Changing Economic World Flashcards
(32 cards)
Global Development
Define Development
The progress of a country: economic growth, QOL, use of technology
Measured in different ways
Global Development
Economic measures of Development
- GNI per capita- HICs, NEEs and LICs classification
- Limitations: average can be inflated by minority, outdated values due to exchange rates
Global Development
Social measures of Development
- birth rate, death rate, infant mortalitiy rate, life expectancy, literacy rates - suggestive of QOL
Global Development
What is the HDI
- Composite indicator to accurately measure development
- many social and economic indicators
- on a scale of 0 to 1
Global Development
Describe the DTM
Shows how the population changes over time AND how it relates to level of development
Global Development
DTM Stage 1 description
- High birth rate- no contraception
- High death rate- poor healthcare
-
Low rate of natural increase
Examples: Indigenous tribes
Global Development
DTM Stage 2 description
- High birth rate- children needed for agriculture
- Falling death rate- better healthcare
- High natural increase rate
- Examples: most LICs- Afghanistan
Global Development
DTM Stage 3 description
- Birth rate- rapidly falling- contraception
- Death rate- slowly falling
- Natural increase rate- high
- Examples: NEEs- India
Global Development
DTM Stage 4 description
- Birth rate- slowly falling
- Death rate- low
- Natural increase rate- low
- Examples: most HICs- UK, Canada
Global Development
DTM Stage 5 description
- Birth rate- very low- focus on employment
- Death rate- low (may increase in future)- long life expectancy
- Natural decrease, ageing population
- Examples: Germany and Japan
Uneven Development
Physical Causes of Uneven Development
- Natural hazards- infrastructure damage
- Climate- difficult to grow crops- rely on imports
- Natural resources- need to import if scarce
- Location- Landlocked harder to trade
Uneven Development
Historical Causes of Uneven Development
- Colonialism- exploited resources and put colonies behind
- Conflict- money spent on firearms
Uneven Development
Economic Causes of Uneven Development
- Debt
- Tarrifs
Uneven Development
Consequences of Uneven Development
Disparity in Wealth:
- For larger NEE/LIC population, the wealth shared is lower than for smaller HIC population
Disparity in Health:
- 25% of diesase in Africa, but 2% of doctors
International Migration:
- HICs have better pull factors
- More skilled workers moving to HICs
Reducing the Development Gap
*Strategies to Reduce Development Gap
- Fair Trade: 98% of farmers in Columbia said QOL improved
- Microfinance Loans: Investors in HICs giving to people in LICs- Grameen Bank Bangladesh giving to mainly women
- Toursim- Jamaica- 30% of economy
- Intermediate Tech- Solar box cookers in India + Kenya- sustainable
- Debt Relief- HICs cancel debts- World Bank gave $76 Billion debt relief for many LICs
- Aid- UK govt. Spends 0.7% of income on aid
Reducing the Development Gap
*Case Study: Tourism in Jamaica- development gap
- high levels of crime and unemployment
- Vision 2030 launched to reduce development gap
Reducing the Development Gap
*Case Study: Tourism in Jamaica- Measures
- promoting investment in toursim
- new markets such as yachting and sports tourism
- more links between tourism and industries of manufacturing/agriculture
Reducing the Development Gap
*Case Study: Tourism in Jamaica- pros and cons
Pros:
- 30% of GDP
- boosts economy
- other sectors can also benefit
- Blue Mountain National Park: sustainable- income supports reforestation, education etc.
Cons:
- seasonal employment- vulnerable to recession
- hurricanes may repel tourists
- Managers from HICs earn most, not locals
Development of an NEE
*Case Study: Nigeria’s International Importance
- Africa’s largest economy and population
- Oil industry (9% of GDP) gives it global influence
- Large market for TNCs
Political and Trading Relationships:
- improved relationship with global powers after it developed from LIC to NEE
- Large importers of: Cars, telephones
- Large exporters of: cocoa beans, oil
Development of an NEE
*Case Study: Nigeria’s Changing Industrial Structure
- Shift from primary to secondary/tertiary sector
- 70% Nigerians farmers- but only 22% of GDP
- Production of Cement, textiles and food dominates secondary sector
- Services: banking, trade, tourism, real estate: 50% of economy now
Development of an NEE
Case Study: Nigeria: TNCs Pros and Cons
Popular for TNCs due to cheap, large labour market
Pros:
- Shell created 65K jobs
- Invest in infrastructure-£1.1 billion in contracts to improve roads
- Improve locals employment
Cons:
- Shell caused env. damage and oil spills
- Low wages
- Job insecurity for locals
Development of an NEE
Case Study: Nigeria- reliance on intl. aid
- Short term aid: European Union supported Nigerian Red Cross after flood
- Long term aid: UK provided £200 mill + aid
- Top down aid: World Bank spent £12 billion to give to govt.
- Bottom up aid: Nets for Life programme- reduce disease- small scale
Development of an NEE
Case Study: Nigeria: Impacts of Development
Environment:
- more pollution
- natural habitat destruction
Soc + Econ:
- higher incomes
- more education with TNC programmes
- Better sanitation, healthcare and roads
UK Economic Development
Causes of Economic Change
- De-industrialisation: after decline in manufacturing in 1960s
- Globalisation
