The Development Gap

Question 1

What are the 11 measure of development?

Answer 1

GDP
GNI
GNI per capita
Birth rate
Death rate
Infant mortality rate
People per doctor
Literacy rate
Access to safe water
HDI

Question 2

What is GDP?

Answer 2

The total value of goods and services a country produces in a year.

Question 3

What is GNI?

Answer 3

The total value of goods and services people of that nationality produce in a year.

Question 4

What is HDI?

Answer 4

Calculated using life expectancy, literacy rates, education level & income per capita.

Question 5

What are the disadvantages of using measures of development?

Answer 5

The measures show averages, they dot show the very rich or very poor.
Some measures develop more than others, so certain measures may make a country look richer than it really is.
There are inaccuracies - informal trade (trade isn’t taxed) and exchange rate changes.

Question 6

How do natural disasters hinder development?

Answer 6

Money is spent on rebuilding instead of development.

It decreases the quality of life.

Question 7

Give an example of a natural disaster which hindered development.

Answer 7

Hurricane Mitch, Honduras in 1998

Question 8

What did the case study natural disaster cause?

Answer 8

700 people killed
Destroyed 70% of country’s crops
70-80% of transport infrastructure was severely damaged
35000 houses were destroyed and 50000 houses were damaged
20% of schools, 117 health care centres and 6 hospitals were damaged

Question 9

How did the case study natural disaster hinder development?

Answer 9

27% of Honduras’ GDP was made up of agriculture
1998 - GDP was expected to grow by 5%, but it grew by 3%
Rebuilding cost $439 million - could’ve been spent on development

Question 10

What is development?

Answer 10

When a country is improving - the quality of life is improving.
Different countries are at different stages of development.
It is measure using ‘measures of development.

Question 11

What is trade deficit?

Answer 11

When a country’s imports are greater than the country’s exports - likely debt.

Question 12

What is trade balance?

Answer 12

The difference between a country’s imports and exports.

Question 13

What is trade surplus?

Answer 13

When a country’s exports and greater than its imports.

Question 14

What are the different trade barriers?

Answer 14

Tariffs - when tax is put on an exported item to make it cost more than the equivalent non-exported item.
Quotas - limits on the number of a certain good which can be exported.
Health and safety/environmental laws - an exported item must pass these to be able to be sold.
Subsides - when a government pays farmers and businesses the difference so that their goods can be sold at a cheaper price.

Question 15

What is the difference between trade in rich countries and trade in poor countries?

Answer 15

Rich countries export manufactured goods (they have the machinery to manufacture.
Poor countries can’t afford manufactured goods. They expect raw materials and, since there are lots of these, they are sold very cheaply.

Question 16

Name a fair trade case study and what it does.

Answer 16

Dubble/Divine chocolate
Region: Ghana
Problem: Farmers weren’t set a price for their cocoa beans, this price changed each harvest, so they sometimes made a loss. Buyers would also tamper with weighing scales so that farmers got less money than what their cocoa beans were really worth.
What’s been done: Dubble/Divine chocololate encouraged farmers to set up a cooperative so that they had more power over chocolate companies and they could sell their beans for more. It also set the cocoa bean price so farmers knew how much they would get - fair trade.

Question 17

What is short term aid?

Answer 17

Aid given to cope with immediate problems e.g. an earthquake.

Question 18

What is long term aid?

Answer 18

To help improve the quality of life of individuals and communities overtime.

Question 19

What is voluntary aid?

Answer 19

Funded by public through non-governmental organisations e.g. Oxfam

Question 20

What is bilateral aid?

Answer 20

When a country gives aid to another country with conditions attached e.g. the receiving country has to spend money on a certain resource from the donor country, also called tied aid.

Question 21

What is multilateral aid?

Answer 21

Donations are collected from countries and given out from an international organisation such as the World Bank.

Question 22

What is top-down development?

Answer 22

Development projects decided by multiple countries to benefit a whole country. Large sums of money are spent and work is carried out by external experts. It doesn’t take into account communities.

Question 23

What is bottom-up development?

Answer 23

Experts work with local communities to create projects which are sustainable and appropriate for them. Mainly carried out by non-governmental organisations.

Question 24

Name a top-down development case study and explain what it is.

Answer 24

Nam Theun 2 Dam Project
Region: Laos
Problem: Many people in Laos live in poverty.
What’s being done: A dam is being built to produce electricity. Excess electricity is sold and exported to make money for the country.

Question 25

Name a bottom-up development case study and describe what it does.

Answer 25

Water Aid
Region: Ghana
Problem: People are drinking unclean water so they get infected with diseases.
What’s being done: Water Aid installs hand pumps in communities so that they can have access to clean water.
Sustainability: It’s a hand pump so won’t need a specialist to fix it and it won’t need fixing often so the pump will last into the future.

Question 26

Describe what shows that Poland is less developed than the UK.

Answer 26

Poland:
GDP $9600
Unimproved sanitation access 10%
HDI 41
Exports $134.7 billion
Unemployment rate 12%

UK:
GDP $27900
Unimproved sanitation access 0%
HDI 21
Exports $351.3 billion
Unemployment rate 7%

Question 27

How is the EU bridging the development gap?

Answer 27

The Common Agricultural Policy - Paid to farmers to main agricultural employment and wages, guarantee food production and stabilise food prices.
The European Investment Bank - Provides money and expertise for sustainable businesses in Europe.
Urban II Fund - Aims to combat social and economic problems in cities.
Structural funds - Ensures even social and economic opportunities.