The Changing Economic World

• development - the progress a country has made in terms of economic growth, human welfare and use of technology
• human development index (HDI) - measures how well countries are doing at improving their people's health, education and income
• economic development - an increase in GDP per capita over time
• social indicators - factors that show how well a society is functioning such as life expectancy, literacy rate and infant mortality rate
• social development - improvements to social conditions such as healthcare, housing and education
• economic development - when an economy grows rapidly over time
• Demographic development - increase in life expectancy, overall fall in death rate and falling birth rate
• cultural development - improved equality
• Political development- better say on who is in power
• PPP - purchasing power parity

  makes data more comparable as goods may cost less or more depending on a countries economic state
• Measures of development

  • GNI per capita - total income of a country
  • Literacy Rate
  • life expectancy
  • Number of doctors per 1000
  • Access to safe drinking water (%)
  • Infant Mortality Rate (per 1000 live births)
  • Birth Rate
• Factors that could limit use of indicators of development

  • Out of date data
  • No census / inaccuracies in records
  • may not know base (in percentage increase)
  • government corruption
  • may not take into account informal economies
• Demographic Transition Model: A model that describes the relationship between population size and age structure and the rate of change in a country's population

  
• Emancipation of Women - The right of women to vote and to run for office.
• Nigeria - In West Africa’s bordering Benin to the west, Cameroon to the East and Niger to the north. The Gulf of Guinea is directly below Nigeria, providing it with international links.
• Nigeria‘s regional importance

  • in 2020, largest GDP in Africa, 3rd largest manufacturing sector
  • highest African country population - 206million
  • 35% employed in agriculture
• Nigeria’s global importance

  • in 2020, Nigeria ranked 27th by GDP
  • 15th largest producer of oil 2.2%
  • 5th highest contributor to UN Peacekeeping missions
  • Nollywood second largest film industry behind Hollywood USA
• Political context of Nigeria -

  • Nigeria fully independent from UK in 1966
  • Dictatorships and Civil War due to power struggles 1967-1970
  • Since 1999, stable government
  • progress shown in Ebola outbreak, only 8 deaths
• Social context of Nigeria

  • multi faith, multi ethnic country. Top religions are Christianity, Islam, and traditional African religions (Yoruba, Hausa, Igbo)
  • In 1967 Igbo attempted to separate from Nigeria to become Republic of Biafrans, defeated 1970
  • Rise of islamic fundemental group Boko Haram
  • Economic inequalities between North and South
• Cultural context - Nigeria

  • afrobeat and fela kuti music
  • Nollywood
  • nigeria has won African cup of nations 3 times
  • premier league Nigerian players - eg victor moses
• Primary sector - The production of raw materials from the earth's surface, such as agriculture, fishing, and mining.
• Secondary sector - manufacturing, construction, and services.
• Tertiary sector - services, finance, insurance, real estate, transport, communication
• Quaternary sector- knowledge, research, skill
• Quinary sector - decision making, government
• Why is Nigeria’s economy changing?

  - rapid technological advances

  • increased use of telecommunications, so global trade and finance
  • investment in science and technology due to Nigeria’s large population having potential
  • greater environmental concern
• Nigeria’s sources of income -

  • primary products- cocoa, timber, oil palm
  • oil accounts for 14% of GDP and 98% of export earnings however vulnerable to world oil price changes
• Influence of China on Nigeria’s economy

  • China is Nigeria’s main export partner, economic investment - $75 million direct investment (2003)
  • As a result, improved infrastructure, eg $12b railway along Nigeria’s coast
  • Because China needs Nigeria’s resources. In 2014, a 10$b Chinese contract signed for oil drilling here
• Manufacturing in Nigeria

  • Dangote Cement- expanded into 13 other African countries
  • Attracts foreign direct investment
  • more employees
• Trans-national Corporation (TNC) - A company that operates in more than one country, has its headquarters in an HIC
• Why do TNCs operate in LICs?

  Cheaper labour

  Tax incentive

  Laxer environmental laws

  Access to under market
• Shell is a TNC with its HQ in London. It is a multinational oil and gas company, operating in all continents.
• Shell‘s work in Nigeria is focused on the Niger Delta. Due to its terrain (swampy river) it is extremely hard to extract oil so Shell has invested huge amount of money and expertise
• Advantages of Shell TNC in the Niger Delta

  • Direct employment for 2700 people and 9000 contractors - 97% Nigerian
  • $50k per year spent on health care benefitting 250k
  • provides 3000 scholarships to secondary schools and university
  • Shell’s enterprise ‘All On’ finances renewable energy like solar power- providing for 75% of the population not connected to the national power grid
  • Shell is working with the government to build gas power plants to support the growing industrial sector
• disadvantages of Shell operations in the Niger Delta

  • oil spills from pipelines and refineries - pollution, lower fishing and agricultural yields, 2000 people filed lawsuits against it
  • oil theft and sabotages costing billions per year
  • most crude oil exported to be refined in USA or Europe so profit doesn’t go to Nigeria
  • human rights abuses - torture and murder - against Ogoni people in the ND
• Aid - money given to a country by another country or international organisation to help them to develop
• bilateral aid - aid given to one country by another country, usually in the form of loans
• voluntary aid

  multilateral aid

  short or long term
• Aid examples:

  • One Laptop Per Child - Google to South America and Africa
  • UN set goal of aid to 0.7% of GDP
  • Tanzara Railway by China for Tanzania and Zambia
• Economic Investment - The investment of money into a business or project, developing the country by multiplier effect