Section C - The changing economic world

Development

The process of change that improves people's quality of life.

GNI (Gross National Income)

Total value of goods and services produced by a country plus income from abroad.

GNI per capita

GNI divided by population, giving an average wealth per person.

Life expectancy

Average number of years a person can expect to live.

Literacy rate

% of adults who can read and write.

Infant mortality rate

Number of babies per 1,000 who die before age one.

Access to safe water

Availability of clean drinking water as an indicator of development.

Doctors per 1,000

Number of doctors available per 1,000 people in a population.

Quality of housing

Standard of living conditions in residential buildings.

Human Development Index (HDI)

Combines life expectancy, education (mean years of schooling), and GNI per capita, scored 0-1.

HIC

High-Income Country.

LIC

Low-Income Country.

NEE

Newly Emerging Economy, characterized by rapid industrial growth.

Demographic Transition Model (DTM)

Shows how a country's population changes over time as it develops.

Stage 1 (LIC)

High birth and death rate leading to low population.

Stage 2 (LIC/NEE)

Death rate falls due to better healthcare, resulting in population rise.

Stage 3 (NEE)

Birth rate falls, leading to slower population growth.

Stage 4 (HIC)

Low birth and death rates resulting in steady population.

Stage 5 (HIC)

Declining population due to ageing and low birth rate.

Causes of the Development Gap - Economic

Poor trade links, low export values, debt, and reliance on low-value primary goods.

Causes of the Development Gap - Environmental/Natural

Extreme climate, droughts, floods, landlocked countries, and natural disasters.

Causes of the Development Gap - Historical

Colonialism and exploitation by European powers in Africa and Asia.

Development Gap

Difference between rich and poor countries.

Causes of the Development Gap

Social, economic, environmental, and political factors that limit development.

Social Causes

Poor healthcare and education limit skills, leading to low wages.

Economic Causes

Reliance on agriculture and primary goods results in little profit.

Environmental Causes

Droughts and floods lead to low crop yields.

Political Causes

Corruption and conflict damage growth.

Effects of the Development Gap

Bigger wealth divide, unequal access to resources, increased migration.

Aid

Money or resources from one country to another, used to build infrastructure.

Fair Trade

Farmers in LICs receive fair prices for crops, promoting sustainable farming.

Debt Relief

Cancelling debt allows LICs to invest more in services.

Tourism

Brings income and jobs, but depends on political stability and environment.

Microfinance Loans

Small loans to help poor people start businesses, fostering self-sufficiency.

Investment (TNCs)

Transnational corporations create jobs and infrastructure but may exploit resources.

Example: Jamaica

Tourism contributes 24% of GDP, improving employment and quality of life.

Development Memory Tip

Development equals change that improves lives.

DTM

Demographic Transition Model shows population changes as countries develop.

Ways to Reduce the Development Gap

Aid, Trade, Debt Relief, Tourism, Microfinance, Investment.