CHANGING WORLD ECONOMY - PAPER 2 Flashcards
What are the different measures of development?
GNI (per capita) - average income per person
Birth rate - number of live births per 1000 people
Deah rate - number of deaths per 1000 people
Infant mortality rate - number of deaths of children less than 1 per 1000
Life expentancy - average age a person reaches before dying
Literacy rate - % of people who can read and write
Access to safe water - % of people who can access safe water
People per doctor - doctors per 1000 people
Human Development Index - various factors (income, life expectancy, education), goes from 0-1
What is the DTM?
Demographic Transition Model, showing the different birth rates, death rates and total population of a country over time split into 5 stages
What are the features of Stage 1 and 2 in the DTM?
Stage 1: Birth/death rates are high and fluctuating, stable but low population
Typically: High infant mortality rate, poor healthcare and diets
Disease, poor living conditions
Stage 2: Death rate falls and drops rapidly, birth rate remains high, increasing total population
Typically: Improved healthcare and living conditions, lower death rate and infant mortality rate
What are the features of Stage 3 and 4 in the DTM?
Stage 3: Death rate falls and levels off, birth rate falls rapidly, total population increases
Typically: Further improvements for healthcare, living conditions
Less children born, more money available in households, increased spending in the country, and more people able to work in industry
Stage 4: Birth/death rate are low and fluctuating, population growth slows and levels off
Typically: High standards of living, low but stable death rate, more women following careersW
What are the features of Stage 5 in the DTM?
Death rate remains, birth rate dips, natural decrease, declining population
Typically: More women having careers over having kids, economic downturn
What are the phyiscal reasons for uneven development?
Weather/climate - droughts, heavy rainfall, natural hazards cause challenges for economic development
Relief - more remote areas tend to have poor infrastructure (Nepal, with its mountains)
Landlocking - without coastline, sea trade is unavailable, and blocks many economic opportunities
Water shortages - essential for life, can limit development in a country
Tropical environments - prone to diseases, like malaria, that hinder the ability for communities to work
What are the economic causes of uneven development?
Poverty - lacking money hinders development, poor infrastructure as living conditions can’t be improved, meaning economy can’t develop
Trade - LICs have limited access to many markets, where HICs are responsible for most trade. TNCs are also mostly found in HICs, and can trade higher-value goods, compared to LICs that typically only provide minerals and farming products
What are the impacts of uneven development?
Wealth disparities - with Africa only holding 1% of global wealth, but North America having 35%, shared between 5% of the population
Health disparities - In LICs, 40% of deaths are people below 15, compared to 1% in HICs
In HICs, 70% of deaths are people over 70, compared to 20% in LICs
Diseases like malaria kill 500,000 people yearly, mostly in Africa, but in HICs, cancer and heart disease are the main causes
International migration - 14m people migrated from poorer to more affluent countries for a better life
Many are refugees, going from war-torn countries like Syria, having to go on dangerous journeys to live a better life
What are some ways to reduce development gap?
Intermediate technology - sustainable methods to support development projects, used in agriculture and health
Example: Local materials used to make a small dam, improving water supply in Ethiopia
Microfinance loans - supporting local businesses within the country, that can create jobs, and eventually pay off the debt through profits
Example: bank lending money so women can buy phones, and are able to check prices while selling produce
Industrial development - selling secondary products over than primary, so they can have higher prices
Higher wages for workers, boosting the economy
Example: China; workshop of the world
Debt relief - Partially or fully cancelling the debt one country owes to another, freeing up money for other endeavors
Example: $4bn of debt cancelled during the year 2005
How does tourism reduce the development gap in a country?
Tunisia, located in Africa
It’s a country with hot and sunny summers and wild winters, attractive for visits
Multiple UNESCO World heritage sites, including the ancient ciry of Carthage
Good airport connections with Europe
Sahara desert
Tourism has created 370k jobs, boosting incomes for people and developing the economy
Lots of money going to local businesses (taxis, restaurants), as the country develops
Agricultural sector benefits, as food is used for tourised
Government investment in health and education, benefitting the locals, and both literacy rates and life expectanciees have improved
What is Nigeria’s global importance?
21st largest economy in the world, rapid growth in GDP
7th largest population in the world
12th largest oil producer
Thriving world city
Plays a role in world affairs as a peacekeeper
What is Nigeria’s regional importance?
Highest GNP in Africa
One of Africa’s fastest growing economies
3rd largest manufacturing sector in Africa
Highest farm output in tAfrica
Highest population the continent
What are the benefits TNCs bring to Africa?
Shell, an oil company is a TNC that operates in Nigeria
91% of Shell’s contracts go to Nigerian companies
Oil makes up 90% of export revenues
Can introduce modern technology to the country, along with employment for many people
Companies tend to invest in the areas used, improving services and amenities
What are the issues TNCs bring to Africa?
With a company like Shell:
They can avoid paying local taxes, and can exploit low wage economy
Poor working conditions, because of fewer regulations
Man
Most profit goes abroad rather than staying in the counry
Many oil spills (Bodo region) in the country,
The use of oil flaring leads to toxic fumes released into the air and increased air pollution
What are the social, political and cultural factors of Nigeria?
Social - multicultural scoiety, with many tribes including Yoruba, Hausa, and Igbo
Although, the terrorist group Boko Haram has caused many problems, hindering economic development
Cultural - Nollywood, one of the largest film industries in the world, along with additions to music and literature
Nigerian football team
Political - Gained independence in 1960, with civil wars occuring in the latter half of that decade
In 1991, the capital city moved to Abuja from Lagos, and in recent years, the stable political system has ecnouraged foreign investment from China and the USAw
