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standard of living
the level of wealth, comfort material goods and necessities available to a certain socioeconomic class in a certain geographic area
economic development
a measure of a country’s wealth, its level of industrialisation and use of teachnology
environmental development
an improvement in the quality of the environment that people inhabit e.g. pollution, water quality, emissions etc
social development
an improvement in human welfare to meet people’s needs e.g. Acess to jobs, education, nutrition, health, leisure and safety
sustainable development
economic, social and environmental development to meet people’s needs now without compromising the ability of future generations to meet their needs
BRICS
in 2001, a small group of countries were identified: Brazil, Russia, India and China
these are all large countries with rapidly growing economies
they have the potential to become major global economies by 1050
MINTs
more recently, in 2014, another group of countries was identified following in the footsteps of BRICs: Mexico, Indonesia, Nigeria and Turkey
they also have the potential to become major global economies by 2050
Brandt line
an international report in the 1980s drew a line of the world map, dividing between the ‘rich north’ and the ‘poor south’
GNI (Gross National Income)
its converted into US dollars and used as a measure of economic development, its calculated by
The value of all the + Income received by --- Income leaving through
goods and services the UK/s citizens foreign companies
produced within the UK from abroad located in the UK
GDP (Gross Domestic Product)
calculates the economic value of the goods and services produced within a country’s borders
GNI/Capita
worked out by dividing the GNI by the total population of the country
HDI (human development index)
assesses quality of life and wealth. it uses life expecttancy, average numbers of years that citizens attend school and GNA/Capita
it uses these to generate a number between 0 and 1, the closer to one, the higher its development level.
HDI rankings often won’t correspond with GNI rankings
other indicators to measure development
population indicators e.g. life expectancy
birth and death rate
literacy rate
GDP
HDI
why is life expectancy a useful measure of development
it gives an indication of a range of different social development factors e.g. if a country has a low expectancy it means there are less doctors → limited access to healthcare → lack of money invested in healthcare facilities → indicative of ‘brain drain’ (qualified medical professionals leave for better paid work abroad)
problems with using indicators of development
remote rural communities can be difficult to access
population may be illiterate
citizens could speak different languages or groups could migrate between different countries
war can affect collection data
physical factors hindering development
landlocked country → imports are more expensive + hard to trade, doesnt have maritime trade links e.g. Kazakhstan
natural disasters e.g. Typhoon Hainan kills 6340, hits densely populated areas, water supplies cut out, water/food insesucirty, waterborne diseases spread
bushfires due to lack of rainfall → harms wildlife, damages environmnt, money spend on rebuilding/rehoming → on on investing in schemes e.g. Australia
drought means that crops have failed → increased food insecurity, famine, government spends money on aid instead e.g. Ethiopia
physical factors benefitting development
large (largest) supply of natural gas increases multinational trade links → increased profit e.g. Russia
changing climate increases harvest of crops → increases food security, more profit → can then be invested into development schemes e.g. UK
timber and coal make up 80% of natural resources → resources in high demand, energy crisis + expanding infrastructure for an increasing population, increased profit e.g. US
human factors hindering development
conflict and civil war is ongoing → political unrest, food/water insecurity, increases death rate, damages international relations e.g. Syria
government money being spent on weapons, no money to invest in new schemes for development, no education → no quaternary jobs e.g. Afghanistan
a 5 mile walk to collect water → limits education - can’t get jobs in tertiary/quaternary sectors → lower wages e.g. Zambia
human factors helping development
good access to ports → good maritimes trade links - trade - profit, invested in development schemes e.g. Brazil
one child policy reduced birth rate → less population to support, prices won’t rise because supply can meet demand e.g. CHina
historical reasons for uneven development
exploiting resources:
triangular trade - European powers benefited from the trade, by being able to buy cheap slave-produced goods
European powers had a market for their manufactured products
Europe grew rich, colonies had their resources drained
colonial rule:
colonies supplied food to the ocuntry which ‘owned’ them
e.g. Brazil sent sugar, gold, coffee, diamonds and minerals to Portugal
this hinders the development of the colony, and aids the development of the ‘mother country’
colonialism lasted 400 years
reprecussions of colonialism were felt in the 1884-5 Berlin Conference, with the division of Africa among European powers
Geographical reasons for uneven development
location:
some coutnries beenfit greatly from their location e.g. Singapore which sits on one of the world’s busiest shipping routes.
countries that are landlocked struggle with maritime trade, and trade is more expensive.
natural resources:
Largest supply of natural gas
Increases multinational trade links ---> increased profit.
E.g. Russia
Countries which have average rainfall/moderate temperatures can support their populations with the food they grow.
In Africa, many countries suffer from droughts e.g. Somalia drought of 2022 and 2011, crops die and death rate increases.
Certain diseases thrive in tropical climates, e.g. Direct costs of malaria (CDC 2016) are estimated to be at least $12 billion per year.
social/political reasons for uneven development
Health and education:
A well educated, skilled and healthy workforce helps a country develop.
Many poor countries have a low literacy rate (e.g. South Sudan with 27%).
Also diseases are common (TB, Aids, Malaria) and if you're unwell you can't work.
Wars/conflict:
War causes destruction of infrastructure, increases death rate, and strain healthcare systems.
The government is more focused on rebuilding and military protection. So its hard for the country to develop.
Corruption:
A country has a better chance of developing if it has a stable government and a strong legal system.
South Sudan has a corruption index of 11 (2022). Its government accepts bribes.
economic reasons for uneven development
Debts and interest payments:
E.g. Lebanon has $97.8 billion of debt (EDC) ----> causing its economy to deteriorate rapidly.
Many LIDCs have borrowed money at high rates of interest to pay for development projects.
Poverty has meant that most of these debts are still unpaid, placing a huge burden on these countries.
Some donor countries and organisations have cancelled or reduced debts to enable LIDSCs to develop (this is debt relief).
Fluctuating world prices:
Its dangerous for a country to only rely on 1 primary resource, e.g. With Zambia and copper.
If the price of that falls, e.g. Copper price falls in 1970, then the country amasses a huge amount of debt to develop.
trade
A trade surplus is when the value of exports is greater than imports.
A trade deficit is when the value of imports is higher than exports.
The construction of the Suez Canal and the Panama trade route paved the way for easier trade.
The impacts of the Suez Canal blockage in 2021, show how important the canal is for trade.
Containerization (packing packages in large shipping containers) has improved the trade industry.
Invisible trade is the buying and selling of services. E.g. Tourism and foreign aid.
Visible trade is the buying and selling of goods (raw materials, food, manufactured goods). These can be counted, weighed and given a value.
importance of trade
A country can sell its surplus (extra) goods abroad (exports).
A country can specialise in what it does best (e.g. It has a surplus of a natural resource)
People in a country can eat food or use goods which aren't grown or made there (imported) (e.g. Iceland and high food prices).
Trade may make a country richer ---> better developed
how does trade benefit LIDCs?
Boosts their economy (increases GDP)
New markets are opened up providing the country with the chance to sell their goods abroad
Expands choice to consumers + lowers price of goods
Strengthens ties between countries
continuing development gap with trade
Trade is often unfair due to ACs receiving larger profits. TNCs have invested in LIDCs in recent years. However, most of the profits, of these companies go back to the headquarters in ACs.
Types of goods traded varies: LIDCs tend to export natural commodities which have fluctuating prices depending on demand and supply, while manufactured goods stay relatively stable, these are mainly exported by EDCs and ACs.
TNCs: much of the world's global trade is controlled by TNCs who mainly have their headquarters in AC countries, although they often manufacture goods in LIDCs, but the money doesn't stay there and is leaked back to ACs.
aid
Aid is assistance given from one country to another, it could be monetary, physical goods (equipment), training or loans. It can be foreign aid from the government of one country to another or from NGOs to a country.
kinds of aid
Official development assistance is mostly top-down aid.
Bi-lateral aid example:
Pakistan was the top receiver of UK aid in 2019 (£305 million)
In 2020, the UK spent £14.5 billion on aid, this decreased to £11.1 billion in 2021.
Voluntary aid is mostly bottom-up aid.
Long-term development is to cope with the aftermath.
E.g. Kariba dam and TAZARA railway.
advantages of aid
An attempt to rebalance global inequality.
Can stabilise a country after a natural disaster.
It could be considered a repayment for the benefits that ACs had from colonialism.
It can assist a country in achieving the MDGs.
disadvantages of aid
If given directly to a corrupt government and not invested in a sector directly, it can do more harm than good.
Discourages the country from looking after itself.
White saviour complex ---> e.g. Goat Aid.
Donors decide what aid to give, and it might not be what it most needed.
It could be used to pay for war/military weapons instead
LIDC case study - ethiopias economic development - political influences post independence
1935-41 Colonised by Italy then rebels and British troops claimed back independence
1941 - WW2 conflict - loss of life
1974-87 1.4 million die in civil
2001 - today - more support from USA and stable government, but limited free speech
LIDC case study - ethiopias economic development - economic influences post independence
1950 drought and famine
1984-5 famine killed 1 million, $2000m in food aid from NGOs
1991 - new government allows free trade, lifted price controls, provided farmers with cheaper access to imported fertilisers and machinery without paying tax
2012 - farmers learning new skills and increase yeilds
LIDC case study - ethiopias economic development - social influences post independence
1980 - Mass migration, refugees - 1.5 million displaced and 50,000 killed
2010 - today - Ethiopia remains food deficient, limited free speech, more trust between local authorities and the people
Can Rostows model help determine Ethiopias path of economic development?
it doesnt, Ethiopia is in stage 2 and is not on a linear path, with the climate and political system causing periods of growth, decline etc.
although it did have a traditional sociey based on subsitence farming to begin with it still does, and it is currently developing manufacturing and infrastructure which fits stage two, it has not hit stage three and it seems unlikley with climate change and political issues that Ethiopia could experience rapid intensve growth.
to what extent have the relevant Millenium Development Goals been achieved for Ethiopia
although the percentage of Ethiopias children in education rose from 27% in 1991 to over 90% in 2009, and there are now 13,500 elementary schools in Ethiopia, showing significant efforts have been contributed, it is unlikely that Ethiopia will achieve many educated women before the population reaches an alarming level, furthermore, literacy rate = low 49%, showing the provisions are ineffective
global partnerships, Development Assistance in the form of $2000 million per year and increasing support from the USA
however, national debt is 21% of the country’s total GDP
ethiopia remains reliant on international aid with 50% of aid being food.
environmental sustainability - HEP has risen to 41% of energy, but soil eriosion and desertification has increased significantly
how has ethiopias wider political, social and environmental context affected its development?
33% Oromo, 33% Amara, 6% Somalia, 10 other ethnic groups
The various civil wars in Ethiopia have been caused by conflicts between the different ethnic groups.
Tensions with Somalia have also simmered for several years most recently in September 2017 55k had to flee the border region due to clashes between ethnic Somalis and Oromos.
Civil war (1974-87) 1.4 m died.
productivity down unable to work
Whole generations of people in conflict areas missed out on a formal education, thus limiting their productivity.
Diseases – being close to the Equator the country suffers from mosquitos and malaria in 75% of the country – more than 50m of the population are at risk from malaria. Catching the disease makes is debilitating for the suffer and reduces their ability to earn an income.
Diseases – being close to the Equator the country suffers from mosquitos and malaria in 75% of the country – more than 50m of the population are at risk from malaria. Catching the disease makes is debilitating for the suffer and reduces their ability to earn an income.
how does Ethiopias international trade e.g. potential reliance on a signle, or few comodities and how it influences development
Trade deficit
Exports = $3B
Imports = $11B
—> debts remains and government has less money to invest in devlopment
80% of exports are agricultural
- 46% of GDP is from agriculture
- Ethiopia is one of the world's largest producers of food and flowers —> economy is vulnerable to climate change and global price changes
$1.4B. Coffee 28% of exports
examples of TNCs operating recently in Ethiopia
Hilton hotels
H&M
Afriflora (flower growing)
Huajian
advantages of TNCs
the companies bring much needed money into the country, Huajian omitted to invest 2billion
bring ins technology and knowledge that the host country doesnt posess
help improve transport links around the area e.g. general electric invested in delivering rail links
create jobs e.g. Hilton Hotels have created over 1000 jobs in Addis Abba
Disadvantages of TNCs
ofter low wage, working conditions can be poor
deliberately exploit the LIDCs - workers in Ethiopia may get $50 a month whereas in an EDC they would get $175 for the same job
most TNCs produce a lot of pollution
make it had for smaller local companies to compete
top down strategy aid - OMO RIVER DAMS in Ethiopia
dam can hold back 14.7 billiom m³ water
hydroelectric plant has the potential to double the country’s energy output at anytime
Gibe III will support a vast irrigation complex, equal in size to the entire irrigated area of Kenya. e.g. the complex will supply the 245,000 hectare sugar plantation, the country’s largest-ever argicultural scheme
transforming more than 375,000 hectares of the lower Omo into industrial plantations. Provides wood which can be used in construction work
Top down strategy aid - OMO RIVER DAMS negatives
increases dependency on foreign powers e.g. $470m Chinese loan
creates conflict with neighbours - long-term impacts not only on the valley’s indigenous communities but also on Kenya;s Lake Turkana which recieves 90% of its inflow from the Omo River
Gibe III will have significant consequences downstream - hundreds of thousands of people whos livelihoods are dependent on the annual flood. there was no annual flood in 2015 and according to some activists, the one released in 2016 was too low to sustain crops
the filling of the reservoir behind Gibe III dam on the OMO river is holding back the flows needed bby some 200,000 indigenous peole to sustain their food production and livelihoods
bottom up strategy aid - FARM AFRICA - benefits
Farm Africa has worked in the landlocked country since 1988.
Farm Africa will establish a 7000 woman-strong revolving goat scheme, which requires each woman who recieves three goats from Farm Africa to give three female goats to another vulnerable woman once her heard has grown, creating a cycle of improved prosperity.
goats are well adapted to the harsh conditions in Tigray, they eat the plants that grow in the poorest soils.
because goats providwe milk and kids to sell, they may generate enough income to feed a family all year round, as well as school costs. manure from goats also improves soil helping crop yield.
farm africa has provided training sessions to teach women about feeding liking and breeding goats.
FA has provided 540 Tigrayan farmers with a beekeeping kit alongside training in how to effectively use their new equiptment. many farmers have worked hard to quadruple their number of hives, providing them with a steady and reliable income that has allowed them to purchase a cow.
bottom up strategy aid - FARM AFRICA - disadvantages
if the scheme fails in some way e.g. goats get a disease, the income is very culnerable
already 35% of the population dont have enough food so maybe they cant sufficiently feed the goats, if they dont they will die/become incapable of producng the materials that were initially useful for income/economy