changing economic world (overview and Nigeria) - NOT FINISHED Flashcards
(201 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)
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)
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
4
Q
industrial structure definition
A
the relative proportion of the workforce employed in different sectors of the economy (primary, secondary, tertiary and quaternary)
5
Q
development definition
A
the progress of a country in terms of economic growth, the use of technology and human welfare
6
Q
development gap definition
A
the difference in standards of living and wellbeing between the worlds richest and poorest countries (HIC versus LIC)
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
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
9
Q
quality of life definition
A
refers to the wide range of human needs that should be met alongside income growth
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)
11
Q
what groups do we classify countries into based on their level of development
A
LIC
NEE
HIC
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
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
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
15
Q
example of NEEs
A
Brazil, India, China
16
Q
examples of HICs
A
NW Europe, USA, Japan, Australia, New Zealand
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
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
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
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
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
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
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
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)
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
52
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
118
industrial structure definition
the relative proportion of the workforce employed in different sectors of the economy (primary, secondary, tertiary and quaternary)
119
newly energy economy (NEE) definition
a country whose economy is growing rapidly because of the economic developments and reforms they are putting into place
120
balanced economy definition
where economic growth is sustainable and the economy is growing across different sectors
121
what are sectors of the economy
the grouping of the different type of jobs into sectors - primary, secondary, tertiary, quaternary
122
economic development definition
the process by which a nation improves the economic well-being of its people as measured by GDP
123
what is a Transnational Corporation (TNC)
a large company that operates in several countries
124
industrial development definition
the start of new industries or forms of employment in new places or the redevelopment of an old industrial location
125
manufacturing industry definition
industry and trade based on the making, processing or preparation of products from raw materials
126
how has nigeria’s life expectancy grown from the 1800s to 2021
improved from around 30 years in 1800 to 65.1 in 2021
127
how has income increased in nigeria from the 1800s to 2021
income increased from roughly $900 to $4970
128
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
