CHANGING ECONOMIC WORLD - ALL

Nigeria’s social context

Nigeria gained independence from the UK in 1960. Nigeria has more than 500 ethnic groups, each with its own language. However three ethnic groups dominate- Igbo, Hausa and Yoruba. The south of the country is predominantly Christian whilst the North is Muslim.

Nigeria’s Environmental Context

Nigeria is located 5-12°N of the Equator in tropical Africa. Coastal regions consist of Mangroves and freshwater swamps. Tropical rainforest grows in the hot and humid south and savanna grassland grows in the hot dry climate further north. Much of the natural vegetation has been replaced by agriculture.

Nigeria’s political context

Nigeria saw three civil wars (1967-70). There’s now a stable democracy with regular elections. There’s still conflict, especially in the North. Boko Haram, an extremist group, wants to abolish democracy set up its own government under Sharia Law. At least 17,000 people have been killed since 2002 and half a million have left the area. In 2015, the world’s worst ever Ebola outbreak ( over 11,000 died), however only 8 people died in Nigeria due to great healthcare, planning and screening

Nigeria’s Relationships

Nigeria still trades with the UK but more of its trade is now with some of the largest economies in the world, including China, India, USA etc. With USA being Nigeria’s biggest exporter - 17% and China being Nigeria’s biggest importer - 19%. Oil is Nigeria’s main export with 95% of export earning coming from oil.

Nigeria’s Economy

Nigeria is now one of the fastest growing economies in the world, having the largest economy in Africa. By 2020 it was predicted to become of one of the world’s top twenty economies. One of the reasons for this is Nigeria’s youthful population - it has a high proportion go educated young people due to start working in the next twenty years. They will provide the country with skilled labour in manufacturing and services. Although the GDP has grown, 60% of people in Nigeria live on less Than US$ 1.25 a day.

Importance of Oil to Nigeria’s Economy

Makes up 14% of the GDP and 95% of all export earnings, it makes up 2.7% of worldwide production but it is better quality than that found in the Middle East. The oil industry has a revenue of US$ 340 billion, and 600 employees.

Importance of manufacturing to Nigeria’s Economy

Dangote Cement is one of Nigeria’s largest companies. The company has three large cement works , it has expanded into thirteen other African countries. New manufacturing industries like Dangote are increasing the pace of economic development - improving the standard of living by products of industries, e.g cement ; producing manufactured goods in the country to reduce the need to import goods and can be cheaper ; new industries create jobs, give people an income and contribute to the government wealth through taxes.

Role of TNCS in Nigeria

oil industry in Nigeria is located in the Niger Delta region, a vast area of wetlands on the delta of the Niger River. Companies erected drilling platforms on the oil and gas fields around the Niger Delta region, linked by pipelines to the coast where the crude oil is piped onto tankers for exportation to Europe and USA

Role of TNCS in Nigeria - Advantages

Brings new investments into a country’s economy. Provides jobs, often with higher wages. Brings expertise and new skills to the country. Have international links that benefit the country. They provide new technology to aid development.

Role of TNCS in Nigeria - Disadvantages

Takes profits out of the host country. Wage levels usually much lower in LICs and HICs. Can create significant environmental damage. Withdraw investments whenever they choose. Have political influence making them powerful.

Environmental impact of oil in Nigeria

Most people in Nigeria depend on the natural environment for their livelihood and the oil industry is damaging these areas. Oil spills are common occurrence in Nigeria. Gas flares are used to burn off gas from oil, the fumes affect people health and contribute to global warming. Oil heated by then becomes highly flammable and can burn out of control. Oil pollution in waterways kills fish and marine mammals.

International Aid

is help given by one country to another, in the form of money, food technology or advice. Usually, the aid comes from HICs.

Aid and Debt in Nigeria - International Aid

Nigeria has one of the highest death rates from Malaria. 207,000 people die every year. As a response, from 2009-2013, the World Bank, IMF and government of USA funded a project in Nigeria in which 60 million mosquito nets were distributed across the country. UK gives £300 million a year in aid to Nigeria.

Aid and Debt in Nigeria - Debt

During the 1980’s and 1990’s many African countries, including Nigeria, faced a debt crisis. They were unable to repay their debts without having to cut essential government spending on things such as education and healthcare. 2005, the leaders of the richest countries oof the world cancelled the debt of LICs and agreed to debt relief for 39 of the most highly indebted poor countries - Nigeria being one of them.

Development for all in Nigeria - HDI

Nigeria is ranked 152 out of 187 countries according to the Human Development Index. Nigerias is put in the low category of human development.

Development for all in Nigeria - Life Expectancy

Life expectancy has increased from 45.8, in 1980, to 52.4 in 2013. With a drop occurring in 1990, from 46.3 to 46.0

Development for all in Nigeria - GNI

An overall increase in GNI from 1980 to 2013, increasing from $4300 to $5400. With a decrease occurring in between 1980 to 1990, from $4300 to $2600.

Development for all in Nigeria - Literacy Rate

Literacy Rate has improved from 6.7 in 1980 to 9.0 in 2013. With a drop occurring in 1990, from 8.6 to 6.7 again - this is likely due to the debt crisis.

Development for all in Nigeria - Economic leading to social development.

Economic development leads to people being able to have better access to healthcare so life expectancy increases, therefore quality of life increases. Economic development would mean improved literacy rates as people would have access to better education. Along with this, economic development will lower birth rates as more women would be in workforce, focusing on their careers first.

Strategies to reduce north-south divide: Enterprise Zone

24 new Enterprise Zones have been created. Their aim is to encourage the establishment of new businesses and jobs in areas where there were no pre-existing businesses. The government ensures provisions of super fast broadband and financial allowances for plant and machinery.

Strategies to reduce north-south divide: HS2 - positives

Planned to run from London to Birmingham and then on to Manchester and Leeds. Bring economic benefits to the Midlands and north England. Reduce journey times between cities so people spend less time travelling. Create thousands of jobs, as businesses are better connected to other cities and businesses.

Strategies to reduce north-south divide: HS2 - negatives

more likely to create jobs in London and people will commute instead. In November 2024, phase 2 of HS2 was cancelled. Cost of HS2 is £42 billion. Existing railways routes could be improved to increase the number go passengers.

Strategies to reduce north-south divide: Road Improvements - South West Super Highway

£2 billion road-widening project over next 15 years. Connect M3 to M5. Creates hundreds of construction jobs and reduce traffic. Helps open up the South-West of the UK - old people live there, investment.

Strategies to reduce north-south divide: UK Port Development - Liverpool 2: 2016

New container terminal, £300 million to double there ports capacity to 1.5 million containers a year. Creates jobs, boosts the economy and reduces the amount of freight traffic on roads. Benefits the North

Strategies to reduce north-south divide: Airport Development - Heathrow and Gatwick Expansions: 2022

Heathrow is one of the world’s major airports - 76,000 workers. Increase the yearly international flights from 750,000. New runway at Heathrow £18.6 billion. New runway at Gatwick £9.3 billion. Aviation accounts for 3.6% of the UK’s GDP.

Strategies to reduce north-south divide: Airport Development - Heathrow and Gatwick Expansions: 2022 - negatives

The 2015 recommended runway at Heathrow was scrapped. Locals are concerned about noise and environmental impacts - there has been a ban on night time flights.

Technology - Top Down

Charities and NGOs use intermediate technology in LICsand NEEs to help them reach their development goals,such as sustainable energy or more efficient ways of cooking. It is technology that the local community can take ownership of and learn to maintain. E.g WaterAid uses intermediate technology such as the Afridev hand pump to help provide clean water for people in Tanzania, increasing their life expectancy as less are dying from disease. Education has also improved as children are missing fewer days.

FairTrade - Top Down

The aim is to give producers a better price for the goods they produce, and a price guarantee. If the global price for a particular crop collapses, Fairtrade farmers will still receive their regular income. This protects their quality of life. E.g 18-year-old Sameena Nyaz, she stitches Fairtrade Footballs for a living and when Sameena needed a serious operation, she was able to afford it thanks to the FairTrade scheme

Debt Relief - Top Down

Debt relief can be achieved through 'conservation swaps'. A richer country may agree to write off part of a poorer country's debt if that poorer country agrees to protect its physical environment. The US agreed to let Indonesia keep US$30 million of borrowed money in exchange for increased protection of Sumatran forests, home to endangered rhinos and tigers.

Microfinance - Bottom up

Microloans are needed because subsistence farmers find it hard to escape poverty. They can only grow enough food for their own needs,rather than to sell the food. Microfinance loans provide farmers with the vital cash their families need to escape a cycle of poverty. A microloan is not a 'free hand-out'; it must be paid back. People in poverty feel as if  they can stand on their own two feet instead of being dependent on others. The most well-known provider of microloans is the Grameen Bank in Bangladesh. It has lent money to nine million people, 97% of whom are women.

Industrial Development - Top down

Countries trade with each other to support separate needs of the country, e.g fossil fuels, agricultural produce. Building manufacturing companies in LICs generate profit which governments can tax to pay for better healthcare or education.

Investment - Top down

TNCs prefer to manufacture goods inside the borders of other countries. The cash spent on other countries by TNCs is called foreign direct investment (FDI). Local people are employed to build factories and offices.Multiplier effects in LICs can develop as local businesses start to thrive. Skilled Chinese workers earn on average $600/month working for Apple, an American company.

International Aid - Top down

International aid is a gift of money, goods or services to a developing country that does not need to be repaid. E.g, In 2014, the DR Congo was provided with a $US73 million grant by international donors to help it build a hydroelectric dam, which provided many jobs

Tourism in Tunisia: popularity

Tunisia has seven UNESCO World Heritage Sites. Tunisia’s northern coastline is close to Europe, making in easily accessible and French is widely spoken which attracts French and French speaking tourists.The country’s northernly coasts have a Mediterranean climate - summer temperatures reach 40 degrees.

Tourism in Tunisia: Positives

Tunisia is now one of the wealthiest countries in Africa; the income of Tunisians has quadrupled in the 1970s. Literacy rates have improved from 66% to 79% since 1995. Schooling is now compulsory for girls and women are entering higher education in increased number. Tunisia’s government invests almost 4% of the GDP into healthcare.

Tourism in Tunisia: Negative impacts

Some of Tunisia’s Mediterranean beaches have been polluted with untreated sewage. Foreign companies like Thomas Cook send holidaymakers to Tunisia but keep a large percentage of the profits. In 2015, there were two terrorism attacks aimed specifically at tourists - as a result, European governments say Tunisia is no longer safe destination for their citizens - this means less foreign investment in the country’s economy.

Development of information technology

It is one of the main factors in the UK’s move to a post-industrial economy. Developments in IT have affected the UK in a number of ways: Internet access enables many people to work from home. Many new businesses are directly involved with IT, manufacturing hardware and designing software. Over 1.3 million people work in the IT sector. The UK is one of the world’s leading digital economies, attracting businesses and investment from abroad. 

Service industries and finance

The UK service sector has grown very rapidly since the 1970s. Today it contributes over 79% of the UK economic output, compared with 46% in 1948. Finance is an important part of the service sector. This includes banking, insurance and fund management. The UK is the world’s leading centre for financial services, with the City of London as the UK’s financial centre. accounts for about 10% of the UK’s GDP and employs over 2 million people

Research

UK research sector (part of the quaternary sector) employs over 60,000 highly-qualified people and contributes over £3 billion to the UK economy. 10 - 15% of the UK workforce now works in the quaternary sector. Research organisations include: pharmaceutical companies, environment agency, national health service, BBC, social market research companies.

Cambridge: Science Park

one of the top universities in the world, one of the main UK hubs for hi-tech industry

Cambridge: Science Park - Advantages

Graduates from university provide a highly educated workforce. There are good links between colleges and industry, helping to develop new business ideas

Cambridge: Science Park - Disadvantages

The city is overcrowded and congested, making it difficult to drive or park. House prices are high and still rising, making it expensive to live here.

UK’s place in the Wider World: Trade

Most of the UK’s trade is with the European Union because: As a single market, goods can be traded between member states without tariffs.  European countries are geographically close to the UK so transport costs are cheaper. European countries are among the world’s wealthiest economies so the volume of trade is greater. USA is an important long-standing trade partner, with UK being USA’s biggest export.

UK’s place in the Wider World: Electronic Communications

The UK is one of the world’s most connected countries. In 2016, 95% had access to the internet, compared to just 27% in 2000. Electronic communication is a vital part of our global economy and fast, reliable connections are essential. 99% of all internet traffic passes along submarine high-power cables. The UK is a focus for these submarine connections- many cables meet at or pass the UK. 

UK’s place in the Wider World: Culture

Television is one of the UK’s most successful media exports. E.g. Peppa Pig cartoons, created in the UK, are now screened in more than 170 countries worldwide, earning a total of US$1bn (£640m). As a result of the former British Empire, English is spoken in many countries around the world. Migrants have brought their own culture to the UK. E.g. Bollywood from India, Notting Hill Carnival

UK’s place in the Wider World: Transport

Heathrow- one of the busiest airports in the world. Many people transfer flights here. Channel tunnel and sea ferries connect to mainland Europe. Southampton is a major port for cruise liners taking tourists to destinations such as the Mediterranean and the Caribbean.

UK’s place in the Wider World: Commonwealth

UK is a member of the Commonwealth, a voluntary group of 53 countries, most of which were British colonies. It is home to 2.2 billion people, 60% are under the age of 30. The Commonwealth includes some of the world’s largest, smallest, richest and poorest countries. There are important trading and cultural links between the UK and the Commonwealth countries. There are also sporting connections, with the Commonwealth games – the so called ‘Friendly Games’ held every four years.

UK’s place in the Wider World: EU

In 1973 the UK became a member of the European Union (EU). The EU is still an important trading group, but its powers have extended to exert political influence over its members and elsewhere in the world.

UK’s place in the Wider World: EU - positives

The European Structural and Investment Funds has provided support for disadvantaged regions in the UK and sectors such as fisheries.The EU is the biggest single market in the world. Goods, services, capital and labour can move freely between member states and encourage trade.The Single Payments Scheme, introduced in 2015, is part of the EU's Common Agricultural Policy: In 2015, £18 million was made available to support dairy farmers in England and Wales.

UK’s place in the Wider World: EU - negative

There are EU laws and controls on crime, pollution and consumers nights. These rules can be restrictive for individuals and companies in the UK.

Development

The progress of a country in terms of economic growth, the use of technology and human welfare. Often we look at the quality of life of a country’s citizens.

GNI

Gross national income per person. The value of a country's income, divided by the number of people in that country.

Problems with economic indicators: GNI

the mathematical mean is a way of generating a ‘typical’ figure of wealth, which is not 100% accurate

People in LICs often work hard but the value of their efforts is not included in the GNI data: this is because their work consists of either subsistence farming or informal sector work, neither of which are officially recognised. 

Rapid rural-urban migration makes it hard to know how many people live in a place and what they earn.

All GNI data are converted into US dollars, but the value of currencies change every day. This is only an issue if PPP is not used. 

Problems with economic indicators: Employment Sector

Some countries may appear to have a high percentage of people working in the service sector and yet the country’s GNI may be quite low. E.g. 63% of Kenya’s GNI comes from the service sector. However, tourism dominates this sector and jobs in tourism are typically low paid and low skilled. 

It is used as a proxy (a figure that can be used to represent the value of something in a calculation) for wealth but as it doesn’t actually directly represent wealth it is less accurate. 

It does not directly take in to account other areas of development.

Social indicators of development: Literacy rate(the percentage of people with basic reading and writing skills) - advantage

Shows a country has a good education system. This can link to the jobs that people do and their level of income

Social indicators of development: Literacy rate - disadvantage

Carrying out surveys to determine literacy in rural populations, especially in conflict zones or squatter settlements in LICS is difficult

Literacy rate - global variation

Most EU countries have a literacy rate of 99%. In some LICs, the figure is as low 40-50%

Social indicators of development:People per doctor (the number of people who depend on a single doctor for their health care needs) - Advantage

This indicates how much money a country has for medical services. A healthy population is better able to work

Social indicators of development:People per doctor - disadvantage

In India and other NEEs, people in rural areas are now using their mobile phones to get healthcare advice. This is not taken into account by this measure

People per doctor - global variation

The UK doctor to patient ratio is 1:350, whereas in Afghanistan it is 1:5,000

Social indicators of development: Access to safe water - advantage

This shows that a country has access to modern infrastructure such as dams, reservoirs and water treatment plants

Social indicators of development: Access to safe water - disadvantage

Water quality can decline due to flooding or poor maintenance. Rising cost of water in cities sometimes forces poor people to start using unsafe sources. Official data may underestimate these problems

Access to safe water - global variation

All EU citizens must have access to safe water by law. In rural Angola, just 34% of people have access to safe water

Social indicators of development: Infant mortality rate - advantage

This is another indicator of a country’s health care system

Social indicators of development: Infant mortality rate - disadvantage

In the world’s poorest countries, not all infant deaths are recorded. Many children are buried in unmarked graves

Infant mortality rate - global variation

The UK figure is just 4/1000 whereas Somalia has over 100

Social indicators of development: Life expectancy - advantage

This also shows the level of medical services, and also access to clean water and food. Even education can affect this

Social indicators of development: Life expectancy - disadvantage

In countries where infant mortality is high, the life expectancy of those who survive childhood is actually far higher than the mean life expectancy suggests.

Life expectancy - global variation

Most people in NEES live to 65- 75. In LICs 55 is more typical. In HICs, most usually live to 75+

HDI

The Human Development Index (HDI) is a composite measure. This means it combines several development indicators to create one number.

The HDI is expressed in values of 0-1, where 1 is the highest. This enables countries to be ranked. 

Measures used to produced the HDI

Life expectancy at birth. Number of years of education. GNI per head

Demographic Transition Model: Stage 1

High birth rate and death rate, total population low and steady. e.g Amazon Tribes

Demographic Transition Model: Stage 2

High birth rate due to better access to food, water and healthcare. Death declines quickly and due to natural increase, population increases. LIC - Country, e.g Afghanistan and Niger

Demographic Transition Model: Stage 3

Women are encouraged to be in workforce and education so birth rate declines and death rate is slowly declining. Country has a young population and total population is increasing. Country - NEE, e.g China, Mexico and India

Demographic Transition Model: Stage 4

Total populatuon increasing gradually but starting to level off. Birth rate is declining slowly as people don’t need to have many children for labour and work, women are focus on developing careers before having children and children are expensive. death rate is low and steady. Country - HIC, e.g UK

Demographic Transition Model: Stage 5

Total population is starting to decrease, birth rate drops below death rate - due to aging population. Death rate is low. Country - HIC, Japan

Limitations of linking the DTM to levels of development - Death Rate

Death rate may rise for other reasons: Might rise temporarily due to conflict or a natural disaster. It is dependent on age.

Limitations of linking the DTM to levels of development - Birth Rate

Birth rate: Some cultures may be more resistant to cultural change than others as they develop economically. This means they may be economically developing but continue to have a relatively high birth rate. 

Governments may intervene and speed up transition- e.g. One Child policy in China, now the Two Child policy 

Limitations of linking the DTM to levels of development - Migration

Migration: This can affect the total population and yet is not accounted for by the DTM.

Population decline in the Outer Hebrides: social

number of school children is expected to fall over the next few years, which may result in school closures.

With many younger people moving away, there will be fewer people of working age living in the Outer Hebrides.

An increasingly ageing population with fewer young people to support them may lead to care issues in the future.

Population decline in the Outer Hebrides - Economic

But it is a struggle to maintain the economy and many of these services, such as post offices are closing. The main farming economy is breeding sheep on small farms called crofts. Most crofts can only provide work for up to 2 days per week. In 1948 there were more than 900 fishing boats registered in the Outer Hebrides. By 2013 there were just a few boats catching prawns and lobsters. The current infrastructure is unable to support the scale of tourism needed to provide an alternative source of income.

Wilmington - Social changes

A2 trunk road was built connecting London to the coastal ports of Dover and Folkestone. This road cut through the valley and reduced the traditional community atmosphere of Wilmington. From 1980 - new high quality housing estates were built for families with off road parking and large gardens.*Car ownership increased – in 1991 only 16% of residents did not have a car

Wilmington - Economic changes

*An industrial estate, Dartford Trade Park, was established in the east of the village in the early 1980s. This accommodates modern footloose industries, including printing, electronics and computing. The traditional industries of the village have declined.*Services have declined as commuters spend money elsewhere - of the village now has just one antique shop, three public houses and one small general shop, which is also a post office. *The population structure has changed – more economically active population

Torr Quarry, Somerset - benefits

Characteristic limestone features will be created to make the landscape look natural. 200 acres of the site have already been landscaped to blend in with the surrounding countryside, including planting grass and trees. Rail transport minimises the impact on local roads and villages, In 2010 a planning application was made to deepen the quarry to extend operations: Deepening has less impact on the environment than extending the quarry outwards into surrounding countryside.Regular monitoring of noise, vibration, airborne emissions (dust) and water quality.

Torr Quarry, Somerset - negatives

destroy natural habitats. pollute nearby water courses. scar the landscape.