Unequal Flows Flashcards
What is the Gini coefficient?
a measure of intra-country inequality given as a number between 0 and 1 (with 0 = completely equal and 1 = wealth owned by one person)
What is the Lorenz curve?
a curve showing the gini coefficient. It represent intra-country inequality in a graphical form
What are 3 causes of inequality?
- wealth disparity
- access to education
- access to healthcare
What 2 things reinforce unequal flows?
- ‘clubs’ : OECD and OPEC
- patterns of FDI and trade
How does OECD reinforce unequal flows?
- largest global economies
- trade with each other
- FDI flows from and to these countries
- little money goes to supporting LICs
What does OECD stand for?
Organisation for economic cooperation and development
What are 4 patterns of FDI and trade?
- natural resources
- comparative advantage
- outsourcing
- market size
How might market size impact trade?
companies aiming for bigger markets of India and China. More trade to these nations, perhaps less need for trade from it as companies have large domestic markets
How might natural resources impact to trade/FDIs?
if have high value resource (OIL!), then have power and source of income
What is the OPEC?
organisation of petroleum exporting countries,
Saudi Arabia as lead, has power over other members and oil markets
How does outsourcing impact trade/FDIs?
companies send services over seas; investment into these (typically poorer) countries. Money is taxed resulting in wealth
How might the OECD promote unequal flows?
- as HICs trade with other HICs or BRIC MINT countries
- reduces trade with LICs and other NEEs which leave them stuck in Periphery
How does the migration rate in Uganda link to unequal flows?
- less jobs and lower wages due to lower demand of primary product (Nile Perch)
- people emigrate to other countries (Nigeria, SA)
- -0.7%
What leads to debt in Uganda?
primary goods worth less than secondary goods, pay more money, lead to debt
How many Ugandans are directly employed by the fishing industry?
approximately 1 million
