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The Development Gap Flashcards

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1
Q

What is the standard of living?

A 
The access people have to the necessities in life on a measure of their material wealth. They are measurable, tenable factors, a quantitive index. 
Examples:
-Access to improved drinking water source 
-Percentage with electricity 
-Calorie intake/nutrition 
-Life expectancy 
-Literacy rate 
-Doctor:Patient ratio
-Car ownership
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2
Q

What is the quality of life?

A

The personal view of what people value in life and how happy they are with their lot. This is no ‘measurable’, a qualitative view.
Examples:
-Happiness
-Peace/freedom from stress

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3
Q

What are some environmental factors affecting levels of development?

A
  1. Population: deaths of population, injuries and diseases all adds to the poverty cycle
  2. Trade/Economy: businesses do not want to trade with that region
  3. Industry/Economy: Companies do not want to set up factories in that region
  4. Tourism/Economy: People do not want to visit that region on holiday
  5. Money/Economy: Government money spent re-building and protecting instead of investing elsewhere e.g. healthcare (but they often do get foreign aid)
  6. Time: Government time spent dealing with hazards, rather than passing laws to help the country develop (such as minimum wages and improving human rights)
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4
Q

Why does a poor climate affect how developed a country is? (ENVIRONMENTAL FACTOR)

A
  1. If a country has a poor climate (really hot or really cold) they will not be able to grow much
  2. This reduces the amount of food produced
  3. In some countries this can lead to malnutrition e.g. Chad and Ethiopia, people who are malnourished have a low quality of life
  4. People also have fewer crops to sell, so less money to spend on goods and services. This also reduces their quality of life
  5. The government gets less money from taxes as less is sold and bought). This means there is less to spend on developing the country e.g. to spend on improving healthcare and education
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5
Q

Why does poor farming land affect how developed a country is? (ENVIRONMENTAL FACTOR)

A
  1. If the land in a country is steep if has poor soil (or no soil) then they will not produce a lot of food
  2. This has the same effect as a poor climate and so this reduces the amount of food produced
  3. In some countries this can lead to malnutrition, people who are malnourished have a low quality of life
  4. People also have fewer crops to sell, so less money to spend on goods and services. This also reduces their quality of life
  5. The government gets less money from taxes as less is sold and bought). This means there is less to spend on developing the country e.g. to spend on improving healthcare and education
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6
Q

Why does limited water supplies affect how developed a country is? (ENVIRONMENTAL FACTOR)

A
  1. Some countries do not have a lot of water, e.g. Egypt, Jordan
  2. This makes it harder for them to produce a lot of food and this has the same effect as a poor climate
  3. In some countries this can lead to malnutrition, people who are malnourished have a low quality of life
  4. People also have fewer crops to sell, so less money to spend on goods and services. This also reduces their quality of life
  5. The government gets less money from taxes as less is sold and bought). This means there is less to spend on developing the country e.g. to spend on improving healthcare and education
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7
Q

Why does lots of natural hazards affect how developed a country is? (ENVIRONMENTAL FACTOR)

A
  1. A natural hazard is an event that has the potential to affect people’s lives or property, e.g. earthquakes, tsunamis, volcanic eruptions, tropical storms, droughts, floods
  2. When natural hazards do affect people’s lives or property they are called natural disasters
  3. Countries that have a lot of natural disasters have to spend a lot of money rebuilding after disasters occur, e.g. Bangladesh
  4. So natural disasters reduce quality of life for the people affected, and they reduce the amount of money the government has to spend on development projects
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8
Q

Why does having few raw materials affect how developed a country is? (ENVIRONMENTAL FACTOR)

A
  1. Countries without many raw materials like coal, oil, or metal ores tend to make less money because they gave got fewer products to sell
  2. This means they have less money to spend on development
  3. Some countries do have a lot of raw materials but still are not very developed because they do not have the money to develop the infrastructure to exploit them (e.g. roads and ports)
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9
Q

What are the political factors that slow development?

A
  1. If a country has an unstable government it might not invest in things like healthcare, education and improving the economy. This leads to slow development ( or no development at all)
  2. Some governments are corrupt. This means that some people in the country get richer (by breaking the law) while the other stay poor and have a low quality of life
  3. If there is a war in a country the country loses money that could be spent on development - equipment is expensive, buildings get destroyed and fewer people work (because they are fighting). War also directly reduces the quality of life of the people in the country
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10
Q

Why does poor trade links affect development include trade and debt? (ECONOMIC FACTORS)

A
  1. Trade is the exchange of goods and services between countries
  2. World trade patterns (who trades with who) seriously influence a country’s economy and so affect their level of development
  3. If a country has poor trade links (it trades a small amount with only a few countries) it will not make a lot of money, so there will be less to spend on development
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11
Q

Why does an economy based on primary products affect development include trade and debt? (ECONOMIC FACTORS)

A
  1. Countries that mostly export primary products (raw materials like wood, metal and stone) tend to be less developed
  2. This is because you do not make much profit by selling primary products. Their prices also fluctuate, sometimes the price falls below the cost of production
  3. This means that people do not make much money, so the government had less to spend on development
  4. Countries that export manufactured goods tend to be more developed
  5. This is because you usually make a decent profit by selling manufactured goods. Wealthy countries can also force down the price of raw materials that they buy from poorer countries
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12
Q

Why does lots of debt affect development include trade and debt? (ECONOMIC FACTORS)

A
  1. Very poor countries borrow money from other countries and international organisations, e.g. to help cope with the aftermath of a natural disaster
  2. This money has to be paid back (sometimes with interest)
  3. Any money a country makes is used to pay back the money, so is not used to develop
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13
Q

Why does drinking water affect development? (SOCIAL FACTORS)

A
  1. A country will be more developed if it has clean drinking water available
  2. If the only water people can drink is dirty then they will get ill, waterborne diseases include typhoid and cholera, Being ill a lot reduces a person’s quality of life
  3. Ill people cannot work, so they do not add money to the economy, and they also cost money to treat
  4. So if a country has unsafe drinking water they will have more ill people and so less money to develop
    - If people also have little access of water cannot irrigate crops
    - If people travel far for water miss education and work to get water
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14
Q

Why does the place of women in society affect development? (SOCIAL FACTORS)

A
  1. A country will be more developed if women have an equal place with men in society
  2. Women who have an equal place in society are more likely to be educated and to work
  3. Women who are educated and work have a better quality of life, and the country has more money to spend on development because there are more people contributing to the economy
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15
Q

Why does child education affect development? (SOCIAL FACTORS)

A
  1. The more children that go to school (rather than work) the more developed a country will be
  2. This is because they will get a better education and so will get better jobs. Being educated and having a good job improves the person’s quality of life and increases the money the country has to spend on development
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16
Q

What is an example of a place with poor water supply?

A
  1. Jakarta in Indonesia has a rapidly growing population and water companies do not have the resources to supply reliable and safe water to everyone.
  2. This means that a large proportion of the population are drinking contaminated water and are vulnerable to disease.
  3. In addition, salt water is also contaminating groundwater, which is making the problem worse.
  4. This is a particular problem in shantytowns such as Marunda
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17
Q

Describe the Marunda shantytown

A
  1. Like most shantytowns, Marunda lacks basic services such as water supply, sanitation and electricity
  2. People there have a poor standard of living and a low quality of life
  3. Conditions are crowded and disease spreads easily, contributing to low life expectancy and high infant mortality rates
  4. In the past, people relied on water from tankers or street seller who charged high prices, or women had to queue from 3 a.m. to collect water
  5. Without running water, residents faced serious health risks as sewage and other domestic waste was not flushed away
  6. Across Jakarta, diarrhoea caused by drinking polluted water is responsible for 20% of the deaths of children under five
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18
Q

What was the solution to the poor water supply in Marunda shantytown?

A
  1. The Jakarta city authorities tried to invest in basic services but there was a lack of funding, they then sought investment from abroad
  2. In 1999, Thames Water began a £60,000 project to bring piped water to Marunda
  3. The project involved local people from the early stages to ensure that their needs would be met appropriately and that the project was sustainable
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19
Q

Was the solution to the poor water supply in Marunda shantytown successful?

A
  1. By the year 2000, over 1,600 homes in Marunda had piped water
  2. Water can now be obtained more cheaply, allowing money to be spent on food, clothes and education which is vital for the country’s long-term prospects
  3. There have also been health benefits because the risk of disease from contaminated water has been reduced
  4. This scheme was a success as it was sustainable and worked with the people to meet their needs
    - Not all schemes have been as successful as this one. The Pergau Dam in Malaysia, for example, was constructed in partnership with the British government with the aim of providing safe and reliable water and electricity. However, it did not meet the needs of the poorest people and the scheme was ‘tied aid’. This means that conditions were attached which did not benefit Malaysia’s population
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20
Q

What are the advantages of short term aid?

A
  1. Donor Countries:
    - People will give freely in a disaster - this gives them a feel good factor
  2. Recipient Countries:
    - Gives help which can save lives immediately and can develop into long term aid after a disaster, as people in MEDCs realise how poor people are in the affected zone
    - Flow of aid may continue following publicity of the disaster
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21
Q

What are the disadvantages of short term aid?

A
  1. Donor Countries:
    - It costs money and uses up technical expertise and technology in the short term. This means that a donor countries resources are lost to the recipient country for a short period of time
    - It costs the tax payer in the donor country money
  2. Recipient Countries:
    - Reduces the receiving country’s ability to produce the items they get from us (i.e. if we send them short term food aid, then their farmers won’t be bale to sell their crops for higher prices)
    - Occasionally, well-meaning governments and organisations fail to provide exactly what is needed
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22
Q

What are the advantages of long term aid?

A
  1. Donor Countries:
    - Companies and individuals find satisfying and well paid work overseas
    - Trade may continue into the future after the initial stimulus of aid
    - It engenders good will towards the donor country and enhances its international reputation
    - Aid can also be a good way of forming strong relationships with other countries; curb terrorism and gain political will for global issues and deals but these are in the purest sense of aid not its purpose
    - It can boost employment in large industries in the donor countries - in arms manufacturers and construction industries particularly
  2. Recipient Countries:
    - New industries can develop which improves peoples chance of getting skills and long term employment
    - It can lead to improvements in long term faming methods by introducing new crops and better land management practises
    - Trade with the donor country may continue into the future
    - Schools, hospitals, roads, dams and other infrastructure projects improve the lives of many people and will last for a long time
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23
Q

What are the disadvantages of long term aid?

A
  1. Donor Countries:
    - It costs the tax payer of the donor countries, often those citizens wonder why their money is going to foreign countries
  2. Recipient Countries:
    - Some foreign aid is given as military and weapons gifts, potentially fanning the flames of global wars instead of dealing with them
    - Tied aid can make the recipient countries reliant on the donor country
    - The senior posts created by the aid are often given to foreigners as local people do not have the necessary skills for those jobs
    - The funding for big projects is often just for the construction (e.g. of a hospital) but may not cover the long term maintenance costs for the recipient country
    - Local people can lose their land to large projects such as dams
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24
Q

What are the advantages of Top-down aid?

A
  1. Donor Countries:
    - It feels controlled for the donor country as it is coordinated by the actual government or International Organisations such as the UK
    - It allows for LARGE SCALE planning over large areas without having to worry about every individuals needs
  2. Recipient Countries:
    - Projects aim to solve large scale problems in a recipient country so are well coordinated and backed by money
    - Large scale projects such as dams and superhighways improve the national infrastructure for the majority of people
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25
Q

What are the disadvantages of Top-down aid?

A
  1. Donor Countries:
    - Large scale projects can use up huge amounts of money that donor countries may feel are wasted
    - Corruption and the theft of aid had happened in the past, this makes donor countries less likely to give money to big top down projects
  2. Recipient Countries:
    - Big projects are capital intensive and poor countries may have to add more money to the aid given to ensure that the projects are completed
    - Large scale projects are often part of TIED aid, where the LEDC had to either pay back loans or allow richer countries access to its resources
    - Projects often less sustainable consuming large amounts of time, land and resources
    - Most ordinary people may not benefit directly
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26
Q

What are the advantages of Bottom up aid?

A
  1. Donor countries:
    - More individuals in Donor countries are likely to give to Bottom up aid as it is organised by charities and gives and feel good factor
    - Many bottom up charities have a direct link between the individual donor and the recipient (through sponsorship, letter writing and websites)
  2. Recipient Countries:
    - NGOs work with the recipient communities, gathering their ideas before starting projects
    - Local people are involved in Bottom up aid and projects are democratic
    - Less money is lost to corruption
    - Projects tend to be more sustainable
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27
Q

What are the disadvantages of Bottom up aid?

A
  1. Donor Countries:
    - Lots of money collected in richer donor nations by charities get swallowed up by advertising and collection costs, and therefore never reaches the destination recipient country
  2. Recipient Countries:
    - Less reliable, in times of recession people give less to charities
    - Often lacks coordination, with many charities competing in the same areas so is therefore inefficient in delivering whole sale change to counties and region
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28
Q

What is aid?

A

The donating of resources such as money, food, medicines, knowledge or helpers to areas in need. It can be either short term (e.g. raising money to relive a disaster) or longer term (e.g. loaning an area money to improve the standard of living)

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29
Q

Describe medical assistance (AID)

A
  • During emergencies, rich nations and charities like the Red Cross or Medecin sans frontiers can provide medical assistance to the affected country
  • This could take the form of qualified staff or medicines
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30
Q

Describe people (AID)

A
  • Richer nations or charities might choose to send qualified people to help in poorer nations
  • In the short term during emergencies qualified medical staff and trained pilots and the army can be of great assistance
  • In the longer-term teachers, engineers, consultants can all play a role in advising and train in people within a poorer nation, to help its long term development
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31
Q

Describe money (AID)

A
  • Money is often sent to LEDCs, for investment in projects and the local people
  • The UK sent £45 million in aid to Tanzania to be spent on education
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32
Q

Describe large scale projects (AID)

A
  • MEDCs can invest in large scale development projects, such as building roads, dams and factories
  • The idea behind these projects is that they act as a growth point for development, allowing industry and farming to develop and raise massive profits
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33
Q

Describe intermediate technology (AID)

A
  • This type of technology is designed to improve on current technology within LEDC countries and to be manageable for the local people to use
  • There is no point in sending machinery and technology into an area if the people can get no use of it because it is too complicated
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34
Q

Describe equipment (AID)

A
  • Large scale equipment can also be provided in aid to LEDCs

- Equipment such as tractors, irrigation equipment and other agricultural have all been provided in the past

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35
Q

What are the different measurements of development?

A
  1. GNP
  2. GNI per head
  3. Human Development Index (HDI)
  4. Birth and Death Rates
  5. Infant mortality
  6. People per doctor
  7. Literacy rate
  8. Access to safe water
  9. Life Expectancy
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36
Q

What is GNP (Gross National Product)?

A

The total value of all goods and services produced by a country in a year including overseas (e.g. America and McDonalds)

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37
Q

What is GNI per head?

A

Gross National income: a measure of a country’s total wealth - divided by the population

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38
Q

What is the HDI (Human Development Index)?

A

An index of development, using life expectancy, literacy/schooling and PPP, with 1 being the best

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39
Q

What is the birth rate?

A

The number of live births per thousand of the people per year

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40
Q

What is the death rate?

A

The number of deaths per thousand people per year

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41
Q

What is child mortality?

A

The number of children that die on or before their 5th birthday, per 1000 live births per year

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42
Q

What is people per doctor?

A

The number of medical doctors (physicians) per 1000 of the population

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43
Q

What is literacy rate?

A

The percentage of adults in a country who can read and write sufficiently to fully function in work and society

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44
Q

What is access to safe water?

A

The proportion of the population who have reasonable means of getting clean, safe drinking water located within a convenient distance from their dwelling

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45
Q

What is life expectancy?

A

The number of years from brith a person is expected to live

46
Q

What is a development measure?

A

Statistics used to show and compare development

47
Q

What is infant mortality?

A

The number of children born alive who die on or before their first birthday per 1000 live births per year

48
Q

What is PQLI?

A
  • Physical quality of life Index

- An index of development, using life expectancy, literacy and infant mortality

49
Q

What is PPP?

A
  • Purchasing Power Parity

- The strength of someone’s income within a country

50
Q

What are some of the correlations between these measurements of development?

A
  1. Countries with a high GNI tend to have low death rates and high life expectancy because they have more money to spend of healthcare
  2. Countries where a high percentage of the people have access to clean water have low infant mortality rates, because fewer babies die from waterborne diseases
51
Q

What are some of the limitations of these measurements of development when used on their own?

A
  1. The measures can be misleading when used on their own because they are averages and so they do not show up elite groups in the population or variations within the country
    - EXAMPLE: If you looked at the GNI of Iran it might seem quite developed (because the GNI is quite high), but in reality there are some really wealthy people and some poor people
  2. They also should not be used on their own because as a country develops, some aspects develop before others. So it might seem that a country is more developed than it actually is
  3. Using more than one measure or using the HDI (which uses lots of measures) avoids these problems
52
Q

What were some of the different ways of classifying different parts of the world?

A
  1. Countries used to be classified into two categories based on how economically developed they were
  2. Richer countries were classed as More Economically Developed Countries (MEDCs) and poorer countries were classed as Less Economically Developed Countries (LEDCs)
  3. MEDCs were generally found in the north. They included the USA, European countries, Australia and New Zealand
  4. LEDCs were generally found in the south. They included India, China, Mexico, Brazil and all the African Countries
  5. But using this simple classification you could not tell which countries were developing quickly and which countries were not really developing at all. Nowadays, countries are classified into more countries
53
Q

What are some of the examples of how to classify countries?

A

The five fold division based in wealth

  1. Rich industrial countries: these are the most developed countries in the world
    - E.G. UK, Norway, USA, Canada, France
  2. Former communist countries: these countries are not really poor but are no rich either (they are kind of in the middle). They are developing quickly, but not as quick as NICs are
    - E.G. Czech Republic, Bulgaria, Poland
  3. Oil-exporting countries: these are quite rich (they have a high GNI) but the wealth often belongs to a few people and the rest are quite poor
    - E.G. Qatar, Kuwait, Saudi Arabia
  4. Heavily indebted poor countries: these are the poorest, least developed countries in the world
    - E.G. Ethiopia, Chad, Angola
  5. Newly Industrialising Countries (NICs): these are rapidly getting richer as their economy is moving from being based on primary industry (e.g. agriculture) to secondary industry (e.g. manufacturing)
    - E.G. China, India, Brazil, Mexico, South Africa, Taiwan
54
Q

Why is quality of life not the same as standard of living?

A
  1. As a country develops the quality of life and standard of living of the people who live there improves
  2. Someone’s standard of living is their material wealth e.g. their income, whether they own a car
  3. Quality of life includes standard of living and other things that are not easy to measure e.g. how safe they are and how nice their environment is
  4. In general, the higher a person’s standard of living the higher their quality of life. But just because they have a high standard of living does not mean they have a good quality of life. For example a person might earn loads of money and have a flash car, but live somewhere where there is lots of crime and pollution
  5. Different people in different parts of the world have different ideas about what an acceptable quality of life is. For example people in the UK might think it means having a nice house, owning a car, and having access to leisure facilities, whereas people in Ethiopia might think it means having clean drinking water, plenty of food, somewhere to live and no threat of violence
55
Q

What is an example which demonstrates the concept of Gross National Happiness?

A
  1. Bhutan is a tiny, remote and impoverished kingdom nestling in the Himalayas between its powerful neighbours India and China
  2. It has only 733,643 residents, migration rate is 0%
56
Q

What is a case study of how a natural hazard impacts development? Key facts?

A
  1. 12th January 2010 4:53pm Haiti Earthquake
  2. Focus was 9.97km below the surface
  3. Epicentre was 10km southwest from Haiti’s capital Port-au-Prince
57
Q

How did the Haiti Earthquake hinder economic development?

A
  1. Total damage cost $14 billion and amounted to $2 billion more than their GDP and GDP growth is currently -8.6%
    - As a result less money spent on education and healthcare, leads to the future population being less educated and more vulnerable if they cannot access schools or hospitals and a less skilled workforce, and so less production, and so less income and so a drop in GDP
  2. Damaged roads and so prevented trade and aid from reaching their destinations, further hindering development
  3. Affected 50% of their GDP as in goods and services which previously contributed towards it have been affected e.g. agriculture and industry, preventing any further economic growth in the short term
  4. People have less disposable income, so less public spending so no longer an expanding textile industry and so economy will not grow as much as 2.9% in 2009
58
Q

How did the Haiti Earthquake hinder social development?

A
  1. Looting due to the collapse of the prison and general chaos, means an increase in crime and so people feel less safe and theft of other people’s possessions hinders their standard of living and quality of life
  2. Many now without access to food/shelter/medical care, so people focus on primary needs e.g. food rather than education and so people less skilled so harder to advance in later life
  3. Prices for everyday items have sharply risen due to the increased demand for things such as candles as people had no access to electricity or fuel for generators, and so people pay more for each item and so less money/no money for other necessities
  4. 20% of jobs lost after earthquake, and so families left without a breadwinner and so cannot afford basic necessities (especially with factor above), and so children may be forced to work and so lack of education etc.
59
Q

What are the positives of the Haiti Earthquake for development?

A
  1. Chance to start again and so build safer and more sustainable houses and so solves housing problem in the ST whilst hopefully minimising impact of another earthquake (LT)
  2. UNDP used $4 million to start paying people $3 a day to work for 2 week periods clearing the rubble and roads and collecting corpses, helps individual and economy as people have more money to spend and improves communication as roads are cleared so aid more effective
  3. IADB planned to donate $300 million to recovery projects which will focus on constructing new homes, government buildings and industrial parks, will help housing to improve and industry/economy to start agin/improve
  4. IMF proposed an interest free loan of $100 million to be used in the recovery effort, if this was invested appropriately it could benefit communications infrastructure, health care, education etc, helping to break the cycle of poverty in the long run and allows people and government to focus on immediate basic necessities e.g. food and shelter without damaging LT effects and services e.g. education
60
Q

What is bilateral aid?

A

Aid given by one government to another, may include trade tied to aid

61
Q

What is bottom-up aid?

A

Aid used to provide basic health care, clean water and money for education

62
Q

What is charitable aid?

A

Aid given free from NGOs such as charities

63
Q

What is a donor country?

A

The country giving aid

64
Q

What is long term aid?

A

Aid given over a long time to improve development e.g. training

65
Q

What is multilateral aid?

A

Countries at further stages of development give money to international organisations e.g. IMF or the UN, which then redistribute it to development projects in countries at lesser stages of development

66
Q

What is a receiving / recipient country?

A

The country receiving aid

67
Q

What is short-term aid?

A

Aid given after a disaster e.g. tents and medicine

68
Q

What is top-down aid?

A

Aid used to provide governments with funds for development

69
Q

How do international aid donors encourage sustainable development?

A
  • Sustainable development means developing in a way that does not irreversibly damage the environment or use up resources faster that they can be replaced
  • International aid donors (e.g. governments and NGOs) encourage sustainable development by:
    1. Invest in renewable energy, to reduce the use of fossil fuels and this reduces the environmental impact of using fossil fuels
    2. Educate people about their environmental impact, and this reduces things like air and water pollution
    3. Plant trees in areas that have been affected by deforestation and this makes sure there are still trees to used in the future
70
Q

How are some people trying to improve their own quality of life?

A
  • Some people in poorer countries try to improve their quality of life on their own, rather than relying on help from others, this is called ‘self-help’
    1. Moving from rural areas to urban areas often improves a person’s quality of life. Things like water, food and jobs are often easier to get in towns and cities
    2. Some people improve their quality of life by improving their environment e.g. their houses
    3. Communities can work together to improve quality of life for everyone in the community, e.g. some communities build and run services like schools
71
Q

How does fair trade help the reduce global inequality?

A
  1. Fair trade is about getting a fair price for goods produced in poorer countries e.g. coffee
  2. Companies who want to sell products labelled as ‘fair trade’ have to pay producers a fair price
  3. Buyers also pay extra on top of the fair price to help develop the area where the goods come from, e.g. to build schools or health centres
  4. Only producers that treat their employees well can take part in the scheme e.g. producers are not allowed to discriminate based on sex or race, and employees must have a safe working environment. This improves quality of life for the employees
  5. However, produces in a fair trade scheme often produce a lot because of the good prices, this can cause them to produce too much. An excess will make world prices fall and cause producers who are not in a fair trade scheme to lose out
72
Q

How do trading groups help to increase the money made from trade and thus reduce global inequalities?

A
  1. These are groups of countries that make agreements to reduce barriers to trade (e.g. to reduce import taxes) and this increases trade between members of the group
  2. When a poor country joins a trading group the amount of money the country gets from trading increases and more money means that more development can take place (expand on this!)
  3. However it is not easy for poorer countries that are not part of trading groups to export goods to countries that are part of trading groups. This reduces the export income of non-trading group countries and slows down their development
    - E.G. NAFTA is a trade group including the USA, Canada and Mexico
73
Q

How can the debt of poorer countries be reduced? (Debt Abolition)

A
  1. Debt abolition is when some or all of a country’s debt is cancelled. This means that they can use the money they make to develop rather than to pay back the debt
    - E.G. Zambia (in southern Africa) had $4 billion of debt cancelled in 2005. In 2006, the country had enough money to start a free healthcare scheme for millions of people living in rural areas, which improved their quality of life
74
Q

How can the debt of poorer countries be reduced? (Conservation Swaps)

A
  1. Conservation swaps (debt-for-nature swaps) are when part of a country’s debt is paid off by someone else in exchange for investment in conservation
    - E.G. In 2008 the USA reduced Peru’s debt by $25 million in exchange for conserving its rainforests
75
Q

What are tariffs?

A

Government taxes on imported or exported goods

76
Q

What is debt?

A

Money owed to others, such as to a bank or a global organisation

77
Q

What is the IMF?

A
  • International Monetary Fund
  • Formed in 1944 but now has 188 member countries
  • An international organisation working to foster global financial cooperation, stability and fair trade
78
Q

What is debt relief?

A

Forgiving a debt in part or total - writing it off

79
Q

What is the UN?

A
  • United Nations
  • Formed in 1945, but now has 193 member countries
  • An inter-governmental organisation working to promote international cooperation including maintaining international peace and security, promoting human rights, fostering social and economic development, protecting the environment and providing humanitarian aid
80
Q

What is trade?

A

The exchange of goods and services between countries

81
Q

What is a trade bloc?

A

Several countries grouped together to trade with reduced barriers e.g. EU

82
Q

What is sustainable development?

A
  • “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” - World Banks, 1987. It takes into account social, economic and environmental development
  • This allows economic growth to occur which can continue over a long period of time and will not harm the environment. It benefits the people alive today but does not compromise future generations
83
Q

What is Primary Product Dependency?

A

Relying on one product for income e.g. a country relying on oil

  • This is bad as price fluctuates
  • Trade deficit more likely
  • Secondary producers control price of primary products as well
84
Q

What is interdependence?

A

When countries have a need of or are reliant on each other

85
Q

What is fair trade?

A
  • Agricultural producers are paid a fair price for produce to improve their standard of living
  • A system whereby agricultural producers in countries at lesser stages of development are paid a fair price for their produce. This helps them to attain a reasonable standard of living
86
Q

What is the European Investment Bank?

A

The EU’s non-profit, long term lending institution, who invest in regional development in Europe. EU member countries contribute to the EIB according to their size and wealth

87
Q

What is a case study for a development project?

A

The White Revolution, India (1970s) then China, now East Africa specifically Uganda, Kenya and Rwanda

  • Supply with cow
  • They breed big herd small business sell milk
  • Cow dung = methane (bio gas!) environmentally friendly as renewable
  • Helps improve health as milk good source of nutrients
88
Q

What are the aims of the White Revolution?

A
  1. The White Revolution is a surge in milk production based on low-level technology that started in India in the 1970s
  2. It aims to allow people to make the most of the resource they have and increase the livelihoods of the rural poor by improving their nutrition and incomes through employment
  3. It aims to do this by improving the genetic stock of dairy cattle, providing veterinary care, providing information to farmers and keeping the milk cold
  4. The East Africa Dairy Development (EADD’s) main aim is to double the real incomes of 179,000 smallholder farmers (1 million people) by the end of the decade (2020)
89
Q

What are the socio-economic effects of the project?

A
  1. A Rwandan widow reported being able to keep her children in school with earnings from just a cow and a calf
  2. A husband and wife built an impressive house by trading milk from a handful of cows for red bricks from a neighbour
  3. Once they earn enough, individuals are able to enlarge their herd and employ other people to tend to the herd e.g. Milking, harvesting pasture
  4. Promotes an increase in economic activity in the area
  5. Biogas lighting systems allow children to work to later into the night as the sun sets at 6pm and it is difficult to complete homework in the dark - therefore longer term benefits e.g. Increased literacy rates
  6. Nestle (a major TNC) are interested in purchasing considerable amounts of milk from the EADD if the quality is high enough
  7. Locally produced food is better for the economy than paying for expensive imports from overseas
90
Q

What is a case study to illustrate debt relief?

A
  • The IMF vs Guyana
  • The IMF is often criticised for the way in which it offers help to indebted countries
    1. In Guyana, the IMF insisted that they sell off their natural resources to cover debts. These included wood,gold and bauxite, and this of course greatly hinders the countries chances of generating future wealth
    2. The country was told it could just pay off the intreat on its debts and if necessary borrow more to do this
    3. In a great struggle to meet repayment targets and have some debt written off, the country has suffered greatly
91
Q

How did this way of debt relief damage Guyana’s development?

A
  1. 45% of all earnings go to pay off debt, this means that the country can barely afford to pay teachers or doctors
  2. As a consequence, the country has fewer than 250 doctors and untrained teachers staff schools
  3. Trained nurses are emigrating because the wages are so terrible, in fact, just 15% of public expenditure goes on education, health and welfare
  4. In many areas, such as Tiger Bay, residents live in complete squalor, water supplies are available for just a few hours a day, there is no sewage system and drug abuse and prostitution are common
  5. The situation for many is getting worse and all they are doing is paying off the interest and a little of their debt
92
Q

What is a case study to illustrate the effects of Fair Trade?

A
  • Kuapa Kokoo farmers’ cooperative, Ghana is a Fair trade organisation
  • 1993 set up as a cooperative to buy cocoa directly from farmers
93
Q

What advantages does fair trade bring for farmers in LEDCs?

A
  1. There is an increase in income, and so more disposable income which also benefits the wider economy etc.
  2. Practice sustainable farming
94
Q

Using the case study, how does fair trade benefit farmers?

A
  1. It has set up a credit union and this provides loans to famers to improve farming methods. These loans are made at a much lower rate of interest than loans from other lenders
    - 2003 farmers selling to the cooperative received 562,000 cedis for a 64 kilo sack and cooperative paid the government handling charge on behalf of the farmers
    - Other buyers of cocoa paid 560,000 cedis for a 64-kilo sack and left the farmer to pay the handling charge
  2. It has supported farmers in developing income-generating activities to provide money for cocoa famers during the times of the year when cocoa is not harvested such as a project to make soap from the potash produced from burnt cocoa husks or shells
  3. It now markets its own chocolate bars. In 1998 the cooperative joined with Twin Trading and The Body Shop to set up its own company producing ‘Divine’ chocolate bars. The farmers own one third of this company
95
Q

What is an example of inequalities within the EU?

A
  • Bulgaria is less developed than the UK
    1. Bulgaria joined the EU in 2007
    2. In 2007 Bulgaria had a GNI per head of $11,180 and the UK had a GNI per head of $33,800
    3. Life expectancy in Bulgaria is six years lower (73 compared to 79)
    4. The HDI for Bulgaria is 0.824 whereas it is 0.947 for the UK
96
Q

Why is Bulgaria less developed than the UK?

A
  • UK: The climate is temperate (not too hot or too cold) and there are not many droughts and this creates good conditions for farming
  • Bulgaria:
    1. The climate is temperate, but there are droughts in summer, and high snowfall and storms in winter. This makes farming difficult
    2. Part of Bulgaria is very mountainous e.g. the Rhodope mountains cover 12,233 km squared of Bulgaria. The land on the mountains is steep and has poor soil, also making farming difficult in those areas
  • UK: has good trade links and the UK has been a major trading centre for hundreds of years
  • Bulgaria: was a communist country between 1944 and 1990 and the government did not invest in developing the economy
  • UK: has a well developed manufacturing and service industries (e.g. insurance) which are very profitable
  • Bulgaria: There have been problems with political corruption since 1990
97
Q

What is the economic core?

A

The centre of a country or region economically, where businesses thrive, people have opportunities and are relatively wealthy. Highly developed area
-E.G. Germany, France, UK

98
Q

What is the economic periphery?

A

The edge of a country or region in terms of economic may not be physically at the edge, but it is a more remote and difficult area where people tend to be poorer and have fewer opportunities. A less well-developed area
-E.G. Bulgaria, Hungary

99
Q

What is CAP?

A
  • Common Agricultural Policy
  • A policy to support and control farming in the EU
  • Subsides given so same guaranteed income with fixed price and reduces competition within EU, so livelihoods protected of farmers
  • Not same as fair trade, as in CAP EU gives money to farmers to produce crops so always have profits therefore farmers produce huge amounts and that leads to overproduction (negative environmental)
  • reduces development gap within the EU by subsiding farmers especially benefitting countries which have a large agricultural sector
100
Q

How is the EU trying to reduce inequalities in and between its member countries?

A
  1. The URBAN Community Initiative: where money is given to certain EU cities to create jobs, reduce crime and increase the area of green space (e.g. parks)
  2. CAP: farmers are subsidised (paid) to grow certain products. Also when the world food prices are low, the EU buys produce and guarantees farmers a reasonable income. The CAP also puts high import tax on foreign produce so people in the EU are more likely to buy food produced in the EU. All these things improve the quality of life for farmers
  3. Structural Funds: these provide money for research and development improving employment and opportunities, reducing discrimination and improving transport links. The aim of the fund is to get all members of the EU to a similar level of development (reducing inequalities within Europe)
101
Q

How is the EU trying to develop Bulgaria?

A
  1. SAPARD (Special Accession Programme for Agriculture and Rural Development) gives money to Bulgaria and two other countries to invest in agriculture
  2. Funds earmarked for Bulgaria have been partially frozen until the government shows it is making progress in fighting corruption
102
Q

What are the environmental effects of the development project?

A
  1. Use of biogas and lighting systems are environmentally friendly
  2. Environnement is being appropriately managed for the cattle
  3. The natural environment of East Africa is well-suited to dairy farming therefore working with nature rather than against it e.g. They are not trying to grow cotton
103
Q

What are the political impacts of this development project?

A

A healthier population (increased protein consumption) helps to reduce disease contraction, better educated population means social and economic development should be easier, which in turn creates work and employment, and raises the tax base of the country. Reduced aid dependency over time means the country can increase its GDP

104
Q

Why are these features sustainable?

A
  1. Renewable fuel (biogas) - continuous supply of fuel at night, minimal damage to environment (sustainable), people can work into the night, more productive and children can study indoors as it new light
  2. Education: educated future generations, workforce highly skilled, more productive and increase in income, greater chance of getting a high income later on
  3. Cows given to farmers: nutrition (healthy population), herd increase, reproductive, sustainable income, sell surplus
105
Q

What are the limitations of first second and third world countries?

A

(Communist countries are second) historic and colonial and NICs not included

106
Q

What is the limitations of the Brandt Line?

A

Historic 1970s

107
Q

What are the limitations of the five fold division

A
  1. Does not show changes over time
  2. Variation in each country
  3. Rural urban divide not shown
108
Q

Why might death rate increase even after having decreased at early stages of development?

A

Old age

109
Q

Disadvantages of tied aid

A

The donor benefits so not long term benefits for recipients

110
Q

Advantages and disadvatges of muli and bi lateral aid

A

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Z Geography GCSE (12 decks)

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