bottom like ice lolly - stage 4 bc 4 ice lollies in pack
Stage 5 of pop pyramid: Contracting/ declining
- Br below death rate
- Pop declining
- Increasing old age dependency
- Pyramid is top heavy
Waving pentagon - stage 5 bc pentagon has sides!!!!
TNC (Transnational companies)/ multinational companies definition
A company that opeares in more than one country. E.G. Apple, Nike, Adidas, Coca Cola
Infrastructure def?
The basic equipment, structures and services (roads, water supplies, schools) that are needed for a country to function
Industrial development def?
When countries move from mainly farming and living in rural areas, to working in factories and to living in urban areas
Primary products definition?
A product up of natural raw materials - an unmanufactured product
Commodity definition?
A raw material or primary agricultural product that can be bought and SOLD, such as coffee
Secondary products def?
Manufactured and assembled and involves converting raw materials into components, for example, making plastics from oil
IMF?
International Monetary Food
Issues loans to countries that are in need
NGO - Non- Governmental organisations
- Charities e.g. Oxfam
A non-profit organisation that operates independently of any gov, typically one whose purpose is to deal with social or political issue
⭐ Intermediate tech
Combines sophisticated ideas with cheap and readily available materials. Tech suitable for use in eveloping countries, typically making use of locally available resources
Tariffs def
Are used to restrict imports by increasing the price of goods and services purchased from overseas and makes them more expensive
Quotas def?
Limits the no. of good that can be imported or exported during a particular period
WTO - World Trade Organisation def?
Deals with the rules of trade between nations. Attempts to make trade beneficial for all countries
Agricultural subsidy def?
A payment made to farmers and agribusinesses to add to their income and is used to manage supply, and therefore the price of farm products
Microfinance loans def?
Micro - small scale
Very small loans that are given to ppl in LICS to help them to start a small business
HIPC - Highly Indebted Poor Countries def ?
A group of 37 countries with high levels of poverty and debt which are eligible for special assistance. They are mainly African countries, but also asian and south american
Reducing the development gap (Investment)- Why do countries and TNC’s make investments
.. In LICS to increase their profits
Reducing the development gap (Investment) - What are the three types of investment
3 types of investment are?
- The development of infrastructure (water, roads, electricity)
- The construction of dams to provide electricity
- Improv,ents to harbours and ports
- The development of new industries
Reducing the development gap (Investment) - How can investment support a countries development?
Investment can help support a country’s development by providing employment and income from abroad. As economies grow, poverty decreases and education improves.
Reducing the development gap (Investment) - What is the difference between loan and investment?
A loan is simply the provision of money with agreed terms of repayment.
Reducing the development gap (Investment) - Describe how Chinese investments have helped develop Africa?
bc more than 2000 Chinese companies have invested billions of $, maily in energy, mining, construction, and manufacturing - invested in a power plant in Zimbabwe , hydro-electricity in Madagascar and railway construction in Sudan.
Reducing the development gap (Industrial Development) Describe how industrial development can create a multiplier effect?
1) Factory creates employment for workers and tax for Gov ➡
2) Money can be invested in schools, roads and services such as water and health care ➡
Pop. becomes better educated and healthier ➡ Oppors. for new investment such as supply industries, shops and community facilities ➡ 1)
Reducing the development gap (Industrial Development) - Describe how industrial development has helped to develop Malaysia?
due to development of its natural resources like oil, gas, palm oil (MIXED ECONOMY, TERTIARY) . Made using foreign investment to exploit these resources from primary to secondary) and develop a thriving manufacturing sector,
Reducing the development gap (Aid) - What is aid?
Aid is when a country or NGO such as Oxfam donates resources to another country to help it develop or improve ppl’s lives.
Reducing the development gap (Aid) - What are the 4 forms of aid and how can each help a country develop?
4 forms of aid are:
- Money (grants, loans)
- Emergency supplies (tents, medicine)
- Food such as rice or wheat tech ( tools or machinery)
- Skills (people with special skills such as doctors or engineers)
Reducing the development gap (Aid) - Why is UK aid important for Pakistan?
in 2013 aid was spent mainly in the education centre and to reduce hunger and poverty.
Reducing the development gap (Aid) - What is ‘Goat Aid’ and how does it help to improve quality of life and raise the level of development?
Goat Aid Oxfam is a project set up to help families in African countries. It helps to improve quality of life as money donated is used to buy a family a goat, produces butter, milk, meat. Has advantages for local communities:
- Goats are excellent source of food (milky meat)
- manure can be used as crop fertiliser - sell/ eat
- milk can be sold as a source of income to pay for food, education
- Reproduce very quickly
- sell goats for money pass one down to other needy families
Reducing the development gap (Intermediate Technology) - What is Intermediate Tech and how can IT reduce the development gap?
IT is sustainable tech that is APPROPRIATE to the needs, skills, knowledge and wealth of local ppl. It must be sustainable for environment + must not put ppl out of work
Can reduce development gap as takes form of small-scale projects ofetn associated with agriculture, water or hslth. These incolve locl communities and can make a differenrce to people’s quality of life?
Reducing the development gap (Intermediate Tech) - How is it used in Ethiopia?
as a small dam was built to create a reservoir cloe to teh village’s fields. Appro. machinery and money were given and village provided the labour.
Reducing the development gap (Fair Trade) - Why and how does trade benefit richer countries more than poorer countries?
as richer countrie are more powerful enough to protect their trade using 2 main systems:
- Tariffs on imports - imported goods more expersive and less attractive than home - grown goods
- Quotas - are usually applied to primary products so they affect mainly poorer countries.
Reducing the development gap (Fair Trade) - What is fair trade?
Fair trade seeks to reduce the development gap by improving the quality of life for the ordinary farmers. It helps to ensuree the produces in poorer countries get a air deal + certain amount of money for crops
Reducing the development gap (Fair Trade) - Why do agricultural subsidies help richer countries more than poorer countries?
1 of the main barriers to trade is agricultural subsidies. This is financual support from the govs to help their farmers. Rich countries can afford to pay their subsidis and so their products are cheaper than those produced by poorer countries
Reducing the development gap (Fair Trade) - Describe how Ugandan farmers benefit from fair trade?
bc farmers earn extra income from the Fairtrade premium
Reducing the development gap (Debt Relief) - Why do countries get into debt?
In 1970’s and 80’s many poorer countries built up debt by borrowing money to develop their economies by investing in their industry, manufacturing, and infrastructure. Low commodity prices reduced the value of their exports and high oil prices increased the price of imports.
Reducing the development gap (Debt Relief) - What is debt relief and what do countries need to do to benefit from debt relief?
Debt relief is when debts are cancelled. To qualify for debt relief, countries had to:
- demonstrate they could manage their own finances
- Show there was no corruption in their Gov
- Agree to spend the saved debt money on education, healthcare, and reducing poverty
Reducing the development gap (Debt Relief) - How can debt relief reduce the development gap?
as the debt pf the 39 poorest countries
Reducing the development gap (Debt Relief) - What problems can debt relief create?
debts are either reorganised to make them more manageable, or reduced so country can invest in itself
Reducing the development gap (Microfinance) - What is microfinance and how does it help to reduce the development gap?
A small scale loan that they will pay back and can set up businesses with.
Reducing the development gap (Microfinance) - What is the Grameen Bank and how does it help Bangladesh
Gives out small scale loans to help people set up businesses
Tourism - The pos multiplier effect of tourism
New hotel opens ➡ local busineeses provide important services of rthe hotel e.g. Farmers grow food for the resteraunt and taxt divers drive ppl to the hotel. ➡ Local businesses expand and more jobs created ➡ The Gov is able to raise more taxes from higher wages and profits ➡ More money can be invesed into social imrovements such as betetr equipped schools, and more modern hospitals ➡ Quality of life and standard of living improves
Hotel employs local ppl, tourists arrive with money ➡ Staff spend their wages in other local businesses such as bars, shops, and resteraunts along with tourists
➡ local busi benefit from more customers ➡ Local businesses expand and more jobs are created ➡ The Gov is able to raise more taxes from higher wages and profits ➡ More money can be invesed into social imrovements such as betetr equipped schools, and more modern hospitals ➡ Quality of life and standard of living improves
