Changing Economic World

Question 1

How do we classify different parts of the world according to their level of economic development and quality of life?

Answer 1

HICs (GNI/capita >$12,535)
NEEs (countries which used to rely on agriculture but have recently seen growth in their manufacturing so increased income)
LICs (GNI/capita <$1,036)

Question 2

What are examples of upper NEEs?

Answer 2

BRIC countries (Brazil, Russia, India, China)

Question 3

What are examples of lower NEEs?

Answer 3

MINT countries (Mexico, Indonesia, Nigeria, Turkey)

Question 4

What are the different economic and social measures of development?

Answer 4

GNI/capita
Birth rates and death rates
Infant mortality
People per doctor
Literacy rates
Access to safe water

Question 5

Why are birth rates a good measure for development?

Answer 5

High BR- less developed. Heavily agricultural, no access to contraception, high death rates/infant mortality so they have more
Low BR- more developed. Feminisation of the workforce, kids are expensive, access to contraception

Question 6

What is the Human Development Index (HDI)?

Answer 6

composite measure of life expectancy, number of years in education and GNI/capita

Question 7

What are the limitations of economic and social measures of development?

Answer 7

doesn’t take into account inequality (wealth may be concentrated in urban areas than the country)
may not be up to date (corrupt governments may influence measures of development to make their country look better)
Calculations of GNI only take into account the products of the formal economy

Question 8

What does DTM stand for?

Answer 8

Demographic Transition Model

Question 9

What do DTMS show?

Answer 9

How a country’s population changes as it develops

Question 10

What is stage 1?

Answer 10

High birth rates and death rates

Question 11

What is stage 2?

Answer 11

High birth rate and decreasing death rate
Rapid natural increase

Question 12

What is stage 3?

Answer 12

Decreasing birth rate and low death rate
Rapid natural increase

Question 13

What is stage 4?

Answer 13

Low birth rate and low death rate
Stable population
Ageing

Question 14

What is stage 5?

Answer 14

Very low birth rate and low death rate
Natural decrease
Ageing population

Question 15

What are the physical causes of uneven development?

Answer 15

Landlocked countries
Drainage networks
Temperature
Rainfall
Natural hazards

Question 16

Explain landlocked countries

Answer 16

Countries that don’t have a coastline
More difficult to trade

Question 17

What are the economic causes of uneven development?

Answer 17

Trade
Trade blocs
TNCs (transnational corporations)
Debt

Question 18

Explain trade blocs

Answer 18

Countries join together to have free trade amongst one another whilst charging non-members taxes on imports
For example, the European Union

Question 19

What are the historical causes for uneven development?

Answer 19

Colonialism
Trade routes
Slavery
Independence

Question 20

Explain colonialism

Answer 20

Berlin conference divided Africa
Exploitation of natural resources and repatriation (wealth sent back to Europe)
Resistance was met with force

However, existing infrastructure helped local people and overall development

Question 21

What are the consequences of uneven development?

Answer 21

Disparities in health and wealth
International migration

Question 22

Why are there disparities in health?

Answer 22

HICs have more money to invest in healthcare and people can afford to have healthy lifestyles
Far fewer people die of infectious diseases and more die of chronic diseases due to ageing populations
LICs have less infrastructure to support healthcare and less money to invest
Infectious diseases cause many more deaths in less wealthy countries than in wealthy countries

Question 23

Why does international migration occur?

Answer 23

People move from less developed countries to more developed countries
Wind rush generation post world war 2 to fill labour shortages
European migration with refugees from Syria, Afghanistan and Iraq as a result of conflict

Question 24

What strategies are used to reduce the global development gap?

Answer 24

Investment and Industrial development
Aid
Using intermediate technology
Fair trade
Debt relief
Micro finance loans

Question 25

How can investment lead to industrial development?

Answer 25

Can lead to the multiplier effect, where one event triggers another TNC builds a factory -> provides jobs -> money spend in local shops as well as buying raw materials from local businesses and selling its products in local shops However, repatriation Returning profits to their home countries

Question 26

Types of aid?

Answer 26

Bilateral aid (governments) Multilateral aid (organisations I.e World Bank) Non Governmental Organisations

Question 27

Give an example of a small-scale NGO (intermediate technology) and how it benefit the country

Answer 27

‘Excellent’ which pioneered the use of sand dams in Kenya to tackle desertification with a more sustainable approach Stone and concrete dams, water tanks and hand pumps Low maintenance and long lasting Tackle food and water inequality ,improving people’s quality of life

Question 28

What does fair trade do?

Answer 28

Better prices, working conditions and terms of the farmers and workers In return farmers use more sustainable techniques Improves pay, they can send their children to school Fair trade premium = spent on community projects such as healthcare and education

Question 29

What is debt relief?

Answer 29

Cancelling out debts The G8 in 2005 agreed to cancel out debts of heavily indebted poor countries in exchange that they could manage their finances, weren’t corrupt and would spend the money they saved on poverty reduction

Question 30

What are microfinance loans?

Answer 30

Set up to loan small amounts of money Improve or start small businesses Small interest Profits for improving homes,sending kids to school and healthcare payments

Question 31

What LIC is an example of how the growth of tourism in an LIC helps to reduce the development gap?

Answer 31

Uganda

Question 32

How many jobs were created in the tourism industry? What percentage of total employment is this?

Answer 32

Over 600,000 6.3%

Question 33

What conflict is created if the government choose to pursue economic development and the exploitation of resources?

Answer 33

Economic development vs damage to the environment and displacement of local people

Question 34

What did the Climate Action Uganda ask the government to invest in?

Answer 34

Biogas and solar power (renewable energy sources)

Question 35

Why is tourism so important to Uganda?

Answer 35

It is Uganda’s leading export earner Leads to multiplier effect Growth of tourism is vital in closing the development gap in a sustainable way

Question 36

Why is tourism not a reliable way to reduce the development gap?

Answer 36

May hit hard in times of recession, often leaving tourist areas with little income

Question 37

What case study NEE is experiencing rapid economic development which leads to significant social, environmental and cultural change?

Answer 37

Nigeria

Question 38

Where is Lagos located?

Answer 38

In Nigeria, a coastal city on the Gulf of Guinea

Question 39

What is the regional importance of Lagos?

Answer 39

GDP of $136million Cultural diversity due to migration from neighbouring areas Well connected to areas of South West Nigeria (rail and road)

Question 40

What is the national importance of Lagos?

Answer 40

Has 80% of Nigeria’s industry

Question 41

What is the international importance of Lagos?

Answer 41

The 5th largest economy in the continent of Africa Murtala Muhammad International Airport flies to 60+ destination including Dubai,London , New York and Paris