Unit 2B: Changing Economic World Flashcards
What is development?
Development is the progress in economic growth, use of technology, and improving welfare that a country has made.
Development leads to an improvement in the quality of life for people living in the country.
What does the global development gap refer to?
The difference in development between more and less developed countries.
For example, France is more developed than Ethiopia.
What are measures of development?
Measures that compare the development of different countries, including economic and social factors.
They provide information about people’s quality of life.
What is Gross National Income (GNI)?
The total value of goods and services produced by a country in a year, including income from overseas, often given in US$.
GNI is a key measure of a country’s economic development.
What is GNI per head?
The GNI divided by the population of a country, often referred to as GNI per capita, and is also usually given in US$.
It provides an average economic measure per individual.
What does a higher birth rate indicate?
A higher birth rate typically indicates lower development.
This is measured as the number of live births per thousand of the population per year.
What does a lower death rate indicate?
A lower death rate generally suggests higher development.
It is measured as the number of deaths per thousand of the population per year.
What is the infant mortality rate?
The number of babies who die before they are 1 year old, per thousand babies born.
A lower infant mortality rate indicates better health conditions.
What does ‘people per doctor’ measure?
The average number of people for each doctor in a country.
Fewer people per doctor generally indicate better access to healthcare.
What is the literacy rate?
The percentage of adults who can read and write.
A higher literacy rate is associated with higher levels of development.
What does access to safe water measure?
The percentage of people who can get clean drinking water.
Higher access to safe water indicates better health and development.
What is life expectancy?
The average age a person can expect to live to.
Higher life expectancy is typically a sign of better healthcare and living conditions.
True or False: GNI per head is always an accurate measure of development.
False.
GNI per head can be misleading as it is an average and does not reflect variations within a country.
What is a limitation of using social indicators alone to measure development?
Social indicators can be misleading if used alone because some aspects of development may progress faster than others.
For example, a country may appear more developed due to low birth rates but have high death rates.
Fill in the blank: GNI usually misses out on _______ which can account for a large proportion of national income.
informal employment.
This limitation can affect the accuracy of development measures.
What is the most common way of classifying a country’s level of development?
By looking at its wealth.
What are Higher Income Countries (HICs)?
The wealthiest countries in the world with high GNI per head.
Examples include UK, USA, Canada, France.
What defines Lower Income Countries (LICs)?
Countries with very low GNI per head.
Examples include Afghanistan, Somalia, and Uganda.
What are Newly Emerging Economies (NEEs)?
Countries that are rapidly getting richer as their economies transition from primary to secondary industries.
Examples include BRICS and MINT countries.
What does the Human Development Index (HDI) measure?
Income (GNI per head), life expectancy, and education level.
What is the HDI value range for countries?
Between 0 (least developed) and 1 (most developed).
How does HDI differ from GNI per head in classification?
HDI combines various measures and may show different results; for example, Nigeria is an NEE by wealth but has a low HDI.
What are the HDI classifications?
- Very high (>0.8)
- Medium-High (0.55-0.8)
- Low (<0.55)
- No data
What does the Demographic Transition Model (DTM) illustrate?
How birth rates and death rates affect population growth.
What is natural increase in population?
When the birth rate is higher than the death rate.
What is natural decrease in population?
When the death rate is higher than the birth rate.
How do birth rates and death rates vary?
They differ from country to country and change within a country over time as it develops.
What do population pyramids show?
The population of a country by age, with men and women on the horizontal axis and age groups on the vertical axis.
What characterizes Stage 1 of the Demographic Transition Model?
High birth and death rates, low life expectancy, and very few places at this stage.
What is the economic basis of Stage 2 countries?
Agriculture-based economy with high birth rates and improving healthcare.
What happens in Stage 3 of the Demographic Transition Model?
Birth rates fall rapidly as contraception use increases and economies shift from farming to manufacturing.
What defines Stages 4 and 5 of the Demographic Transition Model?
Low birth and death rates, high life expectancy, and high standards of living.
In which stage are most HICs found?
Stages 4 and 5.
What is the relationship between economic development and quality of life?
Economic development can improve people’s quality of life.
What is uneven development?
Uneven development refers to the disparities in economic development and quality of life between different countries or regions.
What physical factors can affect how developed a country is?
Physical factors include:
* Poor Climate
* Poor Farming Land
* Few Raw Materials
* Lots of Natural Disasters
How does a poor climate affect a country’s development?
A poor climate can lead to malnutrition, reduced crop production, lower income from sales, and less tax revenue for development.
What are the consequences of having poor farming land?
Poor farming land limits crop growth and livestock production, resulting in lower income and reduced ability to invest in development.
What impact do natural disasters have on a country’s development?
Natural disasters require significant spending on recovery, reducing funds available for development projects and negatively impacting quality of life.
What economic factors can cause uneven development?
Economic factors include:
* Poor Trade Links
* Lots of Debt
* An Economy Based On Primary Products
How do poor trade links affect a country’s economy?
Poor trade links limit a country’s income, reducing funds available for development.
What is the impact of high levels of debt on development?
High levels of debt restrict funds available for development as borrowed money must be repaid, often with interest.
How does an economy based on primary products influence development?
Countries that primarily export raw materials tend to be less developed than those exporting manufactured goods due to lower profits and price fluctuations.
What historical factor contributes to uneven development?
Colonisation often leaves countries at a lower development level due to resource exploitation and lack of industrial development.
How does conflict affect a country’s development?
Conflict diverts funds from development to military spending, disrupts essential services, and damages infrastructure, leading to long-term developmental setbacks.
What are the consequences of uneven development?
Consequences include:
* Differences in wealth
* Health disparities
* International migration
How does uneven development create wealth disparities?
Wealthier countries have higher incomes, leading to significant income inequalities within and between countries.
What is the life expectancy difference between developed and less developed countries?
For example, the UK’s life expectancy is 81 years, while Chad’s is only 53 years.
What is the infant mortality rate comparison between Chad and the UK?
Chad has an infant mortality rate of 73 per 1000 births, while the UK has a rate of 3.7 per 1000 births.
What drives international migration from LICs and NEEs to HICs?
People migrate to escape conflict or seek better quality of life and job opportunities.
What is a significant example of migration from an NEE to an HIC?
Over 130,000 people move from Mexico (an NEE) to the USA (an HIC) each year in search of better opportunities.
True or False: Migrant workers contribute to the economies of the LICs they leave.
False. Migrant workers contribute to the economies of the HICs they move to instead of the LICs they leave.
Fill in the blank: Countries that were colonised often have a ______ development level when gaining independence.
[lower]
What is foreign-direct investment (FDI)?
FDI is when people or companies in one country buy property or invest in infrastructure in another country.
FDI leads to better access to finance, technology, and expertise.
What was the total amount of FDI received by Vietnam between 1987 and 2018?
Vietnam received FDI worth more than US $182 billion.
This investment improved infrastructure and industry, increasing services.
What is the purpose of aid given to countries?
Aid is money or resources (e.g. food, medicine) given to a country for development projects.
Projects can include constructing schools, building dams, and providing healthcare.
How much aid did the UK provide to South Sudan in 2018-2019?
The UK provided over £180 million in aid to South Sudan.
This funded 17 projects including dams and wells.
What is the fair trade movement focused on?
The fair trade movement is focused on ensuring farmers in LICs receive a fair price for their goods.
This allows them to provide for their families and invest in their local areas.
What challenges exist within the fair trade system?
Problems include only a tiny proportion of the extra money reaching producers and boosting retailers’ profits.
This can undermine the intended benefits of fair trade.
What does intermediate technology refer to?
Intermediate technology includes tools, machines, and systems that improve quality of life and are simple to use.
Examples include solar-powered LED lightbulbs.
What is microfinance?
Microfinance involves providing small loans to people in LICs who may not qualify for traditional bank loans.
This enables them to start businesses and achieve financial independence.
What are some potential downsides of microfinance?
Microfinance can lead to debt and may not effectively reduce poverty on a large scale.
It’s not universally beneficial and can create financial strain.
What is debt relief?
Debt relief is when some or all of a country’s debt is cancelled or interest rates are lowered.
This allows countries to allocate more funds to development.
What example illustrates the impact of debt relief?
In 2005, Zambia had $4 billion of debt cancelled, allowing it to start a free healthcare scheme.
This benefited millions of people living in rural areas.
What factors contribute to tourism’s growth in Kenya?
Kenya attracts tourists due to its culture, safari wildlife, warm climate, and unspoilt scenery.
The government has cut visa fees and landing fees to encourage tourism.
How many tourists visited Kenya in 2017?
Kenya had 14 million visitors in 2017.
This is an increase from 0.9 million visitors in 1995.
What percentage of Kenya’s GDP is contributed by tourism?
Tourism contributes nearly 4% of Kenya’s GDP.
This funding can improve development and quality of life.
What employment impact does tourism have in Kenya?
Over 1.1 million people are directly or indirectly employed by the tourism industry.
This accounts for 9% of all employment in Kenya.
What infrastructure investment has been made to support tourism in Kenya?
Investments include the Madaraka Express railway linking Nairobi to the coast.
This has created jobs and improved travel efficiency.
What is a negative consequence of tourism in Kenya?
Only a small proportion of the money earned from tourism goes to locals, with the majority benefiting large companies.
This can exacerbate the development gap.
What environmental issues are caused by tourism in Kenya?
Tourist vehicles can damage the environment by destroying vegetation and disturbing wildlife.
This can harm ecosystems and the local environment.
What has affected the reliability of tourism as an income source in Kenya?
Tourist numbers have fluctuated due to events like terrorist attacks, making tourism an unreliable income source.
This instability affects job security in the sector.
Fill in the blank: The fair trade movement aims to ensure farmers in LICs receive a _______.
[fair price]
This is essential for sustainable development and community support.
What is India classified as in terms of its economy?
A Newly Emerging Economy (NEE)
India has a large population and significant potential for growth.
What is the approximate population of India?
Around 1.3 billion
India has the second largest population in the world.
What geographical advantages does India have for trade?
Position in the Indian Ocean allows trade links with Southeast Asia and the Middle East
This strategic position enhances its trade opportunities.
What are two key exports of India?
- IT support
- Manufactured goods (e.g. medicines)
India exports these goods globally.
Which international organizations is India a member of?
- World Trade Organisation
- G20
These organizations consist of the world’s largest economies.
What was India’s political status before 1947?
A British colony
India gained independence in 1947 and established a democratically elected government.
What is India’s Human Development Index (HDI) score?
0.64
This indicates a medium level of development.
What percentage of India’s population lives in poverty?
Over 20%
This highlights significant social inequalities within the country.
What is the adult literacy rate in India?
Less than 75%
Education is improving but still has challenges.
How many officially recognized languages are there in India?
Over 22
This reflects India’s rich and diverse culture.
What major religions are practiced in India?
- Hinduism
- Islam
India is home to followers of many major religions.
What are some notable features of India’s landscape?
- Himalayas
- Thar Desert
- Fertile floodplains of major rivers (e.g. Ganges, Indus)
These features contribute to its agricultural potential and tourism.
What percentage of the workforce does primary industry employ in India?
42%
Primary industry includes agriculture.
What percentage of GDP does primary industry contribute in India?
15%
This indicates a decreasing role in the economy.
What percentage of the workforce was employed in secondary industry in 1999?
16%
This figure increased to 24% by 2018.
What role does employment in manufacturing play in India’s economy?
Stimulates economic development by providing reliable jobs
It contrasts with the seasonal nature of agricultural work.
What is the contribution of tertiary and quaternary industries to India’s GDP?
62%
These industries have become a significant part of the economy.
What city in India is known for rapid economic growth and development?
Hyderabad
The city has seen significant investment in new business districts.
What is the employment percentage of tertiary and quaternary industries in India?
34%
This reflects the growth in service and knowledge-based sectors.
Fill in the blank: India’s industrial structure is changing due to its rapid _______
Development
This transformation affects various sectors of the economy.
What has the UK’s economy shifted from?
Manufacturing to services
The shift began in the 1960s.
As of 2017, what percentage of the UK’s workforce is employed in tertiary and quaternary industries?
83%
This proportion is increasing.
What are some important industries in the UK?
- Services (e.g. retail and entertainment)
- Finance
- Information technology
- Research and development
Retail employs about 4 million people in the UK.
What role do science parks play in the UK economy?
They host quaternary industries and facilitate collaboration with universities
They are often located near housing and transport links.
What are the three main causes of economic change in the UK?
- De-industrialisation
- Globalisation
- Government policies
How has globalisation affected UK manufacturing?
A lot of manufacturing has moved overseas due to lower labour costs
Example: Marks and Spencer manufactures clothes in India and China.
What impact has increased automation had on UK manufacturing?
It has led to job losses in manufacturing industries.
What was a significant change in government policy in the 1980s?
Privatisation of key manufacturing industries
This led to major job losses but increased efficiency.
What effect has foreign trade had on the UK’s GDP from 1965 to 2017?
It increased from 38% to 62%.
What are some negative environmental impacts of industry?
- Release of pollutants or greenhouse gases
- High energy and water usage
- Habitat destruction from raw material extraction
What measures has the Unicorn Group taken to improve sustainability?
- Installed solar panels
- Used biomass boilers
- Achieved 100% electricity from renewable sources
- Recycled leftover materials
True or False: Modern industrial developments are generally less environmentally sustainable than older plants.
False
Modern developments are more sustainable due to regulations and awareness.
Fill in the blank: The UK’s industrial base has declined due to increased _______.
automation
What are the benefits of clusters of related businesses in one place?
They can boost each other.
What is the significance of research and development spending in the UK?
Over £33 billion was spent on R&D in 2016.
What is the impact of congested transport networks on economic development in the UK?
Congested transport networks can slow economic development.
What upgrades are being made to the UK’s road network?
Upgrading to ‘smart motorways’ with extra lanes and creating 400 miles of new road capacity.
What is Crossrail expected to achieve when fully opened?
Increase central London’s rail capacity by 10%.
What is the purpose of the proposed HS line in the UK?
To increase capacity and allow faster journeys between major English cities.
What is the significance of the proposed third runway at Heathrow airport?
It would allow an extra 700 planes a day but increase noise and air pollution.
What is the London Gateway port known for?
It can handle the world’s largest container ships and aims to become a hub for global trade.
What is the value of the UK’s overseas exports per year?
Over £160 billion.
Which regions are particularly significant for UK trade?
USA, Europe, and Asia.
How has immigration influenced UK culture?
It has led to cultural diversity in food, art, music, etc.
What connects the UK to mainland Europe?
The Channel Tunnel.
What role do large airports like Heathrow play for the UK?
Act as international hubs linking the UK to the rest of the world.
What is the European Union (EU)?
An economic and political partnership of 27 countries allowing free movement of goods and people.
What is the Commonwealth?
An association of 53 states promoting cooperation among member countries.
What has caused population decline in South Lakeland, Cumbria?
Decline in jobs in agriculture and manufacturing.
What were the population changes in South Lakeland from 2005 to 2015?
Population decreased by 0.8%, with Barrow seeing a 4.3% drop.
What are the economic impacts of population decline in Barrow?
Closure of shops and risk of further closures affecting employment.
What social impacts arise from population decline in rural areas?
Higher proportion of older people, strain on medical services and social care.
What is the population growth rate in North Somerset from 2005 to 2015?
About 7.8% increase.
What economic impacts are associated with population growth in North Somerset?
House prices rose by 6.7% in 2017-18, with above-average employment and wages.
What social issues arise from population growth in North Somerset?
Congested roads and oversubscribed services like schools.
What is the North-South divide in the UK?
A disparity where the north suffers more from industrial decline while the south benefits from growth.
How do wages compare between the north and south of the UK?
Wages are generally lower in the north than in the south.
What is an example of a health disparity between the north and south?
Life expectancy for male babies is lower in Glasgow than in East Dorset.
True or False: GCSE results are generally better in the north than in the south of England.
False.
What are some exceptions to the North-South divide trends?
Wealthy areas in the north and high deprivation in the south.
What is the primary goal of the UK government regarding economic development?
To make economic development more even.
What is one method the UK government is using to reduce the north-south divide?
Devolving more powers.
Which regions in the UK have their own devolved governments?
Scotland, Wales, and Northern Ireland.
What is an example of how devolved governments can use their powers?
To fund better public transport or regeneration projects.
How many Enterprise Zones have been created across the UK?
Around 50.
What is one benefit companies receive for locating in Enterprise Zones?
Reduced taxes, including business rates reduced by up to 100%.
What is a second benefit of locating in Enterprise Zones?
Simpler planning rules for certain developments.
What is a third benefit of Enterprise Zones for businesses?
Financial benefits, including reduced future tax bills for investments.
What infrastructure improvement is guaranteed in Enterprise Zones?
Availability of superfast broadband.
What was a significant project in the Sheffield City Region Enterprise Zone?
McLaren Composites Technology Centre.
How much investment did the Sheffield City Region Enterprise Zone bring in from private companies by 2017?
£318 million.
What is the Northern Powerhouse?
A government plan to reduce inequality between the north and south by attracting investment and improving transport links.
What amount is being spent on improving schools as part of the Northern Powerhouse plan?
£70 million.
What criticism has been made about the Northern Powerhouse?
It is seen as more of a concept than an actual plan.
What issue has been highlighted regarding the focus of the Northern Powerhouse?
It focuses on Manchester and big cities but ignores smaller towns.
Fill in the blank: The UK government is trying to help with regional differences in _______.
[development].
What should learners understand about the population movement in rural areas?
Reasons for people moving to and leaving areas.
What evidence should be reviewed regarding the economic divide in the UK?
Evidence for a north-south divide.
What is Nigeria’s rank in oil production globally?
12th largest producer of oil in the world
What is Nigeria’s rank in terms of the size of its economy?
21st largest economy
What was Nigeria predicted to have between 2010-2015?
fastest rate of GDP growth globally due to diversifying economy
What is Nigeria’s population approximately?
181 million people
What percentage of Nigeria’s population is employed in the farming sector?
70%
What is the size of Nigeria’s farming sector in terms of cattle?
19 million cattle
What is the world’s second largest film producing industry?
Nollywood
What major conflict occurred in Nigeria during the 1960s?
Civil war following independence
What economic issue has led to tensions in Nigeria?
Economic inequality between the North and South
What is the distribution of employment across the primary, secondary, and tertiary sectors in Nigeria?
40% Primary, 30% Secondary, 30% Tertiary
How has new manufacturing impacted Nigeria’s economy?
Provided economic boost and secure income for people
What benefit does manufacturing have on government revenue?
Increases income for the government from taxes
How does manufacturing benefit other businesses in Nigeria?
Other businesses benefit from making and supplying parts
What is the significance of foreign companies establishing in Nigeria?
Creates more jobs
Since when has Shell had a presence in Nigeria?
Since 1936
How many people does Shell employ in Nigeria?
Over 6000 people
What percentage of the Nigerian government’s tax revenue does Shell contribute annually?
75%
How much oil does Shell produce in Nigeria each day?
572,000 barrels
What environmental issue did Shell cause in Nigeria in 2016?
Spilled a total of 200 tonnes of oil at 251 different spill sites
What impact did oil spills have on the Bodo area?
Locals lost access to fishing and farming areas due to pollution
What kind of compensation has Shell provided to affected locals?
Some compensation but not enough
What types of development projects has Shell invested in?
Local schools and HIV education and treatment programs
