The changing economic world - Nigeria case study Flashcards

1
Q

Location??

A
  • Located in West Africa
  • Just North of Equator
  • South of the Tropic of Cancer
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2
Q

Classifying industry jobs? Primary?

A

Extracting/ using raw materials e.g. agriculture, mining

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3
Q

Classifying industry jobs? Secondary?

A

Manufacturing e.g. Nissan

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4
Q

Classifying industry jobs? Tertiary?

A

Providing a service e.g. retail/ doctor

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5
Q

Classifying industry jobs? Quaternary?

A

High tech, Research + Development, e.g. Web design

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6
Q

GDP in Nig?

A

GDP per capita has had a steadyincrease after 2010

Total GDP has increased rapidly since 2010

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7
Q

Importance of oil in Nig?

A
  • Nigeria’s oil is high quality
  • ## Income from oil and gas has helped Nig make the transition from LIC to NEE
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8
Q

Downfalls of being so dependent on oil?

A
  • The country’s dependence on oil makes it vunerable to changes in the oil prices
  • The USA used to be Nig’s largest customer for oil. Now USA produces it’s own oil (shale), India has become the largest customer
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9
Q

Why is manufacturing flourishing in Nigeria? Large pop

A
  • Large pop = large workforce
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10
Q

Why is manufacturing flourishing in Nigeria? Youthful pop

A
  • Able-bodied workforce
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11
Q

Why is manufacturing flourishing in Nigeria? Official national language is English

A

Interntional lang and beneficial for investment from around the globe

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12
Q

Why is manufacturing flourishing in Nigeria? No longer a LIC

A

More disposable income for local pop

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13
Q

Why is manufacturing flourishing in Nigeria? 70% of pop living in poverty

A

Low wage rates

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14
Q

Why is manufacturing flourishing in Nigeria? Oil contributes $10 bn in foreign exchange

A

Income to driv economic development

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15
Q

Why is manufacturing flourishing in Nigeria? Wealth of natural resources

A

Raw materials for manufacturing (e.g. agriculture and minerals)

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16
Q

Why is manufacturing flourishing in Nigeria? Stable democratic gov since 1999

A

Attractive for forign investment

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17
Q

Positive multiplier effect of manufacturing?

A

TNC’s set up factories ➡ Factory workers spend money locally ➡ Local services have more trade ➡ Gov. receives more tax ➡ Gov invests in infrastructure

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18
Q

Examples of manufacturing?

A
  • VW cars

- Unilever e.g. Marmite, persils, food + toiletries

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19
Q

Trade in Nigeria - import

A

China is the top importer - growing wealth (more disposable income) increases demand for luxury elecrical appliances and engineered goods, which thy can’t yet produce itself - China is a low cost source

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20
Q

Trade in Nigeria - exports

A

N exports most to india bc it is another NEE and it needs oil to support growth - USED TO EXPORT TO AMERICA BUT THEY STARTED PRODUCING OWN SHALE OIL

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21
Q

What is a TNC?

A

a TNC is a large company that operates in several countries

22
Q

What do TNCs locate in foreign countries to take advantage of?

A
  • Tax incentives
  • Cheap labour
  • Less strict environmental laws
  • Access to wider market
23
Q

Benefits of having shell oil in N?

A
  • Shell has created 65k permenant jobs
  • 250,000 jobs in related industres
  • making major tax contributions in taxes and export revenue
  • supporting the growth of N’s energy sector
24
Q

Disadvantages of having shell oil in N?

A
  • oil contributed to corruption as oil has helped corrupt politicans to get rich fast
  • Corrupt politicazns have taken taxt revenues
  • Oil has increased the gap between the rich and poor
  • Gangs includ. islamic fundamentalists ‘BOKO HARAM’ have stolen oil for themselves - civil unrest - reducing oil production levels and coting TNC’s and gv bns $ every year
  • oil spills caused water pollution and soil degredation, reducing agricultural production and fishing yield
25
Q

Problems of extracting oil in N for Shell?

A
  • Niger Delta is an area of swampy land which makes drilling for oil very difficult + £$£
  • as large and successful TNC shell has been able to invest huge amounts of money and expertise
26
Q

Dependency theory?

A

countries can become dependent on aid and be unable to develop without it

27
Q

What is aid?

A

aid can be defined as ‘assissting ppl’ . Providers can be individuals, charities, NGO’s. Gov’s, International organisations

28
Q

What is emergency aid?

A

usually follows a natural disaster, war, conflict. - food water, medical supplies, shleter

29
Q

What is Developmental aid?

A

long term support - aims to improve quaity of life by proving safe water, education, improvements to infrastructure - roads and electricity supplies

30
Q

Why does N receive aid?

A
  • 70% still living in aid
  • Birth rates and infant mortality are high and low life expectancy
  • many ppl have limited access to services, such as safe water, sanitation, reliable electricity supply
31
Q

Where does aid come from and how much for N?

A
  • UK, USA

- INTERNATIONAL DEVELOPMENT AGENCY GIVE $550 MIL

32
Q

impact of aid in N

A
  • The Uk deparment for International development has funded a health and HIV programme, providing health care in rural areas
  • aid from the USA helps to educate and protect ppl against the spread of AIDS/ HIV
33
Q

What prevents aid being used effectively?

A
  • Corruption in Gov and by individuals is a ajor factor in loss of aid - Gov may divert money to be used for purposes
  • Donors have political influence
34
Q

How is aid beneficial - economically (World Bank)

A

$500 mn from world bank for development projects and business loans ➡ creates jobs - generates tax

35
Q

How is aid beneficial - health (AIDS)

A

Aid from USA to tackle aids to help reduce number of avoidable causes and death

36
Q

How is aid beneficial - socially (orphans)

A

US AID for ophans and children in need

37
Q

How is aid beneficial - health (education)

A

Nets for life provide education, equipment and trainng to tackle malaria- has reduced number of deaths from malaria

38
Q

how is aid beneficial social - (Uk deparment)

A

UK deparment for International Deveopment providing jealth eduction in rural areas ➡ increasing literacy rates

39
Q

Have all Nigerians benefited from economic deveopment?

A
  • Many have as HDI has gone from 0.46 in 2004 to 0.5 now
40
Q

Benefits of N’s economic development?

A
  • Reliable, better paid jobs in maufacturing and serviecs
  • An increased disposable income
  • Better access to safe water
  • Improvements to infrastructure
41
Q

Benefits of N’s economic development 2?

A
  • More money to spend on schooling
  • improved access to a better diet
  • More reliable electricity supplies
  • better quality health care
42
Q

But has it all been good news for Nigeria?

A
  • 60% of ppl still living in poverty
  • Poor road quality
  • Poor buildings - made from corrugated iron, wooden, some concrete
  • Lack of services such as refuse collection
43
Q

Has oil benefited the poor ppl of N?

A
  • Oil wealth has not been used effectively (sanitation)
  • The gap between rich and poor become wider
  • Corruption in gov
  • Oil wealth was not used to diversify the economy
  • Oil price has fallen
  • Shale oil developed elsewhere
44
Q

what are the political challenges that face Nigeria’s poor in improving their lives?

A
  • the need for a continuing stable Gov to encourage inward investment
45
Q

what are the Environmental challenges that face Nigeria’s poor in improving their lives?

A
  • Pollution of the Niger delta by oil spills. Pests like the tsetse fly restrict commercial livestock farming
46
Q

what are the social challenges that face Nigeria’s poor in improving their lives?

A
  • Historical distrust between tribal groups
  • religious divide between Muslims and Christians
  • Recent kidnappings by the militant group Boko Harsm spread fear among Nigerians and potential investors
47
Q

Environmental issues in Nigeria? Industrial growth

A
  • Fast and unregulated industrial growth has led to environmental problems
  • Some industries dispose of chemical waste on nearby land - threatening the groundwater quality
  • Industry chimneys emit poisonous gases that can cause respitory + heart problems in humans
48
Q

Evironmental issues in Nigeria? Urban growth

A
  • Traffic congestion is a major problem, leading to high levels of exhaust emissions
  • Waste disposal has became a major issue
  • Building on green spaces has reduced bio - diversity
49
Q

Environmental issues in Nigeria? Oil

A
  • Growng things like palm oil has led to dstruction
  • Destroyed habitats - Links to climate change
  • Deforestation/ commercial farming - water pollution due to chemicals, soil erosion
50
Q

Environmental issues in Nigeria? Deforestation/ commerical farming

A
  • Oil spills can cause fires, sending co2 and otehr harmful gases into the atmosphere
  • Oil spills in the Niger Delta have had disastorous effects on freshwater and marine ecosystens
  • Theu cause acid rain which harms plants and aquatic ecosystems