Changing Economic World

Question 1

Limitations of using GNI per capita

Answer 1

Average figures can be misleading as there are significant inequalities within a country. A few very wealthy people in a country can distort the figures.
In poorer countries, many people work in farming or informal sector so their income is not taken into account.
Data about income is sensitive and people may not always be honest.

Question 2

Limitations of using birth rate


Answer 2

Usually quite a good measure of economic and social development. Some poorer countries may have a low birth rate due to political decisions to focus investment in health care over other sectors.
Birth control policies can distort this such as China.

Question 3

Limitations of using death rate

Answer 3

Poor measure of development. They can be high in some LICs due to poverty but also high in HICs where there are many elderly people dying of old age.

Question 4

Limitations of using infant mortality

Answer 4

Usually a good measure of development as it reflects levels of health care in a country.
In poorest countries, not all deaths of children are reported, especially in remote areas. So true rates may be even higher

Question 5

Limitations of using life expectancy

Answer 5

Usually a good measure as it reflects levels of health care in a country.
Data is not always reliable especially in LICs with high rates of infant morality.

Question 6

Limitations of using people per doctor


Answer 6

Increasingly people are seeking help and advice by using mobile phones such as in India. This is not included in the data.

Question 7

Limitations of using literacy rates

Answer 7

Can be hard to measure, especially in LICs due to the lack of monitoring.
War zones and squatter settlements are difficult areas to measure literacy rates.

Question 8

Limitations of using access to safe water to measure development

Answer 8

Data collection in LICs is inaccurate and official figures may underestimate the problem
People may technically have access but high costs force them to use water that isn’t safe.
Pipe leaks and natural disasters can deprive people of piped water.

Question 9

Limitations of using HDI

Answer 9

Best indicator of development.
Developed by the UN and the most commonly used measure of development.

Question 10

What is HDI (Human Development Index)?

Answer 10

Composite measure using data on income, life expectancy and education to calculate an index from 0-1 to measure development of a country.

Question 11

Describe and explain stage 1 of the Demographic Transition model


Answer 11

Birth and death rates are both high and fluctuating. Low population.
High birth rates due to high infant mortality resulting from poor healthcare. Limited access to contraception.
High death rate due to disease, poor health care and lack of medical knowledge due to little education.

Question 12

Describe and explain stage 2 of the Demographic Transition model

Answer 12

Death rate falls. Birth rate remains high. Total population starts to grow due to natural increase.
High birth rate due to jobs in agriculture so lots of children are needed, religious values and a lack of contraception.
Decreasing death rate due to improvements in health care and living conditions, lowering the infant mortality rate. Children are more likely to survive beyond infancy.

Question 13

Describe and explain stage 3 of the Demographic Transition Model

Answer 13

Death rate continues to fall before levelling off. Birth rate starts to fall. Total population continues to grow.
Decreasing birth rate as fewer children are needed to work the land and lower infant mortality. Improved access to contraception.
Death rate falls further due to more improvements in health care and living conditions (water, sanitation, diets)

Question 14

Describe and explain stage 4 of the Demographic Transition Model

Answer 14

Both birth rate and death rate are low and fluctuating. As they cancel each other out the total population growth slows and starts levelling off.
Low birth rate due to women choosing to study and follow careers and good access to contraception.
Low death rate due to medical advances, better food supply.

Question 15

Describe and explain stage 5 of the Demographic Transition Model

Answer 15

Death rate remains constant but birth rate dips below, causing natural decrease. This results in an ageing and declining population.
Low birth rate due to increasing numbers of women choosing careers instead of large families.
Low death rate because of medical advances.

Question 16

Explain the physical causes of uneven development


Answer 16

Landlocked countries - unable to trade internationally
Climate - limited and unreliable rainfall create water shortages, which is essential for life and development. Tropical environments can allow diseases such as malaria to thrive.
Frequent natural disasters - costly repairs, unable to develop

Question 17

Explain the historical causes of uneven development

Answer 17

Colonisation of LICs in the past - previously exploited for raw materials and populations were scattered. Since independence, they have struggled with civil wars and power struggles due to a lack of administrative experience, political instability and poor infrastructure.

Question 18

Explain the economic causes of uneven development

Answer 18

Trade - LICs have limited access to the markets dominated by HICs. LICs have traditionally traded low-value raw materials such as agricultural produce or minerals rather than the high-value processed goods traded by HICs. Value of these raw materials has fluctuated widely, causing instability in LICs.
Poverty - Lack of money prevents improvement in living conditions, infrastructure, education. Developments in agriculture and industry will be extremely slow.

Question 19

State the consequences of uneven development

Answer 19

Disparities in wealth and health
International migration

Question 20

Describe disparities in wealth as a consequence of uneven development

Answer 20

35% of total wealth is held in North America by just 5% of the world’s population.
Africa’s share of wealth is 1%.

Question 21

Describe disparities in health as a consequence of uneven development

Answer 21

People in LICs have limited access to doctors and hospitals, resulting in high rates of infant mortality and low life expectancy.
In LICs 40% of deaths are in children under 15, compared to 1% in HICs.
In HICs, 70% of deaths are in people aged over 70, compared to 20% in LICs.

Question 22

Describe international migration as a result of uneven development

Answer 22

In recent years, thousands of people have migrated into Europe from war-torn regions in Africa and the Middle East. (refugees)
In 2015, 14 million people migrated from poorer countries to seek a better life elsewhere. (economic migrants)

Question 23

List the different methods used to reduce the unemployment gap


Answer 23

Investment
Industrial development and tourism
Aid
Intermediate technology
Fairtrade
Debt relief
Microfinance loans

Question 24

How is investment used to reduce the development gap?

Answer 24

Countries, organisations (the World Bank) and TNCs invest in LICs to increase profits. Investments lead to improvements in infrastructure, services, dams and reservoirs, and industrial development. 2000 Chinese companies have invested in Africa such as HEP in Madagascar.
Investment can also provide employment opportunites and increase incomes.

Question 25

How is industrial development and tourism used to reduce the development gap?

Answer 25

Tourism and industrial development can lead to improvements in infrastructure such as airports, road, electricity and water and education and healthcare. Also creates employment opportunities and increases income. Example of industrial development: Brazil

Question 26

How is aid used to reduce the development gap?

Answer 26

Financial support offered by countries, international organisations (the EU) and charities. Short-term emergency aid given in response to natural disasters. Long-term aid supports development projects such as improving water supply, sanitation and energy-provision. UK aid supports education projects in Pakistan.

Question 27

How is intermediate technology used to reduce the development gap?

Answer 27

No government support needed. Fairly straight-forward for locals to use. Sustainable and cheap to maintain. Project usually involve agriculture, water and heath. E.g. Afridev hand pump for water

Question 28

How is fairtrade used to reduce the development gap?

Answer 28

An organisation that promotes fair wages for farmers in LICs. Also guarantees the farmer a fair price and invests money in local community projects. In Uganda, coffee farmers process their own coffee beans to increase the export value of the crop. Fairtrade in Columbia has increased household income for banana farmers by 34%.

Question 29

How is debt relief used to reduce the development gap?

Answer 29

Many countries borrowed money in the 1970s and 1980s to invest in development projects. Some countries have fallen into serious debt, unable to pay back the loans or high rates of interest. 2006 IMF agreed to cancel debts of 19 of the poorest countries. Without pressure of repaying loans, countries con focus money on development projects such as road building and health care in Ghana.

Question 30

How are microfinance loans used to reduce the development gap?

Answer 30

Small-scale financial support to help individuals or community groups to start small businesses. If successful, these businesses create jobs and increase income. Example: Grameen Bank in Bangladesh lends money to women to buy a mobile phone so they can check market prices when selling agricultural produce.

Question 31

Describe factors of Tunisia that make it attractive to tourists

Answer 31

Climate - Mediterranean. Attracts sun seekers from Europe. Links with Europe - Tunisia's northern coastline is close to Europe, making it easily accessible. Tunisia used to be a colony of France so French is widely spoke, attracting French-speaking tourists. History and culture - Contains UNESCO World Heritage sites Cheap package holiday - Government worked with companies such as Thomas Cook to develop the country as a tourist destination. Physical landscape - Beaches, mountains, desert. Star Wars films were filmed in Tunisia.

Question 32

How has tourism reduced the development gap in Tunisia?

Answer 32

Now one of the wealthiest countries in Africa. Tourism has created 370,000 jobs and boosted incomes, increasing money circulating in the local economy. Higher incomes have led to longer life expectancy as diet and health care has improved. Tunisia's government now invests 4% of its annual GDP in the health system. Changing attitudes towards girls' education thanks to increasing connectedness with other countries. Schooling is now compulsory for girls.

Question 33

Concerns over tourism in Tunisia

Answer 33

Pollution of environment - some beaches have been contaminated with untreated sewage from hotels. Leakage of profits - Foreign companies like Thomas Cook keep a large percentage of the profits, limiting how much money is reinvested in the local economy and slowing development. Terrorism - 2015, two terrorist attacks aimed at tourists. European governments say Tunisia is no longer a safe destination for their citizens.

Question 34

Regional importance of Nigeria

Answer 34

One of Africa's fastest growing economies and has highest GNP on the continent. Has the third-largest manufacturing sector in Africa and the continent's highest population.

Question 35

Global importance of Nigeria

Answer 35

World's 21st largest economy and has experienced a rapid growth in GDP. 7th in the world for population.

Question 36

Political context of Nigeria

Answer 36

Achieved independence from the UK in 1960 but then experienced political instability. Civil war between 1967 and 1970. In 1991, the newly built city of Abuja became Nigeria's capital city. From 1999 country became stable with fair and free elections. This has encouraged investment from China, South Africa and the USA.

Question 37

Social context of Nigeria

Answer 37

Multi-cultural and multi-faith. 300 different ethnic groups. Yoruba, Hausa and Fulani tribes. Regional conflicts and power struggles caused by social diversity. Islamic fundamentalist Boko Haram group has caused conflict and hindered economic development.

Question 38

Cultural context of Nigeria

Answer 38

Nigerian football team has won the African Cup of Nations three times. Own version of 'Bollywood': Nollywood

Question 39

Environmental context of Nigeria

Answer 39

In the South, high rainfall promotes tropical rainforest. Tree crops such as cocoa and oil palm are grown. Further north, rainfall decreases, grassland areas. People grow field crops such as groundnuts. Far north has semi-desert conditions.

Question 40

Describe inequality within Nigeria

Answer 40

Most wealth in the south, around Lagos. Greater poverty in the north and south-east. 100 million people in Nigeria live on less than $1 a day.

Question 41

Describe and explain how Nigeria's industrial structure and economy balance are changing

Answer 41

Used to be dominated by the agricultural sector. Now manufacturing and service sectors contribute to 50% of the GDP. Employment in agriculture has fallen due to increased mechanisation and rural-urban migration. Increased investment and political stability have led to a rapid rise in manufacturing. Oil and gas industry is hugely important to Nigeria's economy.

Question 42

Give examples of Nigeria's fastest growing industries

Answer 42

Telecommunications - 115 million mobile phone users in Nigeria Retail and Wholesale - Many small businesses that used to be part of the informal sector are now part of formal sector Film industry - known as Nollywood. 3rd largest film industry in the world

Question 43

Examples of Nigeria's manufacturing industry and how it has stimulated economic growth

Answer 43

Dangote cement - Expanded into 13 other African countries Lekki Free Trade Zone - In partnership with Chinese companies. Aims to attract manufacturing industries. 100,000 jobs will be created

Question 44

Describe the role of TNCs in Nigeria's oil and gas industry including positives


Answer 44

Oil boom took place in 1970s in Nigeria's Niger Delta region. TNCs such as Shell constructed oil and gas platforms, pipelines and terminals. This investment has created 65,000 jobs since the project began as well as raising incomes. Shell oil refinery uses local companies to provide services and goods to run it, creating even more jobs and leading to the positive multiplier effect. Shell employs 6000 people directly and 20,000 people indirectly. Shell pays corporate tax ($5 billion in 2024) which can be used by the government to improve infrastructure.

Question 45

Describe the disadvantages of Shell's investment in Nigeria's oil and gas industry

Answer 45

Human rights abuses - Shell has been accused of crimes against the Ogoni people who have remained very poor and their land has been polluted by oil spills. Oil spills - 500 million gallons of oil spills in Niger Delta. Gas flares used to extract gas from oil releases fumes which affect people's health. Leakage of profits - Profits aren't reinvested in Nigeria

Question 46

Advantages of TNCs

Answer 46

Large companies provide employment and training of skills. Modern technology is introduced. Companies often invest in the local area, improving services (roads, electricity) Local companies may benefit by supplying goods and supplies to the TNCs, leading to the multiplier effect TNCs have many international business links, helping industry thrive. Government benefits from export taxes, providing money that can be spent on improving education, health care and services.

Question 47

Disadvantages of TNCs TNCs can exploit the low wage economy and avoid paying local taxes.

Answer 47

Working conditions may be poor, with fewer rules and regulations than HICs. Environmental damage may be caused. Higher-paid management jobs are often held by foreign nationals Most of the profit goes abroad rather than benefitting the host country. Incentives (such as lower taxes) used to attract TNCs could have been spent supporting Nigerian companies.

Question 48

Describe Nigeria's changing political relationships

Answer 48

Originally part of British empire so most political and trading links were with the UK and other members of the Empire. Since becoming independent in 1960, Nigeria has been part of the Commonwealth, maintaining strong links with the UK and also developing links with Africa, Asia and the USA. Nigeria plays a leading role within Africa through economic planning in the African Union and peacekeeping as part of the United Nations. Links with China are going, as Nigeria benefits from increased investment, such as $12 billion to construct a new railway.

Question 49

Describe Nigeria's changing trading relationships

Answer 49

Nigeria's main imports: Refined petroleum products from the EU and US Cars from Brazil Mobile phones from China Nigeria's main exports: 50% of its exports are to the EU, including crude oil, natural gas, rubber and cotton. Most of Nigeria's crude oil is exported to India, China, Japan and South Korea. 30% of Nigeria's cotton goes to Australia and 15% to Barbados. Nigeria is part of ECOWAS and OPEC trading groups.

Question 50

Describe ODA (Official development assistance) aid

Answer 50

Given by governments and paid for by taxpayers so often unpopular with taxpayers in those countries.

Question 51

Describe voluntary aid

Answer 51

Is given by individuals or companies and distributed through charities and NGOs such as Oxfam.

Question 52

Describe multilateral aid

Answer 52

Is given by countries through international organisations like the World Bank or IMF.

Question 53

Describe bilateral aid

Answer 53

Is given directly by one country to another. Sometimes it is tied aid with conditions attached.

Question 54

Describe short-term emergency relief

Answer 54

Used to cope with immediate problems caused by disasters, like earthquakes and wars.

Question 55

Describe long-term development assistance

Answer 55

Helps people to improve their lives through education, health care or agricultural development.

Question 56

Give examples of international aid to Nigeria

Answer 56

Bilateral tied aid from China - China has invested $4 billion in oil and infrastructure development projects (creating jobs) and in return, Nigeria gave Chinese oil firms contracts to extract oil in the Chad Basin. Short term aid - UN World Food programme has supplied food to 400,000 people in northern Nigeria who are facing starvation as a result of conflict between the government and Boko Haram Voluntary aid - Christian aid provided 15,000 mosquito nets to the Kaduna state in Northern Nigeria.

Question 57

Why is aid not always effective in Nigeria?

Answer 57

Corruption in the government means aid is lost or not given to the right people. There have been claims that aid money has been used to supply the Navy.

Question 58

State the 3 branches of environmental impacts of economic development in Nigeria

Answer 58

Industrial Growth Urban Growth Mineral and oil extraction

Question 59

Describe the environmental impacts caused by industrial growth as a result of economic development in Nigeria

Answer 59

Many large scale industrial developments are unregulated and lack planning consent. In Lagos, toxic chemicals are discharged into drains and open sewers, posing dangers to human health and ecosystems. Chimneys emit poisonous gases that can impact human health and contribute to climate change. Up to 80% of Nigeria's forests have been destroyed. Burning of forest releases CO2 and forest removal results in soil erosion. Waste disposal can poison rivers or land and contaminate groundwater supplies.

Question 60

Describe the environmental impacts caused by urban growth as a result of economic development in Nigeria

Answer 60

Sprawl of urban centres such as Lagos. Large areas of countryside have been lost. Waste disposal is a major issues in these cities as collection services are poor. Lack of sanitation means untreated sewage contaminates groundwater. Traffic congestion creates high levels of pollution

Question 61

Describe the environmental impacts caused by mineral and oil extraction as a result of economic development

Answer 61

Oil spills have damaged marine ecosystems leading to loss of species in the Niger Delta region. Tin mining has polluted local water supplies and resulted in soil erosion. Oil spills cause fires which release toxic gases.

Question 62

Improvements to quality of life due to economic development in Nigeria

Answer 62

Nigeria has one of the fastest growing HDI rates in the world. Has increased to over 0.50 now. Access to safe water has increased from 46% to 64%. People are beginning to benefit from improvement in infrastructure and services thanks to taxes paid to the government. Reduced infant mortality and increased life expectancy due to improved health care. Life expectancy has risen from 47 to 55 in the last 40 years.

Question 63

Remaining challenges to quality of life despite economic development in Nigeria

Answer 63

There are vast inequalities within Nigeria. The north is significantly less developed than the South. Urban areas are more developed than rural areas. Squatter settlements still exist. Nigeria ranks 161 out of 187 countries in terms of HDI. Corruption in the government has taken $20 billion from 1960 to 2005.