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Flashcards in Development Dynamics Deck (42):
1

Life expectancy

Average number of years a person to live in a country

2

Measures of inequality

Measures how wealth is shared among a population (looking at top and bottom 10% of wealthiest and poorest)

3

HDI

UNs way of measuring development taking into account education (literacy rate), health (life expectancy) and money (GDP per capita)

4

Subsistence farmers

% of population who farm to live

5

Below poverty line

% of population who earn less than $1.25 a day

6

GDP per capita

Average income of a country divided by its population

7

Sanitation

% of population that have access to piped water within 1km

8

Literacy rate

% of population aged 15+ who can read and write

9

Birth rate

Number of births per 1000 people a year

10

Death rate

Number of deaths per 1000 people a year

11

PPP

Purchasing Power Parity - cost of living (how much GDP will buy)

12

Fertility rate

Average number of births per woman

13

Maternal mortality

Number of mothers per 100 000 who die in childbirth

14

Infant mortality

Number of children per 1000 who die before their first birthday

15

Corruptions Perceptions Index

Uses a scale (0: honest, 10: very corrupt) to measure corruption in a country

16

Gini coefficient

Measures the distribution of income and how it changes overtime. Ration between 0 (equal) and 1 (only one person has all the wealth)

17

Population pyramids

Show the population of a country by presenting the number of people in each age group based on gender

18

Income Quintiles

Five equal segments of the world representing the distribution of wealth (richest: 82.7% of all wealth, poorest: 1.4% of wealth)

19

What does Rostow's Development Model show?

Overtime, a country will progress and develop into something better

20

What are the stages of Rostow's model?

1) Traditional Society: primary jobs, subsistence farming, little trade
2) Pre-Conditions for Take Off: secondary jobs, powerful person like a president suggests trading, textiles, infrastructure
3) Take Off: open to trade, modernisation
4) Drive to Maturity: high tech jobs, modern technology, industrialisation
5) High Mass Consumption: tertiary/quaternary jobs, manufacturing, luxury goods and necessities

21

Drawbacks of Rostow's model

Out of date, assumes all countries start as traditional societies, disregards resources and natural hazards that make the Take Off stage difficult

22

What does Frank's Dependency Model show?

Countries all depend and rely on each other to develop

23

Drawbacks of Frank's model

Out of date, disregards natural disasters lack of resources and conflict which limit development, assumes that the rich get richer and the poor get poorer

24

Globalisation

The process of the world becoming increasingly interconnected through the spread of people, ideas and money due to technology, trade and transport developments

25

Development

A process of change that affects people's lives e.g. Improving quality of life
(A countries wealth, social and political progress)

26

Fair trade helping countries develop

Money is spread out equally to workers. Workers family (especially their children) can benefit as they earn more money to be supported, food, education and healthcare. Improve life expectancy, decrease death rate, improve literacy rate and increase profit for farmers

27

Aid helping countries develop

Charities or NGOs helping countries (in poverty, suffering from disease, lack of resources, struck by natural disasters). They help in the short term or long term. Aid addresses the foreign exchange gap (for desperately needed imports), the savings gap (no savings to invest in infrastructure or industry) and the technical gap (training people, skills or technology)

28

Causes of global inequality

Gender inequality - women are subservient to men, have less opportunities, less education and high paying jobs, discrimination and sexism. Income inequality - rich get richer, poor get poorer, cycle of poverty. Colonialism (gaining political control over another country) - exploits economy, occupied with settlers, corruption, people have no say, money is taken from them and put to other uses, land and people are exploited to make money, plantations built, profits MNCs. Unfair trade - price fluctuates due to demand and supply, importing is expensive

29

Causes of inequalities in trade

Developing countries have little purchasing power, making it difficult to pay off debts and escape poverty. Prié of products fluctuates on the world market. Instability makes it difficult to plan improvement locally or in wider government

30

Tariffs

Taxes imposed on imports (makes foreign goods more expensive to the consumer)

31

Quotas

Limits on the amount of goods imported and usually work in the developed country's favour

32

Trade surplus

Value of exports is greater than imports

33

Trade deficit

When value of imports is greater than exports

34

Drawback of aid

Makes countries too reliant on other countries for development. Needs more independence. It could be a waste of time as it could make countries worse since money doesn't always go straight to people who need it. Money donated could be used to fund for admin and wages rather than the actual cause

35

Remittances

(Diaspora) Money sent home from economic migrants living away from their home country. It helps the economy grow as frogging money is spent there and help support their families

36

HIPC

Highly Indebted Poor Countries

37

Debt relief

Getting rid of debt and starting from scratch. Pays off original money but not interest. Relieves countries of stress of paying back debt, enabling them to focus money on other services. But the countries have to qualify for it first

38

MDGs

Millenium Development Goals
Gender equality and empower women, combat HIV/AIDS and other diseases, develop a global partnership for development, eradicate extreme poverty and hunger, achieve universal primary education, reduce child mortality, improve maternal health, ensure environmental sustainability.
While some have been addressed and are being tackled, not all are

39

Indonesia's connectivity and significant location

Ideal for trade. Archipelago. Not landlocked. Over 1700 islands. Major sea around its territory. Close to large economies such as China and Japan large geographical spread of people. Half of shipping travels through its waters. ASEAN and APEC. Since it is on the equator, the Tropical climate makes rainforests ideal of ecotourism and natural resources such as palm oil

40

Outsourcing

When companies hire another company to help them in a specific area to save money or time

41

Examples of outsourcing

Apple hiring other companies to assemble their products.
BT outsourcing their call centres in India as pay if cheaper.

42

Pos and neg of outsourcing

Neg - unequal pay, quality of goods is compromised.
Pos - investment in infrastructure, positive multiplier effects, job opportunities, greater disposable income and consumer classes rise, encourages trade links, government spending on institutions such as healthcare and education, better training for workers, gain more skills and experience making them more employable