changing economic world

what is development?

The progress of a country as it becomes more economically and technologically advanced

what are the 3 categorisations of development for countries?

Low Income countries (LICs): Most people have a poor quality of life with inadequate services and few opportunities

Newly Emerging Economies (NEEs): Countries experiencing rapid economic growth and development based on industrial development. Incomes are rising and most people enjoy a reasonable standard of living

High Income Countries (HICs): Countries that have modern industries and people enjoy a good standard of living with relatively high levels of income

what are the social indicators of development?

These relate to strands such as:

-Quality of life and social well-being

-Equal opportunities, access to services such as education and -healthcare

-Life expectancy, birth control, education

-Diversity, traditions and heritage

what are the economic indicators of development?

These relate to strands such as:

-Employment, income and general wealth

-Savings, house building, house sales, consumer spending

-International trade

-Resources, pollution controls and conservation

what are the 7 social measures of development?

birth and death rates,

infant mortality,

life expectancy,

people per doctor,

literacy rates,

access to safe water,

Human Development Index

what are the economic measures of development?

GNI and GDP ( per capita) and GNI per head

what are the limitations of teh 7 social measures of development?

HDI- only takes into account 4 indicators and nothing on environment, it only takes into account average calculations and not disparities in a country

literacy rate- can be hard to measure especially in conflict zones or squatter settlements

life expectancy- it can be misleading in countries with a very high rate of infant mortality as people who survive infancy may live longer than expected

people per doctor- More people are seeking medical help and advice via mobile phone/web chat - this is not included in the data

birth rate-Birth control policies can distort this as a measure of overall development (e.g. China, 12 per 1000)

infant mortality rate- Not all the deaths of children are reported, especially in LICs and remote regions of NEEs, meaning the true rates may be even higher

death rate- HICS may contain a large number of old people so death rate may be high but doesn't indicate safety levels or poor development

access to safe water-People may technically have access, but high costs force people to use unsafe water

what are the limitations of the economic measures of development?

Gross Domestic Product (GDP)-GDP ignores the welfare component as the goods and services produced may or may not add to the welfare of society

Gross National Income (GNI)-The measure only takes into account one factor - income

GNI per head-It is an average and hides information about whether a person is either rich or poor or the quality of life within the country

what does stage 1 of the DTM show about development?

The total population is low

High birth rates due to lack of contraception/family planning

High death rates due to poor healthcare, poor diet and famine

High infant mortality which leads people to have more children so that some children survive to adulthood

what does stage 2 of the DTM show about development?

The total population starts to rise rapidly

Birth rates remain high as people continue to have large families

Death rates decrease as a result of improved diets, better healthcare, lower infant mortality and increased access to clean water

what does stage 3 of the DTM show about development?

The total population continues to increase but the rate of growth begins to slow

Birth rate begins to fall rapidly due to increased birth control, family planning, increased cost of raising children and low infant mortality rate

Death rate still decreasing but at a slower rate as improvements in medicine, hygiene, diet and water quality continue

what does stage 4 of the DTM show about development?

The total population is high and is increasing slowly

Birth rate is low and fluctuating due to accessible birth control and the choice of having fewer children as well as delaying the age women start to have children

Death rate is low and fluctuating

what does stage 5 of the DTM show about development?

The total population starts to slowly decline as the death rate exceeds the birth rate

Birth rate is low and slowly decreasing

Death rate is low and fluctuating

what are 4 physical causes of uneven development

-Landlocked countries are cut-off from seaborne trade routes which are important to economic growth

-Small countries develop more slowly due to having fewer human and natural resources

-Climate related diseases and pests such as Malaria, affect the ability of the population to stay healthy enough to work

-Extreme weather events such as droughts, floods and tropical storms can slow development and can incur costly repairs to infrastructure e.g. Bangladesh

what are the 3 economic causes of uneven development?

Poverty

A lack of money in a country slows development because it prevents improvements to living standards, education, sanitation and infrastructure

Without these, development in agriculture and industry will be slow and the economy cannot get going

Trade

Wealthy regions, such as Asia, Europe and North America dominate trade because they export secondary (processed) goods which earn more income

As these countries accumulate wealth, they become more powerful

Which means they are able to dictate the terms of trade to their advantage, usually at the expense of LICs

Technology

Can help to increase water, food and energy security

Mechanisation of farming increases yields and improved land surveying may reveal more energy sources

Technology can also mean that existing resources are used more efficiently

what are 2 historical causes of uneven development?

colonisation

Many LICS such as much of Africa were colonised by powerful trading nations which led to most of their natural resources and money being exploited and used up by the dominating countries leading to them having no existing source of income for the country in the present

conflict

Wars reduce levels of development as men are often fighting instead of working

Money is used buying weapons rather than improving the country's roads, schools, hospitals etc.

what are 3 social causes of uneven development?

Levels of education affect the skills people have. The more educated a population is the more a country will develop

Healthcare affects how well people are which affects their ability to work

Corrupt governments do not invest in the country's development or in improving the quality of life for the population

wat are 4 consequences of uneven development?

Imbalance between rich and poor

-Some countries have lower levels of development and poorer quality of life than others.

Disparities in wealth

Disparities in health:

There is a link between a country's development and the health of its population

-LICs are unable to invest in good quality health care which creates disparities between the causes of death in HICs and LICs

Inequality can lead to migration

-International migration is a consequence of uneven development, as people seek to improve their quality of life

what are the 9 strategies to reduce the development gap?

Investment:

Where countries and TNCs invest money in LICs, which provide employment and income

Industrial development:

Brings employment, higher incomes and opportunities to invest in housing, education and infrastructure

Freetrade:

This is top-down approach where countries do not charge tariffs and quotas between themselves; this encourages trading free of taxes and charges and can be beneficial to LICs

tourism

some countries can implement tourist destinations to create a new industry as a source of income

Aid

countries or NGO's can donate and provide resources to LICs in the form of money, technology, food or supplies

intermediate tech

when LICS implement small scale technological schemes to assist their country in providing basic energy or needs to help them develop

fairtrade

helps producers in poor countries to get a fair deal and a stable income for their trade allowing those farmers in LICS to gain a better income

microfinance loans

this is small scale financial support to help small businesses and start ups to begin a firm

how has tourism helped Gambia to close their development gap?

- generates a large GDP from tourism: in 2019 it generated 15% of their GDP

- creates jobs: crated 121000 jobs in 2019 in their tourism sector due to hotels, restaurants, tour guides

Tourism has allowed Gambia to use their climatic comparative advantage: in winters they have a temp of 20-30 degrees allowing them to outcompete other countries in this sector

multiplier effect: tourism creates multiplier effect so local people employed in tourism have a greater income so they can spend more in local economy

how has tourism not helped Gambia to close the development gap?

Over reliance: Tourism has made Gambia over reliant on it and hence if environmental conditions or economic situations change, Gambia faces huge negative consequences such as in covid, their GDP growth fell from 6.2% to -0.2%

economic leakage: sometimes tourist travel on an all inclusive package tour so 80 percent of their expenditure ends up at airlines and hotels with only 20% ending up in Gambia