changing economic world (overview and Nigeria) Flashcards

(297 cards)

1
Q

gross domestic product (GDP) definition

A

the total value (amount) of goods and services produced by a country in one year (per capita = divided by its total population)

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2
Q

migration definition

A

the movement of people from one permanent home to another, with the intention of staying at least a year. this move may be within a country (national) or between two countries (international)

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3
Q

transnational corporation (TNC) definition

A

initial investment and jobs lead to knock on effect. this knock on effect creates more jobs and money which are then reinvested

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4
Q

industrial structure definition

A

the relative proportion of the workforce employed in different sectors of the economy (primary, secondary, tertiary and quaternary)

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5
Q

development definition

A

the progress of a country in terms of economic growth, the use of technology and human welfare

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6
Q

development gap definition

A

the difference in standards of living and wellbeing between the worlds richest and poorest countries (HIC versus LIC)

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7
Q

gross national income (GNI) definition

A

measurement of economic activity that is calculated by dividing the gross (total) national income by the size of the population. GNI takes into account not just the value of the goods and services, but also the income earned for investment overseas

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8
Q

human development index definition

A

a method of measuring development in which GDP per capita, life expectancy are combined to five and overview using social and economic indicators

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9
Q

quality of life definition

A

refers to the wide range of human needs that should be met alongside income growth

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10
Q

how is GDP different from GNI

A

GDP looks at the value of a countries output from within the borders of a country, not including national interests abroad (unlike GNI)

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11
Q

what groups do we classify countries into based on their level of development

A

LIC
NEE
HIC

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12
Q

what are LIC’s

A
  • includes 30 of the worlds poorest countries
  • most people have a poor quality of life with inadequate services and few opportunities
  • most of these countries are in Africa or Asia
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13
Q

what are NEE’s

A
  • middle income countries
  • countries experiencing rapid economic growth and development based on industrial development incomes rising
  • most people enjoy a reasonable standard of living
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14
Q

what are HIC’s

A
  • includes 80 countries where people enjoy a good standard of living based on relatively high levels of income
  • most of these countries have modern industries with high proportions of people working in the service sector
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15
Q

example of NEEs

A

Brazil, India, China

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16
Q

examples of HICs

A

NW Europe, USA, Japan, Australia, New Zealand

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17
Q

what acronyms are used for the fast developing countries and what do they stand for

A

they are known as the BRICs and MINTs

BRIC:
Brazil
Russia
India
China

MINT:
Mexico
Indonesia
Nigeria
Turkey

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18
Q

what is quality of life like when low income and why

A

quality of life is low due to extreme poverty, no medical care, minimal food, no running water

this is because if crop yields are low, there is no way to make money
also, time that could be spent working/getting educated is spent getting clean water

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19
Q

what is quality of life like when in lower middle income and why

A

quality of life is slightly better than in low income as more food is available, limited medical care - however its still too expensive

this changes from lower income because crop yields increase, meaning they have slightly more money
also, it doesn’t take as long to get water -> more time at work/education

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20
Q

what is quality of life like when upper middle income and why

A

quality of life is considerate as you can have running water, electricity, education, vacation to beach for the day

this changes from lower middle income because there are more job opportunities due to the ability to travel to work
also, people can have multiple jobs because they freed up time by having a tap in the home

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21
Q

what is quality of life like when high income and why

A

quality of life is good as you can own a car, go on vacation, afford good medical care

this changes from middle income because they have worked their way through and have access to water, transport and eduction
-> better education means better jobs

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22
Q

how can we measure development

A
  • literacy rates
  • access to healthcare
  • life expectancy
  • quality of life
  • HDI
  • access to clean water
  • GNI
  • birth and death rates
  • infant mortality
  • people per doctor
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23
Q

using GNI to measure development:

A
  • total income of a country divided by number of people
  • economic indicator

limitations of measure:
- only takes into account one factor - income
- 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 may not be taken into account

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24
Q

using birth rates to measure development:

A
  • refers to the number of live births per 1000 population
  • social indicator
  • 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
    -> better access to healthcare means that family size decreases as children are less likely to die in infancy

limitations of this measure:
- some countries may have low birth rates but are actually quite poor (eg. Cuba at 10 per 1000 - this is due to political decisions to invest more money into healthcare over other sectors)
- birth control policies can distort this as a measure of overall development (eg. China, 12 per 100)

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25
using death rates to measure development:
- refers to the number of deaths per 1000 population - social indicator - 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 of this measure: - by comparison, death rates generally decrease 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
26
using infant mortality rates to measure development:
- refers to the number of deaths of children less than one year of age per 1000 - social indicator - 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 of this measure: - in the poorest countries, not all the deaths of children are reported, especially in remote areas, meaning the true rates may be even higher
27
using life expectancy to measure development:
- this is the average number of years a person in a country can be expected to live - social indicator - 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 of this measure: - 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
28
using education/literacy rates to measure development:
- this can also be expressed as the percentage of people with basic reading and writing skills - social indicator - 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 limitations of this measure: - 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
29
using people with access to clean water to measure development:
- the percentage of people with access to safe mains water - there is much variation with sage 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 is poor (Angola, 34%) limitations of this measure: - 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
30
what is the combination of the different ways of measure development called
human development index
31
using human development index to measure development:
- 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 and economic measure - a countries HDI is expressed as a value between 0-1 (1 being the highest and 0 being the lowest) income: uses a measure or wealth derived from the estimate per capita GNI of a country life expectancy: years expected to live from birth to death -> women tend to live the longest education: based on average number of schooling years 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 subject and therefore unreliable - the statistics provided by some countries may be unreliable
32
how would a countries birth rates change as they become more developed
as a country gets more developed, birth rates would decrease as more children survive past infancy due to improved healthcare, so people don’t need to have many children to ensure one or two survive
33
how would a countries death rates change as they become more developed
as a country develops, the death rates decrease due to improved healthcare, clean water, access to food, etc.
34
how would a countries total population size change as they become more developed
as a country become more developed the population would increase due to a decrease in death rates and people moving to try find better jobs
35
how would a countries life expectancy change as they become more developed
as a country become more developed, the life expectancy would increase due to improved healthcare, more access to clean water and more access to food and a balanced diet
36
what does the demographic transition model graph show
birth rate, death rate and natural increase -> proposes what should happen to a population over time and how it should change
37
what happens in stage 1 of the demographic transition model
high fluctuation of natural increase/decrease, brith rates, death rates total population is low
38
what happens in stage 2 of the demographic transition model
early expanding death rates decreases rapidly birth rate stays same total population increases rapidly
39
what happens in stage 3 of the demographic transition model
late expanding birth rate decreases total population increases death rate stays low
40
what happens in stage 4 of the demographic transition model
low fluctuating total population is high and constant birth rates is low fluctuating death rates are low and constant
41
what happens in stage 5 of the demographic transition model
total population begins to decline slightly death rates increase slightly birth rates decrease slightly
42
reasons for changes to birth rate in stage 1 and 2 of demographic transition model
birth rate increases: - religious values - children required for work in farming and manufacturing - high infant and child mortality rates so high replacement rates - lack of contraceptives and family planning
43
reasons for changes to birth rate in stage 3 of demographic transition model
birth rate falling: - falling infant mortality - laws against child work so fewer needed - improved medical care and diet
44
reasons for changes to birth rate in stage 4 and 5 of demographic transition model
birth rate is low: - emancipation and education of women - materialism (wealth chosen over large families) - later child birth - later and fewer marriages - huge range of family planning options
45
reasons for changes to death rate in stage 1 of demographic transition model
high - diseases (eg. plague) - famines - poor medical knowledge
46
reasons for changes to death rate in stage 2 and 3 of demographic transition model
decreases - improvements in medical care (eg. sterilisation, small pox vaccine) - better sewers - water supply and sanitation - improved food supply - improved education
47
reasons for changes to death rate in stage 4 and 5 of demographic transition model
low: - medical advancements (eg. transplants, heart surgery, etc.) - better food supply - preventative medicine
48
example of country in stage 1 of demographic transition model
south sudan
49
example of country in stage 2 of demographic transition model
bangladesh
50
example of country in stage 3 of demographic transition model
brazil
51
example of country in stage 4 of demographic transition model
uk
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example of country in stage 5 of demographic transition model
japan
53
what factors have caused uneven development
- climate change - education levels - disease - colonisation - access to clean water - conflict - access to healthcare - natural disasters
54
historical causes of uneven development:
- many LICs were colonised by powerful trading nations such as the UK, France, Spain and Portugal - much of Africa, Asia and South America were exploited for their raw materials and over 10 million people were exported from Africa to North America to work as slaves - it was during this era that global development became uneven - although most of these countries have become independent during the 20th century, many have been affected by power struggles and coil wars, the legacy of hundreds of years of exploitation - as a result, they face many challenges in term of development
55
causes of colonialism
- europe wanted to build global influence - europe want to compete against other rival states and to access raw materials and labour - the discovery of the new sea route meant different countries could now be colonised
56
effects of colonialism:
- europeans brought a lot of new technology to african countries to help with farming, build better infrastructure, etc. - when the DR Congo gained independence from belgium, they only had 14 university graduates - power struggles took place in newly independent countries, especially if resources like diamonds were at stake - the modern borders of many middle eastern and central african countries affect ethnic groups across the regions, creating conflict - south american, asian and african cultures were affected and became part of the transatlantic slave trade - education was introduced to a lot of countries where they were taught the global languages like english, and institutions like a proper government emerged
57
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. eg. 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 eg. Bangladesh - limited access to clean water -> lack of safe water can stifle development,ent by making people sick and unable to work eg. Angola
58
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
59
what do LICs trade and what does this mean
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
60
what do LICs rely heavily on
single exports -> 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
61
what are the consequences of uneven development
health disparities wealth disparities global migration
62
in LICs what % of deaths are in children under 15, and how does this compare to HICs
in LICs, 40% of deaths are in children under 15, compared to 1% in HICs
63
health in LICs:
- 4 in every 10 deaths are among children under 15 years, and only 2 in every 10 deaths among people aged 70 and over - complications of childbirth are one of the main causes of death among children under 5 years old - infectious diseases are a main cause of death: lung infections, HIV/AIDS, diarrhoea-related diseases, malaria and tuberculosis together account for 1/3 of deaths
64
health in HICs:
- 7 in every 10 deaths are amongst people aged 70 years and older - main causes of death are chronic diseases, such as heart and lung diseases, cancer, dementia or diabetes - only 1 in every 100 deaths is among children under 15 - lung infections are the only main infectious cause of death
65
what % of total wealth is held by north america, and how much of the total population do they hold
35% of total wealth is held in North America - by just 5% of the World’s population
66
how is wealth a consequence of uneven development
- LICs have become dependent on HICs and some NEEs for aid - many LICs have had to borrow money from the World Bank to pay for hospitals and health care and are now heavily in debt - the shortcomings of healthcare in some West African countries was shown by the Ebola outbreak in 2014-2015, which resulted in over 11,000 people dying from the virus
67
ebola outbreak:
- the shortcomings of healthcare in some West African countries was shown by the Ebola outbreak in 2014-2015, which resulted in over 11,000 people dying from the virus - most deaths were in Sierra Leone, Guinea and Liberia - Sierra Leone’s hospitals have deteriorated overtime due to the countries low income, indebtedness, and civil war - this reminds us that many of the problems in LICs are connected to each other
68
how has international migration become one of the main consequences of uneven development
people move to improve their quality of life migrants may be economic migrants or refugees
69
economic migration in the UK:
- 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
70
since 2004, how many economic migrants have moved to the UK
over 1.5 million -> 2/3 of whom were polish
71
since 2004, over 1.5 million economic migrants have moved to the UK. why were 2/3 of them polish?
the unemployment rate in Poland is over 10%, and they can earn up to five times as much in the UK money is often sent home to friends and relatives
72
why are migrants beneficial to the UK
- most migrants pay tax - they are prepared to work hard, often doing manual jobs such as working on a farm
73
why are migrants not beneficial
they put pressure on services such as health and education
74
refugee definition
a person forced to move from their country of origin, often as a result of civil war or a natural disaster, such as an earthquake
75
what is sustainable economic growth
the economic development that attempts to grow economies and satisfy the needs of humans but in a manner that sustains natural resources and the environment for future generations
76
which strategies can be used to reduce the development gap
- intermediate technology - industrial development - debt relief - aid - charities - invest in development in LICs - foreign investment in education, healthcare, infrastructure - micro finance loans - trade
77
how do investments by TNCs help to reduce the development gap
- TNC is a multinational corporation that owns or controls production of goods or services in at least one country other than its home country - TNCs invest in LICs and NEEs in sectors (eg. health, education, insurance and agriculture) that they think are going to expand rapidly - the investment helps the sector grow more quickly - after growth the investors are able to collect a ‘return’ on their investments and earn even more money (sometimes 10x more) than they put in - popular method as it develops LICs/NEEs rapidly and HICs earn their money back with more on the side - Royal Dutch Shell employs more than 4500 people in Nigeria - 95% of whom are Nigerian
78
evaluation of strategy of investments by TNCs to reduce the development gap
- it is viable in many places and helps with building of infrastructure + allows people to move away from primary low paid jobs - however, sometimes big corporations earn more than the people doing the physical work - TNCs can mean poor working conditions - economic leakages - profits go back to country of origin
79
how does industrial development help to reduce the development gap
- industrial development enables LICs and NEEs to invest in their primary industries and increase manufacturing - this increases productivity, generating more wealth for the economy - this also improves their gross national income (GNI) - in Mozambique, just 6 years of industrial growth (2002-2008) reduced the proportion of people living in poverty by 15%
80
evaluation of strategy of industrial development to reduce the development gap
- a good way to increase wages and quality of life - leads to the positive multiplyer effect - many struggle to find the funds for investment
81
how does aid help to reduce the development gap
- international aid is a gift of money, goods or services to a developing country - unlike a loan, this gift does not have to be repaid - the donor may be a country or group of countries (ie. EU) - UK gov spends 0.7% of its national income on overseas development projects, including those in Sierra Leone and Syria
82
evaluation of strategy of aid to reduce the development gap
- helps improve standards of living - sub-saharan africa has seen improvements in education and healthcare - very helpful to help economies recover after war or natural disasters - however, countries become dependent on aid - aid may be wasted especially is gov is corrupt
83
how does intermediate technology help to reduce the development gap
- speeds up the process of development - simple and practical tools, basic machines and engineering systems - straightforward for local people to use - sustainable and cheap to maintain - machines can quickly harvest crops and manual labour is decreased - solar box cookers in rural parts of India and Kenya produce clear and sustainable energy for domestic cooking
84
evaluation of strategy of intermediate technology to reduce the development gap
- empowers locals - can provide sustainable energy - if simple, the skills needed to use it can be easily taught - could increase crop yields - however, it can mean less jobs as machinery does some of the work
85
how does fair trade help to reduce the development gap
- when the farmers or factories involved receive a fair percentage of the final retail price in supermarkets, a product is labelled as Fair Trade - fair trade also involves the maintenance of a basic working environment - fair trade sets social, economic and environmental standards for both companies and the farmers/workers who grow the food that eventually ends up in stores in HICs - standards for farmers/workers include: protection of workers rights and the environment - for companies they include: the payment of fair trade minimum price and an additional fair trade premium to invest in business or community projects of the communities choice - fair trade in Columbia has increased household income for banana farmers by an average 34%
86
evaluation of strategy of fair trade to reduce the development gap
- money used to increase crop yields, farming practices, healthcare and education - better access to workers rights and environmental sustainability is considered - however, higher prices may mean shoppers in HICs don’t buy them which limits the number of people who can be involved in the scheme
87
how does debt relief help to reduce the development gap
- between 1960 - 1980 some HICs loaned many LICs huge amounts of money - the debt crisis began when countries couldn’t repay loans or interest - often money had come from IMF or World Bank or large American commercial banks - one way debts have been reduced by conservation swaps .eg. Indonesia agreed to protect Sumatran forests in exchange for writing off $30 million borrowed from the US
88
evaluation of strategy of debt relief to reduce the development gap
- eases pressure and allows LICs to spend more on education and health - helps to lose the development gap - however, not all debt is written off
89
how does microfinance loans help to reduce the development gap
- poor subsistence farmers in LICs can be offered microfinance loans by the bank - this is a small loan designed to give people a chance to escape the cycle of poverty - they provide a crucial starting point for families to start development at a local scale -> eg. buying fertiliser to increase crop production. overtime profits will increase and the loan will be paid off
90
evaluation of strategy of microfinance loans to reduce the development gap
- interest is low so people can lift themselves out of poverty - can help farmers produce enough for their own needs - but it is not always easy to create a surplus to sell at marker - if the project fails, they can’t pay it back
91
case study: example of how the growth in tourism in an LIC/NEE helps to reduce the development gap
Tunisia
92
capital of Tunisia
Tunis
93
a country bordering tunisia
algeria
94
what is the body of water hugging tunisia’s coast
the mediterranean sea
95
approx population of tunisia
11.11 million
96
main languages spoken in tunisia
- Arabic - French - Berber
97
is tunisia an HIC, LIC, or NEE
NEE
98
approx GDP per capita of tunisia
$3872
99
why is climate a reason for growth of tunisia’s tourism industry
northerly coast has a mediterranean climate - hot summers and mild winters 40 degrees celsius temperatures in summer attract sun seekers from UK
100
why is links with europe a reason for growth of tunisia’s tourism industry
tunisia is close sicily and easily accessible by low-cost airlines to mainland europe also, tunisia is an ex colony of france meaning many inhabitants speak french which is appealing to many tourists
101
why is history and culture a reason for growth of tunisia’s tourism industry
tunisia hosts seven UNESCO World Heritage Sites, including the ancient remains of Carthage and the Roman El-Jem amphitheatre films like star wars have filmed on locations here, attracting fans
102
why is rise of cheap package holidays a reason for growth of tunisia’s tourism industry
the tunisian gov worked in conjunction with tourist operators like TUI to develop the country into a tourist destination with hotels, transport infrastructure and recreational activities like water sports
103
why is physical landscape a reason for growth of tunisia’s tourism industry
tunisia’s landscape is varied and diverse - beaches, Dorsal mountains and the Sahara desert providing a range of activities for different types of tourists
104
positive impacts of development in tunisia
- during the 70s and 80s, the number of lodging facilities and bed capacity more than doubled and tripled - attempts to increase the productivity of the domestic agriculture sector to provide food supplies for european palates can impact on women’s status and income by increasing financial gains from farming
105
negative impacts of development in tunisia
- tourism creates relatively few managerial and professional posts, and these are often filled from other sectors and/or by specially recruited expatriates - disproportionate growth along the mediterranean littoral at the expense of the central and southern regions of the country, and often to the impairment of agricultural production - “tourism kills tourism” - often the building of roads and the expansion of hotels can significantly alter the physical environment due, in the latter case, to the problems of sewage treatment and refuse control - there is competition for water between the agricultural and tourism sectors
106
positive impacts of tourism in tunisia
- job creation - jobs in the hospitality industry - creation of training schools for hospitality - a higher education option - led to improvements in literacy rates - Tunisia has seen life expectancy increase - all girls now have to go to school - long term development strategy from the 1960s - hotel rooms have quadrupled, has helped to increase peoples standards of living
107
negative impacts of tourism in tunisia
- water - tourist areas use 8x the amount of the average tunisian - water scarce country - tourism isn’t always a sustainable development strategy - especially mass tourism - crowds/litter/busy hotels - managerial jobs often go to people from other countries, TUI or other companies keep most of the money - economic growth is focused along the coast but central and south areas have not seen as much investment
108
what event did tourism in tunisia struggle after
struggled after terrorist attacks however, as attack effect fades, tourism increases
109
facts and opportunities of tourism in tunisia
- travel and tourism directly supported 225,000 jobs - investment was USD764.6 million -> 9.7% of total GDP - average monthly rainfall of 1.3 inches -> lots of competition for water between agriculture and tourism - direct contribution of travel in 2017 was USD2740.4 million -> 6.9% of total GDP
110
locational info of tunisia
- easily accessible by low-cost european airlines - diverse landscapes - on the mediterranean sea - borders algeria and libya - 3hr flight from UK - not far from sicily
111
tunisia tourism stats
- US$900 million contributed to the economy from tourism in 2009 - 370,000 jobs directly/indirectly caused by tourism in 2009 - 11 tourism regions - 9 airports - 7 ports - 856 hotels (240,000 beds) - 400 tourist restaurants - 649 travel agency - 8 public tourism training centre - 4 casinos - 45 thlassotherapy centre - 10 golf courses - 6 marina and please boating
112
what % of tunisia’s GDP is invested in the healthcare system
4%
113
environmentally, what is one sustainability issue created by tourism
pollution of the environment - beaches polluted with untreated sewage
114
what does leakage of profits refer to
profits made by TNCs end up in the TNC source country and does not stay in the local economy
115
what happened in tunisia in 2015
terrorist attacks aimed at tourists - Museum Bardo in Tunis and beach in Sousse
116
what is the repeating cycle on how tourism can reduce the development gap
increased number of tourists attracted to location -> growth in number of jobs in tourism industry -> local people earn more money -> local people spend more money in the local economy -> the gov receives more taxes from businesses and people -> gov spends more money improving infrastructure and amenities -> increased number of tourists attracted to location -> cycle repeats
117
what are some negative socioeconomic and environmental impacts of tourism in tunisia and how can this threaten the sustainability of tunisia’s tourism industry
- leakage of profits back to TNCs (eg. Thomas Cook) -> this limits the multiplayer effect as there is less money invested back into local economy - pollution of the environment (eg. beaches have been polluted by untreated sewage from hotels) -> this devalues the amenity of the beach for tourists which could result in a decline in numbers - terrorism (in 2015 there were terrorist attacks on a beach and museum) -> european governments advised people not to go there
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industrial structure definition
the relative proportion of the workforce employed in different sectors of the economy (primary, secondary, tertiary and quaternary)
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newly energy economy (NEE) definition
a country whose economy is growing rapidly because of the economic developments and reforms they are putting into place
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balanced economy definition
where economic growth is sustainable and the economy is growing across different sectors
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what are sectors of the economy
the grouping of the different type of jobs into sectors - primary, secondary, tertiary, quaternary
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economic development definition
the process by which a nation improves the economic well-being of its people as measured by GDP
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what is a Transnational Corporation (TNC)
a large company that operates in several countries
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industrial development definition
the start of new industries or forms of employment in new places or the redevelopment of an old industrial location
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manufacturing industry definition
industry and trade based on the making, processing or preparation of products from raw materials
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how has nigeria’s life expectancy grown from the 1800s to 2021
improved from around 30 years in 1800 to 65.1 in 2021
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how has income increased in nigeria from the 1800s to 2021
income increased from roughly $900 to $4970
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describe nigeria’s location
- western africa - on the Gulf of Guinea/South Atlantic ocean - borders Benin, Niger, Chad, Cameroon - the capital, Abuja, is in the centre - lagos is on the coast
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nigeria’s global importance
- the nigerian film industry, Nollywood, is one of the largest in the world - by 2050, Nigeria’s economy will be in the top 20 largest economies in the world - 2.7% of the worlds oil is supplied by nigeria - the nigerian diaspora (spread of people) had 1.24 million nigerians living in other countries
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nigeria’s regional importance
- nigeria often takes leadership roles (eg. while formation of african union) - nigeria is the largest economy in west africa - nigeria has the highest agricultural (farming) output in africa - nigeria has the largest population in africa with 218 million people
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social context of nigeria and how might this impact development
250 minority groups make up 1/3 of nigeria’s population, each with their own languages and traditions -> they have different ways of life and speak different languages meaning it may be harder to work together, which would slow down development
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cultural context of nigeria and how might this impact development
nigerian football team has won the African cup of nations three times -> it makes nigeria more known, meaning more people may want to visit, meaning tourism increases, meaning more money is spent in the country, meaning it can develop faster
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environmental context of nigeria and how might this impact development
nigeria’s natural environments form a series of bands across the country, reflecting the decreasing rainfall towards the north, towards the sahel -> some land, like the savannah, is unsuitable for building and development so it is limited to southern nigeria
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what aged population is nigeria
has a youthful population
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what are the potential positives of a youthful population
- more people working in manufacturing and services -> invites availability for investment - active and productive workforce - lots of people able to work -> educated, skilled workforce - less gov expenditure on healthcare (diseases associated with old age) - healthy and able to contribute to society
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potential negatives of a youthful population
- pressure on schooling system to provide enough resources - more competitions for jobs - workforce need more training as they are less experienced
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what does over 1/2 of nigerias GDP come from
manufacturing and service industries
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what did nigeria’s economy used to be and what is it transforming into
the economy was mainly agricultural but is transforming into an industrial economy
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what are the faster growing industries in nigeria
- telecommunications - now over 115 million mobile phone users - retail and wholesale - many once informal businesses are now in the formal economy and included in the GDP calculation - film industry - ‘Nollywood’ is the third largest film industry in the world behind Hollywood and Bollywood
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what % of the GDP and export earnings does oil and gas account for in nigeria
oil and gas accounts for about 14% of the GDP and 95% of export earnings BUT they are heavily dependent on oil
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where in nigeria is most of the wealth found
in the south, near lagos
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where in nigeria can the greatest poverty be found
in the North and South-East
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trends in nigeria’s changing industrial structure and how has this helped to increase the pace of economic development
- % employed in agriculture (primary sector) has fallen (halved) - increasing use of farm machinery and better pay/conditions in other sectors of the economy - manufacturing/services add more value and are more profitable than agriculture so overall the economy makes more money - % employed in services has increased by 50% - industrialisation (secondary) has grown under a stable gov and growing economy - modernising economy has led to increase in communications, retail and finance - % employed in industry (including oil and manufacturing) has trebled this increased pace of economic development by: - improving standard of living - producing within Nigeria reduces the need and cost to import, therefore it is cheaper - creates formal jobs so the taxes help the countries wealth
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what is a ‘cash crop’
cash crops are agricultural crops that are planted for the purpose of selling on the marker or for export to make a profit
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what is meant by ‘secondary industries’
the secondary sector consists of processing, manufacturing, and construction companies the secondary sector produces goods from the natural products within the primary sector
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what is meant by ‘tertiary industries’
the tertiary sector is the part of a countries economy concerned with the provision of services
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who are the MINT countries
mexico indonesia nigeria turkey
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what do the MINT counties mean
countries that are fast growing and suitable for investment
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what is a ‘positive balance of trade’
of exports exceed imports then the country has a trade surplus and the trade balance is said to be positive
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what is a free trade zone
a geographic area when goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs and not subject to customs duty
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how did nigeria stimulate economic development through manufacturing
- political stability since 2011 has led to more foreign investment and there has been rapid growth in tertiary industries such as banking and retail - the nigerian gov has been keen to attract investment into manufacturing industries as processed goods sell for more money, helping the country to have a positive balance of trade - the Lekki Free Trade Zone is a major urban industrial area which has already attracted manufacturers of hair accessories, steel pipes, furniture and trucks -> it is hoped that over 100,000 jobs will be created - a multiplayer effect has been created with existing industries benefitting from new markets in the Free Trade Zone - the jobs and taxes provided by these industries are helping the country to develop
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how many jobs are hoped to be created by the Lekki Free Trade Zone
over 100,000
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neo-colonial definition
the control of less developed countries through indirect means such as economics and trade there are similarities to colonialism, however there is not directed rule from colonising countries
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what type of industry is Dangote Cement
secondary
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is Dangote Cement growing? How is it changing over time?
- rapid urbanisation has meant demand for cement is high - dangote cement is sub-saharan Africa’s leading cement company with a production capacity of 48.6 million tonnes per year across 10 countries - the largest cement producer in sub-saharan africa
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dangote cement is growing. what impact might this have on development
- increased the pace of economic development - increased formal jobs, pay and encouraged investment - increased expansion into other countries in africa increases nigeria’s influence in the region and its GNI
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dangote cement is growing, meaning development is increasing. what impact might this have on peoples’ quality of life
- improves quality of life via a secure, formal job, with regulated working conditions and better pay - this means more money to spend on healthcare, education and housing which all improve people’s quality of life - gov also has more tax to invest in improving both social and economic infrastructure
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what is the repetitive cycle on how manufacturing can stimulate the economy
a new manufacturer, such as Shell, start refining oil in Nigeria -> local firms provide Shell’s refinery with components or products -> local people earn more money from working in shell or the local firms -> local people spend more money in local businesses -> taxes to the gov from businesses and people goes up -> gov spends the money improving the infrastructure and attractions to bring in more manufacturing industries -> a new manufacturer, such as Shell, start refining oil in Nigeria -> cycle repeats
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impacts of Nigeria’s growth in manufacturing:
- regular paid work gives people a secure income to improve their own lives. Also the income for the gov from tax increases - many manufactured goods are available for people to buy - manufacturing a car needs many parts so other businesses benefit from making and supplying the parts - attracts foreign companies to establish and invest in nigeria, creating more jobs
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nigeria’s oil industry:
- crude oil provides 90% of the country’s export revenues - nigeria is first in africa and eighth in the world when it comes to oil export - oil production brings about a billion investments in the country’s economy as well as the development of related sectors of the economy and infrastructure - it supplies new jobs - 10% of the nigerian population work in the oil and gas sector resulting in improvements in social and living standards in general - oil was discovered in 1956 at Oloibiri in the Niger Delta following half a century of oil exploration in nigeria - oil companies in Nigeria Oil Fields in nigeria are explored by the enterprise NNPC (Nigerian National Petroleum Corporation), as well as oil TNCs -> thus, nigerian companies provide slightly more than 1/5 of the oil amount per day extracted by such companies as Shell, Mobil, Chevron, Agip, Elf, Texaco, and Ashland - primary investors in the economy of nigeria are the US, UK, Germany, and China - since the 1970s, china had been buying oil and gas from nigeria - in 2006, china allocated 1 billion dollars to nigeria for the development of railways, and the chinese company China Railway Construction won a tender for the construction of a significant area controlled by representatives - in the 2000s, Beijing, wishing to confront Western countries in the struggle for nigerian oil, invested more than $4 billion in the development of the oil industry in nigeria -> the money was spent on the exploration of oil fields, to improve the transport infrastructure, medicine, and weapons of the nigerian army - in 2005, PetroChina Corporation signed an agreement with nigerian representatives for the supply of more than 30,000 barrels of oil per day to china
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what do TNCs usually have
its headquarters in an HIC and production plants in NEE/LICs
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how many TNCs are there operating in nigeria
40
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what is an example of a TNC with its headquarters in the UK and the Netherlands, but chemical and soap manufacturing plants in Nigeria
Unilever
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what do Unilever do
manufacture soap using Nigerian grown Palm Oil -> all the palm oil comes from sustainable sources to protect the environment
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how many people do Unilever employ
1500 -> the company works with people from local cultural markets to make sure that standards of employment are high and workers are cared for
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what has Unilever promoted
improvements in healthcare, education and water supply as part of its social responsibility programme in nigeria
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what was Unilever voted
the second best company to work for in nigeria in 2014
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positives of oil production in nigeria by TNCs
- Shell is a massive TNC - Shell extract (primary industry) and refine the oil (secondary industry) and sell the finished products (tertiary industry) - Shell’s work in nigeria produces more than 21% of the country’s total petroleum production
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negatives of oil production in nigeria by TNCs
- their activities have polluted the environment in the past -> eg. Shell has had many incidents involving oil spills -> however they try to clean up after environmental damage - TNCs have been accused of human rights abuses in the past -> eg. Shell have been accused of crimes against the Ogoni people in the Niger Delta - employees in LICs work for long hours in poor working conditions (in factories known as ‘sweat shops’) - employees in LICs might be paid much less than employees in HICs for doing higher intensity jobs
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what do TNCs often have to help people in the country
charities -> eg. Shell has the Shell foundation to help sustainability and biodiversity and help local communities
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how much has Shell spent in LICs
$12 billion
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how much did Shell pay in corporation tax in 2013
£20 billion
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what is aid
- aid involves the provision of support for people - can take the form of emergency aid (eg. food, water, shelter) following a natural disaster - long term development aid, aimed to improve people’s quality of life (eg. health clinics, water supply, schools)
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why might Nigeria need aid
- trapped in a cycle of debt - may need debt relief - help managing threat from tourism - managing food supply - managing health .eg. infectious diseases such as malaria supply
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what is large scale aid
money given by a donor country to a recipient country to spend on big projects such as building a river development scheme of a new railway line
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what is short term/emergency aid
aid which lasts a short time in response to an emergency such as a natural disaster, eg. earthquake, volcanic eruption, famine, flood
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aid definition
the help given by the donor country to the recipient country. the help can be in the form of money (grants or loans), equipment, goods, people (eg. teachers and nurses), technology or expertise
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what is bilateral/conditional/tied aid
aid given by the donor to the recipient country but with conditions attached, eg. tying the recipient country into buying the exports of the donor country
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what is multilateral aid
money given by donor countries to organisations such as the World Bank or the United Nations who then distribute it into recipient countries
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what is longer term/development aid
aid given over many years to help a country develop politically, economically, socially, and environmentally
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what is small-scale aid
money given by a donor organisation such as a charity to a local community organisation to spend on small projects such as building a new well or installing solar panels
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what is a donor country
the country giving the aid to the recipient country
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what is a recipient country
the country recieving the aid from the donor country
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what are the different types of aid
- large scale aid - short term/emergency aid - bilateral/conditional/tied aid - multilateral aid - long term/development aid - small scale aid
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why does nigeria receive international aid
although the country is developing rapidly many people are still poor -> they have limited access to safe water, health and education services and a reliable electricity supply
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what % of the population of nigeria live on less than 63p per day
60%
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aid isn’t always used effectively in nigeria because…
- corruption in the gov and individuals means aid is lost or not given to the right people - there have been claims aid money has been used to supply the navy - donors of aid may have political influence over who does and does not benefit. they may use donations to promote themselves
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how does nigeria from aid
- Nets for Life project provides education on Malaria and give mosquito nets to households to prevent the spread of disease - World Bank funded loans to businesses to help diversify the economy away from being dependent on oil so that new businesses and industries are developed - the UK gov has funded health and HIV programme providing health and education in rural areas. This will help to protect people against infection in the future and help them to work and improve their own lives
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UN short term aid includes…
FOOD: the UN World Food Programme has supplied emergency food to over 400,000 people in northern Nigeria, who are facing starvation, as the farmers were unable to sow their crops due to the conflict
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UK bilateral long term aid:
gives £300 million in aid to Nigeria ever year. including.. - HEALTH: £100 million spent on: training more skilled health personnel to deliver babies in Northern Nigeria. 10 million malaria nets issued to reduce disease. Nigeria had one of the highest death rates from Malaria in the world - WATER AND SANITATION: £7 million spent on 5.5 million more people using safe water and proper toilets, reducing disease
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China bilateral tied aid includes…
- WEAPONS: supplied arms equipment to the Nigerian army. In return Nigeria has to import cheap Chinese goods but many are unhappy about the import of they low price often shoddily made goods as they have provided unfair competition to Nigerian businesses and also some electrical goods have caused fires - INFRASTRUCTURE: China provided Nigeria with an $11 billion tied loan to improve its railway networks. In return, Nigeria supplied PetroChina with 30000 barrels of oils a day
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‘top down’ or large scale aid:
- the world bank has provided $560 million to build a large scale irrigation and drainage chem in northern-east nigeria in the Upper Benue river basin - the Dadin Kowa Dam has been built across the Gongola River to form a reservoir which will provide irrigation water for farming - this large scale project will improve the lives of the people of the region by increasing food production, providing flood protection and by improving resources for agriculture, fishing and forestry
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‘bottom up’ or small scale aid:
- Oxfam GB is a member of Oxfam international, a Non-Governmental Organisation (NGO), involved in ‘bottom-up’ projects - Oxfam is working in Nigerias to help small scale farmers improve their productivity so that there is more food available for the growing population - they help prevent volatile changes in food prices which hit the poor particularly hard - they help female farmers become community leaders so that they are empowered and their voices are heard - Oxfam is working to improve the resilience of small scale farmers and pastoralists in times of national disasters, emergencies and climate change
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short term or emergency aid:
- in 2017, two UN agencies are working in north east Nigeria to help the people affected by the conflict between the nigerian government and a terrorist organisation, Boko Haram - the UN can provide emergency help in places where some individual donor countries might not be welcome - the UN World Food Programme has supplied emergency food to over 400,000 people in northern nigeria, who are facing starvation, as th farmers were unable to sow their crops due to the conflict - the rainy season made it hard for the supplies of food and medicine to reach the stricken people who are clustered near Maiduguri, the Borno state capital - the UN Refugee Agency (UNHCR) has been helping the people who fled to cameroon for safety, when the conflict broke out, but who are now returning home, only to find their homes destroyed - the UNHCR has been providing them with shelter and clean water
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political projects aim of long term or development aid
- improve financial management and reduce corruption - improve law and order and the justice system - rescue conflict through reconciliation - strengthen democracy by empowering women
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social projects aim of long term or development aid
- improve the health of women and children by making family planning and contraceptives more widely available - reduce maternity deaths from unsafe abortions - improve ante-natal and post-natal care - treat malnutrition - improve diets to prevent stunting in children - fight tropical diseases .eg. malaria - improve education by training teachers and improving private schools
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economic projects aim of long term or development aid
create jobs by helping people set up markets in the Niger Delta and by providing microfinance
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technological projects aim of long term or development aid
- improve the infrastructure by building more power stations - repairing and maintaining roads
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environmental projects aim of long term or development aid
help people adapt to climate change
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long term or development aid:
- in 2016, UK aid provided Nigeria with £305 million of aid to help the country achieve its Millennium Development Goals (MDGs) - nigeria has 1/4 of africa’s extreme poor, with about 100 million people living on less than £1 a day - life expectancy is low (53 years in 2016) as more than 100 women die every day from complications during pregnancy and childbirth and over 2000 children under 5 die every day from preventable diseases - literacy rates are low (60% in 2016) because many children do not attend school
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bilateral, conditional or tied aid:
- china has supplied arms, equipment, training and technology to the Nigerian armed forces. in return, Nigeria has permitted the exports of cheap chinese goods but many are unhappy about the import of these low price often shoddily made goods as they have provided unfair competition to nigerian businesses and also some electrical goods have caused fires - china has invested $4 billion in oil and infrastructure development projects in nigeria. in return, nigeria gave chinese oil firms contracts for oil exploration in the Niger delta and the Chad Basin - china provided nigeria with an $11 billion loan to improve its railway networks. in return, nigeria supplied PetroChina with 30,000 barrels of oil a day
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how many industrial plants does nigeria have
5000
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how many illegal small scale industries does nigeria have
10,000
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what environmental issues have the fast and unchecked growth of industry in nigeria led to
- pollution of nearby land and rivers as toxic waste is dumped or leaked - harmful pollutants go into open drains, putting people and ecosystems at risk - breathing and lung problems come from the huge number of fumes
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what challenges have risen from urban areas being developed rapidly in nigeria
- squatter settlements are common in most cities - services .eg. health, education, water have not kept in pace with growing cities - water disposal is a major issue as collection services are poor so it is dumped on the streets - traffic congestion creates high levels of pollution - 70-80% of forests have been destroyed through logging, agriculture and urban development
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how has mining for raw materials and precious metals led to pollution, damaging ecosystems and affecting peoples jobs
- tin mining has led to soil erosion and local water supples were polluted with toxic chemicals - oil spills have damaged freshwater and marine ecosystems leading to the loss of species and unhealthy ecosystems - oil spills can cause fires which release high amounts of CO2 causing acid rain
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cause and impacts of industrial growth
CAUSE: new factories are emerging .eg. Dangote Cement, which are linked to a growth in manufacturing IMPACT: industries release CO2 as fuel. In combustion, they release particulate matter into the air which can lead to poor air quality
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cause and impacts of urban growth
CAUSE: cities in NEEs grow rapidly due to rural urban migration and natural increase. Due to the pull factors of a range of jobs IMPACT: can lead to urban sprawl, growth of squatter settlements, provision of sanitation (facilities to deal with human waste) cannot keep up with demand
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cause and impacts of mineral extraction
CAUSE: minerals, such as coal, limestone, tin, gold, and lithium, are extracted as they are in high demand IMPACT: water supplies are often polluted and ecosystems ruined
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cause and impacts of oil industry
CAUSE: need to energy due to growing population and wealth gained from oil exports. there is also a global demand for oil IMPACT: can cause fires, which causes acid rain and releases large amounts of CO2 spills. spills can c also damaged ecosystems leading to loss of species
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economic challenges to the quality of life for the population in nigeria
- in 2021, nigeria was ranked 161st out of 189 countries - north of the country is significantly less developed than the south - many urban areas face challenges, such as lagos - many people are still on low income - some regions still experience limited access to services such as safe water, sanitation and reliable electricity
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what does absolute poverty refer to
a set standard which is the same in all countries and which does not change over time. usually people living on less than $2 a day
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what fraction of nigeria lives in poverty
almost 2/3
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economic improvements to the quality of life for the population in nigeria
- nigerias HDI improved from 0.467 in 1955 to 0.535 in 2021 -> this reflects improvements in wealth, health and education - life expectancy was 45.67 years in 1982, but had risen to 55.44 years by 2022
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to what extent has economic growth benefitted the quality of life of the nigerian population to a limited extent:
- the benefits of economic growth are very limited to certain areas of nigeria, including Lagos and the Niger Delta - many people in northern nigeria still live in absolute poverty - some parts of nigeria have over 80% of the population living in absolute poverty (less than $2 a day)
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to what extent has economic growth benefitted the quality of life of the nigerian population to some extent:
nigerias political and trading relationships, particularly with china, has received $12 billion aid and has helped to deal with issues such as malaria (christian aid - small scale)
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to what extent has economic growth benefitted the quality of life of the nigerian population to a great extent:
nigerias HDI has increased
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deindustrialisation definition
the decline of a country’s traditional manufacturing industry due to exhaustion of raw materials, loss of markets and competition from NEEs
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what is the commonwealth
- a voluntary association of 53 independent and equal sovereign states, which were mostly territories of the former british empire - it is come to 2.2 billion citizens - member states have no legal obligation to one another - instead, they are united by language, history, culture, and their shared values of democracy, human rights, and the rule of law
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what is the European Union
- an international organisation of 28 european countries formed to reduce trade barriers and increase cooperation among its members - 17 of these countries also share the same type of money: the euro - a person who is a citizen of the EU can live and work in any of the other 27 member countries without needing a work permit or visa
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globalisation definition
the process which has created a more connected world, with increases int he movements of goods (trade) and people (migration and tourism) worldwide
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what is Industrial Structure
the relative proportion of the workforce employed in different sectors of the economy (primary, secondary, tertiary and quaternary)
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what is the North-South divide
- economic and cultural differences between Southern England and Northern England - there are clear differences in health conditions, house prices, earnings, and political influence
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what are tertiary industries
the economic activities that provide various services - commercial (shops and banks), professional (solicitors and dentists), social (school and hospitals, entertainment )restaurants and cinemas), and personal (hairdressers and fitness trainers)
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trade definition
the buying and selling of goods and services between countries
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government policy definition
a plan or course of action decided by a government to manage issues in a country
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tertiary industry definition
involves the selling of services and skills
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quaternary industry definition
consists of those industries providing information such as computing, ICT and research and development
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secondary industry definition
those that take the raw materials produced by the primary sector and process them into manufactured goods and products
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primary industry definition
involves extracting raw materials from the natural environment .eg. mining and farming
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example of a pre-industrial country
bangladesh
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example of an industrial country
nigeria
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examples of a post-industrial country
UK
234
what are the main causes of deindustrialisation
- increasing cost of production (wages and environmental regulations) - globalisation - competition from low wage/regulation NEE countries - declining investment leading to less competitiveness - changing government policies (nationalisation to privatisation) - cycle of decline - eg. if the shipyards close then the iron plants follow - increased competitiveness of tertiary industries thanks to education and technology
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causes and impacts of deindustrialisation
it has occurred due to the loss of industries, like coal mining, steel making, tin making, as competition from abroad has made these industries uncompetitive this has led to long term unemployment in deindustrialised areas. Whole towns lost their sources of income as factories closed which in the longer term means areas like inland Cornwall or Sunderland may experience deprivation and struggle with de-multiplyer effect
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positive aspects of globalisation for the UK
economic growth - UK economy grows mainly due to more trade with the rest of the world high value production - UK specialises in high-value manufacturing and services. workers are better maid and UK earns more money migration - migrants come to the UK to fill jobs we have a shortage of skilled workers foreign investment - foreign companies invest in the UK, bringing new ideas, technology and jobs
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negative aspects of globalisation for the UK
outsourcing jobs - jobs that used to be done in the UK can now be done elsewhere. this means loss of jobs or lower wages for those still working in the UK less manufacturing - more imports of manufactured goods, means fewer goods are produced in the uk. factories close and jobs are lost cheaper goods and services - many items are cheaper because they are produced in places where people earn lower wages than the uk inequality - the gap between the low paid unskilled work and high paid skilled work is increasing. hard for low skilled workers to negotiate due to jobs being outsourced
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globalisation causes of UK economic change
- many industries like coal have shut down as firms chose to import this and other resources from abroad where both labour and land were cheaper - NEEs like china opened their countries to global business in the 1980s and many uk firms chose to move there - much cheaper crops can be imported from countries overseas where mass production bring costs down and labour and land are both cheaper than the uk
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government policy causes of UK economic change
- the uk gov in the 1970s and 1980s sold or turned many of its secondary and primary industries to companies in a process called privatisation. this cost many jobs in steel making and coal in particular - some primary industires have been affected by laws and treaties - fishing is limited by quotas imposed by the EU - the uk gov pumped nearly £5 billion into high tech research and development in 2015 - the UK and EU have very strict laws for environmental pollution for businesses; this makes it expensive to make products here
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deindustrialisation causes of economic change
- mechanisation (the use of machines) has taken place as businesses and farms began to replace many workers for machines as they are generally more reliable and cheaper to run - many factories in the uK have shut down and production has continued in LICs, which have less educated workforces, limited health and safety or no minimum wage laws. this makes costs cheaper - some resources such as iron ore and coal have declined in availability in the UK or become uneconomic to mine, so employment declined - many of the UKs secondary industries like arms manufacture and coal heavily polluted the environment - the average annual wage for a farmer in the UK is £9000 or less, making this an unlikely occupation for a highly educated skilled workforce
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post industrial economy definition
the economy of many economically developed countries where most employment is now in service industries
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what is the UKs economy now mostly based on
tertiary industry
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what industries does a post industrial economy involve the development of
information technology - these businesses use computers and other hardware to store, process and use data, often to help businesses and governments service industries - these are businesses that do work for a customer, and sometimes provides goods but is not involved in manufacturing finance - the financial services industry is a major part of the UK and especially London economy. they provide services to do with money, such as accountancy, money transfer, trading and credit research - these industries involve research and development, where ideas are transformed into workable products science and business parks - business parks are purpose built areas of offices and warehouses, often at the edge of a city and on a main road. science parks are often located near university sites, and high-tech industries are established. scientific research and commercial development may be carried out in co-operation with the uni
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what are the five main industries of a post industrial economy and what do they have in common
- information technology - service industries - finance - research - science and business parks 1) they are often footloose - they are not tied to heavy raw materials so can locate wherever they have a cost advantage 2) they often locate close to transport routes, such as motorways and railway stations, to offer maximum access for customers and employees 3) they are dependent upon human resources - they need people’s ideas and skills to make them work and innovate new products and ideas. they therefore require a highly educated workforce force 4) they are often more sustainable than heavy industry, with lower energy needs, low or zero air pollution emissions, landscaping to offer a nice environment and carbon neutral buildings 5) they often group together so that ideas can be exchanged - known as agglomeration
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what are growth areas
are of the country where the economy is growing, often along a major transport route linking two or more cities
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what characteristics must an area have to be considered a growth corridor
- good transport connections - a highly skilled workforce - quaternary industries with potential for growth - new businesses with the potential to grow larger
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M4 corridor:
- produces 8% of UK’s economic output - Microsoft, Sony, and Vodaphone are based here - connects London to Bristol
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EXAMPLE for the post industrial UK economy
Cambridge Science Park
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description of location of cambridge science park
- 80km north of London - close to london and stansted airports - actual park just off A14 from M11, Jn14 - close to M11 growth corridor
250
key characteristics of cambridge science park
- UK’s major hub for hi-tech industry - 1500 bio-technology companies - 7250 employees - international companies seeking access to the brightest graduates and entrepreneurs from Cambridge’s diverse talent pool - open green space - outside of cambridge with plenty of parking - north-east of cambridge, on the rural urban fringe - 80km north of London along the M11 - 40km from Stansted airport
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benefits to cambridge due to the science park
- excellent health facilities for local people including the Adenbrooke Hospital - investment into the local public transport sector - cambridge has a reputation as world leader in medical research - brings investment - indirect jobs created including transport and services on the site of the science park .eg. security, cafe, workers, etc.
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what is changing at cambridge science park
- huge focus on biomedical sciences -> £46 million investment in new Biomedical centre next to the science park -> opening up of heart and lung specialist hospital and research centre biomedical: - the park is currently home to 34 biomedical companies working on a wide range of products and technologies spanning disease prediction and prevention to diagnostics, treatment and patient monitoring - 12 companies are involved in the research and development of therapeutics - this includes small molecule drug discovery, biologics, immuno-therapies and genetics across multiple disease area
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disadvantages for cambridge due to the science park
- house prices are rising due to rising demand in the area - cambridge is increasingly congested with traffic and pedestrians - rail and road links can’t cope with the demand fast enough
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what examples of companies working at cambridge science park and what do they do
Abcam - ‘antibodies cambridge’ -> working on research into cancer, metabolism and providing antibodies -> sells 100,000 antibody products to over 140 countries
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why have companies clustered together in cambridge science park
- hi-tech companies tend to start in places where they have ample highly skilled workers .eg. cambridge - and place where they can offer employees high quality of life (space for ‘campus style’ offices) - share expertise of workers - share expensive equipment - some of the research will go through different stages so will need input from different companies
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primary industries:
- produce raw materials for industry - examples include mining, quarrying, farming, fishing and forestry, all of which produce raw materials that can be processed into a finished product - limestone is an important quarried rock in the UK because it is a versatile raw material with a wide variety of applications
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secondary industries:
- they are the manufacturing and assembly industries - they take raw materials and manufacture finished products from them - examples include steel manufacture, break making and food processing
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what are the negative environmental impacts of primary and secondary industries
- industrial processes often release chemicals into air (sulphur and nitrous oxides) which can cause health issues - factories, mines, and quarries often physical scare the landscape reducing its aesthetic appeal and destroying habitats - transporting raw materials and goods produces air pollution and noise pollution - industrial processes often consume a lot of energy, contributing to global climate change - waste often goes to landfill which releases toxins into the soil - industrial processes often release chemicals into local water systems which can harm ecosystems
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EXAMPLE of how modern industrial development can be more environmentally sustainable
Torr Quarry, Somerset
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what might be 4 environmental impacts of Limestone Quarrying in Torr Quarry (Somerset)
- destruction of habitats and ecosystem -> loss of biodiversity - CO2 emissions from heavy machinery and lorries - air pollution from dust - decline in water quality as chemicals are washed into river
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what is sustainability
development that meets the needs of the present without limiting the ability of future generations to meet their own needs
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positive of Torr Quarry
- employs over 100 people - quarry contributes over £15 million towards the local economy each year - has previously produced 8 million tonnes per annum, although output is currently around 5 million tonnes - construction materials - landscape will be restored
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negatives of Torr Quarry
- loss of biodiversity - noise pollution - water pollution
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sustainable practices at torr quarry
60 acres of the site have been landscaped to blend in with the surrounding environment, including planting grass and trees and creation of wildlife lakes for recreation -> sustainable because natural habitats that were lost to extraction will now be restored, to encourage biodiversity of the area and make the landscape more attractive to local people limestone is transported by rail, rather than road, via the Mendip Rail network -> sustainable because rail transportation ensures that excess road traffic and congestion on smaller, rural roads will be kept to a minimum, and become less of a problem to locals. rail transport is more sustainable as it releases less CO2 emissions than lorry transport. it also creates jobs and boosts investment in the local rail infrastructure strict environmental targets have been introduced. regular monitoring of noise, vibration, dust emissions and water quality is carried out -> sustainable because monitoring allows prevention of pollution into the surrounding landscape and ensures that quarrying companies are held accountable if they do not abide by strict environmental standards. it also reduces the chances of pollution affecting the local population. in 2010 a planning decision was made to deepen, rather than widen the quarry, for extraction -> sustainable because extraction can take place without spoiling the landscape further, as they would be digging downwards, rather than outwards. this protects the surrounding greenfield sites and habitats in the vicinity of the existing quarry
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rural definition
any area or village with a population of less than 10,000 people
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possible rural challenges
- less transport routes - less job opportunities and low paid work - isolation - lack of local services
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possible rural opportunities
- less pollution - quieter and less busy -> favoured by retired people - farming - nicer scenery - tourism
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example of a rural area seeing population growth
South Cambridgeshire
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why is South Cambridgeshire seeing population growth
- people are moving out of cambridge and london to enjoy a different place of life in the countryside - more migrants are now arriving from eastern europe
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are the impacts of population growth in South Cambridgeshire more positive or negative and why
negative - commuters continue to use services in the places they work (eg. Cambridge) - 80% car ownership is leading to increased traffic on narrow country roads - lack of affordable housing - highest petrol prices due to high demand - increased number of migrants from poorer parts of europe puts high pressure on services and increases overall costs
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example of a rural area seeing population decline
The Outer Hebrides
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why is The Outer Hebrides seeing population decline
due to outward migration - with limited opportunities, younger people move away in search of better paid employment
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are the impacts of population decline in The Outer Hebrides more positive or negative and why
negative - number of school children is expected to fall -> will result in school closures - fewer people of working age live there -increasingly aging population with fewer young people means there may be care issues in the future
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South Cambridgeshire stats:
- population of 150,000 is increasing due to migration - in 2013, registrations for National Insurance numbers form migrant workers in South Cambridgeshire soared by 25% compared to 2012 - the proportion of people aged 65 and over is growing - by 2031 this will reach nearly 29% of the population - the population of South Cambridgeshire is estimated to reach 182,000 by 2031
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The Outer Hebrides stats:
- has a population of 27,400 - most people live on the island of Lewis, one of the chain on 65 islands - there has been an overall decline of more than 50% since 1901 when 46,000 people
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economic impacts of a declining population (The Outer Hebrides)
FARMING: - the main farming economy is breeding sheep on small farms called crofts - most crofts can only provide work for up to two days per week FISHING: - in 1948 there were more than 900 fishing boats registered in the Outer Hebrides. By 2013, there were just a few boats catching prawns and lobsters - shellfish production has increased but foreign-owned ships dominate deep-sea fishing - the development of fish farming has been limited due to concerns about the environment TOURISM: - between 2007 and 2014 there was a 27% increase in visitors to the island - the current infrastructure is unable to support the scale of tourism needed to provide an alternate source of income
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road improvements:
in 2014 the gov announced a £15 billion road investment scheme: - 100 new road schemes - 1300 new lane miles added to motorways and major roads - extra lanes on motorways - develop smart motorways to keep traffic moving
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railway improvements:
investment in railways is vital to improve links between UK regions as well as the rest of europe. such investment includes: - electrification of Trans-Pennine Expressway by 2020 - electrification of Midland mainline between London and Sheffield by 2023 - HS2 (High Speed 2) - Connecting London - Sheffield - Leeds - Manchester and then on to Scotland worth £50 billion between 2017 and 2033. A controversial plan due to loss of countryside and nearness to homes crossrail is a very important and exciting project for rail users in and around london and the south east. its also the biggest civil construction project in europe today. the crossrail project is building the elizabeth line to link reading and heathrow in the west with sheffield and abbey wood in the east, via new 21km tunnels under central london. this will increase london’s rail capacity, cut passenger journey times across the city, encourage regeneration and generate significant employment opportunities
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developing UK sea ports:
about 32 million passengers pass through UK ports annually and employs 120,000 people - the UK port industry is the largest in europe, due to the long coastline and trading history - some ports specialise in passenger ferries, others in cargo transporters - most are all-purpose with a range of goods and services - Dover is the UKs main port for freight (lorries, cars, etc.) - Felixstowe is the largest container port investment includes: LIVERPOOL 2 - a new container terminal £300 million it will double the ports capacity and will create thousands of jobs, boost the North-West economy and reduce road freight
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air travel development:
- airports are vital to the economy of the modern UK - airports employ over 300,000 people - over 2 million tonnes of freight pass though the UK’s airports each year - more than 750,000 international flights depart from the UK annually to 400 airports in 114 countries around the world expanding london’s airports: - in 2012, a government body looked at 3 options to increase air travel at heathrow and gatwick, but in 2015 a third runway at heathrow was recommended - this could yet change due to objections - heathrow is one of the worlds major airports, handling over 73 million passengers and employing 76,000 people - soundproofing homes and schools as well as no night-time flights were recommended
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what is the north-south divide
the social, economic and cultural disparities between london and the south-east and the rest of the UK -> differences in house prices, job creation rates, life expectancy, income
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why is there a north-south divide in the uk
- during the industrial revolution, the UK’s growth was centred on coalfields in northern england and scotland - heavy industries and engineering thrived in cities such as Liverpool, Manchester, Sheffield and Glasgow - since the 1970s many industries have declined due to loss of resources or competition abroad and as a result, unemployment has risen in these areas - london and the south east prospered with a rapidly growing tertiary sector leading to faster growth than the rest of the UK
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what strategies have been used in an attempt to solve regional differences in the UK
- gov incentive packages (reduced taxes, site development, etc.) have been used to attract TNCs to locate manufacturing plants, such as Mitsubishi near Edinburgh (1975) and Nissan and Washington, Tyne and Wear (1984) - planned transport improvements, such as HS2, rail electrification and port developments - in 2015, the UK gov launched the ‘Northern Powerhouse’ concept, encouraging industrial and infrastructural developments in northern england - cities, such as Leeds, Sheffield and Manchester. the aim is to spread economic growth more evenly across the UK - enterprise zones - gov incentives (such as discounted rates, provision of superfast broadband and simplified planning regulations) encourage new businesses to set up in deprived areas. 24 enterprise zones have been designated since 2011 - Local Enterprise Partnerships (LEPs) - these are voluntary partnerships between local authorities and businesses aimed at encouraging investment and boosting the local economy. for example, the Lancashire LEP is focusing development on the aerospace and technical engineering sector and aims to create 50,000 high-skilled jobs by 2023
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what is the aim of the Northern Powerhouse
- boosting the local economy by investing in skills, innovation, transport and culture, as well as devolving significant powers and budgets to directly elected mayors to ensure decisions in the north are made by the north - gives northern cities power and resources they need to reach their potential - aim is to rival and compete with London
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what is the proposal of the Northern Powerhouse based around
- based around linking the regional ‘core’ cities of Liverpool, Leeds, Manchester, Sheffield, Hull and Newcastle - other regional centres would be integrated, such as Cumbria, Lancashire, Cheshire, North Yorkshire and the Tees Valley - linking these urban areas would help industries perform better and help to even out the UK’s economy to match that of London and the south east
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what are the main practical areas of the Northern Powerhouse proposal
- improve transport links between the places, such as motorway developments and railway improvements such as HS2 - invest in science and innovation as is happening in Newcastle Science Central - devolve the powers of government. here, many of the decisions currently made in London’s parliament would be passed onto those northern cities. this would give northern cities more control on what happens and could help developments be more appropriate to those places. cities would get their own deals and elected mayors
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what does the Northern Powerhouse involve
giving more power to local authorities to make spending decisions so that they can invest money directly where it is needed locally
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what else has happened to benefit northern cities
- the election of the Mayor for Greater Manchester, who has been given £1 billion of devolved funds to spend on improving the city and attracting new businesses - this will mean fewer decisions about the city are made in London and more decisions are made by the people of Manchester
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how effective would the Northern Powerhouse be
can boost within pockets of areas, but is difficult to expand
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the UK used to be one of the world’s most powerful political and trading nations:
- at its peak, the British Empire converted about 1/3 of the world’s land area, with colonies in Africa, the Asian Pacific and the Americas - in the 20th century, many former colonial countries gathered independence and the UK became a member of the commonwealth - today, the UK continues to have political, economic and cultural influence within organisations such as G8, NATO, and the UN Security Council. it remains one of the worlds major economies and is a global transport and financial centres - the UK is also highly regarded for its fairness and tolerance, its highly developed legal system, its strong democratic principles and its rich cultural heritage
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UK’s links with the world. trade:
- UK trades with many countries by sea, air, road and rail - UK’s main trading partners are the EU (particularly Germany, France and the Netherlands), USA, China -> Germany is the main source for imports and the USA is the main source for exports - the internet is increasingly important in the financial and creative sectors - post-Brexit, the UK is predicted to develop stronger links with countries outside the EU; eg. India, China, and the USA
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UK’s links with the world. culture:
- cultural links include art, fashion, music, television and film - TV is one of the UK’s major creative industries, worth over £1.25 billion a year - fashion, music and films are important exports, especially to the english-speaking world - migrants to the UK have introduced their own cultural characteristics (foods, fashion, films, and festivals)
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UK’s links with the world. electric communications:
- the internet is an increasingly important aspect of global communications - by 2014, 40% of the world’s population had access to the internet (90% in the UK) - the UK is an important hub for the global network of submarine cables linking europe with the USA - submarine cables are responsible for transmitting 99% of all internet traffic - the ‘arctic fibre’ project - due for completion in 2026 - involves 15,000 km of cables linking London and Tokyo
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UK’s links with the world. transport:
- ferries and cruise ships transport people to europe and the rest of the world from ports such as Southampton and Dover - there are links to mainland europe via the channel tunnel, with fast railway services via the Eurostar and HS1 - the UK’s long trading heritage has resulted in the development of major ports and airports, like LHR and LGW
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when did the UK leave the EU
31st January 2020
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UK and the EU:
- goods, services, capital and labour can move freely through countries - European funds, such as the European Structural Fund, support regional development in the UK - hundreds of thousands of people from the poorer countries of Eastern Europe came to the UK in search of higher wages. Many work in factories and in agriculture, willing to work long hours for relatively low wages - the Single Payment Scheme supports farmers, and benefits wildlife and the environment. in 2015, £18 million was used to support dairy farmers in england and wales
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UK and the Commonwealth:
- important cultural and sporting links between Commonwealth countries - heads of each country meet every 2 years to discuss issues of concern and work together - many people of British descent now live in Commonwealth countries