Theme 3 - 3.1 - Development Flashcards
Define development.
The use of resources to improve the quality of life in a country.
Define Gross National Product.
The total value of goods and services produced by a country in a year, plus income earned by the country’s residents from foreign investments (and minus income earned within the domestic economy by overseas residents).
Define Gross Domestic Product.
The total value of goods and services produced by a country within its borders, by national citizens and foreign citizens.
What does GDP stand for?
Gross Domestic Product
What does GNP stand for?
Gross National Product
What is the difference between GNP and GDP?
Both are a measure of the goods and services produced by a country.
GDP takes into account products and services within a country, regardless of who earns the money.
GNP takes into account products and services by citizens of a certain country, regardless of where they are.
What are GDP and GNP measured in?
Dollars
Define Gross National Product per capita.
The total GNP of a country divided by the total population.
Define development gap.
The difference in wealth, and other indicators, between the world’s richest and poorest countries.
Define Human Development Index (HDI).
Combines 4 indicators of development: life expectancy at birth; mean years of schooling for adults aged 25 years; expected years of schooling for children of school entering age; GNI per capita (PPP$)
Define least developed countries.
The poorest of the developing countries. They have major economic, institutional and human resource problems.
What does LDCs stand for?
Least developed countries
Define newly industrialised countries.
Nations that have undergone rapid and successful industrialisation since the 1960s.
What does NICs stand for?
Newly industrialised countries
Define Gini coefficient.
Technique used to show the extent of income equality.
Define cumulative causation.
The process whereby a significant increase in economic growth can lead to even more growth as more money circulates in the economy.
Define formal sector.
That part of the economy known to the government department responsible for taxation and to other government offices.
Define informal sector.
That part of an economy operating outside official recognition.
Define product chain.
The full sequence of activities needed to turn raw materials into a finished product.
Define globalisation.
The increasing interconnectedness and interdependence of the world economically, culturally and politically.
Define transnational corporation.
A firm that owns or controls productive operations in more than one country through foreign direct investment (FDI).
Define diffusion.
The spread of phenomena over time and space.
Define internet.
Basically a group of protocols by which computers communicate.
Define new international division of labour.
Divides production into different skills and tasks that are often spread across a number of countries.
What does TNC stand for?
Transnational corporation
What does NIDL stand for?
New international division of labour
Is there a difference between economic growth and development?
Yes. Economic growth is an increase in GDP, while development is a wider concept concerning many more aspects of the quality of life.
What are some indicators of development?
- GNP (per capita)
- Literacy
- Life expectancy
- Infant mortality
- Doctors per 100,000
- Energy consumption (per capita)
- Percentage of population living in urban areas
- Internet penetration rate
- Diet
When was the Human Development Index developed and who by?
1990 - United Nations
What are the 4 indicators that make up HDI?
- Life expectancy at birth
- Mean years of schooling for adults aged 25
- Expected years of schooling for children of school entering age
- GDP per capita
(Sometimes, the 2 about education are substituted by adult literacy)
What factors affect quality of life?
Economic • Income, Job security, Standard of living Physical • Diet/nutrition, Water supply, Climate, Environment Social • Family/friends, Education, Health Psychological • Happiness, Security, Freedom
Explain the most simple division of countries in terms of development.
- In the 1980s, the Brandt report divided the world into the rich north and poor south.
- The north included the more economically developed countries (MEDCs)
- The south included the less economically developed countries (LEDCs)
- Since then, the poorest countries have been given the name of least developed countries (LDCs) and the wealthier, quickly developing LEDCs are now called newly industrialised countries (NICs)
Why is GNP (per capita) not the best indicator of development?
It does not take into account the quality of life.
What are the categories of indicators that can be used to measure development?
- Economic indicators
* Social indicators
What are economic indicators?
Indicators which show how developed a country may be through financial and industrial means.
What are social indicators?
Indicators which show how developed a country may be through non-financial and economic means.
What are the limitations of many development indicators?
- Many indicators are used to calculate averages for the whole population -> This does not take into account inequalities in a country
- Individual indicators are usually not as good as a combination of them
What are the 4 BRIC countries?
- Brazil
- Russia
- India
- China
What is HDI measured in?
A number from 0 to 1.
What can the HDI do?
- Measure differences within a country
- Highlight where is the worst
- Shows how a country has developed
- Helps a country set targets for development
When does development occur in low-income countries?
- When local food supply improves due to investment in farm machinery
- Electricity grid extends outwards from urban areas to rural areas
What are some factors which cause inequality between countries?
HUMAN • Economic • Social • Political • Historical development PHYSICAL • Climate • Natural hazards • Environmental -> Geography + Natural resources
Explain how economic factors may be causes of inequality between countries.
- LEDCs have to compete on primary produce, while MEDCs do not.
- MEDCs can also afford to develop new factories, etc.
Explain how social factors may be causes of inequality between countries.
• The more a country develops, the more it can invest in education, health and housing.
Explain how political factors may be causes of inequality between countries.
• Poor governance may result in money being spent on war or an affluent lifestyle, instead of on development
Explain how historical development factors may be causes of inequality between countries.
- Colonialism hindered a developing country’s development
* Certain countries/populations were set against each other, which created tension
Explain how climatic factors may be causes of inequality between countries.
• Regions without rainfall may struggle to produce crops (e.g. The Sahel)
Explain how natural hazards may be causes of inequality between countries.
- Floods, drought and tectonic activity can limit future growth and destroy buildings and agricultural areas
- Country may have to divert income to help recover
Explain how environmental factors may be causes of inequality between countries.
- Some areas may have more natural resources, such as oil, to exploit and drive development
- Some areas many be geographically closer to major trade routes, making trade easier
Why may there be inequality within a country?
- Some areas may be geographically less well positioned in terms of trade and communication
- Some areas may have fewer natural resources, such as minerals
- There may be divisions imposed by colonialism
- Some areas may have more fertile soil
- Government may choose to invest in certain areas more than others
- Some areas may have suffered from natural hazards, halting their development
- Some areas may have a more developed sevices sector
- Ethnicity
- Residence
- Education
- Land ownership
What is the path for development of a country?
- Least developed countries
- Developing countries
- Newly industrialised countries
- Developed countries
What are some consequences of the development gap?
- Some parts of the world are in extreme poverty and cannot get out due to competition
- Countries may sink into debt
- Poor countries are more at risk of natural disasters, etc.
- Poor countries are more likely to have non-democratic governments
- Poor countries generally have a shorter life expectancy, higher birth rates, etc.
- Poor countries have more jobs in the primary and informal sectors
- Poor countries have less trade
- Poor counties have less power purchasing per capita
What is used to measure inequality in a country?
Gini coefficient
What is the Gini coefficient measured in?
A scale of 0 to 1, where a low value indicates more equality, while a high value indicates inequality.
How does inequality within countries compare in MEDCs and LEDCs?
MEDCs tend to have a lower income gap than LEDCs.
Which regions of the world have the highest income inequality?
Southern Africa and South America
Which region of the world has the lowest income inequality?
Europe
Which theory helps to explain regional differences within a country?
Cumulative causation
What are the stages of cumulative causation?
- Pre-industrial stage where regional differences are small
- A period of rapid economic growth with increasing regional economic divergence
- A stage of regional economic convergence
Explain how cumulative causation may affect inequality within a country.
- First, economic growth begins with the location of new manufacturing industry in a region with a combination of advantages over other parts of the country
- This growth stimulates flow of labour, capital and raw materials, encouraging further expansion and more growth due to cumulative causation
- This also has a negative effect on other parts of the country as skilled labour is dragged in + smaller industries there are outcompeted
- The wealth gap widens
- Eventually, the increasing demand for raw materials may result in these being taken from other parts of the country, which stimulates growth in these regions
- Similar growth happens here until the wealth gap has narrowed significantly
What are the different employment sectors?
- Primary - Extracting raw materials straight from the sea/earth
- Secondary - Processing and manufacturing primary products
- Tertiary - Providing services
- Quaternary - Providing information and expertise
Remember to learn the product chain.
Revision guide - Pg 61
Give some examples of primary industry.
- Farming
- Fishing
- Forestry
- Mining
Give some examples of secondary industry.
- Steelmaking
- Furniture
- Construction + assembly -> E.g. Car assembly
Give some examples of tertiary industry.
- Education
- Health
- Office work
- Retail
- Transport
- Entertainment
Give some examples of quaternary industry.
- Micro-electronics
- Biotechnology
- Aerospace engineers
Describe the employment structure in MEDCs.
- Low percentage in primary
- High percentage in secondary
- Very high percentage in tertiary
Describe the employment structure in LEDCs.
- Very high percentage in primary
* Low percentage in secondary and tertiary
Why do MEDCs have a different employment structure to LEDCs?
- Less reliant on agriculture
- More developed, larger services, offering more jobs
- Provide better education, which allows more people to become doctors, etc.
- Better access to advanced tech for manufacture (in the secondary sector)
- People have more money to spend on services
Describe how employment structure changes as a country develops.
Pre-industrial • Very high primary • Low secondary • Very low tertiary Industrial • Rapidly falling primary • Secondary increases, peaks, and then slowly falls • Tertiary increases Post-industrial • Very low primary • Low secondary (but higher than pre-industrial) • Tertiary peaks
See diagram on pg 61 of revision guide.
How does primary sector employment change with development?
It decreases.
How does secondary sector employment change with development?
It increases and then decreases.
How does tertiary sector employment change with development?
It increases.
Give some examples of NICs.
- Brazil
- Russia
- India
- China
What characteristics do NICs share?
- Strong government
- Move from primary to secondary industries
- Free trade with other countries
- Lots of foreign investment because of low tax rates and other benefits
- Big, successful, home-grown multinational companies
What are some reasons for globalisation?
- Improvements in transportation
- Freedom of trade
- Improvements in communications
- Labour availability and skills
- People have more money to spend on TNCs’ products, etc.
- TNCs growing -> Due to finding cheaper labour in LEDCs
- Capitalism is unchallenged and accepted
- Increasing cultural diversity in countries
- Many new NICs
- Rising levels of international migration -> Take ideas with them
What effect has technology had in globalisation?
Transport
• Allows products and ideas to be distributed
• Allows parts of products (e.g. cars) to be produced in different parts of the world
• Allows cheap labour to be accessed
Communications
• Internet allows people to buy products online
• Easy for TNCs to analyse market demand
• Easy for TNCs to manage complex actions all over the world
What factors may attract a TNC to a country?
- Cheap raw materials
- Cheap labour supply
- Good transport
- Access to markets where the goods are sold
- Friendly government policies
What are some negative impacts of globalisation?
- Concerns about loss of sovereignty and culture (idea of “Americanisation)
- Increasing complexity of global economy
- Environmental degradation caused by economic activity
- TNCs avoiding paying tax through ‘creative accounting’
- Increasing trans-boundary pollution
- Small businesses struggle to compete against TNCs
- Closure of a TNC branch can cause high local unemployment
- Families more likely to be spread out due to international migration
- Possibility of exploitation of workers by TNCs
- Money flows back to MEDCs, rather than the counties where factories are
- Loss of jobs in MEDCs as TNCs move factories
- TNCs may have more power than small governments
What are some positive impacts of globalisation?
• Increasing number of NICs • Cultural diffusion • TNCs create jobs + Boost economies • Lower cost of international travel • Increase in tourism • Larger availability of products for consumers • More multicultural areas •
What are the benefits of globalisation on the UK?
- Creates employment
- Contributes to GDP
- Investment in the UK
- Low-cost manufactured goods from China keep inflation low
- Economic growth -> Better education and health
- Transport and communication revolution has improved lifestyles
- Trade relationships strengthen political influence
- Deindustrialisation has improved environmental conditions
What are the costs of globalisation to the UK?
- High job losses in traditional industries
- Widening gap between the highest and lowest-paid workers
- Economy has attracted immigrants
- Loss of government’s power to TNCs
- Greater risk of terrorism
- Damage to environment
