Topic 2: Development Dynamics Flashcards

1
Q

Development

A

A country’s wealth and its social and political progress.

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2
Q

What are development measurements?

A

• Measures of inequality
• Human development index
• GDP per capita
• Purchasing power parity
• Corruption perceptions index

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3
Q

What is measures of inequality?

A

Show how equally wealth is shared among the population. Looks at the % GDP owned by the 10% wealthiest and poorest.

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4
Q

What is the human development index?

A

It uses PPP, literacy rates, length of schooling and life expectancy to calculate a figure between 0 and 1.

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5
Q

What is purchasing power parity (PPP)?

A

This adjusts GDP in a country to take into account how much the money will buy (the cost of living).

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6
Q

What is corruptions perception index?

A

Uses a scale from 0 (honest) to 10 (very corrupt). Corrupt countries are more likely to spend invested money/aid on purchasing weapons or bring officials.

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7
Q

What are features of a low income, developing country?

A

• High birth and fertility rate.
• High infant mortality.
• High maternal mortality
• High dependency ration (not many working people above 16 and below 60)
• Low life expectancy

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8
Q

What are features of a middle income, emerging country?

A

• High birth and fertility rate.
• Infant mortality reduces.
• Maternal mortality reduces.
• Dependency ratio reduces.
• Life expectancy increases.

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9
Q

What are the features of a high income, developed country?

A

• Low birth and fertility rate.
• Low infant mortality.
• Low maternal mortality.
• Low dependency ratio.
• High life expectancy.

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10
Q

What does an educated girl mean?

A

• Marries later in life
• Seeks medical attention sooner for herself and her children
• Provides better care and nutrition for herself and her children
• Has a higher probability of survival as do her children
• Has fewer children
• Provides good learning opportunities for her own children

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11
Q

What are causes of high maternal mortality?

A

• Delay in recognising complications
• Postmoment of seeking medical attention
• Lack of transportation to emergency services
• Lack of medical care

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12
Q

What can be done to improve the causes of high maternal mortality?

A

1) Enhancing womens status within their community.
2) Investing in secondary education for girls.
3) Providing information about family planning, involving contraception.

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13
Q

What type of factors cause global inequalities?

A

• Social
• Historical
• Economic
• Environmental
• Political

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14
Q

What are social causes of global inequalities?

A

Education - Educated people produces a more skilled workforce, meaning that the country can produce more goods and offer more services. This can bring money into the country through trade or investment. They also earn more and pay more taxes, this provides money that the country can spend on development.
Health - In poor countries, lack of clean water and poor healthcare Jean that many people suffer from diseases such as malaria and cholera. People who are ill can’t work so they’re not contributing to the economy, they may also need expensive medicine or healthcare. Lack of economic contribution and increased spending on healthcare means that there’s less money available to spend on development.

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15
Q

What are historical causes of global inequalities?

A

Colonialism - Countries that were colonialists (ruled by a foreign country) are often at a lower level of development when they gain independence than they would be if they had not been colonialised.
Non-colonialism - after colonies gained there independence, richer countries continued to control them indirectly. For example some TNCs exploit the cheap labour and raw materials of poorer countries. International organisations sometimes offer conditional loans which mean poorer countries have to develop in the way their donors want them to.

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16
Q

What are environmental causes of global inequalities?

A

Climate - not much will grow, water shortages and food shortages. Fewer crops to sell, so less money to spend on goods and services.
Topography - If the land in a country is steep then it won’t produce a lot of food. Steep land can also make it difficult to develop infrastructure. This can limit trade and make it hard to provide basic services.
Landlocked countries
Rural isolation
Increased pollution

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17
Q

What are economic and political factors of global equality?

A

• Systems of governance - Authoritarian governments can put development policies in place without worrying about anyone stopping them, this can be very good for economic development, but things can easily go wrong. Development under democratic governments is usually less extreme - different interest groups prevent either huge growth or economic collapse.
• International relations - countries with good international relations are more likely to get good trade agreements. They can also get loans from international organisations to invest in development projects.
• Terms of trade - the value of a country’s exports relative to that of its imports.

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18
Q

Consequences of global inequalities

A

• Education
• Health
• Politics - inequalities can increase political instability, crime and discontent in poorer countries. This means civil wars are more likely in developing countries. Conflict can increase inequality - poverty increases as money is spent on fighting rather than development. Developing countries are often dependent on richer countries. This means they have less influence over regional and global decisions.

Environmental problems:
• Economic development leads to more consumption of food, water and energy. This puts pressure in scarce resources and can threaten ecosystems.
• Industrialisation leads to increased air, water and land pollution. The release of greenhouse gasses enhances the greenhouse effect, contributing to climate change.
• Many developed countries have factories in developing or buy goods that are produced there. This means that local pollution levels are often much higher in developing countries.

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19
Q

What are the 2 theories that explain how and why countries develop over time?

A

Rostow’s modernisation theory
Frank’s dependency theory

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20
Q

What are the stages of Rostow’s modernisation theory?

A

1) The traditional society
2) Pre-conditions for take off
3) Take off
4) The drive to maturity
5) High mass consumption

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21
Q

The traditional society

A

Farmers, primary industry, agriculture and military.

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22
Q

Pre-conditions for take off

A

Build banks and currency.
Selling stuff for profit.
Taxes so money to the government —> roads, damns, bridges

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23
Q

Take off

A

Domestic market - people in country buying goods.
Inequality within country - urban and rural.

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24
Q

The drive to maturity

A

Industrialisation
Technology
Workers more skilled
Development across entire country

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25
Q

High mass consumption

A

Trade expands
High disposable incomes
Most employed in service sector of economy
Luxuries now necessities

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26
Q

What are the barriers to development?

A

Location e.g. landlocked country
Governmental corruption
Geographical location - cost of trade
Climate
War and disease (external shocks)

27
Q

What does Rostow’s modernisation theory show?

A

That every country will develop.

28
Q

What do Frank’s dependency theory show?

A

Developed countries (core) are limiting the level of development of the poorest countries (periphery) from the control of the world economy. The most developed countries are able to exploit less developed countries through the use of their economic and political development.

29
Q

What are criticisms of Frank’s dependency theory?

A

• Out of date 1950s
• Natural disasters, conflict, lack of resources may limit development that isn’t taken into consideration in the dependency theory.

30
Q

Primary industries

A

Extract or use the earths natural resources.
Agriculture, fishing, forestry, mining.

31
Q

Secondary industries

A

Take the raw materials and process them in manufactured goods.
Steel making, oil refining and clothes/shoe factories.

32
Q

High tech secondary industries

A

Use of advanced technology in manufacturing.
Defence systems, medical equipment, micro chips (electronics)

33
Q

Tertiary industries

A

The service sector.
Retail, education/health services and selling skills.

34
Q

Quaternary industries

A

Provide information services, such as a computing and ICT, consultancy and R&D. They are part of the knowledge economy.

35
Q

What does the Clark Fisher Model show?

A

Primary industry decreases
Secondary increases first, then decreases
Tertiary increases

36
Q

Why does the primary industry decrease?

A

• Mechanisation of farms reduces need for farm workers. Rural workers migrate to the urban areas, in a process called urbanisation.
• Raw materials become exhausted
• Rural de-population of farmers in MEDCs. Workers prefer the better paid less physically demanding jobs in the tertiary sector.

37
Q

Why does the secondary industry increase and then decrease?

A

• Manufacturing initially requires a large secondary workforce.
• Factory jobs eventually replaced by machines.
• The decrease in manufacturing jobs has lead to de-industrialisation in the UK.
• Manufacturing industries increasingly move from UK to NICs where land and labour costs are cheaper (industrial relocation). Foreign direct investment from TNCs creates job opportunities in the secondary sector.

38
Q

Why does tertiary increase?

A

• As UK develops demand grows for services such as healthcare and education.
• Greater income means greater tax paid to the government to provide more services.
• Strong growth in jobs in the knowledge economy based on the processing of knowledge and information using telecommunications, this is also known as the quaternary sector.
• Increased in skilled services for high tech industry e.g. market research for manufacturing of smart phones.

39
Q

TNC

A

A company that has factories all around the world.

40
Q

FDI

A

Foreign direct investment
A foreign country directly investing or brining money into a country.

41
Q

Globalisation

A

The process of the world becoming increasingly connected and appearing to be smaller as result of developments in technology, transport and trade.

42
Q

Ways the world is better connected?

A

• Transport networks
• Communications technology
• Trade patterns
• Multi national companies invest in other countries and outsource stages of their business
• Debt
• International agreements and organisations
• Tourism
• Migration
• Aid (giving money)
• Culture and global media
• The rise of new electronic payment systems e.g. mobile pay apps
• Food

43
Q

To what extent has globalisation benefited different countries?

A

Rich countries have benefitted more as they have developed by changing the main sector (primary, secondary, tertiary, quaternary) in their country and managed to gain more from poorer countries who have not changed their sector and stayed in the primary sector where they are selling raw materials that they don’t make any profit from.

44
Q

Top down

A

• Large scale
• Government and TNCs make decisions
• May have an impact on the environment
• Uses lots of technology
• Very expensive, requiring heavy investment from government or TNCs or borrowed money from the world bank.
• Could create a positive multiplier effect.

45
Q

Bottom up

A

• Small scale
• Locals involved in decision making
• Uses basic ‘appropriate’ technology
• Often more environmentally sustainable
• Targets the poorest communities
• Cheaper to implement and function, often funded by NGOs (charities)
• Could create a positive multiplier effect.

46
Q

Millenium development goals

A

Goals created by the United Nations with the aim of reducing global inequality by 2015.

• Eradicate extreme poverty and hunger
• Achieve universal primary education
• Promote gender equality and empower women.

47
Q

How can development be encouraged in a country:
Fair trade

A

• Direct purchase of goods from farmer at a fairer and guaranteed price means an increase in profit to the farmer.
This means that they can afford to send their children to school and they know what they will get and can make plans on how best to use the money.
• Usually small scale organic farming reduces the impact on the environment by using less fertilisers and pesticides.
This means that there is less chance of eutrophication caused by fertilisers runoff and less damage to the ecosystem by pesticides.
• Money also goes to community projects like building schools and clinics.
This means that the community benefit from receiving better healthcare and education, increasing their prospects in the future.

48
Q

What does aid try to adress?

A

1) Foreign exchange gap: No money for imports desperately needed.
2) Savings gap: No savings to invest in infrastructure and industry.
3) Technical gap: No money in training people in skills or buying into technology.

49
Q

What are the types of aid?

A

1) Short term (emergency aid)
2) Long term aid: Aid projects from NGOs, International development aid from governments —> Bilateral aid (one to another), multilateral aid (from lots of countries to one)

50
Q

Advantages of aid

A

1) Saves lives
2) Rebuilds livelihoods
3) Provides medicines
4) Aids agriculture to increase food production

51
Q

Disadvantages of aid

A

1) Increase dependency on donor countries and become heavily indebted.
2) Risk of corruption - Politicians may use aid for their own means or political gain.
3) Economic/political pressure - Country may end up owing a donor country or organisation a favour.
4) More expensive commodities - development projects may lead to food and water costing more.

52
Q

Intermediate technologies

A

Small scale technology that the local community can use without too much training or high costs.

53
Q

Sky hydrant

A

A water purification unit that produces safe drinking water without the need for power or chemicals.

54
Q

Where are highly indebted poor countries distributed?

A

• Africa clustered in Sub-Saharan
• Some in SouthEast Asia (Indonesia)
• 3 in South America (Bolivia)

55
Q

What is the aim of the HIPC initiative?

A

Aim of ensuring that no poor country faces a debt burden it cannot manage.

56
Q

Who’s in charge of the HIPC initiative?

A

IMF / World Bank

57
Q

How does the HIPC initiative help countries develop?

A

Countries were spending more on debt service than on health and education combined but now they have increased their expenditures on health, education and other social services.

58
Q

Positives of the HIPC initiative?

A

• No poor country faces debt they can’t manage
• Helps boost social spending

59
Q

Disadvantages of HIPC initiative?

A

• May take a long time
• May cancel their debt but they still need access to the global market.
• Some countries are affected by conflict and so this stops them to try to reform their policies which is one of the conditions in order to be eligible for the relief.

60
Q

Remittances

A

Remittances are funds transferred from migrants to their home country.

61
Q

2 positives of remittances?

A

• Reduces poverty and improves living conditions.
• Can allow access to healthcare and greater educational attainment.

62
Q

2 negatives of remittances?

A

• May be misused
• May create dependency, which could inhibit economic growth

63
Q

Positive of fair trade?

A

• Increased profit for farmers

64
Q

2 negatives of fair trade?

A

• Costs more for customers.
• Farmer may not diversify what it’s selling.