the changing economic world

• development is the progress of a country in terms of economic growth, the use of technology and human welfare with the aim of improving people's lives.
• LICs - GNI of $1045 or less

  HICs - GNI of $12,746 or above

  NEEs - countries that have begun to experience high rate of economic development with rapid industrialisation
• development indicators

  • infant mortality rate
  • safe water access
  • full time education
  • life expectancy
  • primary school education
  • gross national product (amount of money a country has)
  • patients per doctor
  • urban population
  • death rate
  • daily calorie consumption
  • birth rate
  • literacy rate
• demographic transition model

  • shows how the population of a country may change over time in relation to its level of development
  • as countries develop, they move towards the right
  • advantages - dynamic, showing changes through time, helps to explain what has happened and why in that particular sequence
  • disadvantages - based on industrialised countries so not relevant to non-industrialising countries, makes assumptions, countries in south east africa may have seen a rise in death rate as a result of HIV/Aids

  A) death rate

  B) birth rate

  C) total population

  D) natural increase

  E) natural decrease

  
• population pyramids

  • shows the number of males and females within different age groups within the population
  • easy to visualise

  
• causes of uneven development

  • landlocked countries
  • topography
  • climatic hazards
  • civil war
  • poaching
  • desertification
  • corruption
  • poverty trap
  • disease
• the poverty cycle means that countries such as congo which only have $400 gdp per capita struggle to get out of the cycle, as low income means that low economy growth means people will not invest from outside the country, it will stay stuck in poverty.
• 45 of the world's landlocked countries are LICs or NEEs and this means that it costs them more to trade as it is harder to travel over land than sea, so they spend lots of money and don't get much back.
• uneven development - physical causes

  • landlocked countries - no access to seas, cut off from seaborne trade, cut off from sea resources, eg fishing, less money through tourism
  • climate related diseases - many countries are vulnerable to diseases influenced by weather, affects ability of healthy population to work
  • weather impacts - extreme weather slows development, can be costly to repair damaged infrastructure, cause food insecurities and loss of income
  • water quality - people waste hours walking to collect water, poor irrigation limits commercial farming, clean water ensures good health
• uneven development results in international migration

  • in Senegal, 50% of its population are below 24 year old so there aren't enough jobs for them, so they move away for jobs
  • Niger cannot afford to invest properly in its education to train young people and cannot provide work for them, many look for work elsewhere
• disparities in health

  • in UK infant mortality if 4 per 1000 births, in Chad it is 85 per 1000 births
  • main causes of death in HICs are heart/lung diseases, cancer and diabetes, commonly caused by 'luxuries' we can afford such as alcohol, cigarettes and unhealthy food
  • Japan's life expectancy is 85, Somalia's is only 52
  • incidence of diseases such as HIV/AIDs and malaria are more prevalent in LICs as a result of a lack of awareness and no access/little access to preventative measures
• primary industry - extraction of raw materials, eg a farmer, fisherman

  secondary industry - remanufacturing of raw materials, eg car or clothes manufacturer

  tertiary industry - provision of goods and services, eg shop assistant, doctor, lawyer

  quaternary industry - research and development industry with high skills, eg Apple inventor
• ways Nigeria's economic industry is changing

  • new factories open, eg clothing
  • coal becomes cheaper to import than mine locally
  • new universities start to open
• ways Nigeria's industrial structure is changing

  • over half of its GDP now comes from manufacturing and service industries
  • Nollywood is the 3rd biggest film industry
  • oil accounts for 14% of the country's GDP and 98% of the country's export earnings
• positives of oil production in nigeria

  • change in economy
  • has world's 10th highest level of oil reserves
  • oil accounts for 98% of country's export earnings and 14% of country's GDP
• negatives of oil production in nigeria

  • pollutes environment - oil spills
  • loses 400,000 barrels of oil a day to theft and sabotage costing $20 billion a year
  • destroys fishing grounds and mangroves, affecting communities
• Nigeria

  • located in the west of Africa, it borders chad, benin, niger and cameroon
  • next to the south atlantic ocean
  • 3.79x larger than the UK and its population is 2.97x larger
• global importance of nigeria

  • in 2014 it became world's 21st largest economy
  • its economy has diversified, which now includes financial services, telecommunications and the media
  • supplies 2.7% of the world's oil
  • 5th largest contributor to UN peacekeeping missions around the world
• newly emerging economies

  • countries which have begun to experience high rates of economic development with rapid industrialisation
  • no longer primarily rely on agriculture, have made gains in infrastructure and industrial growth and are experiencing increasing levels of investment
• Nigeria's GDP has increased from $102 billion in 2006 to $560 billion in 2015, however most people still live on less than $1.25 a day
• trans national corporations are companies which are global, usually with the HQ in a HIC and factories and production plants in LICs.
• informal sector includes jobs that are not formally recognised by the government, such as street vendors, food stands or pottery makers.
• Shell

  • a British/Dutch company
  • been in nigeria since 1958
  • operates in the Niger Delta
• advantages of TNCs

  • provide employment and development of new skills and invest in local businesses
  • more money is spent in economy to be able to invest in government projects
  • investment by companies in local infrastructure, transport networks and education
  • valuable export revenues are earned
• disadvantages of TNCs

  • local workers can be poorly paid
  • working conditions are sometimes very poor and are difficult in hot humid conditions
  • management of jobs often goes to foreign employees brought in by TNCs rather than locals
  • much of the profit generated will go abroad - economic leakage
  • grants used to attract TNCs could have been spent to invest in Nigerian industry
• advantages of Shell in nigeria

  • provides electricity and running water for local communities in Niger delta
  • helped create and aids response programme to improve health of people in Niger delta
  • paid compensation ($4500 each) to locals to build more infrastructure
  • employs 26,000 people directly and indirectly
  • shell's development programme builds schools and awards more than 3000 secondary school and university scholarships annually
  • shell's development programme offers micro-credit loans to small businesses
  • more than 3000 people visit shell's development programme's medical clinics yearly
• disadvantages of Shell in Nigeria

  • responsible for oil spills every year which has polluted the Niger delta
  • has had to pay out millions of pounds in compensation for damaging the local environment
  • destroyed environment means there is less food available as fish are killed, so children can't go to school, and their source of income is killed off
  • corrupt leaders manipulate money
  • explosion in 2009 killed thousands as they burned to death