Theme 6 - Development and Resource Issues Flashcards
What is development?
The process of change which improves the wealth and quality of life of people
What is economic development?
Result of increased employment and rising incomes
What is social development?
Rising life expectancy and greater access to education, healthcare, clean water and housing for all people, particulary for women and minority groups
What is political development?
Forming a stable government and allowing greater freedom of speech
What is the development gap?
The widening difference in levels of development between the worlds richest and poorest countries
What is a development continuum?
A linear scale from highly developed countries to those with low level of development
What is GNI?
Gross national income per capita
A measure of the total economic output of a country, including income from foreign investments, divided by its population.
What GNI do HIC’s have?
$12,736
What GNI do upper middle income countries have?
$4126
What GNI do lower middle income countries have?
$1046
What GNI do lower income have?
$1045 or less
What is GNH?
Gross National Happiness
What is GDP?
Gross Domestic Product
The total value of goods and services produced by a country in a year
What are the 4 economic development indicators?
- GDP
- GNI
- Employment structure
- Poverty
Limitations of economic development indicators?
- They measure only wealth and not social factors
- They do not recognise inequality
- They do not consider cost of living
What is HDI?
Human Development Index
Used by united nations
combines figures of life expectancy, education and per capita income
What is an export?
Goods and services produced in one country and shipped to another
What is an import?
Good and services brought into one country from another
What is a tariff?
Taxes imposed on imports
What are quotas?
Limits on the amount of goods imported
What are subsidies?
Benefits given by the government usually in the form of a cash payment or a tax reduction
What is meant by interdependant?
Where countries are linked together in a complex web, economically, socially, culturally, and politically, so that they are dependant on eachother
What is the WTO?
World Trade Organisation
encourages free trade, policies free trade agreements, settles disputes and organises trade organisations
What is the IMF?
International Monetary Fund
provides financial aid when a country has problems and promotes trade
What is the world bank?
reduces poverty around the world by providing financial and technical assistance to developing countries
How are NIC’s characterised?
- rapid economic growth
- rapid industrialisation and urbanisation
- stable governments and strong political leaders
- an expanding domestic market
- a well-developed infrastructure
What is globalisation?
The process by which the worlds economies, societies and cultures have become integrated through networks of communication, transportation and trade
What are the drivers of globalisation?
- improved technology
- improvements in communications
- advances in transport
- the removal of trade barriers
- the growth of MNC’s
What are MNC’s?
Multi-national companies
What are the factors attracting investment in a country by a multinational?
- government incentives
- availability of raw materials
- lower labour costs
- proximity to the markets where goods are sold
- ability to sell inside trade barriers
- reduced costs of building and land
Advantages of MNC’s?
- Investment provides new jobs and skills for local people
- foreign indirect investment brings in foreign currency to local economies when they buy local resources
- the multiplier effect spread the wealth through society
Disadvantages of MNC’s?
- Profits are often sent back to the HIC where the MNC is based
- MNCs with their massive economies of scale, may drive local companies out of business
- If an MNC finds it cheaper to operate in a different country, the factory may close and the local people can be made redundant
- Lack of international laws means MNC’s may exploit workers, the environment and living conditions
What is the definition of tourism?
Any activity where a person voluntarily visits a place away from home and stays there for at least one night
What factors contribute to the growth of tourism?
- Increased life expectancy
- Higher salaries and savings
- Modern aircraft/transport links
- Growth of holiday companies
- The internet
- More stable governments
What is enclave tourism?
Where tourist activities are planned and congregated in one small geographic area
What is meant by a ‘leakage’ in regards to tourism?
The way in which revenue generated by tourism is lost to other countries economies
What is the informal economy?
The jobs that are done by self-employed people which are neither declared to, nor regulated by, the authorities.
What are the benefits of tourism?
- Generates employment
- Brings foreign exchange
- Wealth can be invested in services such as health and education
- new facilities provided for tourists can be used by locals
What are the costs of tourism?
- Jobs are often low paid and temporary
- Local culture is destroyed
- Fragile ecosystems, for example sand dunes are destroyed
- Increased pollution from road and air traffic
What is bilateral aid?
Aid between 2 countries
What is multilateral aid?
money donated by richer countries
What is short term emergency aid?
Relief brought to a country after severe incident, eg natural disaster
What is long term development aid?
Money to support the standard of living
What is debt abolition?
when richer countries cancel debt owed to them by poorer countries
What are the aims of fairtrade?
- minimum wages and safe working conditions
- restrictions on child labour
- protection of the environment
- improved schools and healthcare
Arguments for emergency aid?
- saves lives
- long term improvements helps raise standard of living
- benefits global economy
- creates jobs
- improves health
Arguments against aid?
- increase dependency on donor country
- profits go to MNC’s
- aid kept by corrupt officials
- spent on prestigous projects
- used as a weapon to put a political pressure on receiving country
What do NGO’s (non-governmental organisations) do?
- controlled by local communities
- relatively cheap and easy to set up
- easy to maintain
- address local issues
What is rural periphery?
On the edge or margins, areas which have a poor economic status and thus suffer from the associated social conditions
Reasons as to why the north/south divide exists?
- road links
- difference in spendings
- london is a global centre for finance
- access to more major airports
- some industries declined
- political differences
Consequences of the north/south divide?
- health conditions poorer in north
- life expectancy higher in the south
- houses are more expensive in the south
- incomes are higher in the south
- migration of work to south
How are they trying to reduce the north/south divide?
- The regional growth fund
- enterprise zones for tax breaks
- enterprise zones in wales to attract more businesses
- improvement of transport links
- relocation of some businesses
- creation of the ‘northern powerhouse’
