Changing economic world Flashcards
(60 cards)
define development gap
the difference in standards of living and wellbeing between the world’s richest and poorest countries e.g HIC vs LIC
what is GNI
Gross national income - measurement of economic activity that is calculated by dividing the gross national income by the size of the population - it takes into account the value of goods and services AND the income earned from investments overseas
define development
the progress of a country in terms of economic growth, the use of technology and human welfare
what is HDI
Human development index is a method of measuring development in which GDP per capita and life expectancy are combined to give an overview using social and economic indicators.
what is GDP
Gross domestic income - is the value of a countries output from within it’s borders
6 NEE countries
(BRIC + MINT)
Brazil
Russia
India
China
Mexico
Indonesia
Nigeria
Turkey
List 8 economic and social measures
GNI
Birth rate
Death rate
Infant mortality
Life expectancy
Literacy rates
Access to piped water
people per doctor
GNI
This is expressed as GNI per capita and is the total income of a country divided by the number of people.
Limitations:
The measure only takes into account one factor - income.
The measure is an average calculation so a few wealthy people could distort the whole figures. Data about income is sensitive so people may not always be honest about their earnings.
People working in the informal sector (of which there are many) may not be taken into account
Birth rate
This refers to the number of live births per
1000 population.
Generally high birth rates are associated with poor countries. Large families ensure a decent income for the family and provide support for ageing parents. As a country develops, birth rates generally decrease.
Women are likely to be educated and seek a career. Therefore, they marry later and have fewer children. In addition, better access to healthcare means that family size decreases as children are less likely to die in infancy.
Limitations;
Some countries may have low birth rates but are actually quite poor (e.g. Cuba at 10 per 1000 - this is due to political decisions to invest more money in healthcare over other sectors).
Birth control policies can distort this as a measure of overall development (e.g. China, 12 per 1000)
Death rate
This refers to the number of deaths per
1000 population.
Death rates are generally low throughout the world due to improvements in healthcare. The highest rates are in Africa and parts of the Middle East. Some of the lowest death rates are in NEEs where improved quality of life means people are starting to live longer.
Limitations;
By comparison, death rate is a less reliable measure of development to the birth rate Birth rates can be high in some LICs due to poverty but also high in HICs where many people are dying of old age.
Infant mortality
This refers to the number of deaths of children less than one year of age per 1000.
Figures for this vary enormously with the highest values in African countries (Angola, 96 per 1000) and lowest in HICs (Germany, 3 per 1000).
It is recognised as a good measure of development as it reflects the level of healthcare and service provision in a country.
Limitations ;
In the poorest countries, not all the deaths of children are reported, especially in remote areas, meaning the true rates may be even higher.
Life expectancy
This is the average
number of years a person in a country can be expected to live.
SOCIAL.
In HICs life expectancy can be over 80 years. In NEEs, life expectancy is between 65 and 75.
In LICs, life expectancy is typically in the 50s.
This is regarded as a good measure of development as it reflects healthcare and service provision.
Limitations;
Data is not always reliable, especially in LICs
It can be slightly misleading in countries with very high rates of infant mortality as people surviving infancy may live longer than expected thereafter.
Literacy rates
This can also be expressed
as the percentage of people with basic reading and writing skills.
This varies widely. Most HICs have literacy rates of 99%. However, in LICs, the figure can be below 50% (Afghanistan, 38%). This is a good measure as it reflects the provision of education within a country.
Limitations ;
This can be hard to measure in LICs due to lack of monitoring
War zones and squatter settlements are difficult areas to measure literacy rates.
Access to piped water
The percentage of people with access to safe mains water.
There is much variation with safe water access across the globe.
In the EU which includes many HICs, all people should have access to safe water by law. Access in many LICs however, is poor (Angola, 34%)
Limitations;
Data collection in LICs is not likely to be accurate and so official figures may underestimate the problem
People may technically have access but high costs may force them to use water that is not safe
Human development index
This is a composite measure using data on income, life expectancy and education to calculate an index from 0-1. It was developed by the UN to show how far people benefit from economic growth.
SOCIAL.
A country’s HDI is expressed as a value between 0-I (I being the highest and O being the lowest).
Limitations of this measure
It is still a narrow measure and only takes into account 3 indicators. There are lots of other indicators of human development which are important but not considered.
* It is a general measure based on average calculations so doesn’t take into account the massive disparities (differences) that may exist within a country.
◦ Although the three measures included are weighted equally in the calculations, the weighting is subjective and therefore unreliable.
◦ The statistics provided by some countries may be unreliable.
What factors have caused uneven development
Historical
Physical
Economic
Physical causes of uneven development
Landlocked: Countries are cut-off from seaborne trade important to economic growth. Africa has some of the most landlocked countries on earth. E.g. Chad
Climate related diseases and pests: Diseases (like Malaria) affect the ability of the population to stay healthy enough to work. Locust swarms can decimate crops.
Extreme weather: Extreme weather events such as droughts, floods and tropical storms can slow development and can incur costly repairs to infrastructure. E.g. Bangladesh
Limited access to clean water: Lack of safe water can stifle development by making people sick and unable to work. E.g. Angola
Historical factors that have lead to uneven development
Colonialism = many LICs were colonised by powerful trading nations.
Africa/Asia/South America were exploited for their raw materials and over 10million people were exported from Africa to North America to work as slaves. Many countries became independent in 20th century but were affected by power struggles/civil wars.
Effects of colonialism
When the DR Congo gained independence from Belgium, they only had 14 university graduates.
The modern borders of many Middle Eastern and central
African countries affect ethnic groups across the regions, creating conflict.
Education was introduced to a lot of countries where they were taught the global languages like English, and institutions like a proper government emerged.
Europeans brought a lot of new technology to African countries to help them with farming, build better infrastructure etc.
Power struggles took place in newly independent countries, especially if resources like diamonds were at stake.
South American, Asian and African cultures were affected and became part of the transatlantic slave trade
economic causes of uneven development
Poverty: lack of money in a country slows development. It prevents improvements to living standards, education, sanitation and infrastructure. Without these, development in agriculture and industry will be slow and the economy cannot get going.
Trade: Wealthier regions, such as Asia, Europe and North America, dominate trade because they export secondary (processed) goods which earn more income. As these countries accumulate wealth they become more powerful. This means they are able to dictate the terms of trade to their advantage.
LICs trade primary products
LICs trade mostly primary goods.
These goods have low value and earn them little money.
This means they have limited funds to invest in infrastructure and services that would enable them to develop.
LICs rely heavily on single exports
LICs rely mostly on single exports
Examples: Asia, Europe
These are subject to fluctuations in market price.
This means that a drop in the market value, risks them losing a high proportion of their income that would enable them to develop.
Social consequences of uneven development
In LICs, 40% of deaths are in children under 15, compared to 1% in HICs.
4 in every 10 deaths
are among children under 15 years, and only 2 in every 10 deaths among people aged 70 years and over.
Complications of
childbirth are one of the main causes of death among children under
5 years old.
Infectious diseases are main
cause of death: lung infections, HIV/AIDS. diarrhoea-related diseases, malaria and tuberculosis together account for one third of deaths.
7 in every 10
deaths are amongst people aged 70 years and over.
Main causes of death are chronic diseases, such as heart and lung diseases, cancer, dementia. or diabetes.
Lung infections are the only main infectious cause of death.
Only 1 in every 100 deaths is among childr under 15 years.
Economic consequences of uneven development
35% of total wealth is held in North America - by just 5% of the World’s population
Another global-scale consecuence of uneven development is how LIes have become dependent on HICs and some NEEs for aid. Many LICs have had to borrow money from the World Bank to pay for hospirals and health care and are now heavily in debt. The shortcomings of health care in some West
African countries was shown by the Ebola outbreak of 2014-15, which resulted in over 11.000 people dying from the virus (see Section 19.2). Most deaths were in Siere Leone, Guinea and Liberia, Sierra Leone’s hospitals have deteriorated over time due to the country’s low income indebtedness and its civil war. This reminds us that many of the problems experienced by LICs are connected with one anotner.
Strategies to reduce the development gap
Investment by TNCs
Industrial development
Aid
Intermediate technology
Fairtrade
Debt relief
Microfinance loans
Consequences - migration from uneven development
International migration is one of the main consequences of uneven development, as people move to improve the quality of their life.
The UK has a long history of accepting migrants from all over the world. The country is known for its tolerant approach and many parts of the UK benefit from being multicultural.
Since 2004 over 1.5 million economic migrants have moved to the UK, two-thirds of whom are Polish. The unemployment rate in Poland is over 10 per cent, and they can earn up to five times as much in the UK. Money is often sent home to friends and relatives.
Most migrants pay tax, which is good for the UK economy. They are prepared to work hard, often doing manual jobs such as working on farms. However, they do put pressure on services such as health and education.
