Section B- The changing economic world Flashcards
(50 cards)
What is gross national income (GNI)?
the total value of goods and services people of that nationality produce in a year (GDP+money from people living abroad)
What is Gross domestic product (GDP)?
The total value of goods and services a country produces in a year
What is GNI per head
The GNI divided by population of country
What is Human development index (HDI)?
This is a number that is calculated using life expectancy, literacy rate, education level (eg degree) and income per head.
What are the limitations of economic measures
Using GDP/GNP can hide inequalities as it does not show the distribution of wealth
Can be manipulated by governments who want to appear poor to collect more aid and doesn’t take into account subsistence or informal economies which are very important in less developed countries.
What are the limitations of using infant mortality?
Many births in LDC would be un-registered and political factors such as China= High level because of 2 child policy
What are the limitations of using Birth and Death rate?
Birth- affected by population policy such as one child in china and inaccurate figures in
Death-Does not tell us what is responsible for high death rate could be natural disaster not poor health care, and difficult to get accurate figure from LDCs
Disadvantages of using Literacy rate
Doesn’t tell us if its due too few schools or that children have to work
Takes no notice of other skills eg- good understanding of farming techniques.
What are the stages of the demographic transition model?
1-high stationary= high birth and death rate
2-Early expanding=high birth rate and low death rate
3-Late expanding=falling birth and death rate(dr slower)
4-Low stationary- Low birth and death rate
5-Declining - very low birth rate and low death rate
What is the demographic transition model?
Measures population change over time, by studying birth and death rate. Includes main period of a country’s development and shows link between demographic and economic changes.
What are the reasons for changes in birth rate
1+2= Many children needed for farming and many children die at a young age, no family planning.
3= Improved medical care and diet, fewer children needed
4+5=Family planning, good health, improving status of women, later marriages
What are the reasons for changes in death rate
1= Disease, famine and poor medical knowledge, many children die
2+3=Improvements in medical care, water supply and sanitation, fewer children die
4+5=Good health care and reliable food supply
Why is dividing the world useless
Large differences within countries in continents, eg- Dubai is in the middle east which is classified as 3rd world
What is the Brandt line
After the 3 worlds idea, the next thought was the North/South wealth divide
Does the Brandt line work?
Unreliable because of contrast and differences within continents, there are areas of high and low wealth evenly spread throughout world. Eg- Detroit in NORTH America has a low Income
How can Birth rate show development
As birth rate decreases the more developed it is
How can death rate show development
Lower death rate= better access to healthcare and therefore is more developed
What are the limitations of the demographic transition model
It is a general model and doesn’t show details and specifics
No time line
Only shows population, not any other factors therefore we have to assume and infer- inaccurate
What 3 factors influence development
Historical
Economic
Physical
How do physical factors cause uneven development
Natural disasters, amount of money they have to recover LIC’s but HIC’s like USA are affected, cannot always link the 2.
Coastlines LIC’s are often in inland countries, cannot easily trade goods.
Climate- Influence of development isn’t clear as for every poor, hot desert country like Chad, there is rich one like Saudi Arabia
All physical factors can be overcome with human ingenuity and money.
How do Historical factors cause uneven development
In 17-1800’s most of the global south was colonised by european nations. Their aim was to build a global influence in order to better compete against the rival europeanstates and access better raw materials and labour. South American and African cultures were badly affected, especially those involved in the slave trade.
Colonism ended for the most part in the 20th century, independence can cause problems. When democratic republic of congo gained freedom from belgium in 1960s there were only 14 university graduates in the education system. Power struggles also often took place especially if rich natural resources were at stake.
How do economic factors cause uneven development?
In 1800’s European powers just took raw materials they needed from other countries. Presently their TNC’s buy materials+food from LIC’s, low prices that jeopordise economic development. Reasons for low prices can be corrupt leaders in LIC’s trying to make profit and Food prices fluctuating depending on competition and quality of crops, eg- Price of cocoa beans halved in 1990’s due to overproduction, slowing down economic development for Ghana and Ivory coast.
What 3 consequences are there from uneven development
Disparities in wealth, health and international migration
Explain effects of uneven development on Nigeria
Newfound trading wealth has helped Nigeria get ‘promoted’ from LIC to NEE status, but this wealth hasn’t been distributed fairly. Nigeria is now one of the most uneven societies on earth
