Section B Changing economic world Q2

• 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