Year 11 The Changing Economic world Flashcards
Development
The progress of a country in terms of economic growth, use of technology and quality of life with the aim of improving peoples lives
Economic factors affecting quality of life
Income
Job security
Standard of living
Social factors affecting quality of life
Family/friends
Education
Health
Psychological factors affecting quality of life
Happiness
Security
Freedom
Physical factors affecting quality of life
Diet/nutrition
Water supply
Climate
Environmental quality/hazards
Qualities of a HIC
Good health services
Education
Good Housing
Clean water supply
Qualities of LIC
Opposite to HIC
What’s a newly emerging economy
Countries that are experiencing high rates of economic development and rapid industrialisation
Examples of NEES (BRICS)
Brazil Russia India China South Africa
What was the UK like before the industrial revolution (Clarke-fisher model)
Lots of primary jobs, few secondary jobs, very few tertiary jobs. No quaternary
What was the UK like during the industrial revolution (Clarke-fisher model)
Decreasing number of primary jobs, rapidly increasing tertiary jobs and a rising then falling number of secondary jobs. No quaternary
What was the UK like after the industrial revolution (Clarke-fisher model)
Increasing tertiary, decreasing primary and secondary and the beginning of quaternary jobs
Whats GNI
Shows the country’s level of development by looking at the average wealth of its citizens
How is GNI calculated
Total value of all the goods and services produced by its population are added to the income earned from investments that its people and businesses have made overseas
To compare the level of economic development for different countries, the GNI is:
Divided by its population to find % figure, then converted into US$ to make clear comparison
Strengths of GNI
All countries converted into US$ making comparisons much clearer and showing progress of a country over a period of time
Weaknesses of GNI
It doesn’t show variations within a country or patterns of inequality, doesn’t take into account those working at a a subsistence level who don’t pay tax and hides extremes of wealth
Literary rate
Most EU countries have literary rate of 99% but LICs only 40-50%
Difficult to carry out surveys in LICs, particularly conflict areas e.g. Afghanistan
People per doctor
UK doctor to patient ratio is 1:350 but in Afghanistan its 1:5000.
In NEES people diagnosing themselves using mobile phones and this isn’t taken into account in people per doctor measurment
Access to safe water
EU citizens must have access to safe water by law. In Angola only 34% do
Rising cost of water in cities can force poor people to use unsafe water, data may underestimate these problems
Infant mortality rate
In UK only 4 per year, Somalia over 100
In poorer countries not all deaths recorded so data may be underestimated
Life expectancy
Most NEES 65-75 but in LICs 55. HICs usually 75+
Where IMR are high the life expectancy of those who survive childhood are much higher than the mean lie expectancy suggests
What is the Human Development Index (HDI)
Combines life expectancy, income and education (average number of years spent in education) to produce a number between 0 and 1
Why is HDI better than GNI
Includes 3 factors giving a more accurate representation of the country
What’s a disadvantage of HDI
May be harder to collect data in LICs and may underestimate the problems
The Brandt line
Created in 1980 based upon report of former German chancellor Willy Brandt splitting the world into the ‘rich north’ and the ‘poor south’
Stage 1 of the Demographic Transition Model (DTM)
Low stationary e.g. Amazonian tribes
High birth rate, fluctuating death rate, low overall population.
15/1600s pre-industrial revolution
Stage 2 of the Demographic Transition Model (DTM)
early expanding stage e.g. Afghanistan
Birth rate stays high, death rate drops dramatically due to improved health care, overall pop rapidly increasing
Start of industrialisation
Stage 3 of the Demographic Transition Model (DTM)
Late expanding stage e.g. Brazil
Birth rate begins to drop as women’s status rises and contraception becomes available and health improves so having less kids as less will die. Death rate stabalises at low level
End of industrialisation
Stage 4 of the Demographic Transition Model (DTM)
High stationary e.g. USA/UK
Slower population increase, low birth rate now fluctuating as recession so can’t always afford kids, death rate remains constantly low
1960s - today
Stage 5 of the Demographic Transition Model (DTM)
Decline e.g. Germany
Population slowly decreasing as birth rate decreases, death rate remains constantly low
Future
Advantages of DTM
Dynamic, shows change through time
Explains what and why things have happened in particular sequence
Many other countries in Europe and N.America went through similar changes as they industrialised
Disadvantages of DTM
It only describes what has happened to the UK so not relevant to other, non-industrialising countries
Physical causes of uneven development
Landlocked countries means no cut-off from seaborne trade which is important for economic growth e.g. Africa
Extreme weather can cause costly damage e.
Climate relation diseases e.g. malaria in Africa which causes some not being able to work
Economic causes of uneven development
Poverty causes poverty
Most of worlds trade is between richer countries
manufacturing makes rich countries richer and keeps poor countries poor
Historical causes of uneven development
Some countries industrialised hundreds of years ago e.g. uk but some only recently e.g. China
Colonisation of African and s.American countries makes them more powerful but results in civil war and political struggles for power
Example of primary product dependancy
Copper in Zambia accounts for 60% of total value of exports and in 1964 after independence Zambia was the richest country in Africa
But in 1974 price of copper fell meaning couldn’t pay back debt borrowed from mines leading to reduction in earning failure of economy
Consequences of uneven development- lack of social opportunity
Children in poorer areas get stuck in poverty with little or no chance of working their way out
Consequences of uneven development- political instabilty
Civil wars and riots are more likely when the rich are far richer than the poor
Consequences of uneven development- poverty
Forces billions of people to live in poverty without access to safe water, education, adequate food supplies or safe shelters
Consequences of uneven development- international migration
As people move globally from areas that have very little to more developed areas
Affects of uneven development on LICs
LICs become more dependent on HICs and have to borrow money from world bank putting them into debt
The skilled people are leaving the LIC (brain drain) preventing the country from developing
Affects of uneven development on NEEs
More urbanised/industrialised can lead to environmental impacts which could lead to poorer living conditions
Immigrants to the country looking for work so strain on resources however workers fill the gap
Affects of uneven development on HICs
Getting high skilled workers, could support LICs providing aid has long term benefits with trade etc
Lots of immigrants- good (workers fill gaps + increase birth rate) and bad (remittances sent to other countries)
Migration into Europe from Africa
General pattern is that people move up along the west coast to north Africa so they can cross the sea looking for jobs and better quality of life
Changes in migration in the EU
Growth of EU led to rise in migration between member countries but recently more migrants from Africa and middle east
Changes in ageing population in the EU
Life expectancy is rising and more people are reaching retirement causing shortage of workers in some areas
Changes in family structures in the EU
Decline in multi generational households, an increase in lone-parent and step families and rise in female employment means a rise in dual-earner families
Change in birth rates in the EU
Few EU countries have birth rates above replacement rate (2.1), this further increases the percentage of the population who are old
Short term or emergency aid
Emergency help usually in response to natural disaster e.g. earthquake
Long term aid
Sustainable aid than seeks to improve resilience e.g. wells reducing effects of a drought
Multilateral aid
Richer governments give money to an international organisation such as World Bank which redistributes money as aid to poorer countries
Bilateral aid
Aid from one country to another (often tied)
Tied aid
Aid may be given with certain conditions e.g recipient has to spend money on donors products
Voluntary aid
Money donated by the general public in richer countries and distributed by NGOs such as Oxfam
Disadvantages to aid
corrupt governments could waste aid on war and projects could fail when money runs out or if not enough local knowledge or support
Countries may become over reliant on aid
How does economic investment and industrial development reduce the development gap
Industry increases GNI and improves level of skill and infrastructure
Foreign direct investment leads to better access to finance and technology
Disadvantages of economic investment and industrial development
Developments have risks e.g extra water pressure on ground can lead to earthquakes
dams threaten rain forests
TNCs may be exploiting LICs and NEEs
Industrialisation means increase in CO2 emissions
How does debt relief reduce the development gap
Where some or all of a country’s debt is cancelled or interest rates are lowered
Means there’s more money for development. To qualify must show they can manage own finances so no corruption
Disadvantages of debt relief
Sometimes money not spent wisely
How does fair trade reduce the development gap
About farmers getting payed fair and guaranteed price for goods produced even if a particular crop fails the fair trade farmers still receives their regular income
Disadvantages of fair trade
Only small % of extra money reaches original producers as most of it still goes to retailer
quite small scale
How does microfinance reduce the development gap
When small loans are available to people in LICs who can’t get one from normal banks enabling them to start their own businesses and become financially independent
Disadvantages of microfinance
Not clear that it can reduce poverty on global scale
What’s sustainable tourism
Looking after places for people in the future and tourists must know how to act responsibly when on holiday so that country remains the same for its people
Where is Bhutan situatued
South-east slope of Himalayas, bordered on north and east by Tibet and on the south and west by India
Development challenges in Bhutan
25% live in poverty Unreliable weather Climate change Rural to urban migration Poor infrastructure No fossil fuels
Advantages of tourism in Bhutan
Money boosts the economy
Improves local sanitation and infrastructure
Can help development and learning about other cultures
How many tourists visit Bhutan each year and how much money does this make
120,000 international tourists visit each year earning the country £33 million
What is tourism tax
A minimum daily package must be booked £165 pp in low season and £210 in high season
£45 of this goes towards sustainable tourism royalty which provides free education and healthcare, reducing poverty
