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development gap - Coggle Diagram
development gap
trade
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most of the worlds trade is between richer countries, most of the worlds powerful international countries are based in HICs
LICs have limited access to the market, they traditionally have low value raw materials such as agriculture products and minerals rather than high processed goods that are much higher in price
there is often a higher supply than demand for raw materials, keeping the prices of the materials low.
china, has offered poor African countries, things as hospitals, but in return taking all there wood, or all there coal, as the poor countries are so eager to trade, they will accept very poor terms in order to trade.
the processing of raw materials take place in HICs rather than LICs, so the richer countries get richer, whilst the poorer countries get poorer, increasing the development gap
One economic factor that causes uneven development is trade. LICs such as Ghana trade low value raw materials such as coca. Whereas, HICs such as America have the ability to process these raw materials and sell processed goods such as coffee. Furthermore, the price of raw materials fluctuates significantly causing the LIC great economic uncertainty. Consequently LICs end up in a trade deficit and HICs have a trade surplus. As a result the richer countries of the world get richer and the poor get poorer.
conflict
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the modern day boarders of Middle Eastern and central African countries fit badly with the distribution of different ethnic groups across these regions
in the 1990s, five million deaths were linked to ethnic conflict in DR Congo, Uganda and Rwanda.
Since the conflict in Syria began, in 2012, six million people have lost there homes
Many live in refugee camps, more than half are below the age of seventeen, and 90% no longer receive an education
colonialism
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there was an investment in colonies, but this was focused on things that would help trade between countries
often, gold, diamonds and other valuable resources, were taken back to the home countries, leaving the countries with little material wealth
most of the south was taken over, colonised by the European nations, taking the poor countries raw materials, and taking the money with them, normally African countries.
landlocked
if your country is landlocked, to export goods you would need to pay a tariff to another country to use there goods instead of doing it for free by yourself.
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