the changing economic world

• development 


  the progress in economic growth

  • as a counry develops, it usually means that people's standard of living and QoL will improve

  - there are many measures of development

  - some measures look at the country's level of economic development, while others look at social factors that provide information about people's QoL
• economic measures of development

  GNI (gross national income)

  • the total value of goods and services produced by a country in a year, including income from overseas
  • measures wealth and gets higher when country develops

  GNI PER HEAD

  • the GNI divided by the population of a country
  • measures wealth and gets higher when country develops
• social measures of development

  BIRTH RATE - number of live births per 1000 of pop. per year

  • measures education and gets lower as country develops

  DEATH RATE - number of deaths per 1000 of pop. per year

  • measures health and gets lower as country develops

  INFANT MORTALITY RATE - number of babies who die before the age of 1 per 1000 babies born

  • measures health and gets lower as country develops

  PEOPLE PER DOCTOR - average number of people for each doctor

  • measures health and gets lower as country develops
• social measures of development

  LITERACY RATE - % of adults who can read and write

  • measures education and gets higher as country develops

  ACCESS TO SAFE WATER - % of people who have access to safe, clean water

  • measures health and gets high as country develops

  LIFE EXPECTANCY - average age of a person can expect to live

  • measures health and gets higher as country develops
• some measures have limitations 


  - GNI per head can be misleading when used on its own as it is an average, and variations within the country do not show up

  - social indicators can be misleading if used on their own because, as a country develops, some aspects develop before others
• countries are classified based on their wealth


  - the most common way of classifying a country's level of development is by looking at their wealth

  e.g.

  • HIC's are the wealthiest in the world, where the GNI per head is high
  • LIC's are the poorest in the world, where the GNI per head is low
  • some NEE's are getting richer as their economy moves from being based on primary industry to secondary industry
• HDI (human development index)


  - calculated by using income (GNI per head), life expectancy and education level.

  - every country has an HDI value between 0 (least developed) to 1 (most developed)

  - this combination of measures tll you the country's level of economic development and the people's QoL
• DTM (dmographic transition model)

  - shows how birth rates and death rates affect population growth

  - when birth rate is higher than death rate, population grows (natural increase)

  - it's caled natural decrease when death rate is higher than birth rate

  - birth and death rates differ from country to country, depending on the level of development
• different stages in the DTM

  STAGE 1

  • high fluctuating
  • high birth and death rate, both fluctuate as there is disease, famine and war

  STAGE 2

  • early expanding
  • death rate decreases, birth rate remains high

  STAGE 3

  • late expanding (NEE's)
  • birth rate drops rapidly, death rate decreases slowly

  STAGE 4

  • low fluctuating
  • birth rate tends to fluctuate depending

  STAGE 5

  • natural decrease
  • birth rate very low, death rate increases slightly because of ageing population
• physical causes of uneven development

  • lndlocked countries have no access to seas, being cut off fro trading
  • climate affects crops and also can cause diseases, affecting people that work
  • extreme weathers slow development
  • lack of supplies and safe water
• economic causes of uneven development

  POOR TRADE LINKS

  • if a country has poor trade links, it won't make a lot of money, so there is less to spend on development

  LOSS OF DEBT

  • very poor countries may borrow money from other countries after a natural disaster
  • this money has to be paid back, so there is less money for development

  ECONOMY BASED ON PRIMARY PRODUCTS

  • primary products are sold for less profit than manufactured goods
  • price of them may also fluctuate
• historical causes of uneven development

  COLONISATION

  • countries that have been colonised are often lower developed
  • colonisation ha removed raw materials and sold back manufactured goods, meaning profits went to the colonisers

  CONFLICT

  • war and civil war can slow development, as money is spent on arms, and training soldiers
  • money is needed to reapir damages that the war has caused
• uneven development has consequences

  - leads to differences in wealth, health and has caused large flows of international migration
• uneven development consequences - wealth

  • people in more developed countries have a higher income than less developed counties
  • wealth can impact peple's standard of living - the wealth can afford goods and services that makes their lives more comfortable
• uneven development consequences - health

  • healthcare in more developed countries is usually better than in less developed countries
  • people in HIC's live longer
  • infant mortality ratre is much higher in LIC's
  • lack of healthcare can lead to deaths and diseases
• uneven development cosequences - migration

  • many peole from LIC's and NEE's move to HIC's to escape conflict of improve their QoL
  • migrant workers contribute to the economics of HIC's instead of where they came from, further increasing development gap
• reducing development gap


  INVESTMENT

  • many countries and TNC's choose to invest money in LIC's to increase their profits.
  • investment can invlove: better infrastructure, an increase in services and development of new industries

  INDUSTRIAL DEVELOPMENT

  • brings employment, higher income, and oppertunities to invest in housiing, educaton and infrastructure (multiplier effect)

  multiplier effect: factory opens and creates employment and money, which can be invested in schools, roads,services, meaning the population becomes better, so there are more oppertunities for now investments
• reducing development gap 


  AID

  • money or resources is given to a country by a charity or foreign government
  • aid can take the form of: money (grants or loans), emergency supplies, food like wheat or rice, people with special skills e.g. doctors or engineers

  INTERMEDIATE TECHNOLOGY

  • sustainable technology to improve QoL, but is also suitable to use for locals and affordable to buy
  • often associated with agriculture, water or health
• reducing development gap 


  FAIR TRADE

  • seeks to improve the QoL for farmers and helps to ensure thar producers in poor countries get a fair deal
  • part of the price is invested in local community development projects
  • in return for fairtrade, the farmer must agree to farm in an environmentally-friendly way
• reducing development gap


  FREE TRADE

  • when countries do not charge tarrifs and quotes to restrict trade with eah other, which has potential to benefit the pooer countries
  • trading groups are countries that have grouped together to increase the level of trade between them by cuttin gtarrifs and discouraging trading with non-members e.g.the EU (european union)
  • advantages of poorer countries joining a trade group:

  - encourages trade between member countries

  - richer countries cannot shop around for cheaper prices

  - members are able to get higher prices for their goods
• reducing development gap 


  DEBT RELIEF

  • many of the poorest countries have borrowed money from other countries to develop their economics, which led to a debt crisis
  • at a meeting in 2005, the world's richest countries agreed to cancel the debts of many of the poorest countries.
  • to qualitfy for debt relief, countries had to:

  - demonstrate they could manage their own facilities

  - show there was no corruption in their government

  - agree to spend the saved debt on education, healthcare and reducing poverty
• reducing development gap 


  MICROFINANCE LOANS

  • microfinance is when small loans are given to the poor in LIC's, which enables them to start their own business and become self-sufficient
• TOURISM - JAMAICA EXAMPLE

  - Jamaica is one of the largest islands in the west indies

  - population is 2.7 million

  - economy is based upon a range of minerals, agricultural products, and manufcturing

  - has suffered from slow growth, debt and high unemployment, despite being an MIC

  • tourism is one of the few growth sectors of Jamaica's economy, and has become a popluar tourist destination
  • has beautiful beaches, sunny and warm climate, and is a hub for cruise ships
  • tourism generates taxes, employment and income, and has helped raised development in Jamaica, reducing development gap
• TOURISM - JAMAICA EXAMPLE

  ECONOMY

  • in 2014 tourism contributed 245 of Jamaica's GDP. income from tourism is US$2 billion each year, and taxes are paid to government for development

  EMPLOYMENT

  • tourism is one of the main source of employment in Jamaica.helps boost the economy
  • provides jobs for 200,000 people

  however...

  EVIRONMENT

  • tourism can create environmental problems e.g. footpath erosion, waste and harmful emissions
• how has UK economy changed

  - before 1800's most people worked in the primary sector (e.g. farming, mining)

  - however the industrial revolution made many people move to towns and cities to work in the secindary sector (e.g. manufactoring)

  - in the last few decades, it all changed again, with many people workig in the tertiary sector (e.g. healthcare, offices, retail)

  - most recently, the quaternary sector has developed (e.g. jobs in research, information technology and the media)
• why Uk economy has changed

  DE-INDUSTRIALISATION

  • the decline in seconday sector and the growth in tertiary and quaternary sector. this has happened because:

  - other countries e.g. China can produce cheaper goods

  GLOBALISATION

  • the growth and spread of ideas around the world. can involve the spread of people, culture, goods
  • partly responsible for the explosion of the quaternary sector, with many people now working on global brands and products. contributed to the decline in manufactoring

  GOVERNMENT POLICIES

  • government decisions on investment and support for businesses affect the economy
• industry has impacts on the physical environment

  - industry can have negative effects:

  • factories may reease pollutants or greenhouse gases. running them will reqire lots of energy and water
  • can also damage wildlife and their habitats
  • modern industrial developments are more envirnmentally friendly than older ones due to increasing costs on eergy and waste disposal
• UK has strong links to other countries

  TRADE

  • the UK trades globally, and its overseas exports are worth over £160 billion/year

  CULTURE

  • UK culture is exported worldwide e.g. TV shows
  • immigration has helped shape UK's culture, leading to cultural diversity in food, art, music ect.

  TRANSPORT

  • the channel tunnel links UK and France.
  • has large airports which acts as an international hub

  ELECTRONIC COMMUNICATION

  • phones and internet make it easier for people to communicate all over the world, strengthening UK's overseas links
• UK transport networks

  - congested transport can slow economic development, so UK is improving its:

  • roads - 2022, government announced 4 schemes to improve transport networks
  • railways - crossrails will increase london's rail capacity by 10%. the proposed HS2 line would increase capacity and allow faster journeys between major english cities
  • airports - new runway in Heathrow would allow 700 new planes a day, but would increase noise and air pollution
  • ports - new port opened in River thames, and can handle very large container ships and is hoped to become a hub for global trade
• north-south divide in UK

  - refers to te real or imagined cultural and economic differences between the north and south of england

  • in general, the south has higher standards of living, longer life expectance, and higher income. however it has higher house prices and more congestion
  • during the industrial revolution, heavy industries and engineering thrived in cities like Manchester, sheffield and glasgw, generating wealth and prosperity
  • london is a major global financial sector and has grown faster than the rst of UK, which has led to high house prices
• north-south divide in UK

  - there have been many attempts to adress the prolems caused by de-industrialisation

  • foreign investment has been encouraged in the north
  • in 2015, gvernment launched a new strategy fr a 'northern powerhouse' to balance the wealth and influece
• science parks 


  - a group of scientific and technical knowedged-based businesses located in a single site

  - most are associaed with universities, enabling them to use research facilities and employ skilled graduates

  - science parks may include support services e.g. financila and marketing
• business parks 


  - an area of land accupied by a cluster of businesses

  - usuallt located on the edges of towns because:

  • land tends to be cheaper than in town centres
  • acces in better for workers and distribution
  • businesses can benefit working together