the changing economic world

• what is development

  development is an improvement in living standards through better use of resources.

  economic = progress in economic growth through levels of industrialisation and use of technology.

  social = improvement in people standard of living e.g. water (clean) and electricity.

  environmental = advances in the management and protection of the environment.
• measuring development

  these are used to compare and understand a countries level of development.
• measuring development (economic indicators)

  employment type = proportion of the population working in primary, secondary, tertiary and quaternary industries.

  gross domestic product per capita = total value of goods and services produced in a country per person, per year.

  gross national income per capita = average of gross national income per person, per year in US dollars.
• measuring development (social indicators)

  infant mortality = number of children who died before reaching 1 per 1000 babies born.

  literacy rate = percentage of population over the age of 15 who can read and write.

  life expectancy = average lifespan of someone born in that country.
• measuring development (mixed indicators)

  human development index (HDI) = a number that uses life expectancy, education level and income per person.
• the demographic transition model

  The demographic transition model (DTM) shows population change over time, it studies how birth rate and death rate affect the total population of the country.

  stage 1 = high dr, high br, steady e.g. tribes

  stage 2 = declining dr, low br, very high e.g. Kenya

  stage 3 = rapidly falling dr, low br, high e.g. India

  stage 4 = low dr, low br , zero e.g. uk

  stage 5 = slowly falling dr , low br , negative e.g. japan
• variations in the level of development

  LICs = poorest countries in the world, GNI per capita is low and most citizens have a low standard of living.

  NEEs = these countries are getting richer as their economy is progressing from the primary industry to the secondary industry. greater exports leads to better wages.

  HICs = these countries are wealthy with a high GNI per capita and standards of living. these countries can spend money on services
• causes of uneven development

  Development is globally uneven with most HICs located in Europe, North America and Oceania. most NEEs are in Asia and South America, whilst most LICs are in Africa. development can also vary within countries.
• physical factors affecting uneven development

  natural resources = fuel sources such as oil, minerals and metals for fuel, availability for timber, access to safe water.

  natural hazards = risk of tectonic hazards, benefit from volcanic material and floodwater, frequent hazards undermines redevelopment.

  climate = reliability of rainfall to benefit farming, extreme climates limit industry and health, climate can attract tourists.

  location/terrain = landlocked countries may find trade difficult, mountainous terrain makes farming difficult, scenery attracts tourists.
• human factors affecting uneven development

  aid = can help some countries develop key features/projects for infrastructure faster, can improve services (e.g. schools, hospitals, roads), too much reliance on aid might stop all the trade links becoming established.

  trade = countries that export more than the imports have a trade surplus, improve national economy, good trade relationships, trading goods and services is more profitable than raw material.
• human factors affecting uneven development

  education = creates skilled workforce therefore more goods and services produced, educated people earn more money therefore they pay more taxes. this money can help develop the country in the future.

  health = lack of clean water and poor healthcare means that there is a large number of people with disease, people who are ill cannot work so there is little economy contribution and more money spent on healthcare means there is less money to develop.
• human factors affecting uneven development

  politics = corruption in local and national governments, stability of government affect countries trade ability, ability of country to invest infrastructure and services.

  history = colonialism helped Europe develop, but slow down development in other countries, countries that went through industrialisation a while ago, have now developed further.
• consequences of uneven development

  Levels of development are different in different countries. This uneven development has consequences for countries, especially in wealth, health, and migration.

  wealth = people in more developed countries have higher incomes than less developed countries.

  health = better healthcare means that people in more developed countries live longer than those in less developed countries.

  migration = if nearby countries have high levels of development or are secure, people want to seek better opportunities and standard of living.
• reducing the global development gap

  microfinance loans = this involves people in LICs receiving small loans from traditional banks.

  + loans enable people to begin their own businesses.

  - it's not very clear they can reduce poverty at a large-scale.

  foreign direct investment = this is when one country buys property or infrastructure in another country.

  + leads to better access to finance, technology and expertise.

  - investment can come with strings attached that countries will need to comply with.
• reducing the global development gap

  aid = this is given by one country to another as money or resources.

  + improve literacy rates, building dams, improving agriculture.

  - can be wasted by corrupt governments or they can become too reliant on aid.

  debt relief = this is a countries debt is cancelled or interest rates are lowered.

  + means more money can be spent on development.

  - locals might not always get to say. Some aid can be tied under a condition from the donor country.
• reducing the global development gap

  fair trade = this is a movement where farmers get a fair price for the goods produced.

  + paid fairly so they can develop schools and health centres.

  - only a tiny proportion of the extra money reaches produces.

  technology = includes tools, machines and affordable equipment that improve quality of life.

  + renewable energy is less expensive and polluting.

  - requires initial investment and skills in operating technology.
• types of aid

  short term = emergency help in response to a natural disaster.

  bilateral = aid from one country to another.

  long term = sustainable aid which seeks to improve resilience of communities.

  tied aid = aid give to another country with certain conditions.

  voluntary = money donated by general public in richer countries and distributed by NGOs ( e.g. Oxfam)

  multi lateral = richer governments give money to international organisations such as the World Bank which redistributes to other countries.