Changing Economic World : Global variation in economic development and quality of life Flashcards
Demographic transition model : stage 1
Birth rate : high
Death rate : high
Natural change : stable
Little contraception and education means a high birth rate which is counteracts the high infant mortality
Demographic transition model : stage 2
BR : high
DR : falling
Natural change : rapid increase
Improved standard of living means that hygiene and Healthcare is accessible, but education and contraception are still low.
Example India
Demographic transition model : stage 3
BR : falling
DR : slow falling
Natural change : stable increase
Education + contraception on the rise. Healthcare and Infant mortality still improving but at a slower pace than before.
Example Brazil
Demographic transition model : stage 4
BR : low
DR : low
Natural change : stable
High standard of living and education means access to contraception and healthcare.
Example UK
Demographic transition model : stage 5
BR : low
DR : slow increase
Natural change : decrease
Such a high standard of living and healthcare => high average age => deaths of old age.
Example Japan
Demographic transition model : weaknesses
1) Cultural and societal pressures can affect the DTM (I.E. India and Brazil are countries where large families are expected)
2) Can be artificially altered (one child policy china)
3) ‘later’ developing countries move faster across it due to the models Eurocentric view
4) Does not account for migration
Demographic transition model : Strength
1) useful in making predictions
2) useful in comparisons of countries
Dependency Ratio
Number of economically active people
Primary goods
Raw materials. I.E. Timber, Coco beans
Secondary goods
Manufactured products. I.E. Chairs, Chocolate
What do LIC’s and HIC’s tend to export
LICs tend to export primary products
HICs tend to export secondary products
HICs exploiting LICs for primary products
HICs have the purchasing power and political power to drive down the prices of primary products.
This also tends to keep LICs poor as little money is their to cycle through the economy
Trade surplus
the amount by which the value of a country’s exports exceeds the cost of its imports.
Trade deficit
the amount by which the cost of a country’s imports exceeds the value of its exports.
Economic reasons for low development (6 points)
1) Poor trade ties
2) LICs are based off primary products
3) Significant debt
4) Lack of access to clean water
5) Corruption
6) Gender Inequality
Economic reasons for low development : Significant debt in LICs
The worlds poorest countries give more in debt then they receive in aid.
Debt can be from loans given when becoming independent nations or failed projects
Interest rapidly accumulates due to high interest rates
Economic reasons for low development : Lack of access to clean water
Water plays a key role in
Agriculture (irrigation)
Health (infection spreads through dirty water)
Conflict (Eygpt threatining Etheopia after excessive of
Nile water)
Natural disasters (drought and floods)
Women/girls struggle to get education as they must
travel to get water
Economic reasons for low development : Corruption
Corruption can cause
Clan based thinking (hiring of ‘clan’ and not skill)
Embezzlement
LICs tend to be less democratic
Economic reasons for low development : Gender Inequality
More gender equal countries tend to be more developed
=> more skilled workers (as education is available equally)
=> Women are free to make better reproductive and marital choices
Reducing the development gap : FDI
When countries and TNC’s invest in a country by moving business there. Unlike loan, no repayment needed. TNC’s tend to move for cheap labour, weaker environmental legislation, weaker health and safety regulations and cheap access to raw materials.
Reducing the development gap : Industrial development
By growing industrial sector, a country reduces its need for imports and can begin exporting more valuable secondary products.
NEE’S such as Brazil and Malaysia began car manufacturing to improve their economies.
This has lead to gdp rise => better standards of living.
Also creates positive multiplier effect as creates a richer better educated population
Reducing the development gap : Tourism
Natural resources such as tropical beaches and exotic wildlife can attract foreign tourists.
Tourists bring much money with them but it is a vulnerable business
Tourism can cause environmental damage. Affected by natural disasters, (Covid killed jamaican economy -12٪)
Reducing the development gap : Aid Types
5 types of Aid
1) Bilateral - country to country. Usually tied to a condition
2) Multilateral - Government to NGO. Free of government corruption but NGOs can be innefecient with money and be corrupt
3) NGO’s (voluntary) - NGO (donations) to people. Donations are unstable
4) Short-term - food, medicine and water after a natural disaster or war.
5) Long term - Infrastructure
Reducing the development gap : Aid example
UK donates £369 million to Ethiopia to build Tekeze Dam to make hydroelectric power.
