Changing economic world

Development

• The progress of a country, measured in terms to their economic growth, improvements to standards of living and quality of life of its people.

several measures of assessing Development

Such as;

• Life Expectancy - average a person can expect to live to

• Birth Rate - number of live babies given birth to per 1000 of a population.

• Death Rate - number of deaths per 1000 of a population per year.

• Gross National Income - the total value of goods and services produced by a country in a year ( includes income form overseas.

• Human development Index - is a number calculated from life expectancy, literacy rate, education level and GNI per head. - takes into account multiple assessments so arguably most representative.

Issues with development indicators

• False Data - Could be intentional e.g. China or North Korea

- Or unintentional, where a country is not able to assess all members of society.

• Out of Date - Many countries particularly LIC’s can't carry out census’ and surveys vary regularly as it is costly, inconvenient and have greater concerns. The Uk for instance only have census every 10years.

• Single Measures - only capture one specific theme of a population.

• Only gives and Average for a country, rather than showing variation.

Demographic Transition Model

• Shows the natural population changes ( birth vs death rate) that occur in a country as it undergoes development.

• Stage 1 - both birth and death rate is high so overall low population.

• Lots of children are needed for labour and contribute to the family.

• Also high birth rate in order to compensate for high infant mortality and also lack of contraception.

• Lack of modern medicine

• lack of education about health and germs.

• Stage 2 - High birth rate but rapidly falling death rate. so rapidly growing population.

• Only changes are a better access to basic medicines .

• Stage 3 - Rapidly falling birth rate and remain descent in death rate but slower. Population is more consistent and lower.

• Less need for children as economy and wages are fairer

• A culture shift towards focusing on fewer children and greater acceptance of contraception.

• More advanced healthcare for non-communicable e.g.

• Stage 4 - Low birth and death rate - the total population begins to plateau.

• High costs associated with kids and people put careers first .

• continued access to healthcare.

• Stage 5 - Natural decrease ( birth rate is lower than death rate .

• lots choose no kids and the elder population begin to be less able to have kids

• very best most developed healthcare.

Uneven development

Development Gap - difference in standards of living ( economic wellbeing ) and quality of life ( social well being) between the worlds richest and poorest countries.

• Colonialism- when rich countries invade poor countries and oppress them, whilst profiting off of them and their resources leaving them in long lasting deprivation. E.g 1650-1900 10million transported as a part of transatlantic slave trade. Colonialism also caused conflicts by drawing up boarders and ignoring cultural , ethnic and religious differences - e.g Rwanda genocide.

• Physical cause;

• Landlocked countries struggled to transport goods to other nations and benefit without access to coastlines, so often restricted to neighbouring countries as trading. by air often to expensive.

• natural hazards

• climate change - cause tropical storms e.g

• Economic Causes

• Poverty cycle where living in property means bad job so can’t escape poverty.

• businesses in Hic’s pay very little for their raw materials making lic’s poorer.

• Many organisations in HICS and some NEEs set up trade agreements to cut out LICS.

Inequalities in Health

LIC’s suffer from communicable disease ( 1 in 4 die under 15 ) due to the fact hygiene is lo, housing is cramped and lack of vaccinations. Also bad healthcare for giving birth. And often high levels of pollution result in Lung infection.

HIC’s suffer and die more from non-communicable diseases e.g lung cancer or dementia.

Migration

• people in poor conditions from Lic’s seek a better life elsewhere (NEE”s or HIC’s )

• the new country will likely provide ; better jobs, healthcare, education, freedom from conflict.

• But often results in an overcrowding of the new country , people take advantage of migrants ( particularly illegals) by selling overpriced illegal flats

• Overcrowding means spread of disease

• loss of opportunity and more competition for opportunity

• But the opportunities; more people working in the society, more people paying taxes,

• For the previous country; less people using services , less people to share national income with.

How can the development gap be reduced - Investment

• FOREIGN DIRECT INVESTMENT- when a country of company buy property or infrastructure (roads, electricity or water pipes) In return for the investment the company or country want the profit and cheaper labour to again maximise profit.

• MULTIPLIER EFFECT -

- As the area develops it becomes more attractive to other businesses .

- Large companies e.g. Toyota buy land in LIC to build a car factory and spend money improving roads.

-Work increases for businesses supplying the car industry e.g rubber plantations. But also Employment increases as locals are hired to work in the factory.

-the taxes from factory increases the countries taxes, but workers also spend their money locally.

• INDUSTRIAL DEVELOPMENT

-provides employment for locals - links to multiplayer effect.

-education improvement - people learn skills which are desirable for employment , but also more money to spend on education = break out of poverty cycle.

-Manufacturing prices are higher than the raw material price so less volume of material needed for same amount.

How can the development gap be reduced- Fair trade & Debt Relief

FAIRTRADE -

• Where Farmers in LIC’s are given a fair price for the goods they produce. In return, the farmer must agree to farm in an environmentally friendly way.

• Also LIC farmers will be changing prices on world market and can have a stable income.

• So this helps the poor farmers rather than them being taken advantage of.

• Help train farmers to get the very best yield from the crop.

• Fair trade helps by funding community necessities e.g. schools

• but it is more expensive than other products.

DEBT RELIEF

• When a country’s debt is cancelled, or interest rates are lowered. This allows the country to focus on development.

• but there are often requirements;

-must demonstrate they can manage own finances

-no government corruption

-Agreed for it to be spent on education, healthcare and reducing poverty.

MICROFINANCE LOANS

• Small loans are given to people in LIC’s who may not be able to get loans from traditional banks.

• these loans can be invested in seeds, livestock, rice and beginning a business.

• Grameen Bank Bangladesh; set up in 76 to help locals (particularly women) use there skills to grow a small business.

• the borrowers have a share in the ownership of the bank, so invested interest to repay at a good rate.

• Often less than $100

How can the development gap be reduced- AID & Appropriate Technology

AID

• When a country or charity donates resources or money to another country to help develop it ( typically after disasters)

• UK gives 0.6% of it GDP - mainly to commonwealth

• Economic development - large scale power and transport projects have been funded by international aid. In 2014 DR Congo given $73million to build new HEP station

• Social & Political - Laptop per child education - partially provided by google. helped distrubute 100000’s

APPROPRIATE TECH

• Sustainable technology that is appropriate to the needs, skills knowledge and wealth of local people. Must be suitable for the environment and not put people out of work.

• They are simple, logical and easy to use.

• means the country doesn’t become dependant on other countries providing or 3rd parties

Jamaica - ‘Tourism can reduce the development gap’

• Tourism is one of the few growth sectors in J’s economy.= has been able to increase its taxes, employment and income. Ultimately as more employment results in multiplier effect as money spent locally.

• Economy - In 2014; 24% GDR and then in 2024 it had risen to 32%. The income form tourism each year is $2billion each year.

• Employment - provides 350000 direct jobs in hotels, transport and tourist attractions or indirectly in shops, banks etc. A greater average income means more money spent locally e.g at supermarkets and local independent businesses.

• Infrastructure- tourism has led to a large amount of investment into infrastructure of the north coast where there has been a new port and cruise-liner facilities built with new hotel accommodation. But the less tourist centred areas have been left neglected and some areas remain isolated.

• Quality of life - In northern tourist areas e.g Montego Bay wealthy Jamaicans live in high quality houses. But larger number of locals live nearby in poor housing with limited food, inadequate education and healthcare.etc and need to resort to looting.

• Environment - Mass tourism can have negative environmental affects such as footpath erosion and excessive waste and harmful emissions. But can have some benefits of conservation and landscape projects for tourists, encourages maintenance and management ecotourism is beginning in more isolated places.

Background on case study; Nigeria

Importance in Africa -

• in 2014 it was Africa’s 2nd largest economy primarily due to the sale of oil allowing it to go from lic to nee.

• Largest population of 220million

• has 3rd largest manufacturing sector ( behind Egypt and Algeria)

Importance Globally -

• 15 largest country oil producer and seller

• 30th largest GDP in 2022

• Nigeria provides soldiers to the UN for peacekeeping missions

• Nollywood is 2nd largest film output.

Nigeria’s Context

Social -

• Is a multi-ethnic country with 29% being Fulani & Hausa, 21% are Yoruba and 18% Igboo.

• Multi-faith with Christianity, Islam and African faiths.

• Can cause conflicts

• 1967 Igboo dominated the south east of Nigeria and even attempted to separate from Nigeria.

• Boko Haram - islamic extremists created from inequality between N & S

Environmental-

• North Nigeria - N.E is semi-desert but further south savanna dominates, mainly used for battle farming, cotton, groundnuts. the jobs plateau as upland area is wetter and cooler than surrounding savanna and dense woodland.

• Southern Nigeria - high temps and high annual rainfall. lots of forest with cocoa, palm oil and rubber. Has tsetse fly a pest transmitted parasite.

Political -

• up until 1960 Nigeria was a part of the British colony, but since is free and independent.

• Bitter conflicts over who would be in power of the region; led to a series of dictatorships and civil war between 67-70.

• Lack of political stability and prevalence of corruption prevented Nigeria becoming a NEE.

• But since 99 government stabilised and recent elections have been free from rigging

• now other countries investing in Nigeria.

Cultural -

• Nollywood 2nd largest output of films

• In literature well-known authors e.g Adichie

• Nigerian football team won African cup of nations 3x.

Which groups are Nigeria a part of

Common Wealth - since being apart of the British Empire

Organisation of Petroleum Exporting Countries - stabilise price of oil and ensure regular supply.

United Nations- provide 100000 peacekeeper soldiers

African Union - economic planning and peacekeeping group. is in an alliance with chad, niger, Berrin and Cameroon.

How has Nigerias Trade relations changed?

• Has joined several economic orientated groups ; African Union and OPEC

• Also changed way of trading with the British. Before Britain had a 300year old trading relation with West Africa trading African Slaves and take them to America and Caribbean. Since, they traded palm oil. And now Nigeria export raw materials and some manufactured products to Britain.

• China - Since china has had recent experience of building its own infrastructure at rapid rate recently certain corporations have been investing in Nigeria to develop their infrastructure.

• in 2014 new 1400km railway was built by china along the coast.

• china has recently investing specifically in raw materials of Nigeria, with investing in exploration and drilling of oil and new oil-fields.

• Nigeria now imports most of its manufactured products from china. It is 7th in the world for number of phones.

How has Nigerias trade in goods ( products in particular ) changed?

Oil -