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the changing economic world - Coggle Diagram
the changing economic world
measures of development
GNI
- gross national income, the total value of goods and services produced by a country in a year including overseas income and it is often given in US$. it is a measurement of wealth and as a country develops it gets higher. (it is good because it recognises all income that goes into a country but bad because it only accounts for income in terms of quality of life)
GNI per capita
- the GNI divided by the population. it is a measurement of wealth and as the country develops it gets higher. (negative since it doesn't account for the fact that some people are millionaires and some people might have nothing there)
GDP
- gross domestic product, the total value of goods and services produced by a country in a year excluding overseas income and it is often given in US$. it is a measurement of wealth and as the country develops it gets higher. (unpaid work is not included in this but it is good because it gives info on the economy of a country and how it is performing)
birth rate
- the number of live babies born in a year per a thousand people. it is a measurement of women's rights and as a country develops it gets lower. (people may be having many kids in certain areas of a country, and some people none in another but it classifies the country as a whole)
death rate
- the number of deaths in a year per a thousand people. it is a measurement of health and as a country develops it gets lower (it is a good in measuring a country's health but counts things like suicide and infant mortality in the same one category)
infant mortality rate
- number of children under 1 years old that die in a year per a thousand. it is a measurement of health and as a country develops it gets lower. (it is a good indicator of the overall health of a country but narrowly focuses on a small portion of the population and it's health)
people per doctor
- the average number of people per doctor in a country. it is a measurement of health and as a country develops it gets lower. (this also helps to indicate how wealthy a country is in terms of money and healthcare)
literacy rate
- the percentage of adults who can read and write in a country. it is a measurement of education and as a country develops it gets higher. (good because it is a percentage of the whole population)
access to safe water
- the percentage of people who can get clean drinking water. it is a measurement of health and as a country develops it gets higher. (good because it helps to show for countries (for example) in Africa how good their current water situation is)
life expectancy
- the average age a person can expect to live to. it is a measurement of health and as a country develops it gets higher. (things like global pandemics can throw this figure out of proportion)
HDI
- human development index, a number calculated using life expectancy, education level, and income per head. every country has a HDI between 0 (least developed) and 1 (most developed). it is a measurement of lots of things and as a country develops it gets higher
classifying countries in terms of wealth
NEE
- a newly emerging economy, they are rapidly getting richer as their economy is moving from being based on primary industry (e.g. agriculture) to secondary industry (manufacturing). quality of life from many citizens there is improving. for example : China, Brazil, Russia, India.
LIC
- a low income country, the poorest countries in the world, where the GNI per capita is very low and most citizens have a low quality of life. for example : Afghanistan, Somalia, Uganda, Nepal.
HIC
- a high income country, they are the wealthiest countries in the world where the GNI per capita is high and most citizens have a high quality of life. for example : UK, USA, Canada, France, Australia, Hong Kong, Quatar.
consequences of uneven development
health
- healthcare in more developed countries is better than in less developed countries. people in HICs live much longer - e.g. the UK's life expectancy is 81, but in chad it is only 51. infant mortality is also much higher in less developed countries, e.g. it is 85 per thousand birth in the Chad compared to 4 births per a thousand in the UK.
international migration
- if neighbouring or nearby countries have a higher level of development, people will seek to enter that country to make use of the opportunities it provides to improve their quality of life. for example, in Mexico (an NEE) borders the USA (a HIC), and every year over 130,000 Mexicans move to the USA legally (and thousands more enter illegally) to seek better paid jobs and a higehr quality of life.
wealth
- people in more developed countries have a higher income than those in less developed countries. for example, GNI per head in the UK is over 40 times higher than in Chad.
strategies to reduce the development gap
Aid
- given by one country to another as money or resources like food and doctors. spent on development projects like building schools, and it can definitely help but gets countries to rely less on themselves and be more lenient on other.
debt relief
- when some or all of a country's debt is cancelled and forgiven or interest rates for them are lowered. this is so they have more money to develop their own country. for example, Zambia had a 4 billion debt cancelled in 2005 and by 2006 the country had enough money to start a free healthcare scheme for millions living in rural areas which improved their quality of life.
fair trade
- this is about farmers etc getting fair prices on their goods produced in LICs. companies which sell products labelled fair trade have to buy their materials at a fair price from the exporters, and they also pay extra to help develop the area where it came from. only a tiny portion of the extra money goes to the original producers because most goes to retailers' profits.
using intermediate technology
- these include the quality of life in an area but are simple to use and are not too much of an upgrade from what the people it is gifted to already have. this allows people to work in their homes or businesses, and children to study, after dark. as a result the income and skills of the workers increases which helps in closing the development gap.
microfinance loans
- when small loans are given to people in LICs when they most likely wouldn't be able to get it from a traditional bank. once they start their own business and become financially independent they can then pay the invester back with interest.
tourism
- can provide increased income as there will be more money entering the country. countries like Kenya use tourism to increase their level of development.
industrial development
- agriculture makes up a large part of the economy in countries with low levels of development. developed industry increases GNI and helps improve development levels as productivity and infrastructure are improved.
investment
- when people or companies in one country buy property or infrastructure in another. foreign-direct investment (FDI) leads to better access to finance, technology, and expertise, and improved infrastructure, improved industry, and increase in services.