The Changing Economic World : Overview and Nigeria Flashcards
Define gross domestic product
value of goods and services produced by a country in one year
Define migration
movement of people from one permanent to another
Define transnational corporation
initial investment and jobs leading to multiplier effect
Define industrial structure
proportion of workforce employed in sectors of economy
Define development
progress of country in terms of economic growth, technology and human welfare
Define development gap
different standards of living and wellbeing in countries
Define Gross National Income
measurement of economic activity that is calculated by national income divided by population
Define human development index
method of measuring development in GDP per capita
Define quality of life
wide range of humans’ needs met alongside income growth
How are GDP and GNI different?
GDP within a country
GNI international trade/investments
What is GDP?
value of country’s output from within borders of a country
What are the elements that make up quality of life?
economic
social
psychological
physical
What are LICs?
poor quality of life with inadequate services
inadequate services and few opportunities
What are NEEs?
rapid economic growth based on industrial development
What are HICs?
modern industries with high proportions of people in service sector
What are the BRIC countries?
Brazil
Russia
India
China
What are the MINT countries?
Mexico
Indonesia
Nigeria
Turkey
How can we measure development?
disease
GNI
HDI
birth / death rates
infant mortality
life expectancy
people per doctor
literacy rates
safe water
How does life expectancy differ globally?
HIC - high
NEEs - increasing
LIC - low
Why does life expectancy differ globally?
Industrial Revolution different rates
- income/work conditions improve differently
What does Gross National Income measure?
wealth
What does GNI per head measure?
wealth
How does Gross National Income change as a country develops?
increases
What is Gross National Income measured in?
US dollars
What is GNI per head a measure of?
wealth
How does GNI per head change as a country develops?
increases
What is a limitation of GNI per head?
small number of extremely wealthy people
- lots of poorer people
What are the limitations of Gross National Income?
only income
average calculation
dishonesty on earnings
informal sector not included
What is birth rate a measure of?
education
Give examples of social measures of development
birth rates
death rates
infant mortality rates
life expectancy
literacy rates
safe water
Give an example of a economic measure of development
Gross National Income
What are birth rates?
number of live births per 1000
What is a limitation of birth rates?
low birth rates despite poverty
birth control policies distort results
What are death rates?
number of deaths per 1000
What are death rates a measure of?
health
What are the limitations of death rates?
high due to poverty OR elderly population
Which is more reliable? Birth rates or death rates?
birth rates
What are infant mortality rates?
number of deaths for children under 1 per 1000
What are infant mortality rates a measure of?
health
What are the limitations for infant mortality rates?
not all deaths reported
What is life expectancy?
average number of years expected to live
What is life expectancy a measure of/
health
What are the limitations of life expectancy?
not always reliable data
misleading for high infant rates - may live longer past infant rates
What are literacy rates?
people with basic reading and writing skills
What is literacy rates a measure of?
education
What are the limitations of literacy rates?
lack of monitoring in LICs
war zones and squatter settlements
What is people per doctor?
average number of people per doctor
What is people per doctor a measure of?
health
How will people per doctor change as a country develops?
decreases
What are the limitations of people per doctor?
densely populated or scarcely populated areas
What is percentage of access to safe water?
percentage of people with access to safe mains water
What is percentage of access to safe water a measure of?
health
What are the limitations of percentage of access to safe water?
data collection inaccurate
access but high costs force unsafe water used
What is the Human Development Index?
composite measure of income, life expectancy and education
What is the Human Development Index measured between?
0 to 1
What are the limitations to Human Development Index?
only 3 indicators
average calculations
subjective weighting
unreliable statistics provided
What 3 indicators are used in Human Development Index?
education
income
life expectancy
What does a Demographic Transition model show?
birth rates
death rates
life expectancy
total population size
How many stages does the Demographic Transition model have?
5 stages
What is birth rate and death rate like in Stage 1?
high
What is birth rate and death rate like in Stage 2?
birth rate high
death rate falls rapidly
What is birth rate and death rate like in Stage 3?
birth rate falls
death rate falls slowly
What is birth rate and death rate like in Stage 4?
low
What is birth rate and death rate like in Stage 5?
very low
What is natural increase in Stage 1 like?
stable increases and decreases
What is natural increase stage 2 like?
very rapid increase
What is natural increase stage 3?
increases slowly
What is natural increase at stage 4?
slow increase
What is natural increase at stage 5?
slow decrease
Why are birth rates high in sage 1 and stage 2?
religious values strong
high infant mortality
lack of contraceptives and family planning
Why are birth rates decreasing in stage 3?
laws against child labour
improved medical care and diet
Why are birth rates decreasing in stage 4 and 5?
emancipation and education
materialism
later child birth
later and fewer marriages
family planning
Why are death rates high in stage 1?
diseases
famines
poor medical knowledge
Why are death rates decreasing in stage 2 and 3?
improvements in medical care
sewers
water supply
sanitation
improved food supply and education
Why are death rates decreasing in stage 4 and 5?
medical advances
food supply
preventative medicine
What factors cause uneven development?
physical
economic
historical
How do historical factors cause uneven development?
disease
colonisation
religion
education
conflict
Give examples of colonised areas
Haiti by French
Dominican Republic by Spain
What caused colonialism?
Europe wanted global influence
competition between rival states
new sea routes
What events occurred due to colonialism?
new technologies
power struggles
transatlantic slave trade
education / religion
modern borders
How do physical factors cause uneven development?
landlocked
climate diseases and pests
extreme weather
limited access to clean water
How does landlocked cause uneven development?
cut off from sea borne trade
How does climate related diseases and pests cause uneven development?
not healthy enough to work - malaria
destroy crops - locusts
How does extreme weather cause uneven development?
droughts, floods, tropical storms
- costly repairs to infrastructure
How does limited access to clean water cause uneven development?
unable to work and sickness
When did Haiti experience an earthquake?
2010
What magnitude was the earthquake in Haiti?
7.0
Where did the earthquake in Haiti effect?
Port - au - Prince
How many people died in Haiti earthquake?
300,000 people died
How many people were injured in Haiti earthquake?
300,000 people injured
How many homes destroyed in Haiti earthquake?
300,000 homes destroyed
How many schools were destroyed in Haiti earthquake?
25% of schools
What did high death rates lead to in Haiti?
orphaned children
- lost wage earner
- no multiplier
- children work / no education
What did high injury rates lead to in Haiti?
time off work / inability
- loss of income
- no multiplier
- remain in poverty
What did homes destroyed lead to in Haiti?
1 million people homeless
- crime
- rebellions
- riots
- money spent on rebuild
What did schools destroyed lead to in Haiti?
lack of education
- literacy falls
- crime
- lack of job opps.
- reduces economic growth
How do economic factors cause uneven development?
poverty
trade
How does poverty cause uneven development?
lack of money slows development
- prevent improvements in education, living standards, sanitation and infrastructure
How does trade cause uneven development?
trade dominated because of secondary goods
- dictate trade to their advantage
What do LICs trade?
primary goods
What effect does LIC trade have on them?
low value
- earn little money
- limited funds to invest to develop
What do LICs rely on?
single exports
What does LICs reliance on single exports mean?
fluctuations in market price
- drop in market value
- losing proportion of income
What are the consequences of uneven development?
health
wealth
global migration
How many deaths are under 15s in LICs?
40% under 15s
How many deaths are under 15s in HICs?
1% under 15s
How many deaths are over 70s in LICs?
20% over 70s
What causes infant mortality of children under 5 in LICs?
childbirth complications
What are the main causes of death in LICs?
lung infections
HIV/AIDS
diarrhoea
malaria
tuberculosis
How many deaths are people 70 and over in HICs?
70% over 70s
What are the main causes of death in HICs?
chronic diseases
heart cancer
lung cancer
dementia
diabetes
How much of total wealth is in North America?
35%
How of population is in North America?
5%
How many people died of Ebola between 2014 and 2015?
11,000 deaths
Where did Ebola effect?
Sierra Leone
Guinea
Liberia
Which country suffered most due to Ebola?
Sierra Leone
- indebtedness
- civil war
How many economic migrants have come to the UK since 2004?
1.5 million economic migrants
How many economic migrants are Polish?
66%
What is the unemployment rate in Poland?
10%
How much more can economic migrants earn in UK?
5 times more than Poland
What are the benefits of economic migrants?
tax causes multiplier effects
manual jobs on farms
What are the disadvantages of economic migrants?
pressure on education and healthcare
What strategies can be used to reduce development gap?
investment
industrial development
fair trade
tourism
aid
reparations
microfinance lonas
How does Investment by TNCs work?
help sector grow more quickly
- investors collect ‘return’ on investments
Why is investment by TNCs a popular method?
develops rapidly and HICs can earn money back
Give examples of sectors that are invested to in Investment by TNCs
health
education
insurance
agriculture
Give an example of Investment by TNCs
Royal Dutch Shell employs more than 4500 people in Nigeria
How many people does Royal Dutch Shell employ in Nigeria?
4500 employees in Nigeria
What are the advantages of Investment by TNCs?
viable in many places
allows movement from primary sector
What does Investment by TNCs allow?
movement from primary sector
What are the disadvantages of investment by TNCs?
earn more than physical workers
poor conditions
economic leakages
What are economic leakages?
profit returns to country of investment origin
What is industrial development and how does it work?
investment in primary industries
How does industrial development reduce development gap?
increases manufacturing
generates wealth
increases productivity
Give an example of industrial development
6 years of industrial growth reduced proportion of poverty by 15% in Mozambique
How did industrial development Mozambique?
6 years reduced poverty by 15%
What are the advantages of industrial development?
increases wages
quality of life
multiplier effect
What are the disadvantages of industrial development?
struggle to find funds for investment
Where can aid come from?
NGOs
What types of aid are there?
tied or untied
What is aid and how does it work to reduce uneven development?
gift of money, goods or services that do not have to be repaid
Give an example of aid that reduces uneven development
UK spends 0.7% of national income on overseas projects in Sierra Leone and Syria
How much of UK’s national income is spent on aid?
0.7% to Sierra Leone and Syria
What are the advantages of aid?
improves living standards
recovery after war or natural disaster
What are the disadvantages of aid?
dependency on aid
wasted on corrupt government
What is intermediate technology and how does it work to reduce uneven development?
simple and practical tools speed up process
What does intermediate technology benefit?
local people harvest crops quickly and manual labour decreased
What are the advantages of intermediate technology?
sustainable and cheap
empowers locals
simple
crop yield increased
What are the disadvantages of intermediate technology?
machinery replaces man power
Give an example of intermediate technology
solar box cookers in India and Kenya produce energy for domestic cleaning
What is fair trade and how does it help to reduce uneven development?
fair percentage of retail price received by farmers or factories
Give an example of fair trade
Columbian household income of banana farmers increased by 34%
How much has household income increased for Columbian banana farmers?
34% increase
What are the advantages of fair trade?
increases crop yield
workers rights
sustainable
What are the disadvantages of fair trade?
higher prices in HICs - not purchased
What is debt relief and how does it reduce uneven development?
HICs loaning to LICs
Give an example of debt relief
Indonesia agreed to protect Sumatran forests for $30 million borrowed from USA
How much had Indonesia borrowed from US and how did they repay it?
$30 million
protection of Sumatran forest
What are the advantages of debt relief?
eases pressure
allows spending on education and health
What are the disadvantages of debt relief?
not all debt is written off
What are microfinance loans and how do they work to reduce uneven development?
subsistence farmers loaned microfinances from bank
What are microfinance loans designed to do?
escape cycle of poverty
staring point for family
Give an example of microfinance loans
buying fertiliser to increase crop yield
- profit pays off loan
What are the advantages of microfinance loans?
low interest
What are the disadvantages of microfinance loans?
hard to create surplus
no pay back if fails
Which strategy is least effective at reducing uneven development and why?
TNC investment
- economic leakage
- poor working conditions
+ movement from primary
Which strategy is most effective at reducing uneven development and why?
intermediate technology
+ empowers locals
+ easily taught
+ increase crop yield
- machinery reduces jobs
Where is Tunisia?
Northern Africa
What coast does Tunisia have?
Mediterranean
What does Tunisia border?
Algeria (W)
Libya (E)
Sahara desert (S)
What is the capital of Tunisia?
Tunis
What is Tunisia’s population?
11 million
What are the languages spoken in Tunisia?
Arabic
French
Berber
What type of country is Tunisia?
Newly Emerging Economy
What is the approximate GDP for Tunisia?
$3872
What are the five reasons for growth in Tunisia?
climate
links with Europe
history and culture
package holidays cheap
physical landscape
How has climate created growth in Tunisia?
northerly coast has Mediterranean climate with hot summers and mild winters
How has links with Europe created growth in Tunisia?
easily accessible by low cost airlines
ex colony of France
How has history and culture created growth in Tunisia?
seven UNESCO World Heritage Sites
remains of Carthage
Roman El-Jem amphitheatre
Star Wars filmed
How has cheap package holidays created growth in Tunisia?
Tunisian government worked in conjunction with tourist operators like TUI to develop tourist destination : hotels, transport, recreational activities
How has physical landscape created growth in Tunisia?
varied and diverse
beaches
Dorsal mountains
Sahara desert
range of activites
What does tourism create few of?
managerial and professional posts
What has been set up for the tourist industry in Tunisia?
hotel/restaurant management schools
What has developed in Tunisia as a result of tourism?
impairement of agricultural production
Who takes managerial jobs in tourism in Tunisia?
expatriates
- disadvantages locals
How can expansion of hotels impact the environment in Tunisia?
building roads
sewage treatment
How much average rainfall does Tunisia receive?
1.3 inches
How much does an average Tunisian use of water?
60 litres
How much does a tourist use compared to a Tunisian?
8 times amount
Why does tourism use so much water?
food / drink production
swimming pools
watering gardens/golf courses
How many jobs have been created in Tunisia?
370,000 jobs created
How has agriculture benefitted from tourism?
provide food for tourists
How have locals benefits been impacted by tourism?
benefitted
- more trade
Give examples of local business in Tunisia
shop keepers
taxi drivers
construction industry
How much has hotel room capacity increased by?
quadrupled
What does disposable income mean for the government?
able to tax disposable income
What does tax mean for the people of Tunisia?
investments into education and healthcare
- girls go to school
- literacy rates increase
- life expectancy increases
Tunisia is one of the…
…wealthiest countries in Africa
How much has been invested into Tunisia’s healthcare system?
4%
How much have literacy rates increased by since 1995?
13% increase in literacy rates
What happened in Tunisia in 2015?
terrorist attack against tourists
- unsafe by foreign governments
What is a negative socioeconomic impact of tourism in Tunisia?
leakages of profits back to TNCs
e.g. Thomas Cook
What is industrial structure?
relative proportion of workforce employed in sectors of economy
What is NEE?
country with rapidly growing economy due to developments and reforms
What is balanced economy?
economic growth sustainable and growing across different sectors
What is sectors of economy?
different types of jobs
What is economic development?
process by which nation improves economic well being of its people
What is TNCs?
large company that operates in several countries
What is industrial development?
start of employment in new places or redevelopment of old industry
What is manufacturing industry?
industry and trade based on processing raw materials
What is Nigeria’s global importance?
Nollywood
2.7% world’s oil
Nigerian diaspora 1.24 million
What is Nigeria’s regional importance?
African Union
largest economy in West Africa
largest pop in Africa
How many minority groups make up Nigeria’s population?
250 minority groups make up 1/3 of population
How does minority groups impact Nigeria’s development?
language barriers/traditions can be overcome
Where is Nigerian music enjoyed?
across Africa and beyond
How does Nigerian music impact Nigeria’s development?
encourages migration to be part of it
What is happening to Nigeria’s rainfall?
decreasing volumes
How will decreasing rainfall impact Nigeria’s development?
increases pressure on water use
What are the positives of a youthful population?
attractive to TNCs
working generation
health and able to contribute to economy
less gov expenditure on health
What are the negatives of a youthful population?
competition for jobs
pressure on schools
workforce requires more training
How many Nigerians live internationally?
1.24 million
How has politics affected Nigeria’s development?
two and a half year civil war
When did Nigeria experience civil war?
1967
What caused the civil war in Nigeria?
declaration of indepedence of Biafra
What did the civil war cause in Nigeria?
mass migration
100,000 military casualties
2 million needing food aid
How did the civil war affect Nigeria’s development?
concentration of people
high pop density / scarcity
- uneven development
What are the three fastest growing industries in Nigeria?
telecommunications
retail and wholesale
film industry
What has caused changes in sectors of economy in Nigeria?
rural to urban migration
industrialisation
foreign investment
education improves
How has agriculture been impacted by changing industrial structure in Nigeria?
percentage working in agriculture has halved
What has caused decrease in farm workers in Nigeria?
increased farm machinery
better pay/conditions in other sectors
How much has number of those employed in services increased?
increased by 50%
What has modernising economy in Nigeria meant?
increase in communications, retail and finance
How much has employment in industry increased in Nigeria?
employment in industry has trebled
How have Nigerians been impacted by changing industrial structure?
improved living standards
reduced imports - cheaper
formal jobs - taxes
What is a cash crop?
agricultural crop planted for purpose of selling or exporting for profit
What is a positive trade balance?
exports exceeding imports creates profit and trade surplus
What is a free trade zone?
geographic area where goods are dealt with under specific customs, not subject to duty
What does neo colonial mean?
control of less developed countries through indirect trade
Give an example of manufacturing industry in Nigeria
Dangote cement
Why is manufacturing industry changing in Nigeria?
urbanisation
rural to urban migration
population growth
How does manufacturing industry impact development?
increases economic development
formal pay
expansion into other countries
- increases Nigeria’s influence
How does manufacturing industry impact people’s quality of life?
secure formal job
regulated working conditions
money spent on healthcare and education
How many TNCs operate in Nigeria?
40 TNCs
How many people are employed by Unilever in Nigeria?
1500 people employed
What has Unilever promoted in Nigeria?
improvements in healthcare, education and water supply
What was Unilever voted in Nigeria?
second best company to work for in 2014
What are the negative impacts in Nigeria from Shell Oil?
oil spills
toxic fumes
militant groups disrupt
oil theft
What effect does oil theft have?
costs government and TNCs billions of dollars every year
How much petroleum does Shell produce in Nigeria?
more than 21% of Nigeria’s petroleum
How many oil fields does Shell have in Nigeria?
eighty oil fields
What have Shell been accused of in Nigeria?
crimes against Ogoni people in Niger Delta
How long do employees work for Shell in Nigeria?
12+ hours in poor conditions
Why is pay unfair in Nigeria from Shell?
more intensive work - less pay compared to HICs
What are the advantages of TNCs to a host country?
jobs
charities to help communities
multiplier effect
new technologies introduced
encourage development
pay tax
How much has GDP per head increased in Nigeria?
from $300 in 2000 to $3000 in 2017
x10 in 17 years
How much money has Shell spent in LICs?
$12 billion
What is the Shell Foundation?
helps sustainability and biodiversity in local communities
How much oil has been spilt by Shell?
500 million gallons
- damage in Niger Delta
What did Shell to Ogoni people?
remain very poor despite land used for oil exraction
What economic disadvantages occur due to TNCs?
- leakage of profits
- withdraw investment and control refining capacity
How do TNCs effect government?
control government - want profit and improvements
How is Shell ineffective in Nigeria?
Nigeria still import petroleum
- oil refineries expensive
- TNCs unwilling to invest
- four refineries only supply 1/4 of country’s needs
What was Nigeria a part of?
British Empire
- political and trade links remain
Nigeria plays a leading role in…
…economic planning in African Union
How much has China invested in Nigeria for a railway?
$12 billion for a 1400 km railway
Where do Nigeria’s imports come from?
USA
Brazil
China
India
EU
Where do Nigeria’s exports go?
USA
India
Brazil
EU
Barbados
Where are Nigeria’s main exports to?
USA 17%
India 11%
Where are Nigeria’s main imports from?
China 19%
USA 11%
What did China agree to in 2014 with Nigeria?
$10 billion investment into drilling of new oil fields
Why does Nigeria need aid?
cycle of debt
terrorism
food supply
diseases
What is top down / large scale aid?
money given to spend on big projects like new railway line
What is short term / emergency aid?
lasts short time in response to natural disaster
What is aid?
help given in form of money, equipment, goods, technology or expertise
What is bilateral / conditional / tied aid?
aid given with conditions attached
What is multilateral aid?
money given to World Bank or United Nations to distribute to countries
What is long term development aid?
given over many years to help country develop
What is bottom up / small scale aid?
money given by charity to locals to spend on small projects
What can bottom up / small scale aid be used for?
new well
installing solar panels
What is a donor country?
country giving aid
What is recipient country?
country receiving aid
How much of Nigerian population live on less than 63p a day?
60 %
Why is aid not used effectively in Nigeria?
corruption in government
- used to supply Navy
donors may have political influence
- use donations to promote themselves
What did Nets for Life provide in Nigeria?
education on Malaria and mosquito nests
What did World Bank provide in Nigeria?
funded loans to businesses to diversify economy away from oil
What did the UK government provide in Nigeria?
HIV programme providing health and education in rural areas
What did the UN provide in Nigeria?
emergency food to 400,000 people facing starvation in North Nigeria
How much money does UK give annually to Nigeria?
£300 million
How much money does UK give to Nigeria for health annually?
£100 million
- training health personnel
- 10 million malaria nets
How much money does UK give to Nigeria for water and sanitation annually?
£7 million
- 5.5 million using safe water, toilets
What type of aid does UK give to Nigeria?
bilateral long term aid
What type of aid does China give to Nigeria?
bilateral tied aid
What does China give to Nigeria in terms of weapons?
arms equipment
What does Nigeria give to China in return for arms equipment?
cheap Chinese goods
- unfair competition for Nigerian businesses
- electrical goods caused fires
What does China give to Nigeria in terms of infrastructure?
$11 billion to improve railway networks
What does Nigeria give to China in return for infrastructure investments?
supplied PetroChina with 30,000 barrels of oil a day
Give an example of bottom up aid in Nigeria
Oxfam helps small scale farmers improve productivity and resilience to climate change/natural disasters
Give an example of emergency aid in Nigeria
UN Refugee Agency and Food Programme helped Nigerians in 2017 after conflict between Boko Haram and government
Give an example of long term or development aid in Nigeria
UK provided Nigeria with £305 million to help country achieve Millennium Development Goals
Give an example of bilateral aid in Nigeria
China invested $4 billion in oil and infrastructure
Chinese oil firm contracts in Niger Delta and Chad Basin
How does aid benefit Nigeria?
combination of bottom up and top down stimulates economic growth through job creation
How does aid not benefit Nigeria?
high corruption index score and amount of aid varies every year
What are the socioeconomic benefits of economic growth?
increased life expectancy
reduced poverty
higher incomes
access to healthcare
improved gov finances
How many industrial plants are there in Nigeria?
5000 industrial plants
How many illegal small scale industries are there in Nigeria?
10,000 illegal small scale industries
What environmental issues have been created as a result of growth of industry?
- pollution of nearby land
- harmful pollutants in open drains
- lung problems
What challenges have been created by urban growth in Nigeria?
- squatter settlements
- services overwhelmed
- waste disposal
- traffic congestion
- 70-80% forest logged
What are the challenges created by mineral and oil extraction?
- soil erosion
- polluted water supplies
- oil spills
- acid rain and fires
Why is economic growth bad for the environment?
pollutes water and air because fuels are burnt which release carbon dioxide and particulate matter
Why is industry growing bad for the environment?
air, water and land pollution
Why is urban growth bad for the environment?
squatter settlements and overwhelmed services due to rapid urbanisation and overcrowding
Why is mineral and oil extraction bad for the environment?
local water supplies polluted and oil spills damage marine ecosystems
How does quality of life vary across Nigeria?
ethnic groups and location
How many Nigerians live in poverty?
2/3 of Nigerians
How has economic growth not benefitted quality of life?
- rural parts like Yobe and Jiagawa still in poverty
- benefits limited to Lagos and Niger Delta
How has economic growth somewhat benefitted quality of life?
- trading and political relationships received $12 billion
- aid has dealt with malaria
How has economic growth majorly benefitted quality of life?
HDI increased
growth of tertiary
6000 people directly employed by SHELL
What is the population of Nigeria?
209 million