Flashcards in Economic Development Deck (54)
A) how is development measured?
Development indicators: Economic (GDP), social (BR/DR/literacy) and other (HDI)
A) what are the disadvantages/advantages of the different indicators?
Economic indicators: Inaccurate due to informal work, exchange rates
Social indicators: Difficult to measure happiness or human rights etc
Measures can be misleading on their own because they're an average. Using a combination of measures like HDI or PQLI (physical quality of life index) avoid this problem.
A) how have categories of development changed over time?
1960's: First, second and third world - disrespectful to poor countries
1980's: MEDCs and LEDCs - too divided; which are developing and which aren't?
Now: LDCs, MICs, NICs and MDCs to show different rates of development
A) What different types of aid are there?
Bilateral: directly to recipient, can be tied - given on the condition buys the goods/services that it needs from the donor countries
Multilateral: Indirectly through an international organisation
Short term aid: helps recipient countries cope in emergencies but it may not reach where it's needed and the stage of development remains unchanged
Long term aid: Helps the country develop (like dams/wells/schools) so they become less reliant on aid but it takes a while to benefit the country
A) why might international aid not be sustainable?
Sustainable aid helps development without damaging the environment or using resources faster than they can be replaced so for example a large, shallow well in areas of low rainfall would not be sustainable because the water would get used up and the amount available for future use would decrease
B) how do different countries employment structures vary?
LEDCs: Mostly primary due to raw materials, not enough money to invest, not enough education
NICs: Secondary increases, primary decreases - infrastructure develops and factories are moved to LEDCs, development increases
MEDCs: Mostly tertiary, increasing quaternary due to skilled workers and money to invest
C) what types of industry are there and what factors influence their location?
Primary: Environmental - raw materials, climate, soil. Economic: cheap land, transport routes
Secondary: Environmental - close to raw materials, flat land, water supply. Economic: local market, government grants, workers, transport
Tertiary: Environmental - open spaces. Economic - local market, transport, workers. Social - enough local people to support
Quaternary: Environmental - Green open spaces. Economic - near similar businesses, skilled workers. Social - good quality housing nearby
C) how and why does the location of primary industry change over time?
Environmental - raw materials get used up, climate change = crops can be grown in different areas.
Economic - lower costs make previously expensive are cheaper.
Social - improved transport, changed government policies (bans)
C) how and why does the location of secondary industry change over time?
Environmental - new energy sources so industry doesn't need to be close to power sources
Economic - changing capital investment patterns encourage industry in new areas
Social - government policies change so industries settle in different locations, improved transport facilities so more people can commute
C) how and why does the location of tertiary industry change over time?
Environmental - workers want a better environmental surrounding, extreme environments are more popular as travelling is easier (tourist industry in Antarctica)
Economic - changing capital investment patterns encourage industry in different areas
Social - improved transport so retailers can be out of town, changed shopping patterns (internet)
C) how and why does the location of secondary industry change over time?
Environmental - workers want better surroundings, scientific research industries have environmental needs (I.e. GM crops grown away from normal crops)
Economic - changing capital investment patterns
Social - labour force moves as training and housing changes (universities)
D) what is globalisation?
The process of countries becoming more integrated, so different countries cultures, political and economic systems become more similar due to international trade, investments and communications
D) how has communication and transport increased globalisation?
ICT: email, internet, phones can carry information faster so it's easy for businesses to communicate so branches can be had I different countries
Transport: more airports, faster trains no bigger ships so it's easier to communicate face to face and it's easier for companies to get supplies from all over the world and distribute their products
D) what is an MNC and how do they affect development?
MNCs are companies that produce/sell products in more than one country and they usual employ lots of people in LEDCs where it is cheaper. They link countries together through the production and sale of goods and they bring culture from the country of origin to other countries
D) how do MNCs affect economic development?
They create jobs which increases wealth so more taxes are collected to improve infrastructure etc (development) this is the multiplier effect. MNCs are located in LEDCs because labour is cheaper so they make more profit and their headquarters/research is still located in MEDCs
D) what are the positive and negative effects of MNCs
Positive: create jobs (makes more jobs by the multiplier effect), they create skilled jobs in LEDCs to encourage training and education, workers get higher wages and more reliable incomes, MNCs spend money on infrastructure and pay taxes, local companies supply MNCs
Negative: jobs created aren't always secure, employees work long hours in bad conditions, other local companies struggle to find business/workers, profits go back to the MEDC, large sites cause pollution, sites produce pollution and waste which is bad for the environment and they add to greenhouse gases when raw materials or final products are transported
D) What are the economic impacts of globalisation?
MEDCS: Causes deindustrialisation since manufacture has moved to LEDCs for cheaper labour, more developed tertiary and quaternary industries which increases the gap between rich and poor because poor, unskilled workers struggle to find jobs (no manufacturing) whereas skilled workers work in the well paid industries.
LEDCs and NICs: Causes industrialisation, increased gap between rich and poor because the MNCs create wealth for some people but it isn't spread evenly.
D) What are the environmental impacts of globalisation?
Carbon emissions from transporting = carbon dioxide = global warming
More products are accessible = waste = landfill
More countries sell raw materials for profit = deforestation = habitat destruction = reduced biodiversity and increased soil erosion
More shipping = oil pollution = animals killed
D) What are the social and cultural impacts of globalisation?
Improved quality of life in LEDCs because of more jobs and money that leads to better infrastructure and services.
Some countries lose their cultural heritage (same music, clothes, cars) but also you become more aware of different cultures.
E) what are the environmental impacts of primary industry? FARMING
Monoculture = fewer habitats = loss of biodiversity
Removing hedgerows = soil erosion and habitat loss
Herbicides = wildflowers killed
Pesticides = insects killed
Fertilisers = eutrophication
Cattle farming = methane = global warming
E) what are the environmental impacts of primary industry? MINING
Areas of land destroyed = fewer habitats and food sources = biodiversity reduced
Can deplete water sources
Can cause water pollution
E) what are the environmental impacts of primary industry? FISHING
Disrupted food chains
Oil leaks = animals killed
E) what are the environmental impacts of primary industry? FORESTRY
Fewer trees = fewer food sources and habitats = biodiversity reduction
Increase in released CO2 = global warming
Less water removed = less evaporated = fewer clouds = less rainfall = reduced plant growth
E) what are the environmental impacts of secondary industry?
Factories cause land air and water pollution
Habitats are destroyed if factories are built in the country
Some factories use lots of energy (usually comes from fossil fuel burning = global warming)
E) what are the environmental impacts of tertiary and quaternary industry?
Lots of energy used (to run computers, shops, vehicles) that may come from burning fossil fuels
All the resources used have an impact when they're manufactured (I.e paper comes from trees)
E) How is there conflict between the environment and economic development?
There is a need for development to improve life for people but some industries really damage the environment
The solution is to aim for sustainable economic development so that people get what they need without harming people in the future - not depleting resources or irreversibly changing the environment
E) how can economic development be more sustainable?
farms use fewer herbicides etc and retain hedgerows, introduce laws against water pollution in mines and restore damaged habitats, fishing quotas and fish farms, laws to make logging companies replenish the forest, create laws to reduce pollution from factories, build on brownfield sites, reduce energy use, develop vehicles to make them more efficient
What is tied aid and what are the advantages/disadvantages?
Aid given on the condition that the recipient country has to buy the goods and services it needs from the donor country. It helps the economy of the donor country but if the goods are expensive there the aid doesn't go as far as if it was bought elsewhere
What factors does PQLI measure?
Infant mortality rate