*The Changing Economic World (Paper 2) Flashcards Preview

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Flashcards in *The Changing Economic World (Paper 2) Deck (121)
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What is development?

The progress a country makes. As a country develops it usually means that people's standard of living and quality of life improve.


What factors affect a country's level of development?

  • Environmental factors: natural hazards e.g. earthquakes
  • Economic factors: trade and debt
  • Social factors: access to clean drinking water and education
  • Political factors: stable government or civil war


What is the 'development gap'?

The development gap is the difference in standards of living between the world’s richest and the world's poorest countries.


How can we measure development?

Through a range of different indicators:

  • GNI per capita
  • birth rate/death rate
  • infant mortality rate
  • life expectancy
  • people per doctor
  • literacy rate
  • access to safe water
  • human development index (HDI)


What is Gross National Income (GNI)?

GNI is the total value of goods and services produced by a country plus money earned from overseas


What is the problem with using GNI?

Some countries may seem to have a high GNI as they are relatively wealthy and have a small population but it doesn't always mean that the population have a good quality of life.


What are the limitations of using economic and social indicators to measure development?

  • Data might be outdated
  • Some data is difficult to collect
  • Some information is unreliable
  • Informal work isn't included in data
  • Government may be corrupt


What is the demographic transition model?

A geographical model that shows how a country's population changes over time.


How is the demographic transition model linked to development?

As a country develops (becomes richer) the population of the country also changes. Typically, the birth rate and death rate lower as a country develops


What is happening at stage 1 of the demographic transition model? (comment on births ,deaths and overall population)

  • High birth rate
  • High death rate
  • Population is stable and low


What is happening at stage 2 of the demographic transition model? (comment on births, deaths and overall population)

  • Birth rate high
  • Death rate starts to decline
  • Population begins to increase


What is happening at stage 3 of the demographic transition model? (comment on births, deaths and overall population)

  • Birth rate drops rapidly
  • Death rate continues to slowly decrease
  • Population increasing at a slow rate


What is happening at stage 4 of the demographic transition model? (comment on births, deaths and overall population)

  • Low birth rate
  • Low death rate
  • Population is high


What is happening at stage 5 of the demographic transition model? (comment on births, deaths and overall population)

  • Extremely low birth rate
  • Death rate increases slightly (due to ageing population)
  • Population decreases


What is 'uneven development'?

  • Uneven development within a country is when some places develop, whilst others do not progress
  • On a global scale, some countries are experiencing development whilst many are not


List the factors that cause uneven development

  • Physical causes: Landlocked countries, climate, extreme weather, lack of water
  • Economic causes: trade
  • Historical causes: Colonialism


How can physical factors cause uneven development?

  • Landlocked countries do not have a coastline so find it difficult to trade
  • Tropical climates: pests and diseases spread easily
  • Extreme weather e.g. drought hinders development


How economic factors such as trade can cause uneven development?

Rich countries often buy raw materials from poor countries at a low cost. They then make these into higher priced manufactured goods and sell them on. Rich get richer, poorer remain poor.


How can historical factors such as colonialism can cause uneven development?

Many richer nations such as North America and Europe had powerful colonies in Asia, Africa and South America. When the colonies gained independence, they had limited governance and order in society which destabilized these area and hindered development.


Name some problems caused by uneven development

  • Big differences in health
  • Big differences in wealth
  • Migration (people move away from hardship)


Give some examples of health differences that result from uneven development

  • LICs - most deaths are children under 15. Common causes of death are HIV/AIDS or diarrhoea related diseases and malaria.
  • HICs - most deaths are amongst people over 70. Common causes of death are heart disease, diabetes.


Give some evidence to prove global disparities (differences) in wealth

  • Fastest growth in wealth was North America (2014)
  • Qatar is the wealthiest country
  • China has had the highest growth in wealth of all NEEs
  • Africa has the smallest share of global wealth at 1%


Why does uneven development lead to migration?

People suffering from the negatives of uneven development (e.g poverty, poor health) want to move away in search of an improved quality of life


Give an example of a country where people have migrated due to war

  • Syria
  • Afghanistan


What is the name given to people who move in search of work?

An economic migrant e.g. Polish migrants moving to the UK


Name the 8 strategies that can be used to close the development gap

  1. Investment
  2. Industrial development
  3. Tourism
  4. Aid
  5. Intermediate technology
  6. Fairtrade
  7. Debt Relief
  8. Micro finance loans


How can investment close the development gap?

Investment means spending money in a business of location. This is usually done by big companies (TNCs) in order for them to increase their profit, but it can improve the facilities for people in LICs and create jobs (multiplier effect).


How can industrial development close the development gap?

Developing an industry in an LIC triggers the multiplier effect. It creates jobs, which then increases spending and more facilities and services will then open, creating more jobs. More local people working means more tax is paid meaning the government can improve services for local people e.g. education.


How can tourism close the development gap?

Some countries have amazing environments which make them an attractive location for tourists. This has led to the development of hotels and tourist attractions which create jobs and spending in the LIC. More local people get employed in the tourism industry which leads to more tax paid to the government.


How can aid close the development gap?

Aid is a donation of money or needed resources (e.g. food, water). This money can then be spent on improving infrastructure or facilities such as education which then benefits the local people.