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Economic Inequality (Geography) (Aid (Types of aid (Emergency aid (food,…
Economic Inequality (Geography)
Three categories for world division
Developed Countries
located in Northern hemisphere, includes Australia and New Zealand,
strong economies and are well developed, are heavily industrialised
majority of workforce in secondary or tertiary
characteristics are good healthcare, high education standard, high quality infrastructure
Quickly Developing Countries
tiger economies, industrialisation quickly occurs
focus on exporting goods, wages are increasing
increased wealth, improvement of standard of living
Brazil, China and Mexico
Slowly developing countries
Third World, southern hemisphere, over reliant on primary sector, little / no involvement in manufacturing / services
affected by famine, war and high birth rates
Sudan and Ethiopia
Gross National Product (GNP)
establish which category a country belongs to by finding the GNP
calculate the total value of goods and services produced and amount of exports
GNP per person or per capita you divide value you got by population, the higher the GNP the more developed the country
Reasons for inequality
divide in world due to developed countries exploited the less developed
Trade
buy raw materials cheaply and then are processed into high value goods,
coffee beans in Colombia come to Ireland to be processed into coffee
Multinational corporations (MNCs) exploit countries in this way, set up businesses due to low pay for work
Colonialism
Age of Exploration many European countries conquered lands in South America and Africa
vast sources of raw materials and mineral wealth, took advantage of wealth to gain wealth,
stripped countries of natural resources leaving them in poverty
Debt and Corruption
development made difficult by debt and corruption
owe foreign banks huge sums of money with large interest repayments, cannot afford
money should be used for basic healthcare and education in a country
corrupt leaders take money for personal wealth
Effect of colonialism in Ireland
British exploited Irish in many ways
cleared forests for industrial revolution, used to produce energy in factories
exported farm produce at a low price, this continued through famine when people died of starvation
Plantations meant that native Irish lost land and had to work as labourers on own land
no secondary industry meaning no economic development
Effects of trade: Coffee production
worldwide commodity, means it is bought and sold world wide, beans grow in Uganda, Kenya, Ivory
coffee following oil is the second most important commodity, 20 million people employed in coffee industry
How coffee is grown
plantations
large areas of land where coffee beans are produced, often owned by foreign companies who pay low wages
local farms
local farms produce as cash crop, agricultural crop sold for profit, receives money for production rather than feeding family
Exploitation of coffee-producing nations
Price
large profits for production, pay very little to farmers, process beans into coffee and sell for a higher price, farmers do not get fair price
Protectionism
countries look after needs and wants, high taxes on importation of coffee, hard to receive profit for country exporting, Brazil started to process beans USA threatened to stop aid
Dependency
over-dependent on bean, if it fails it can lead to poverty, price fluctuates meaning they can't budget, difficult to improve infrastructure or invest in education and healthcare
Aid
given by wealthy countries,, aid can come as food, money or medicines
Bilateral aid
one government gives money to another government, the money can be used for vital services, education and healthcare
multilateral aid
number of countries give money to an organisation, these include EU, UN and Red Cross, distribute money to countries as they see fit
Non-government organisations (NGOs)
work and provide aid for developing nations on a voluntary basis, independent and are non-profit, Concern, Trocaire and Goal are Irish, International NGOs are Oxfam
Types of aid
Emergency aid
food, water, medicines and basic supplies, natural disaster, also given in times of war
Development aid
given over long period of time, focuses on healthcare, education and infrastructure, form of money or personnel such as teachers / nurses
Tied aid
comes with conditions, purchase products from wealthy countries to receive aid, include weapons and ammunition, not always good for development
Aid good or bad
Positives
natural disasters can save lives
Healthcare and education improve when money used correctly
relationships can be formed between countries
NGOs can help upskill people, this helps communities help themselves
Negatives
countries can become dependant
Corruption can lead to aid being stolen
tied aid can lead to rich countries benefitting
Aid can lead to weapons being bought and then wars
Ireland's Aid Programme
provide aid in different forms, spends certain amouns each year, Irish aid is programme for overseas development
Bilateral Aid
Ethiopia 2013 €26 m pop 85 m
helping 1994, focuses on five area important, food security, health, education, HIV/AIDS and governance
food security
depend heavily on agriculture, climate harsh, droughts lead to crop failure, millions face starvation
provide work for food, exchange labour for food, 5 - 7 m avoid starvatoin
International Potato Centre (CIP) for work
Health and education
16 m on construction of health centres, vaccines, drugs, and school supplies
30,000 people with healthcare workers, education and baby delivering assistance
HIV/AIDS
estimated 2 m with disease, 1 m children orphaned
epidemic support NGos and local health providers with work against disease
14% of budget spent in this area
Governance
6% on governance, corruption tackled effectively
Multilateral aid
gives money for aid to EU / Un, 2010 gave €95.4 million to UN, €23 m to Eu
Emergency aid
2011 emergency aid, Philippines, paid shipment of tent and blankets to 350,000 peoople
NGOS
many NGOs, supported by Irish Aid, educate people in local communities so that they will provide for own needs, Trócaire,Concern, Bóthar, Goal
Obstacles to economic growth: Sierra Leone
Climatic change
Lack of rainfall leads to dire conditions, drought led to desertification, this means soil has been overused and is infertile
Sierra Leone overuse of resources led to unproductive agricultural sector, tropical climate brings droughts, animals die and crops fail lead to famine
War and conflict
war prevented economic development, large sums spent on weapons, not enough for vital services
civil war lasted 11 years resulted in 67% of children not attending school, made fight as soldiers
Population Growth
5.2 mil pop, birth rates high,status of women low
children seen as economic benefit, help parents when older
38 years life expectancy
Economic inequality: Ireland and Europe
Ireland
Population
South
high immigration / pop, 75% pop / 3 million
BMW
low pop / high emigration, 25% pop, low birth rates
difference between East and South / Border, Midlands and West
Infrastructure
South
developed roads, airports, attracts industrry
BMW
poor road network, one airport, one motorway, Galway focus
Landscape
south
lowland, fertile soils
BMW
mountainous, blanket bogs, leached soil
Economic Activity
south
95% secondary industry, high income, high standard of living, variety of services
BMW
25% agricultural, part-time farmers, low services, unnattractive industry
Italy
also has inequality, south or Mezzogiorno affected, includes large islands
pop
north
high pop density,
high immigration
south
low density
high emigration
Landscape
north
low land, fertile, productive
south
mountainous, infertile, Mediterranean climate, droughts
Infrastructure
north
good road, good rail, airports, access to markets
south
autostrada built, poor infrastructure
Economic activity
north
HEP, industrialised, high standard of living, services, low unemployment
south
high unemployment, low standard of living, farming, cash crops, tourism
Cassa per il Mezzogiorno
fund for the south
1950 encouraging development in south
industrial triangle between Bari, Brindisi and Taranto
disadvantaged, receives funding
Solutions
Aid
essential it reaches targets, aid must be focused on ecucation
tied aid must cease, exploitation
Fair Trade
fair price for products, exploitation end
must stop low wages and child labour
taxes abolished on developing country goods
Debt
loans must be cleared, high interest rate
500 billion owed in 2005
debt cancellation