3b - Processes of economic change can create opportunities for some while creating and exacerbating social inequality for others Flashcards
The Global shift?
the relocation of manufacturing production on a global scale
def: structural economic change
change in proportions of people working in various economic sectors
What is structural economic change and how does it occur? (implications on place)
Primary Sector:
- as countries develop = extraction of raw materials eg farming/mining, becomes more mechanised = less people required
- globalisation = cheaper to import raw materials overseas which can me manufactured in more developed place
- more inequality - lower paid jobs, more laborious work - health implications
What is structural economic change and how does it occur?** (implications on place)**
Secondary Sector:
- pre industrial - there is little money to invest but as it develops it focuses money gained, on I into hubs - major cities encourage rural to urban migration
- move from EDC - AC = deindustrialisation - leads to inequality, poverty, deprivation, unemployment, neg multiplier effect. Built environment is rundown - land becomes poor and cheap (future development)
What is structural economic change and how does it occur?** (implications on place)**
Tertiary and Quaternary Sectors:
Tertiary:
- pre industrial = little education so not enough skilled workers but as time goes on, workforce is educated and builds stronger economy
- skilled workers = provides services to firms to sell secondary sector goods that have been manufactured
- high skilled workers - strong educations gain high skilled work. wealthier and less deprivation - higher incomes
Quaternary:
- post industrial lots of highly skilled people work in service jobs
- increase in intellectual services
- more research and development
- high skilled workers - strong educations gain high skilled work. wealthier and less deprivation - higher incomes
Positive economic change multiplier?
- establishment of large manufacturing plant
- expansion of local job opp and pop
- inflow of business and capital to satisfy increased local demand - secondary, tertiary development
- substantial rise in per capita incomes
- higher tax base = increased gov spending
- improvement in physical and cultural infrastructure
impacts of SEC:
ACs
(+) - cheaper imports, increased efficiency- new tech, I, greater labour mobility, improved environment quality (less manufacturing)
(-) - job losses, inequality between skilled and unskilled workers
impacts of SEC:
ED/LIDCs
(+) - higher export gen income - export-led growth, trickle down economics, exposure of new tech, employment growth
(-) - wont reduce inequality, social impacts eg of TNCs, overdependence, destabilise food supplies, environmental issue of industrialisation
How can the government reduce/reinforce/create patterns of social inequality
Education:
- funding for training and upgrading skills = increased qualifications/skill set = increased employment opp and increased econ growth
- improvement in health - education about diet, smoking, drinking, drugs - targeted at poorer groups
- AO2 - get out of poverty, fall in structural unemployment, time lag, mostly accessible to everyone, helps parents to care for children’s health
How can the government reduce/reinforce/create patterns of social inequality
Law:
- legislation to outlaw discrimination; racial, ethnic, gender and age criteria = equal opp
- minimum wage - protects poorest group of workers
- AO2 - increased econ growth, more opp, diversity, difficult to police, protection of labour, income closer to the cost of living
How can the government reduce/reinforce/create patterns of social inequality
Planning:
- gov, charities, housing agencies, priority housing and services in poorest areas
- planning organised geographically - most deprived areas
- AO2 - improvement in environment and homes = increased health/safety, allows development/I - LT, cannot be done everywhere - small scale focused on urban areas
How can the government reduce/reinforce/create patterns of social inequality
Taxation:
- income tax used to redistribute wealth from prosperous to less = fairer society
- most gov have tax systems where high income pay higher proportion of tax - essential items eg food are exempt from tax and for poor households that spend large % of income on food
- links to healthcare - eg funds the NHS = equal access
- AO2 - effective - increased tax rev = increased gov spending, important in reducing inequality, taxation on lower incomes may be hard for them, gov dependent - where they choose to spend, tax avoidance
How can the government reduce/reinforce/create patterns of social inequality
Subsidies:
- to poorer groups
- free school meals, clothes, school fees
- pensioners may get subsidies for fuel and transport
- free childcare (single parents)
- benefits for low wage earners, unemployed, LT disability
- AO2: reduce inequality, may not be able to apply/not eligible, people take advantage of it - fairness of allocation
How can the government reduce/reinforce/create patterns of social inequality
give and example
Eg: Glasgow
- Education - reduced impact of poverty on education attainment, In Work Progression- labour market progression scheme - supports training and development of staff in low income jobs
- Glasgow City Region City Deal - infrastructure project (£1.13bn), improve public transport, business innovation
Cyclical economic change (booms and bust) - how does this impact people?
- Innovation?
- Core region?
- living standard?
- whats a recession? identified? effects?
- other factors led to econ growth?
Annotate model on why each change occurs as a place develops
The Clark and Fisher Sector Model:
