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the changing economic world (measuring development (development = progress…
the changing economic world
measuring development
development
= progress in economic growth, technology and improving welfare
increase QoL
GNI
gross national income
total value of goods and services produced by country including overseas
higher as country develops
GNI per capita/head
GNI divided by population
higher as country develops
GDP
gross domestic product
total value of goods and services a country produces
higher as country develops
birth / death rate
live babies born per thousand
lower as country develops
infant mortality rate
babies that die under 1 per thousand
lower as country develops
people per doctor
lower as country develops
literacy rates
perecntage of adults that can read and write
higher as country develops
access to safe water
percentage with access to drinking water
higher as country develops
life expectancy
higher as country develops
HDI
human development index
number calculated using life expectancy, education level, income per head
between 0 - 1 (0 least developed)
higher as country develops
individual indicators
= misleading
as some aspects more developed than others
seem more developed than it actually is
more than 1 measure HDI more accurate
used to be
MEDC and LEDC
MEDCs in north
LEDCs in south
coutn't tell which were
developing quickly
GNI misleading when used on own
average - hide variation between classes
DTM
shows how changing birth and death rates affect population growth (natural increase / decrease)
stage 1
least developed - tribes
birth rate = high and fluctuating
no contraception
need lots of children as poor healthcare infants die
death rate = high and fluctuating
poor healthcare + famine
population growth = zero
population size = low and steady
stage 2
not very developed - LIC
birth rate = high and steady
agriculture so need children to work
death rate = rapidly falling
improved health care and diet
population growth = very high
population size = rapidly increasing
stage 3
more developed - NEE
birth rate = rapidly falling
women more equal role
better education
contraceptives increased
more women work
maufacturing industry
death rate = slowly falling
health care imporves
population growth = high
population size = increasing
stage 4 / 5
most developed - HIC
birth rate = low and fluc / falling
want possessions and high QoL
dependant elderly relatives
less money available for kids
death rate low and fluc / low and steady
good health care
population growth = zero / negative
population size = high and steady / slowly falling
causes of uneven development
physical
poor climate
not much will grow - malnutrition
fewer crops to sell - less money to spend on goods and servises
gov less money from taxes - less to spend on development
poor farming land
too steep / poor soil - not much grows, malnutrition, less taxes
few raw materials
fewer products to sell = less money for development
not have money to develop infrastructure to exploit them
natural hazards
spend money on rebuilding - decreases QoL
decreases money available for development
historical
colonisation
lower level when gain independence
europe + africa
remove raw materials, slaves
sold back expensive manufactured goods
made africa dependant
= famine + malnutrition
conflict
health care becomes worse
infant mortality increases
money spent of fighting
people killed and damage infrastructure
economic
poor trade links
won't male a lot of money
debt
poor borrow money from other countries
any money made used to pay back
primary products
not much profit
from these exports
prices fluctuate
fall below cost
wealthy countries force
down price of materials
consequences
wealth
HIC have more income
health
HIC have better healthcare
live longer
lower infant mortality
international migration
enter countries with opportunities
better paid jobs
higher QoL
reducing global development gap
aid
money or resources
developmetn projects
schools, dams, farms
wasted by corrupt gov
money runs out
= stop work
fair trade
pay producers fair price
= provide for family
buyers pay extra to help
develop where come from
tiny proportion of money
intermediate technology
tools, machines, equipment
improve QoL
simpler, affordable, cheap maintain
eg solar powered lights
work in homes after dark
output increases - decrease gap
debt relief
debt cancelled / interest rates lowered
more money for development
investment
FDI foreign direct investment
companies by infrastructure in different country
access to finance, technology and expertise
improved infrastructure = increase service
industrial development
large proportion agriculture
increases GNI
productivity, level of skills, infrastructure improved
tourism
increase income and jobs
microfinance loans
small loans given to LICs
start own business / finanially independent
not reduce poverty on large scale
increasing development
TOURISM IN KENYA
LIC in east africa
attracts tourists: tribal culture, safari wildlife,
warm climate, unspoilt scenery
visa fees cut by 50% for adults in 2009
fees scrapped for under 16s
encourage families
landing fees reduced on coast
for charter airlines
0.9 million in 1995
1.8 million in 2011
effectiveness - benefits
over 12% GDP
money spent on development + QoL
600,000 employed by industry
10% all employment
24 national parks charge entry fees
maintain parks, protect wildlife
since 2000 HDI score from 0.45 to 0.55
effectiveness - negatives
small amount money earned to locals
rest to HICs overseas
tribes people forced off land
tourist vehicles damage environment
safari destroy veg + disturb habitats
TNCs
factories in poorer countries
cheap labour / less environmental regulations
headquaters in HICs
more people with administative skills
advantages
create jobs
more reliable income
TNCs spend money on local infrastructure
new technology, skills to country
disadvantages
paid lower wages than those in HIC
long hours in poor conditions
profits back to richer countries
not reinvested
jobs not secure - relocate any time
examples
dangote cement - 3 cement plants nigeria
shell - oil
Nigeria
economic development UK
changing industry
globalisation
manufacturing overseas
government policies
investment infrastructure
and technology
post industrial
services - 4.4 million retail
information technology - 60,000 IT sector
finance - london = global institutes
research and development - skilled uni grads
£30 billion spent on it 2013
science and business parks (quaternary)
good transport links - outskirts
close to housing - accommodate workforce
near unis - access to research and technology
growing demand for high tech
lots of strong research unis
cluster of related businesses boost each other
de-industrialisation
fewer jobs in manufacturing
north south divide
population in cumbria decreased
less maufacturing and agriculture jobs
schools closing and increase unemployment
north somerset population increased
moving to quieter towns with access
house prices rising (price out locals)
roads congested
oversubscribed schools
solutions
devolving powers
power given to local councils
money spent to benefit community
eg transport and regeneration
enterprize zones
55 zones - encourages business in N
jobs, income, unemployment
reduced taxes
simpler planning rules
financial benefits
improved infrastructure
northern powerhouse
reduce inequality by attracting investment and improving transport links
industry decline impact north
wages lower in north
health / life expectancy worse in N
education / GCSE results better in S
improve transport network
(improve economic growth)
increase road capacity
extra lanes, new road
crossrail - london rail capacity by 10%
hs2 line - faster journeys
new runway
port at mouth of river thames
hub for global trade / container ships
links to other countries
exports worth over £250 billion / year
creative industries - culture exported worldwide
channel tunnel - goods and people to mainland
large airports - heathrow around world
trans atlantic cables
EU - 28 countries access to large market
without political barriers
£130 million to EU in 2015
commonwealth - 53 independent states
improve well being
reduce affect on environment
pollutants, raw materials, gases
regulations - sustainable, awareness,
increasing waste disposal costs
JAGUAR LAND ROVER Wolverhampton
maximise natural cooling and light
= reduce energy
solar panels - generate 30%
almost all waste recycled