Section B Changing economic world Q2

Cards (55)

  • Development - How far a country has grown economically and technologically. Standard of living and quality of life of the population improves
  • Standard of living - Measure of wealth and material comfort of a person (house, food, clothes)
  • Quality of life - A person’s mental and physical health, well being, happiness and freedom
  • Gross national income (GNI) per capita - Country’s money made from goods and services, divided by the population size
    (this is not a reliable measure of development on its own, as it does not take into account quality of life or show the extremes of wealth or poverty)
  • Social measures of development
  • Social measures of development:
    • Birth rate - number of live births per 1000 people per year
    • Death rate - number of deaths per 1000 people per year
    • Infant mortality rate - number of babies that die under 1 year old per 1000 live births
    • Life expectancy - average number of years a person can expect to live
    • People per doctor - number of people who depend on a single doctor
    • Literacy rates - percentage of adults with basic skills to read and write
    • Access to safe water - percentage of people who have access to water that carries no health risk
  • Why GNI isn't a good single measure of development
    • Doesn't show us difference between extreme wealth and poverty
    • Using one single indicator of development isn't useful as only measures one aspect
  • HDI - Human Development Index
  • Human Development Index (HDI) is one number but measure 3 aspects
    • Life expectancy at birth
    • Average school years
    • GNI per capita
    Score is given as a decimal between 0 and 1 the closer to 1 the better your overall development
  • Multiplier effect - the way countries improve when development happens. The most important aspect is Income and Money.
  • Multiplier effect circle
    • Economic wealth
    • Disposable income (creates jobs as more money to spend in local economy
    • Government receives tax from workers income
    • Investment
    • Economic growth
  • Strategies to reduce uneven development
    • Investment
    • Industrial development
    • Aid
    • Intermediate technology
    • Fair trade
    • Debt relief
    • Microfinance loans
  • Strategy: Investment
    • TNCs invest money in LICs to increase profit
    • They will improve infrastructure and develop new industries
    • Factories are built and good are produced
  • Strategy: Investment
    • Building of factories will create jobs in construction and jobs within factory once built
    • Increase of jobs increases the amount of tax received by government
    • Government has more income to invest
  • Strategy: Industrial Development
    • Shift focus from exporting primary goods to manufactured
    • China changed and now they are 'workshop of the world' and have one of the fastest growing economies
  • Strategy: Industrial Development
    • Manufactured goods have higher value
    • Government makes more money on exports which they can invest back into the economy
    • Workers are getting a higher and more reliable income
    • Have a higher disposable income to spend in local economy and pay more tax
  • Strategy: Aid
    • NGOs donate resources or money to another country
    • Short term aid is emergency help
    • Long term aid is sustainable aid and aims to help countries development
  • Strategy: Aid
    • When NGOs donate goods it means the government doesn't have to pay for them meaning they can save it and invest
    • Population gets the support they need
  • Strategy: Intermediate Tech
    • Sustainable tech that is appropriate to the local people
    • Small scale projects associated with agriculture, water or health
    • Needs to be affordable and easy to use and maintain/repair
  • Strategy: Intermediate Technology
    • Giving a community access to tech like a water pump gives easy access to clean water
    • Children who are sent to get water can now go to school to get job in future
    • Jobs provided for maintenance meaning more tax to government allowing them to invest
  • Strategy: Debt relief
    • In 2005 worlds richest countries agreed to cancel debts of highly indebted poor countries
    • To qualify they had to show they could manage their own finances and no corruption
    • And agree to spend on development in education, healthcare and reducing poverty
  • Strategy: debt relief
    • Debt money can now be used to invest into country
    • Can improve health so more poeple are healthy and can work
  • Strategy: Microfinance loans
    • Poor people borrow small sums of money
    • Enables start up of small businesses so they can become self sufficient
    • Can help farmers who struggle to grow crops to sell
  • Strategy: Microfinance loans
    • Starting a business allows them to earn an income and pay tax
    • If business grows more people can be employed meaning more jobs
    • people now have disposable income
  • Why is Nigeria regionally important
    • One of the fastest growing economies in Africa with highest GPD
    • Largest population in Africa (182 million)
  • Why is Nigeria globally important
    • 21st largest economy in the world and is expanding rapidly
    • Supplies 2.7% of the worlds oil
    • Diverse economy including financial services and telecommunications
  • Development - The progress of a country in terms of economic growth, the use of technology and human welfare
  • Nigeria is classified as a NEE
    • These countries are experiencing higher levels of economic development
    • Manufacturing and tertiary sectors expanding
  • Nigeria's changing sectors
    • Economy has become more balanced as primary sector has declined
    • Manufacturing and tertiary sectors have grown
  • Nigeria's changing industrial structure
    • Agriculture sector has fallen 70% to about a third
    • Manufacturing sector has grown roughly a third
    • Tertiary sector makes up the rest
  • How Nigeria's manufacturing industry can stimulate economic development
    • Regular paid work and higher paid than farming gives people a secure income that cans pend their disposable income on goods manufactured in Nigeria
    • Manufacturing stimulates growth , industries that supply manufacturing create more jobs
    • Finance and retail are also needed which creates jobs in more sectors
    • People pay tax so more people are working so government receives more tax
    • Thriving industries will attract foreign investment
  • Advantages of shell in Nigeria
    • Contributions to taxes which are invested back into country
    • Shell provides direct employment for 65,000 workers
    • Supports 250,000 jobs in other industries
    • Skills that Nigerians learn can be used to set up a new Nigerian companies which can lead to higher paying jobs
  • Negatives of Shell in Nigeria
    • Oil spills in the Niger Delta devastated local farmers and fisherman
    • Flares send toxic fumes into the air causing climate change and respiratory problems for local people stopping them from working
    • Working conditions and safety regulations are lower than in Europe
    • Shell makes most of their money by refining oil which takes place in Europe meaning moist profits are leaked back to HICs
  • Shell in Nigeria verdict
    • Provides jobs, taxes and investment that have directly benefited Nigeria
    • However have caused environmental issues like oil spills as well as exploiting local workers
  • Environmental impacts of economic development - industrial growth
    • Lagos pollutants go straight into river causing harm to people and ecosystems
    • 80% of forests have been destroyed due to urban expansion
    • Poisonous gases cause respiratory problems
  • Environmental impacts of economic development - Urban growth
    • Rubbish is dumped everywhere
    • Traffic congestion leads to air pollution
  • Environmental impacts of economic development - Mining and extracting oil
    • Bodo in Niger delta was polluted by 11 million gallons of oil leading to ecosystems losses
    • Shell paid 55million pound of damage showing firms will be more careful in the future
  • NEE
    Newly emerging economy
  • GNI
    Gross national income per capita is average salary / money per person
  • LICs usual work
    Agriculture