Development and Resources (6) Flashcards

1
Q

what does development mean?

A

improving a country or improving the lives of people in a country

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2
Q

what’s a HIC

A

High Income Country

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3
Q

what’s a LIC

A

Low Income Country

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4
Q

where on the globe are HICs generally located?

A

in the NORTHERN HEMISPHERE

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5
Q

where on the globe are LICs generally located?

A

in the SOUTHERN HEMISPHERE

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6
Q

what are the exceptions of the generic locations for HICs and LICs?

A

Australia and New Zealand (located in southern hemisphere but are HICs)

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7
Q

what’s the Brandt Line?

A

an imaginary division that’s provided a rough way of dividing all the countries into ‘rich north’ and ‘poor south’

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8
Q

what about the Brandt Line should we be mindful of?

A
  • the idea is becoming out of date as certain parts of the world are making more progress than others
  • many countries have great variations of wealth WITHIN them (every country’s unique). Adding labels hide differences between countries
  • it’s too generalised as an indicator to label rich and poor, countries on the poor south have become more developed since 1980s leading some to think the line is no longer useful
  • some countries considered to be ‘developing’ have experienced rapid growth; these are NICs [NEWLY INDUSTRIALISED COUNTRIES] e.g. China, Brazil, Mexico
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9
Q

ways of measuring economic development

A

usually by how much it’s economy earns each year by considering

  • GDP
  • GNI
  • Poverty line
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10
Q

what’s poverty line?

A

% of people in the population who earn less than a certain amount a day

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11
Q

what’s GDP

A

Gross Domestic Product

  • total value of economy each year
  • measures total value of goods and services produced by a country in a year
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12
Q

what’s GNI

A

Gross National Income (per person)

- like the average wage

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13
Q

GNP?

A

Gross National Product
- measures total economic output of a country

GNP PER CAPITA = GNP divided by its population

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14
Q

what does per capita mean?

A

per person

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15
Q

economic growth

A

annual increase in GDP + GNP per capita

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16
Q

inequality of wealth

A

gap between a country’s richest and poorest people

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17
Q

inflation

A

measures how much he price of goods, services, wages increase each year

HIGH INFLATION can be bad - suggests government lacks control over economy

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18
Q

unemployment

A

number of people who cannot find work

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19
Q

economic structure

A

shows division of a countrys economy between PRIMARY, SECONDARY and TERTIARY industries

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20
Q

limitations of GNI

A

it’s an average of the whole country, so, the extremes of wealth and poverty are missed

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21
Q

what has the World Bank done to combat the limitations

A
  • convert figures into another indicator called Purchasing Power Parity (PPP)
  • this allows us to see what people can buy in their country with money at local prices
  • E.G. Malawi PPP = $780 which is over 3 times higher than the GNI
  • this is because prices are 3x cheaper
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22
Q

what indicators other than economic do we use to measure development?

A
  • social
  • health
  • education
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23
Q

SOCIAL indicators

A
  • life expectancy
  • birth rate
  • adult literacy
  • infant mortality
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24
Q

HEALTH indicators

A
  • life expectancy
  • child mortality
  • maternal health
  • disease indicators (proportion of population that has infectious diseases)
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25
Q

EDUCATION indicators

A
  • Access to education (how many people attend primary, secondary school and higher education)
  • Literacy rate (% of adults who can read/write)
  • Access to technology (statistics such as % of people with access to phones, mobiles, tbh, internet, etc)
  • Male/ female quality (compares statistics between the sexes)
26
Q

development can also be measured by:

A
  • using HDI

- 1= highest score 0=lowest

27
Q

continuum of economic development

A
- 4 categories  of GNI per capita
• $12,746+ = HIC
• $4,126 -> $12,745 = upper middle income country
• $1,046 -> $4,125 = lower MIC
• $1,045 or less = LIC
28
Q

is development gap closing?

A
  • there’s more complex pattern of development
  • NICs like india have experienced rapid industrial growth since 1980
  • investment and education has created skilled workforce
  • this has made MNCs (Multi National Companies) locate in NICs
  • this develops global cities and encourages further investment
  • involves companies such as IKEA, SAMSUNG AND SIEMENS
29
Q

is development gap closing part 2

A

HOWEVER

  • countries like Malawi (a LIC) has made less economic progress bc:
  • it’s landlocked, so no port led to suffering through lack of global connections
  • depends on exports of primary goods (tobacco, tea, cotton, sugar)
  • these are unprocessed so have low value compared to processed products that Malawi imports (machinery, oil)
30
Q

causes and consequences of uneven development at global scale

A

Global trade leads to uneven patterns of development

  • HICs EXPORT high value good (cars and computers) and IMPORT low value goods : they make PROFIT
  • LICs EXPORT low value good (coffee beans nd sugar) and IMPORT high value goods : they go into DEBT
  • so, HICs control the global trade market and LICs often lose out
  • HICs TARIFFS + QUOTAS (taxes and limits on amount of goods) on imports make it difficult for LICs to make profit
  • HICs also provide SUBSIDES (cash payments/ tax reductions) for local farmers to support them
31
Q

causes and consequences global trade : poor countires

A

poor countries —> export mainly primary goods —> have low value—> earn little money —> keeps country poor—> cycle repeats.

32
Q

causes and consequences global trade : rich countries

A

Rich countries—> export mainly manufactured goods—> have high value—> earn much money—> makes country rich —> cycle repeats.

33
Q

what’s free trade

A

it allows countries to import and export goods without tariffs and quotas meaning lower prices for customers and higher profits for sellers

34
Q

what’re trade blocs

A

groups of countries that work together to promote free trade between one and other (eg EU)

35
Q

on google classroom case studies

A

Malawi and India

36
Q

what’s globalisation?

A

a term which leads to the free flow of goods, people, ideas and money on a worldwide scale

37
Q

what’re the main drivers of globalisation

A
  • improved technology
  • improvements in communication
  • advances in transport
  • removal of trade barriers
  • growth of MNCs
38
Q

why are MNCs factories in LICs while the headquarters are in HICS

A
  • cheap labour costs
  • available raw materials
  • cheap building land for factories
  • lack of health and safety rules for workers
39
Q

MNC factories advantages in LIC

A
  • new jobs and skills for locals
  • MNCs buy products from local companies
  • multiplier effect travels through the local community
40
Q

MNC factories disadvantages in LIC

A
  • profits sent back to HICs
  • local companies are run out of business
  • lack of health and safety rules which allow low wages and child labour
41
Q

impacts of MNCs in UK - case study: Tata Steel considering closing factories due to chinese steel competition

A
  • loss of 15,000 direct jobs
  • loss of another 25,000 indirect jobs companies that supply tata
  • this would send part of yorkshire and south wales into decline, creating a negative multiplier effect
  • loss of income would mean less tax being paid into the country, so local services will be affected
  • less disposable income will mean less money will be spent in shops which will impact on other jobs in the local economy
42
Q

GOOD impacts of MNCs in NICs - case study; Nike setting up in Vietnam

A
  • 40,000 jobs created
  • higher wages than other companies
  • helped attract more MNCs
  • taxes help improve local services
43
Q

BAD impacts of MNCs in NICs - case study; Nike setting up in Vietnam

A
  • factories operate a sweatshop environment
  • wages still low
  • profit goes to USA
  • high energy bills damage local environment
44
Q

tourism and its contribution

A

an activity concentrated in HICs but a source of incomes for LICs
- began in 1960s

45
Q

key drivers of tourist industry

A
  • increase in life expectancy and early retirement = greater number of old people travelling
  • high salaries and savings mean more people can afford to go away
  • improvements in air travel like the modern aircraft = airfares have become more affordable
  • growth of holiday companies making booking easier and affordable (package deals)
  • internet has allowed people to find out about holiday destinations and make their own travel and accommodation arrangements
  • more stable governments around the world have made travel safer
46
Q

tourism has developed through :

A
  • enclave tourism (tourists pay one price and get their accommodation, food nd travel in one)
  • cruise holidays (cruise ships selling inclusive holidays)

as result

  • less money is spent in countries people visit
  • informal economy (aka black market) created e.g by people selling fruit on the beach (they don’t have to pay TAX so doesn’t help country, development then takes longer)
47
Q

impact of tourism growth on employment structures BENEFITS

A
  • generates employment
  • brings foreign exchange
  • wealth can be invested in services such as health and education
  • new facilities provided for tourists can be used by locals
48
Q

impact of tourism growth on employment structures COSTS

A
  • jobs are often low paid in temporary
  • local culture is destroyed
  • fragile ecosystems for example sand dunes are destroyed
  • increased pollution from road and air traffic
49
Q

what is aid?

A

the transfer of resources from a richer to a poorer country. it includes;

  • money
  • equipment
  • training
  • loans
50
Q

why give aid?

A

emergency aid is given when a natural disaster occurs

BUT, most aid is planned over a long period of time to tackle poverty and improve health and education; this is known as LONG-TERM or DEVELOPMENT aid

51
Q

Bilateral aid

A

between two countries, often tied aid, meaning that the receiving country must spend money on goods and services from the donor country

52
Q

multilateral aid

A

money donated by richer countries via organisations such as the IMF, the UN and World Bank

53
Q

debt abolition (aid)

A

when richer countries cancel debt owed to them by poorer countries

54
Q

NGOs aid (aid given from non governmental organisations)

A

given through charities such as Oxfam and Save the Children

55
Q

on google classroom for aid

A

INDIA AND MALAWI aND KENYA CASE STUDY

56
Q

regional patterns in the UK

A
  • high level of regional inequality compared to other large wealthy countries
  • wealth is more concentrated in the South of England
  • London and the SE = 30% net increase in jobs since 2010
  • results is high levels of disposable income, productivity, high life span

CAUSES ND CONSEQUENCES ON GC XOX

57
Q

what is the positive multiplier effect

A

introducing a new project or industry to an area leads to more positives

  • means how money is spent circulates through the country’s economy
  • eg jobs indirect jobs housing development services schools etc
58
Q

HS2 (high speed 2) and benefits in uk

A
  • better connectivity (serves 8 of 10 major UK cities)
  • extends commuter belt (more ppl work bc they can travel, faster travel times)
  • high salaries for north
  • higher standard of living
  • more investment to the north
  • job opportunities
  • increased productivity
59
Q

HS2 and negatives in uk

A
  • only benefit london/SE and will actually increase deprivation in the Norths unskilled/ageing population
  • universities in south
  • many larger companies reluctant to move north
60
Q

how national policies reduce regional inequality

A
  • gov devolving power to local councils in the north
  • creation of the ‘northern powerhouse’ which is a proposal to boost economic growth in core cities
  • improvement to transport links such as HS2, which will eventually phase in links to northern cities. better transport links attract new investment and create an economic multiplier
  • the relocation of some businesses and organisations such as BBC building MediaCityUK near Manchester, so many offices there. Multiplier effect has since led to other companies locating close by