The Development Gap Flashcards
What is the development gap ?
The difference in standards of living between the world’s richest and poorest countries. It is a continuum - many countries fall in the middle.
What is GNI ?
Gross National Income - total value of goods and services produced by a country, plus money earned from and paid to other countries. Expressed as per capita.
What is GDP ?
Gross Domestic Product - total value of goods and services produced by a country in a year.
What is HDI ?
A composite measure of social development, combining several different development measures:
*Life expectancy
*Expected years of schooling
*GNI per capita
Processed to produce a number between 0 to 1.
How useful is birth rate as a development indicator ?
Reliable as as a country develops, women are more likely to become educated and have access to birth control, marrying and having children later in life.
How useful is number of doctors as a development indicator ?
Reliable + useful as it tells us how much money a country has to spend on medical services.
How reliable is % of population with access to safe water as a development indicator ?
Reliable as a high percentage shows a country has modern infrastructure, such as dams, reservoirs and water treatment plants.
How reliable is death rate as a development indicator ?
Less reliable due to unforseeable circumstances + age of population. Developed countries tend to have ageing populations so have a higher death rate.
Examples of limitations of using only a social or economic measure of development
*Doesn’t show disparities within a country
*Doesn’t take political + environmental into account
*Doesn’t account for informal economy
What is the Demographic Transition Model ?
A theoretical model that shows changes in population information ( birth rates, death rates and population growth ) over a period of time. It gives evidence that BR decreases as countries become more developed.
Stage One of the DTM, eg. SE Asia
High BR, high DR, both fluctuating. Population growth = small.
High incidence of disease and poor nutrition. Limited birth control and view children as a source of income.
Stage Two of the DTM, eg. Afghanistan
High BR, falling DR, expanding population.
Better nutrition and access to vaccines. Lack of birth control, many children is a social norm.
Stage Three of the DTM, eg. Nigeria
Decreasing BR, decreasing DR, population decreasing.
Emancipation of women, high child labour laws, low infant mortality rate.
Stage Four of the DTM, eg. USA
Low BR, low DR, both fluctuating. Population growth is small, fertility rates are decreasing.
Significant change to lifestyles, more women in the workforce, steady population.
Stage Five of the DTM, eg. Germany
DR exceeds BR, population in decline. Rise in individualism, concern about strain on resources. Diseases of affluence, lifestyle diseases.
Why is the DTM useful ?
Encourages gvnmt. to improve
Shows links between development + trends
Dynamic, shows change over time
Why isn’t the DTM important
Other factors influence development / prosperity
Assumes there is a pre-determined path
Based on western countries
What is standard of living ?
Refers to the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area.
What is quality of life ?
General well-being of individuals and societies, outlining negative and positive features of life. Not only wealth and employment, but also the built environment, physical and mental health, education, social belonging, right to privacy + right to vote.
What are population pyramids ?
A type of graph which shows the percentage, or number, pf males and females in each age group - how many aged 0-4, 5-9 etc.
What is the dependent population ?
Those who do not work ( young dependents - 0-16, and old dependents - over 65, retired ).
Compared with the economically active or working population ( 16-64 )
How is the dependancy ratio calculated ?
( % of young dependants + % of old dependants ) / ( % of economically active )
Physical causes of uneven development
*Weather and climate - extreme conditions can make economic development difficult
*Landlocked countries - countries without a coastline lack the opportunity to sea trade, which has lead to the economic growth of most developed nations
*Relief - mountainous regions are often remote and have poor infrastructure
*Water shortages - agricultural and industrial development becomes challenging
What is the Gini Coefficient ?
A number to show the distribution of wealth within a country.
0 = wealth distributed evenly
1.0 = all income in the nation is controlled by one person
The majority of countries with a high coefficient are in the southern hemisphere, whereas the low efficient areas tend to be in the northern hemisphere.
What is malaria ?
A life threatening disease caused by parasites transmitted to people by infected mosquitoes. In 2019, it caused 409,000 deaths, mostly among African children, who account for 90% of malaria deaths worldwide.
Why does access to markets cause uneven development ?
Landlocked / poor infrastructure countries may struggle to participate in global trade, leading to slower economic growth.
Why do trade barrier cause uneven development ?
Developing countries often face higher trade barrier, eg. tariffs, making it harder for them to compete in the global market.
Why does dependency on primary commodities cause uneven development ?
Primary goods have volatile pricing, leading to economic instability. Many developing countries rely on exporting primary commodities, whereas developed countries export manufactured goods with stable prices.
Why do uneven trade agreements cause uneven development ?
Tend to favour more developed countries, giving them better access to trade markets. This can perpetuate economic disparities.
Why does investment and technology cause uneven development ?
Countries that attract foreign investment can develop more rapidly, however, investment tends to flow to developed regions, leaving others behind.
Example of uneven development by reliance on primary commodities
Copper in Zambia - Copper accounts for 60% of the total value of exports in Zambia, however, the price fluctuates a lot, making it difficult to forecast income and plan for development projects. Zambia has a HDI of 0.58, classed as low human development.
What is top-down development ?
Large-scale projects with high inputs from governments, global institutions such as IMF and TNCs. Benefits ‘trickle down’ through the economy to everyone.
What is bottom-down development ?
Small-scale, community level development. Benefits grow from the bottom ; if people have more money, they will spend more in the local economy and others will benefit too.
Short term aid
Emergency help usually in response to a natural disaster, such as flood or earthquake
Long term aid
Sustainable aid that seeks to improve resilience eg. wells to reduce the effects of drought, or improvements to agriculture.
Multilateral aid
Richer governments give money to an international organisation such as the World Bank, which then redistributes the money as aid to poorer countries
Bilateral aid
Aid from one country to another
Tied aid
Aid may be given with certain conditions eg. that the recipient has to spend the aid money on the donor country’s products
Voluntary aid
Money donated by the general public in richer countries and distributed by NGOs such as Oxfam
What is a tariff ?
Taxes paid on imports, making imported goods more expensive and less attractive than home-produced goods
What is a quota ?
A limit of the quantity of goods that can be imported. Usually applied to primary commodities, affecting poorer countries.
What is WTO ?
World Trade Organisation, aiming to make trade easier and remove barriers.
What is agricultural subsidy ?
Financial support from governments to help pay their farmers. One of the main barriers to trade as rich countries can afford to pay their subsidies and so their products are cheaper than those produces in poorer countries.
What are trading groups ?
Countries that have grouped together to increase the level of trade between them by cutting tariffs and discouraging trade with non-members. Eg. EU, ASEAN, NAFTA
Advantages for poor countries joining a trade group
*Encourages trade between member countries
*Richer countries cannot shop around for cheaper prices
*Members can command a greater share of their market
*Members can get higher prices for their goods
What is aid ?
When a country or non-governmental organisation donates to another country to help it develop or improve people’s lives. It includes money, equipment, food, training, skilled people and loans.
What is free trade ?
When countries do not charge tariffs and quotas to restrict trade with each other.
What is fairtrade ?
About farmers getting a fair price for goods produced in LICs, allowing them to provide for their families and attain a reasonable standard of living.
What is investment ?
When countries and TNCs choose to invest money and expertise in LICs to increase their profits.
Can involve :
*Development of infrastructure
*Improvements to harbours and ports
*The development of new industries
What is debt relief ?
Cancellation of debts to a country by a global organisation such as the World Bank
What is intermediate technology ?
Simple, easily learned and maintained technology used in LICs for a range of economic activities. It is appropriate to the needs, skills and knowledge and wealth of local people.
What are microfinance loans ?
Small-scale financial support available directly from banks.
Example of aid
Goat aid - Oxfam - money donated is used to buy a family in Africa a goat, producing milk, butter and meat. Creates a food source, manure for fertiliser, breeding source for selling, source of income via milk
Example of fairtrade
Divine is the only fairtrade chocolate country which is 44% owned by cocoa farmers.
Ugandan cocoa farmers used money from fairtrade farming to pay for son’s schooling.
Example of investment
More than 2000 Chinese countries have invested billions of dollars in Africa, in energy, mining and manufacturing. This has led to new roads, bridges, stadiums and other projects being built all over Africa.
Example of debt relief
Tanzania, who instead used money to import vital food supplies for those affected by drought.
Example of industrial development
Since the 1970s, Malaysia has been following a programme of industrialisation and has seen a dramatic growth in its wealth. It has used foreign investment to exploit its natural resources and develop a thriving manufacturing sector.
Example of microfinance loans
Grameen Bank, Bangladesh - founded to help local people, especially women, use their skills to develop small businesses.
Example of intermediate technology
The village of Adis Nifos in northern Ethiopia had a dam built to create a reservoir close to the village’s fields. Appropriate machinery and money was provided, and the village provided the labour. Each family was given an area of irrigated land with fruit trees, giving the whole village a permanent food supply.
Social context of Nigeria
Multiethnic, multifaith country. This is both a source of strength and conflict. Economic inequalities between the north and south create tensions, with the Boko Haram having a negative impact on economy by reducing investment from abroad and a rise in unemployment.
Rapid urbanisation has led to a breakdown in traditional boundaries.
Political context of Nigeria
Nigeria became independent from the UK in 1960, but this resulted in a series of dictatorships and civil wars, causing instability and corruption. Nigeria has had a stable government since 1999.
Cultural context of Nigeria
*Sport - won AFCON many times, several PL players
*Music - enjoyed across the continent
*Cinema - ‘Nollywood’ is the second largest film industry globally
Environmental context of Nigeria
Natural environments form a series of bands across the country, reflecting the decreasing rainfall towards the north in West Africa
Northern Nigeria - semi desert, savannah dominates. Used for cattle and crops.
Southern Nigeria - high temp + annual rainfall. Mainly forest with crops like cocoa and palm oil.
Features of Jamaica’s economy
*Slow growth
*Debt
*Based upon range of minerals, agricultural products and manufacturing
*Large tourism industry
*High unemployment
Effects of tourism on the Jamaican economy
Tourists pay into local businesses, boosting the economy.
Cruise passengers, the majority of visitors, spend a lot less on average than other visitors.
Effects of tourism on Jamaican employment
More people needed for the tourism industry, reducing unemployment.
May be seasonal and unreliable.
Effects of tourism on Jamaican infrastructure
Led to a high level of investment in the main tourist areas. Port facilities have been expanded as have airports and road infrastructure.
Some areas remain isolated and not to a high standard.
Effects of tourism on Jamaican quality of life
Wealthy Jamaicans live in high quality areas, eg. Montego Bay, benefitted by tourism.
High wealth disparities. Many live in poor housing with little access to services.
Effects of tourism on Jamaican environment
Conservation and landscaping projects, nature parks are kept to a high standard for tourists.
Littering, damage to marine life, air + noise pollution.
Stats about Jamaican tourism
*Contributes over 50% of the country’s total foreign exchange earnings
*Employs approximately 200,000 locals both directly and indirectly
GNI of LICs
$1045 or below
GNI of NEEs
$1045-$12735
GNI of HICs
$12736 or above
Why is Nigeria important within Africa ?
*Highest GDP in the continent
*Largest population
*3rd largest manufacturing sector
Why is Nigeria important globally ?
*Supplies 2.2% of the world’s oil, 15th globally
*A major contributor to UN peacekeeping missions
*Ranked 27th by GDP
Nigeria - African Union
Economic planning and peacekeeping group. In alliance with Niger, Chad, Benin and Cameroon to provide troops.
Nigeria - ECOWAS
Trading group made up of West Africa with HQ in Abuja.
Nigeria - United Nations
Nigeria was recently given an award for it’s contribution to UN peacekeeping efforts.
Nigeria - OPEC
Aims to stabilise the prices of oil and to ensure a regular supply.
Nigeria - World Trade Organization
Member since 1995. Has supported Nigeria in streamlining its tariff system and promoting free trade.
Nigeria’s crude oil resource
Development of shale oil has led to a decrease in demand.
Nigeria’s agriculture sector
36% of population is employed in this sector, with top importers being Vietnam, India and the USA.
Nigeria’s sources of income
Primary products were traditionally the main source of income, however the discovery of oil in the Niger Delta in the 1950s led to a change in economy. Oil accounts for 9% of the GDP as 90% of its exports.
Why is Nigeria’s economy growing ?
*Information technology is beginning to drive the economy rather than oil
*Many people speak English, giving potential for growth in telecommunications
*Increased use of telecommunications, allowing the country to benefit from global finance and trade
Does Nigeria have a balanced economy ?
*Agriculture accounts for 22% of the GDP, steadily declining
*Industrial sector accounts for 27%, with the fastest growing industrial sector in Africa
*Service sector employs 53% of workers and accounts for 50% of GDP, rapidly growing
What influence does China have on the Nigerian economy ?
*Main export partner
*China needs more resources than their own country can provide, so look for resources elsewhere. In 2014, a Chinese corp. invested $10b in drilling a new oilfield in Nigeria
*Brings expertise in building infrastructure. In 2014, China Railway Construction corp. won a $12b contract to build a railway along Nigeria’s coastline
What is a TNC ?
A transnational corporation is a large company that operates in several countries. A TNC usually has headquarters in one country and production plants in others.
Advantages of being a TNC
*Tax incentives
*Cheap labour
*Laxer environmental laws
*Access to wider markets
Why are TNCs attracted to Nigeria ?
*Presence of crude oil
*Large supply of cheap labour
*Little competition from Nigerian firms for land, so it’s cheaper
Positives to a country of having a TNC operating
*Provides jobs
*Taxes can be spent on the local area
*Valuable export revenues earned
*TNCs can invest in facilities and healthcare
Negatives to a country of having a TNC operating
*Economic leakage - revenue doesn’t stay in the country
*Makes it harder for local businesses to develop
*Could exploit workers
*Government spends money to attract TNCs, which could be spent on locals instead
Advantages of Shell working in Nigeria
*Shell provides direct employment for 2700 people and 9000 contractors, 97% of which are Nigerian
*Shell provide 3000 scholarships to secondary schools and universities in Nigeria
*Shell is working with the government to build natural gas plants, supporting the growing manufacturing industry
*The Shell enterprise ‘All On’ finances renewable energy projects to provide energy to the 75% of the population not connected to the national power grid
Social disadvantages of Shell working in Nigeria
*No access to clean water due to oil spills
*No food source due to fish dying from oil
*Cancer levels increasing
*Murder and torture committed against natives
Economic disadvantages of Shell working in Nigeria
*No income from fish due to oil spills
*Contaminated soil leads to no income from farming
*Oil thefts costs billions annually
*Profit goes top US rather than Nigeria
Environmental disadvantages of Shell working in Nigeria
*Water pollution from oil
*Contaminated soils
*Impact on ecosystem and biodiversity
Ogale Oil Spills 2013-2020
Over 40 separate oil spills, mostly from Shell pipelines in Ogoniland in the River Delta. These have contaminated the land and waterways. Oil contamination in the groundwater is 1000 times higher than allowed by law, making it dangerous and unsafe for consumption.
Issues in Nigeria caused by industrial growth
*Pollutants released get into water supplies and create poor air quality, damaging ecosystems and being harmful to people. 94% of the population is exposed to air pollution levels higher than WHO guidelines.
* Desertification is a major problem due to dams being created and stopping water flow
*96% of forests have been destroyed through logging, farming, urbanisation and industrial development
Issues in Nigeria caused by urban growth
*Squatter settlements are common, with poor living conditions and little access to services
*Waste disposal is a big issue, with the 40ha Olusoson landfill in Lagos receiving 10,000 tons of rubbish daily
*Some greenbelts and recreational areas have been converted into building sites, with natural vegetation being destroyed
Solutions to issues in Nigeria
*Strict laws to reduce illegal industries
*Petroleum Industry Bill will put an end to continued landscape devastation
*Stricter waste management
*More affordable, permanent housing
Why is aid needed in Nigeria ?
*Businesses lack access to regular energy supply
*57% of girls attend primary school, 25% attend secondary
*Nigeria has 15% of the world’s children out of school, 10% of the world’s child and maternal deaths
Examples of aid in Nigeria
*The UK government has funded a health and HIV programme, providing health education in rural areas
*USAID-funded community care provides support packages for orphans and vulnerable children
*Nets for Life provides education on malaria prevention and distributes mosquito nets to households
What prevents aid being used effectively ?
*Government corruption
*Donors may have political influence
*Money may be used to promote commercial self-interest of the donor
Example of health related aid in Nigeria
A community development committee was set up to target life threatening diseases among children ; 1000 locals trained, 360000 children under 5 treated
Effects of commercial farming and deforestation in Nigeria
*Land degradation and water pollution due to chemicals
*Many species have disappeared, including 500 plant species
*Annual rate of deforestation = 400000 hectares per year. Cleared for collection of wood for fuel
Effects of mining and oil extraction in Nigeria
*Protests - economic developments in the Niger Delta has caused violent conflicts
*Tin mining led to soil erosion and polluted water supplies
*Acid rain - Oil spills cause fires, releasing CO2 into the atmosphere, causing a is rain which harms plants and aquatic ecosystems
