A: THE PROCESS OF ECONOMIC DEVELOPMENT

i hate gc :prayingemoji: pls i want to do well

Free trade

A system where buyers and sellers are not limited by taxes on imports and exports.

Fair trade

A way of buying and selling products that aims to pay the producer a fair price

Push factors of migration

1) Searching for a better environment (education, healthcare)

2) Dense population (insufficient resources)

3) Wars/conflict - safety reasons

4) Political reasons (lack of freedom)

5) Bad/unstable climate (heavy rainfall)

Pull factors of migration

1) Better living standards (free healthcare)

2) Low crime rate (more safe)

3) Low tax

4) Work/life balance

5) Stable climate

Example of Wars/conflict 

Ukraine is currently at war with Russia, making it unsafe for citizens. 

- Approximately 50,000 casualties in total

- Psychological effects (mental illnesses)

- Financial effects (destroyed property)

- Possessing a social strife (disagreement) may lead to consequences

- Political turmoil (confusion, disorder)

Example of Dense population

Bangladesh has a high population density, leading to problems within.

- People living in coastal areas vulnerable to effects of climate change (sea level rise, flooding, storms) 

- Traffic congestion 

- Deforestation + natural resource degradation -> more resources required 

- Food insecurity as high demand for food -> poverty rate increases

- Increased health risks -> widespread diseases and less developed health services

Example of Low crime rate 

According to the Global Peace Index, Iceland has the lowest crime rate. 

- It has a small homogenous population, which strengthens the citizens’ sense of community and responsibility.

Example of Free healthcare

Brazil provides free healthcare

- Allowing more people to have access to medicine despite their financial situation

- More effective health outcomes → higher living quality

Example of More job opportunities

Hong Kong is a modernised area with many opportunities for working

- Less unemployment rate → lower poverty numbers

Pros of Free Trade

1. Creates more job opportunities (e.g. manufacturing free trade products)

2. Products can be sold at competitive prices and countries can make more money

3. Higher total production

Cons of Free Trade

1. The protection of local industries may only benefit a small number of people → poor working conditions

2. Corrupt (dishonest or illegal) companies can make more money

Pros of Fair Trade

1. Safe working conditions 

- Specific criteria referring to worker safety + rights

- Reasonable working hours

- Freedom from child labour

- Protection from hazardous material

2. Fair trade premiums (an extra payment) are given to workers who join 

-> encouraging community development

Cons of Fair Trade

1. Fewer people can afford to buy the products as they are more expensive

2. Success is limited and fairtrade doesn’t benefit wider communities

Human Development Index (HDI)

An index to measure a country’s achievements in health, knowledge, and standard of living. 

Pros of HDI

1. More detailed assessment than GDP - Other than income, considers health and education 

-> highlighting that these criteria are equally important

2. Comparison between countries + prompts debates on policy priorities to improve outcomes on human development

Cons of HDI

1. It doesn’t consider other crucial factors of human development (e.g. human rights, political freedom, and income inequality)

2.  The education factor is heavily focused on literacy rates and not the quality of education.

Top 5 Highest HDI

1. Switzerland

2. Norway

3. Iceland

4. Hong Kong

5. Australia

Lowest 5 HDI

1. Niger

2. Central African Republic

3. Burundi

4. Mali

5. Mozambique

Happy Planet Index (HPI)

An index that measures human well-being and environmental impact

Pros of HPI

1. Goes beyond GDP - life expectancy, experienced well-being, and ecological footprint used for measurement 

   -> more holistic view of how a country is caring for citizens’ well being

2. Encourages countries to balance ecological health (enhancing happiness but minimising environmental harm)

   -> consider the effects of their policies + practices

Cons of HPI

1. May be biassed - Some areas are disregarded (e.g. human rights, political freedom) 

   -> influencing the accuracy and representativeness of happiness levels + global inequalities 

2. Happiness and satisfaction are subjective and individual 

   -> may not be suitable for measuring political matters

Top 5 Happiest Countries

1. Costa Rica

2. Vanuatu

3. Colombia

4. Switzerland

5. Ecuador

5 Least Happy Countries

1. Qatar

2. Mongolia

3. Central African Republic

4. Lesotho

5. Zimbabwe

Gross Domestic Product (GDP)

The measure of total market value of the goods and services a country's economy produces.

Pros of GDP

1. It provides a detailed and transparent measure of a country’s economic activity 

-> consumption, investment, government spending, and net exports

2. Comparisons of economic development between countries over time

Cons of GDP

1. It doesn’t account for non-market or non-payment activities (e.g. volunteer work)

   -> underestimates GDP level 

2. It doesn’t reflect the satisfaction/quality of citizens’ lives

   -> only measures economic output 

Top 5 Highest GDP

1. United States 

2. China

3. Japan

4. Germany

5. India

Lowest 5 GDP

1. Tuvalu

2. Nauru

3. Kiribati

4. Palau

5. Marshall Islands

Describing Fair Trade

It helps poor producers provide money to families but it can negatively impact the trading industry

Describing Free Trade

Although it can bring benefits for those buying products imported to a country, it can harm the producers

Pros of Migration

1. Remittances

2. Available jobs and skill gaps can be filled

Examples of Remittances

40 billion USD goes to the Philippines as remittances from migrants (e.g. domestic helpers)

Examples of Available jobs and skill gaps can be filled

Korea formed an employment permit system and an agreement with Asian countries, granting temporary migration for people to take on unskilled or semi-skilled job opportunities

Cons of Migration

1. Brain Drain

2. Jobs that exploit migrants

Example of Brain Drain

Due to the lack of development in the Philippines, people  who received high education are unable to find high income jobs and opportunities

Example of Jobs that exploit migrants

In Hong Kong, some domestic helpers may not have regular day offs

Push factors for Migration

1. Searching for a better environment (e.g. education, healthcare)

2. Finance and trading (e.g. high tax)

3. Wars/conflict - safety reasons

4. Political reasons (e.g. lack of freedom) 

5. Dense population (traffic congestion)

Examples for Wars/conflict

Ukraine is currently at war with Russia, making it unsafe for citizens. 

- Approximately 50,000 casualties in total

- Psychological effects (mental illness)

- Financial effects (destroyed property)

- Possessing a social strife (disagreement) may lead to consequences

- Political turmoil (confusion, disorder)

Examples for Dense population

Bangladesh has a high population density, leading to problems within.

- People living in coastal areas vulnerable to effects of climate change (e.g. sea level rise, flooding, storms) 

- Traffic congestion 

- Deforestation + natural resource degradation -> more resources required 

- Food insecurity as high demand for food -> poverty rate increases

- Increased health risks -> widespread diseases and less developed health services

Pull factors for Migration

1. Low crime rate

2. Free healthcare

3. More job opportunities

Examples of Low crime rate

According to the Global Peace Index, Iceland has the lowest crime rate. 

- It has a small homogenous population, which strengthens the citizens’ sense of community and responsibility.

Examples of Free healthcare

Brazil provides free healthcare

→ more citizens can afford for medical assistance no matter their financial situation