Changing economic world - Overview and Nigeria Flashcards
(123 cards)
1
Q
What does GDP stand for
A
Gross domestic production
2
Q
Migration definition
A
The movement of people from one permanent home to another, with the intention of staying at least a year
May be national or international
3
Q
What is GDP
A
The total value (amount) of goods and services produced by a county in one year (per capita - divided by total population)
4
Q
What does TNC stand for
A
Transnational corporations
5
Q
Development definition
A
The progress of a county in terms of economic growth, the use of technology and human welfare
6
Q
What is the development gap
A
The difference in standards of living and wellbeing between the worlds richest and poorest countries (HIC versus LIC)
7
Q
What does GNI stand for
A
Gross national income
8
Q
What is GNI
A
Measurement of economic activity that is calculated by dividing the gross nation income by size of population
GNI takes into account income earned from overseas as well as value of goods and services
9
Q
GDP VS GNI
A
GDP is the value of a counties output from within the boarders of a county, not including national interests from abroad (like GNI)
10
Q
Group of developing countries
(BRICs and MINTs)
A
Brazil
Russia
India
China
Mexico
Indonesia
Nigeria
Turkey
11
Q
How do you measure development
A
HDI (human development index)
GNI
Birth rate
Death rate
Infant mortality rate
Life expectancy
Literacy rates
Access to water
People per doctor
Quality of life
12
Q
What does HDI include
A
Composite measure that uses data on income, life expectancy and education
- this shows how people benefit from economic growth
13
Q
Limitations of HDI
A
It is a general measure based on average calculations - doesn’t account for massive disparities (differences) that may exist within a country
Only takes into account 3 indicators
14
Q
Birth rate
A
Number of births per year per 1000 people
15
Q
Death rate
A
Number of deaths per year per 1000 people
16
Q
Access to clean water
A
The percentage of the population that have access to drinking water that is unpolluted, disease free and safe to drink
17
Q
Life expectancy
A
The average age that a person is expected to live to
18
Q
People per doctor
A
The average number of patients that each available doctor is responsible for
19
Q
Literacy rates
A
The percentage of people that can read or write over the age of 15
20
Q
Infant mortality rate
A
The number of children who die before the age of 1 per 1000 live births
21
Q
How would you expect death rate to change as a county gets more developed
A
Decrease
There is a better access to healthcare e.g. vaccines
Access to safe water, good quality food and education (all decrease death rate)
22
Q
How would you expect birth rate to change as a county gets more developed
A
Decrease
Better education and more women have career opportunities and marry later in life
Can also afford contraception
Infant mortality decreases, therefore women have less children as they don’t worry about survival
23
Q
How would you expect total population size to change as a county gets more developed
A
Initially increase then decrease
Death rate drops quickly due to improved health care and infrastructure, however BR takes longer to decline due to values and attitudes - high natural increase
Eventually BR decreased so population growth slows
24
Q
How would you expect life expectancy to change as a county gets more developed
A
Increase due to better healthcare, education, access to resources (clean water, food etc)
25
What is the demographic transition model
5 stages
1. Initially, BR and DR high, pop low
2. BR stays high, DR drops (natural increase in pop
3. BR starts to fall DR stays low, pop stay high
4. pop high, BR and DR lower
5. pop start to very slowly decline (remaining high), BR and DR low
26
economically active
people working and paying tax
27
economically dependent
people not working
28
Stage 1 demographic transition model
BR high - children required for manufacturing, lack of contraception, high infant mortality rates therefore high replacement rates
DR high - disease, famine, poor medical knowledge
Low population
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Stage 2 demographic transition model
High BR - children required for manufacturing, lack of contraception, high infant mortality rates therefore high replacement rates
Rapid decrease in DR - Improvements in medical care, better water supply, sewage, sanitation, improved food supply and education
Very rapid natural increase
30
Stage 3 demographic transition model
BR falling - falling infant mortality, laws against child work, improved medical care
DR slowly falls - Improvements in medical care, better water supply, sewage, sanitation, improved food supply and education
Natural increase increases at a slower rate
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Stage 4 demographic transition model
BR low - education to women, materialism (wealth over large families), later child birth, later and fewer marriages, family planning options
DR low - medical advances, better food supply
Stable/slow increase of natural increase
32
Stage 5 demographic transition model
BR very low - education to women, materialism (wealth over large families), later child birth, later and fewer marriages, family planning options
DR low - medical advances, better food supply
Natural decrease (very gradual)
33
Three categories of causes of uneven development
historical
physical
economic
34
historical causes of uneven development
Many LICs were colonised by powerful trading nations such as UK, France, Spain, Portugal
Much of Africa, South America and Asia were exploited for their raw materials and 10 million people were exported from Africa to North America as slaves
35
Causes of colonialism
Europe wanted to build global influence
Europe wanted to compete against rival states to access raw materials and labour
The discovery of the new sea route meant different countries could now be colonised
36
Effects of colonialism
Europeans brought a lot of new technology to African countries to help with building etc
Power struggles in newly independent countries
Cultures effected + slave trade
Ethnic groups affected - conflict
37
Example of how colonialism has caused uneven development
Haiti and the Dominican Republic:
- Split by France and Spain
- Dominican Republic was much more developed (89/189 HDI ranking)
- Haiti less developed (169/189 HDI ranking)
- France exploited Haiti, overused the land, destroyed soil, overworked slaves (more work increased development)
- Spain did not bring as many slaves or exploit the land - cultural diversity
- France demanded money - lack of development
38
physical causes of uneven development
- Landlocked - countries cut-off from seaborne trade - slower development - less GNI
- Climate related diseases and pests - cause famine and ill health - cannot work
- Extreme weather - slow development and costly repairs
- Limited access to clean water - people ill and less able to work
39
economic causes of uneven development
Poverty/trade
LICs depend very heavily on primary goods, therefore they are very volatile depending on supply - low value and earn little money
LICs rely mostly on single exports
Trade can cause uneven development. HICs earn significantly more money through trade as they have higher value goods - can develop faster
40
Three consequences of uneven development
Health - cause death
Wealth - many LICs become dependent on HICs for money
Global migration - people move to improve quality of life
41
What is the development gap
Refers to the widening difference in levels of development between the worlds richest and poorest countries.
There are many different measures to access this, including HDI, GNI, life expectancy etc
42
What is sustainable economic growth
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
43
list the strategies to reduce the development gap (7)
Investment by TNCs
Industrial development
Aid
Intermediate technology
Fairtrade
Debt relief
Microfinance loads
44
Reducing the development gap - Investment by TNCs
TNC is a multinational cooperation that owns or controls production of goods or services in at least one country other than its home country
EVALUATION:
- Economic growth - creates jobs
- New technologies improves productivity
- However, often poor working conditions, low wages and resources overused - inequality
E.g. Royal Dutch Shell employs more than 4500 people in Nigeria - 95% of whom are Nigerian
45
Reducing the development gap - Industrial development
Enables LICs/NEEs to invest in their primary industries and increase manufacturing
This increases productivity generating more wealth
EVALUATION:
- Short term - facilities can earn slightly more
- Long term - LICs learn to develop skills obtained from basic tools to increase earnings which increases export of secondary goods - escape poverty cycle
E.g. In Mozambique, just 6 yrs industrial growth reduced proportion of people living in poverty by 15%
46
Reducing the development gap - Aid
International aid is a gift of money, goods or services to a developing country that does not have to be repaid
EVALUATION:
- Short term - often given in response to natural disasters
- Long term - financial assistance offered to support development projects (improving education etc)
E.g. UK government spends 0.7% of its national income on overseas development projects, including those in Sierra Leone and Syria
47
Reducing the development gap - Intermediate technology
Simple an practical tools, basic machines and engineering systems - straightforward for local people to use - less manual labour
EVALUTAION:
- families can cook without energy so can spend money elsewhere to increase development
- can be expensive to add in poorer areas, but long term beneficial once technology has been installed
E.g. Solar box cookers in rural parts of India and Kenya produce clean and sustainable energy for domestic cooking
48
Reducing the development gap - Fairtrade
Farmers or factories involved receive a fair percentage of final retail price in supermarkets
Farmers in LICs can earn more money - escape poverty
EVALUATION:
- Long term - provides farmers with economic stability, reducing vulnerability to market fluctuations
- Short term - farmers paid minimum wages for their goods - stuck in poverty
E.g. Fairtrade in Columbia has increased household income for banana farmers by 34%
49
Reducing the development gap - Debt relief
Between 1960-1980 some HICs loaned many LICs huge amounts of money
EVALUATION:
- Helps countries spend money on closing development gap instead of paying back debt - improved sustainability
E.g. One way debts have been reduced is by conversation swaps - Indonesia agreed to protect Sumatran forests in exchange for writing off $30 million borrowed from the US
50
Reducing the development gap - Microfinance loans
This is a small loan designed to give people a chance to escape the cycle of poverty
Poor subsistence farmers in LICs can be offered these from the bank
They provide a crucial starting point for families to start development at a local scale
EVALUATION:
- Beneficial - borrowers can improve their lives with the loaned money -
- However needs more strategies to entirely solve poverty
E.g. Buying fertiliser to increase crop production - overtime profits will increase so loans can be paid off
51
Least and most effective strategy in reducing the development gap
Least: Aid
- only good for short term relief (emergencies)
- countries can become dependent on it
Most: Industrial development:
- long lasting
- generates economic growth
- improves standard of living and infrastructure
52
Case study for how tourism reduces the development gap
Tunisia - NEE
53
Tunisia facts and figures
- population - 12 million
- NEE
- Capital city is Tunis
- GDP = £3,872
- coastal (to Mediterranean sea)
- in 2017, travel and tourism directly supported 225,000 jobs
54
Reasons for the growth of Tunisia's tourism industry (5)
Climate
Links with Europe
History and culture
Rise of cheap package holidays
Physical landscape
55
Reasons for the growth of Tunisia's tourism industry - Climate
Northerly coast has a Mediterranean climate - hot summers and mild winters
40 degrees high temperatures in summer attract sun seekers from the UK
56
Reasons for the growth of Tunisia's tourism industry - Links with Europe
Tunisia is not too far from Sicily and easily accessible by low-cost airlines to mainland Europe
Tunisia is an ex-colony of France meaning many inhabitants speak French which is appealing to many tourists
57
Reasons for the growth of Tunisia's tourism industry - History and culture
Tunisia hosts seven UNESCO World Heritage Sites, including the ancient remains of Carthage and the Roman El-Jem amphitheatre
Films like Star Wars have been filmed on location here, attracting fans
58
Reasons for the growth of Tunisia's tourism industry - Rise of cheap package holidays
The Tunisian government worked in conjunction with tourist operators like TUI to develop the country into a tourist destination with hotels, transport infrastructure and recreation
59
Reasons for the growth of Tunisia's tourism industry - Physical landscape
Tunisia's landscape is varied and diverse - beaches, Dorsal Mountains and the Sahara desert, providing a range of activities for different types of tourists
60
Positive impacts of tourism in Tunisia
- Now one of the wealthiest countries in Africa - longer life expectancy and literacy rates
- Job creation - can afford education
- Equality - girls have access to education
61
Negative impacts of tourism in Tunisia
- Disproportionate growth - impairment of agricultural production
- Females have a disadvantage
- Growth can lead to overpopulation
- Building damages the environment - problems of sewage
- Tourism kills tourism - litter/crowds
- Competition for water
- Economic growth is focused along beaches but central and south areas have not seen as much investment
62
Sustainability of tourism in Tunisia
terrorist attacks in 2015 - FCO advise against all but essential travel to the rest of Tunisia
63
Multiplier effect of tourism in Tunisia
1. More tourists arrive
2. A growth in the number of jobs in the tourism industry
3. Local people earn more money from working in the tourist industry
4. Local people spend more money in local businesses
5. Taxes to the government from businesses and people goes up
6. Government spends the money on improving the infrastructure and attractions to bring in more tourists
64
Industrial structure definition
The relative proportion of the workforce employed in different sectors of the economy (primary, secondary, tertiary, quaternary)
65
NEE definition
A country whose economy is growing rapidly due to economic developments and reforms they are putting into place
66
Balanced economy definition
Where economic growth is sustainable and the economy is growing across different sectors
67
Economic development definition
The process by which a nation improves the economic well-being of its people as measured by GNI
68
Case study
Nigeria
69
How has Nigeria's development indicators changed over time
Life expectancy and income have both increased
70
Describe Nigeria's location
West Africa
South coast on the Gulf of Guinea
Shares boarders with Benin, Niger, Chad and Cameroon
71
Nigeria's global importance
- By 2050, Nigeria's economy will be in the top 20 largest economies in the world
- 2.7% of the world's oil is supplied by Nigeria
72
Nigeria's regional importance
- Has the highest agricultural output in Africa
- The Nigerian film industry, Nollywood, is second largest in the world (after Bollywood in India and ahead of Hollywood)
- Largest economy in west Africa
73
Population type of Nigeria
youthful population
74
Positives of a youthful population
- Economically active - increases GDP (more tax)
- Less government expenditure on healthcare
- Attractive to TNCs
- Healthy and contribute to economy
75
Negatives of a youthful population
- More competition for jobs
- Workforce need more training as they are less experienced
- Pressure on schooling system to provide enough resources
76
Political factor that impacts Nigeria's economic development
A 2 and a half year civil war that was triggered by the declaration of an independent state of Biafra in 1967:
- caused mass migration - less people in Nigeria - significantly less workers - less money
- 100,000 military casualties - strain on healthcare - hinders development
77
Fastest growing industries in Nigeria
Telecommunications
Retail and Wholesale
Film Industry (Nollywood)
Oil and gas account for about 14% GDP and 95% export earnings BUT they are heavily dependent on oil - vulnerable to fluctuations
78
How have changes to Nigeria's industrial sector increased the pace of development
improved standard of living
Improved production - less reliance on imports - cheaper
Creates formal jobs - taxes help maintain wealth
79
What are cash crops
crops grown purely to sell and make profit from
80
What is a positive balance of trade
if exports exceed imports then the country has a trade surplus and the trade balance is said to be positive
81
What is a trade free zone
A geographic area where goods may be imported, stored, handled, manufactured or reconfigured and reexported under specific customs and not subject to customs duty
82
primary sector
extracting natural resources (e.g. agriculture, mining, fishing)`
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secondary sector
processing and manufacturing of raw materials into products
84
tertiary sector
provision of services (e.g. banking)
85
quaternary sector
knowledge and information services
technology
86
Dangote cement
Secondary sector job:
- Rapid urbanisation = high demand for cement
- Dangote Cement is the leading cement company in Africa
- Production capacity of 48.6 million tonnes per year across 10 countries
- Provides job opportunities - people pay tax - increase GDP
- Exports to other countries increases profit
- Other linked industries will also grow
- Increased foreign investment
- Improve quality of life
87
How does manufacturing stimulate the economy process
1. A new manufacturer, such as Shell, start refining oil in Nigeria
2. Local firms provide Shell's refinery with components or products
3. Local people earn more money from working in Shell or the local firms
4. Local people spend more money in local businesses
5. Taxes to the government from businesses and people goes up
6. Government spends the money improving infrastructure and attractions to bring in more manufacturing industries
88
Positive economic impacts of a named TNC in Nigeria
- increased wealth and rapid recent boost in GDP per head
- provide jobs with better wages than local work
- new expertise brought into a country
- stimulates development through multiplier effect
- invest money and encourage development (e.g. shell has spent $12 billion in LICs)
89
Negative economic impacts of a named TNC in Nigeria
- leakage of profits - most profit goes back to HQ in HICs, profits not reinvested in LICs
- TNCs can withdraw investment with no warning and control refining capacity
- Nigeria still has to import expensive refined petroleum because doesn't have enough refining capacity - oil refinaries are expensive to build and operate - TNCs unwilling to invest in Nigeria due to instability and corruption
- oil theft
90
Positive social impacts of a named TNC in Nigeria
- TNCs have charities that help people - e.g. Shell foundation helps sustainability and biodiversity in local communities
- Oil refinaries use a lot of local companies to help them run, creating a multiplier effect
91
Negative social impacts of a named TNC in Nigeria
- Human rights abuses - shell has been accused of crimes against ogoni people
- Poor working conditions - long hours, poor pay and conditions, sweat shops
- TNCs have power over government
92
Positive environmental impacts of a named TNC in Nigeria
- try to clean up environmental damage
- all palm oil comes from sustainable sources
93
Negative environmental impacts of a named TNC in Nigeria
- TNCs pollute the environment and don't clean it up
- oil spills have caused water pollution and damaged the land, reducing agricultural and fishing yields
- toxic fumes polluting the air
94
Nigeria's changing relationships with the wider world
- Nigeria has historically had the strongest links with the UK because Nigeria was originally part of the British empire
- Nigeria plays a large role in the African Union, which is for economic planning
- Nigeria provides soldiers to the UN community
- Nigeria's relationship with China is growing - e.g. they lent them $12bn to construct a new railway
95
Four reasons why Nigeria might need aid
Debt
Starvation
Disease
Conflict
96
Donor country definition
The country giving the aid to the recipient country
97
Recipient country definition
The country receiving aid from the donor country
98
Why is aid not always used effectively in Nigeria
- corruption in the government and individuals means that aid is lost or not given to the right people
- there have been claims aid money has been used to support the Navy
- donors of aid may have political influence over who does and does not benefit - they may use donations to promote themselves
99
Types of aid
Top down/large scale
Bottom up/small scale
Short term/emergency
Long term/development
Bilateral/conditional/tied
100
What is top down/large scale aid
Money given by a donor country to recipient to spend on big projects
101
Positives/negatives of top down/large scale aid
+ large scale projects can improve national infrastructure - positively benefit some people
+ can help develop infrastructure over time
- projects often less sustainable and consume large amounts of money over time - resources and land used
- often part of tied aid where the recipient has to either pay it back or allow richer countries to access their resources
102
Example of top down/large scale aid
The world bank provided $560 million to build a large scale irrigation and drainage scheme in north-east Nigeria in the Upper Benue river basin
103
What is bottom up/small scale aid
Money given by a donor organisation, such as a charity, to a local community organisation to spend on small projects
104
Positives/negatives of bottom up/small scale aid
+ schemes cheaper
+ more appropriate technology used
+ targets some of the poorest areas of a community and meets the needs of local people
+ planned and controlled by local communities
+ funded by governments of more developed countries
- doesn't support the country in the long-term - any financial damages not supported
- tax payers in donor country have their taxes lost to the recipient country
- donor country will have their resources quickly depleted
105
Example of bottom up/small scale aid
Oxfam is working in Nigeria to help small-scale farmers improve their productivity so that there is more food available for the growing population
106
What is short term/emergency aid
Aid which lasts a short time, often in response to an emergency, such as a natural disaster
107
Positives/negatives of short term/emergency aid
+ offers immediate relief to those who have suffered from disaster/conflict
- after short aid is retracted, it leaves people vulnerable and having to provide for themselves
- can cost organisations lots of money in a short period of time
108
Example of short term/emergency aid
In 2017, 2 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
They have supplied emergency food to 400,000 people
109
What is long term/development aid
Aid given over many years to help a country develop politically, socially, economically and environmentally
110
Positives/negatives of long term/development aid
+ political: improves management and reduces corruption
+ social: improves diets to prevent starvation, schools and hospitals improve
+ environmental: can improve long term farming methods including better land management practices
+ economic: creates jobs by helping people set up markets
- political: costs tax payer - often those people wonder why their money goes to foreign countries
- social: local people can lose their land to large projects, such as dams
- senior posts created by the aid are often given to foreigners as locals don't have necessary skills
- funding for big projects is often just the construction, not maintenance costs for recipient country
111
Example of long term/development aid
In 2016, UK aid provided Nigeria with £305 million to help the country achieve its Millennium Development Goals
112
What is bilateral/conditional/tied aid
Aid given to a recipient country, but with conditions attached
113
Positives/negatives of bilateral/conditional/tied aid
+ provides immediate relief during a crisis - saves lives/buildings
+ support development of local governance
+ cultural ties between nations
- can become dependent on aid
- disputes and political issues
114
Example of bilateral/conditional/tied aid
China has supported arms, equipment, training and technology to the Nigerian armed forces. In return, Nigeria has permitted imports of cheap Chinese goods, but many are unhappy about the import of these low priced foods as they provide unfair competition to local Nigerian businesses
115
Most beneficial type of aid for Nigeria
Long term/development aid
Faster economic growth and improves social systems
Education, healthcare and infrastructure
116
Least beneficial type of aid for Nigeria
Short term/emergency aid
Only good in times of a crisis
Benefits are temporary and doesn't contribute much to development
117
Socio-economic benefits of economic growth
Creates job opportunities - better education - improve quality of life and better work force
Better infrastructure - improve standard of living and security
Better healthcare - lower death rate
Higher incomes - reduced poverty
Increased life expectancy
Improved government finances (taxes and TNC)
118
Negative implications of economic growth in Nigeria
Pollution - more oil, fuel, transport and infrastructure
Oil spills - fires
Deforestation
Environmental degradation
Concentrated areas of growth
Exploitation of workers
119
List of environmental impacts of economic growth (4)
Industrial growth
Urban growth
Mineral extraction
Oil industry
120
Environmental impact of economic growth - industrial growth
Cause: New factories are emerging e.g. Dangote Cement, which are linked to a growth in manufacturing
Impacts: Industries release CO2 as fuel is combusted, they release particulate matter into the air which can lead to poor air quality
121
Environmental impact of economic growth - urban growth
Cause: Urban areas have developed rapidly
Impacts: Resources cannot keep up with the rate of growth, traffic congestion creates high levels of pollution, 70-80% forests have been destroyed through logging, agriculture and urban development
122
Environmental impact of economic growth - mineral extraction
Cause: Mining can lead to pollution, damaging ecosystems and affecting jobs
Impacts: Tin mining has led to soil erosion and local water supplies being polluted with toxic chemicals
123
Environmental impact of economic growth - oil industry
Cause: Need for energy due to growing population and wealth gained from oil exports - there is also a global demand for oil
Impacts: Can cause fires which causes acid rain and releases large amounts of CO2. Spills can also damage ecosystems leading to a loss of species
