Section B: The changing economic world

• Demographic Transition Model


  Graphs Birth rate, Death rate and Natural Increase for countries of different levels of development
• Population will increase


  If birth rate is greater than death rate
• Population will naturally decrease


  If the death rate is greater than birth rate
• Rates of Natural Increase

  Are much higher in the Lower Income Countries of the world
• Stable or declining Population

  In many High Income Countries
• Stages 1 (High fluctuating) and 2 (Early expanding)

  Have high brith rates and death rates high or starting to decline - typical in LICs that are growing rapidly with low life expectancies
• Stage 3 (Late expanding)

  Have population growth with high but declining birth rates and low death rates - typical of Newly Emerging Economies
• Stage 4 (low fluctuating)


  Low birth rates and low death rates, typical of High Income Coutnries
• Stage 5 (population decline and ageing)


  the latest stage where life expectancy is going up and birth rate falling.
• Consequence of ageing (stage 5)


  Country has less people to work and more to look after
• Consequence of growing population (stage 2 & 3)


  Country has many workers for industries but also increasing numbers of people to provide education, housing, medical care for
• Stage 1 Image

  
• Stage 2 image

  
• Stage 3 image

  
• Stage 4 image

  
• Stage 5 image

  
• Uneven development


  The gap in economic conditions between regions, such as LICs and HICs, because of globalization of the economy
• Global inequality


  The differences in wealth and power among countries
• Poverty Cycle


  The cycle by which being poor leads to people being poor.
• Poverty Cycle diagram

  
• LICs


  Produce mainly primary products which have lower values
• HICs


  produce manufactured goods and services of HIGH value
• World trade disadvantages poorer countries

  as they pay Import tariffs (taxes) on goods, HICS pay subsidies (payments from governments to the producer) which makes them cheaper and world trade system encourages a "race to the bottom"
• PHYSICAL factors


  The natural things that can affect development, such as climate, natural resources and proximity to the sea
• Natural Resources


  Raw materials supplied by nature, can boost development if used correctly or limit development if held in the hands of a corrupt few
• Climate related disease


  Many tropical countries unfortunately suffer from diseases that thrive in hot humid conditions, such as Dengue Fever and Malaria. People who get these diseases are incapacitated and cannot work or may even die, limiting development.
• Being landlocked with bad neighbours -

  Countries that have no access to the sea are at the mercy of their neighbours e.g. Rwanda
• Climatic hazards


  Hurricanes and drought are more likely to strike some countries than others. Could have a devastating impact on development. Diverting valuable resources away from other development objectives.
• Historical factors


  Such as colonial legacy of many countries across the globe has held many countries back. Loss of people to slavery and natural resources
• First World countries


  Mainly capitalist free-market countries found in Western Europe and their old colonies such as the USA and Australia
• Second world


  Centrally planned, socialist or communist countries. These countries had different structure to those of the first world and had much more government control of business and public services.
• Third world


  The least developed countries and developing countries
• First, second, third world countries

  Old method of classifying world using the way governments were organised. Vastly out of date
• North-South Divide


  Created in 1971 as a division that exists between the wealthy developed countries, known collectively as "the North", and the poorer developing countries (least developed countries), or "the South."
• Problem with N-S divide

  Out of date, many countries e.g.China and India rapidly developing
• Five - fold division based on wealth

  Contained Rich industrialising countries, Oil Exporting countries, New Industrializing countries, Former centrally planned economies (previous communist systems) and Heavily indebted poor countries
• GNI (Gross National Income)


  Uses wealth as an economic way of dividing up the world according to the World Bank
• Map of GNI

  
• Map of first, second and third worlds

  
• Five fold division of wealth map