THE devwlopment Gap Flashcards
What are the different ways of measuring development?
GNP
Birth rate
HDI
Infant mortality
GNI
HDI?
Human development index
How is HDI calculated?
An index based on life expectancy at birth, level of education and income adjusted for purchasing power
GNI?
Gross national income
GNP?
Gross national product
Measure of wealth but does not take account of some business taxes
Conservation swaps?
A way for poorer countries to make money and get themselves out of debt
Paid for by environmental conservation
1984 WWF
Many countries followed
Example of how politics can affect development?
Zimbabwe
Invisible trade?
Work force
Services
Financial industry
Visible trade?
Goods that you will buy and sell
Balance of trade?
The difference between exports and imports
Trade surplus?
You are selling more than you need to buy
You make more money
What is trade deficit?
You are spending more money than you are making
You lose money
List the G8 countries
UK
France Germany USA Italy Russia Japan Canada
Why does most trade take place between wealthier countries?
The price of manufactured goods is steadier
MEDCs can afford tariffs
Good infrastructure to move raw materials and finished goods
Manufactured goods are more expensive to buy - only other wealthier countries can afford them
Trading blocks
What are tariffs?
Government taxes on imported or exported goods
What are trading blocks?
A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, (tariffs and non-tariff barriers) are reduced or eliminated among the participating states.
Why is it bad poorer countries rely on one product for export?
If demand for this product decreases country can’t support itself
Economy will crash
Primary products?
Tend to be low in price
The prices can fluctuate
The output can decline
Manufactured goods?
They have a greater value so sell at a higher price
The prices tend to increase
The markets are protected- trading bloc
Definition of government/bilateral aid?
Given directly by a richer country to a poorer country
Often tied (with strings attached)
Multilateral aid?
International organisations
Given by organisations such as the world bank and the imf
Top down aid
Voluntary aid?
Non governmental organisations such as Oxfam and ActionAid which collect money and receive gifts for people in LEDCs
Bottom up aid
More sustainable
Deals with emergencies
Short term aid
Emergency
Needed to cope with effects of environmental hazards such as earthquakes and tropical storms
Long term aid
Organisations such as practical action which help people in LEDCs to support themselves
Trains
Don’t fall into debt
Cahora Bassa dam
Mozambique
Bilateral aid - begun by the Portuguese government
Largest of dams in Southern Africa
Money is made for the Mozambican economy
Could provide the whole of Mozambique with all the power it needs for the foreseeable future
Only 1% of Mozambicans rural homes have direct electricity supply
Most of the power is sold to South Africa
3 dams in one basin- environmental damage - shrimp fishing industry almost destroyed
Fair trade ?
A system whereby agricultural producers in countries at lesser stages of development are paid a decent price for their produce. This helps them to attain a reasonable standard of living
Cocoa - kuapo kokoa- Ghana
Example of top down aid
Haiti
E.g. Of bottom up aid
Mozambique
Why is Ireland more developed than Bulgaria?
Physically closer to more developed economies with established trading links
CAP
Common agricultural policy
EU strategies to close the development gap?
Tariffs on imports
Quotas on imports
Guaranteed minimum prices- stable
Improve farmers income
Structural funds
Support poorer regions of europe
Improve infrastructure
Standard of living
Economic indicator
About the material possessions that you have
Quality of life
How you feel about your life
How happy you are
