Changing economic world unit 2B ultimate essential deck

Where is Jamaica?

Carribean island. It is one of the largest island in the West Indies

Jamaica population

2.7 million

Jamaica’s economy is based on

Primary - minerals,sugar,rum

some secondary

Jamaica is suffering economically

Slow growth,debt and high unemployment

-previous reliance on british empire

Jamaica’s GDP from tourism

24% in 2014 → 32% by 2024

Jamaica’s annual tourism income

US$2Billion

Number of tourists that visitied Jamaica in 2017

4.3 million

Cruise vs Island tourism in Jamaica

1.1 million passengers spens US$70 a day 

vs 2.5 million spend $120 a day

Jamaicans employed in tourism

1/4

Physical and cultural attractions in Jamiaca

• Dunn’s river fall

• Blue mountain peak

• Cockpit country

• Music - Reggae, Bob Marley

• History

• Dance

Tourism economic benefits in Jamaica

• Taxes generated

• Employment - skills

• Debt payed off

• Better trade

Tourism environmental benefits in Jamaica

• Conservation development

• Environment awareness

• Eco tourism - minimal damage

Tourism social benefits in Jamaica

• Quality of Life improved

• Culture shared

• Better Infrastructure (tourist areas)

Tourism environmental drawbacks in Jamaica

• Waste + emission - transport

• Footpath and beach erosion

• Mangroves cleared

• Coral reefs damaged by jet skis and boat anchors

Tourism social drawbacks in Jamaica

Hotels use land + water iinstead of locals

Quality of Life worse if not near touris area

Tourism economic drawbacks in Jamaica

• Investment concentrated in tourist areas

• Jobs may be seasonal

• Locals cannot afford tourist facilities

• TNC's may take most of the profit

• Wealth disparity

Wealth disparity in Jamaica

tourist areas e.g Montego bay + Ocho Rio → high quality housing + standard of living

BUT

nearby poor housing, food supply, access to water, healthcare and education

Responsible tourism in Jamaica

Local people aiming to do as little harm as possible:

• Local guides

• Tourists encouraged to buy local products

• Smaller inland hotels employ local staff and use local food

• Educating people

Negril Marine park importance in Jamaica

Nature reserve to preserve sea life

Creates income from tourims

Jamaica’s aim to spread tousim

Limit mass tourism to existing resorts e.g Ocho Rios

Spread small scale tourism

Nigeria location

West Africa

Borders Benin, Niger, Chad, Cameroon

Nigeria’s climate

Tropical climate

Hot + wet in South for most of year

Long dry season inland

Nigeria economic importance (Oil, economy)

27th largest economy

12th largest oil producer

NEE

Nigeria is the ___ largest contributor to UN peace keeping missions

5th

Nigeria population

200 million

Largest in Africa, 7th in the world

Nigeria GDP compared to rest of Africa

Highest GDP in Africa

Nigeria’s agricultural output

Highest farm output in Africa

19 mil cattle - highest in Africa

Majority subsitence farmers

Nigeria political context independence→today

1960 independent from Britain→civil war 1960-70→Instability + corruption→1999 stable government→2011 +2015 fair elections

Countries investing in Nigeria

China- Construction in Abuja(Capital)

South Africa - Business and banking

American companies -e.g General Electric -New power plants

American corporations -e.g Walmart,IBM,Microsoft,Oracle operating in Nigeria

Economic inequality between north + south in Nigeria has caused

Religious and ethnic tensions e.g rise of Islamic fundamentalist group Boko Haram

Reduction in investment, rise in unemployment due to instability

Rural vs Urban areas in Nigeria

60% attend secondary school in urban vs 36% in rural

More public services + facilities in urban

Economic inequality between north + south in Nigeria cause by

↑GDP in south - Niger delta, high rainfall, oil

↓GDP in North - drought, desertification, lack of resources, militant groups

Nigeria culture

Nollywood - 2nd largest film industry in world

Nigerian football - AFCON champions

Nigeria avergae life expectancy

54 years

Nigeria literacy rate

65.1%

Nigeria HDI

158/188

One of highest average HDI improvements in the world

Nigeria involvement in African Union

Member

Economic planning + peacekeeping group

in alliance with Niger,Chad,Benin and Cameroon to provide troops

NIgeria involvement in ECOWAS

Member

Economic Community of West African States - trading group

Headquarters in Abuja

Nigeria involvement in CEN-SAD

Member

Community of Sahel Saharan States - like ecowas + developing sporting links

Nigeria involvement in OPEC

Organisation of Petroleum Exporting Countries - stabilise oil price + regular supply

Member

Nigeria main exports

rude oil,refined petroleum,natural gas,rubber,cocoa and cotton

Nigeria main imports

Refined petroleum- EU and USA

Cars- Brazil and USA

Telephones- China - growing demand

Rice and Wheat

Employment structure change since 1991

Agriculuture steady decline (mechanisation + better jobs) - 22% of GDP

Industry slow growth(limited jobs) - 18% of GDP

Service rapid growth of comms,retail,finances - 57% of workers,60% of GDP

Nigeria economic potential

Large domestic market

Good geographical location

Large population

Lots of natural resources-oil

Nigeria limited growth

Poor infrastructure

limited access to financial services for small businesses and poor people

Poor governance, political instability

NIgeria manufactuting sector products and GDP

10% of GDP

Processed foods,textiles, soaps, leather

Nigeria manuafcturing hrowth stimulating economic development

Secure income - larger home market for products e,g cars and clothes

Close links between companies e.g companies supplying parts for cars

increased tax revenue from more employment

Attracts FDI

Oil processing creates byproducts-new industries e.g soap

Innoson Group

Affordable car maker

Employs nigerians

70% nigerian made parts

TNC’s in Nigeria

40

help with development + employment but workers + environment can be exploited

TNC host country advantages

• More money spent in the economy

• valuable export revenues earned

• increased orders for local companies

• employment +development of new skills provided

• Investment by companies in local infrastructure + education

TNC host country disadvantadges

• Local workers sometimes poorly paid

• Sometimes very poor working conditions

• management jobs often given to foreign employees brought in by TNC

• much of profit generated goes abroad

• grants +subsidies used to attract TNC could have been used to invest in local industry

Unilever in Nigeria

TNC

employs 1500 people

2014 - voted 2nd best place to work in NIgera

Shell advantadges in Nigeria (Niger Delta)

65,000 Nigerian workers directly employed + 25,000

(1% of contracts given to Nigerian companies

Tax + export revenue

Growth of energy sector

Money and expertise to extract oil

Shell disadvantadges in Nigeria (Niger Delta)

Oil spills →water pollution + soil degradation

Oil flares → toxic fumes

Militant groups disrupt oil supply

Oil theft costs TNCs + Governement billions annuall

Nigeria aid projects

USA Aid - educate and protect against HIV

NGO Nets for Life - mosquito nets + education on malaria prevention

UK Department for International Development (DfiD) funded HIV programe - rural areas.

2014 World Bank US$500 mil to funded development projects and long term loans for businesses to reduce oil reliance

What prevents aid being used effectively?

Corruption

Diverting money to other purposes

donors mat have political influence on what happens to aid

Money may be used to promote the self - interest of the donor

Aduwan health centre in Nigeria

Aduwan had no health centre + ↑HIV + infant mortality

Action aid used funds to create new clinic: educates about immunisating, infections tests, vaccinations

SuNMaP in Nigeria

Support to the National Malaria Programs

£50 million scheme started in 2008

Help Nigerian Government distribute two long lasting insect nets to every household

Led by malaria consortium

Nigeria lack of progress arguments

Poor, limited acces to safe water, sanitation + electricity

30 years ago similar development stage to Malaysia +Singapore but 2 countries now far ahead

Oil wealth used ineffectively + still dependent

Gap between rich and poor wider

Corruption

environmental problems caused by industrial growth in Nigeria

pollutants go directly into open drains + water channels

Chemicals disposed on nearby land

Poisonous gases fro industrial chimneys

70% of forest destroyed

Dams + irrigation increase desertification

Fast unregulated growth

5000 registered industrial plants +10,00 illegal small scale industries

environmental problems caused by urban growth in Nigeria

squatter settlements

service strain

poor waste disposal

traffic

loss of green space

bush burning

Environmental problems from primary industry in Nigeria

Land degradation

water pollution from chemicals, soil erosion +silting of river beds

settlements destroyed habitats + increased Co2

species disappeared, including cheetahs + giraffes + 500 types of plant

Tin mining - soil erosion - water supplies polluted

Oil spills in Niger Delta -impacts on water, acid rain, fires

Violent conflicts

2008/2009 Bodo Oil spills

2 large oil spills ruined lives of farmers + fisherman living in swamps around area

11 million gallons of crude oil spilled over 20km^"2 of creeks and swamps

2015 shell agreed to pay £55 million compensation to community + individuals of Bodo - health clinics, improve schools

↓largest compensation paid by an oil company to local community, agree to clean up swamps and fishing grounds

Development

The progress of a country in terms of economic growth, the use of technology and human welfare

Development gap

Difference in the level of people’s total wellbeing and happiness, physical standars of living and national wealth between countries

GNI

Gross National Income - measure of coutnry’s wealth

total value of goods and services produced by a country plus the the income earned from investments that its peopl and businnesses have made overseas. The figure is divided by the population of a country to produce a per capita figure given in US$

HDI

Human Development Index. Devised by the UN as a social measure of development. It combines life expectancy, GNI and number of years in education. A value between 0 and 1 is calculated (1 being the most developed) .

Birth Rate

Number of births per 1000 people in a population per year. As a country develops women are more likely to be educated, pursue a career so have children later and have fewer. It is a reliable measure

Death Rate

Number of deaths per 1000 people in a population per year. More developed countries may have higher death rates due to large elderly populations whereas in less developed countries death rate may be lower as there are proportionally more young people. It is a less reliable measure

Infant Mortality

The number of deaths of children under 1 per 1000 live births a year.

People per doctor

The number of people who depend on a single doctor for their health care needs. It indicates the amount of money spent on medical services in the country

Litercay Rate

The % of adults within a country who can read or write. A high literacy rate shows a good education system

Access to safe water

% of people who have access to sanitary and safe water, free of health risks. High % shows good modern infrastructure

Life expectancy

The average age a person can expect to live to at birth

Limitations of development indicators

Innacurate data - corruption, erors, unregistered people

Had to collect data

Data does not show disparities e,g 10% own 80% of wealth

DTM

Demographic Transition Model

Shows how a population changes over time as a country develops

Natural change

Difference between birth and death rate. If Birth>Death=Natural Increase. If Birth<Death=Natura; Decrease

Population pyramids

Graphs that show the population structure of a country

Classification of age groups on population pyramids

• 0-14 → Young dependents

• 15-64→ Working age

• 65+ → Elderly dependents

Dependency ratio

working agers/dependents

↑ = less taxed = resources stretch

↓ = more tax = more resources + services

Inequality

The unequal distribution of income and resources across geographical regions

Uneven development caused by being landlocked + type of cause

Physical

No access to sea makes it harder to trade

Uneven development caused by having climate related pests + diseases + type of cause

Physical

Disease affects the populations’ ability to stay healthy and work

Uneven development caused by having extreme weather + type of cause

Physical

It can be costly to rebuild infrastructure

Uneven development caused by having poor climate, little arable land + few raw materials + type of cause

Physical

In a poor climate crops may not grow well so not much food can be produced and exported

If there is not much arable land crops and animals will be hard to raise and grow

If there aren’t many raw materials that means countries have things to export

Uneven development caused by having bad trade links + type of cause

Economic

It won’t be able to make lots of money as it only trade with a few countries

Most of the world’s trade is between richer countries

Uneven development caused by having lots of debt + type of cause

Economic

Debt has to be paid off so money is put towards that rather than development

Uneven development caused by having economy based on primary products + type of cause

Economic
Primary goods not as profitable as processed goods

Prices fluctuate

Rich countries do processing and pay as little as possible for raw materials

Uneven development caused by colonialism + type of cause

Historical

Colonisers removed raw materials + took profits

Industry not developed

Further behind

Uneven development caused by previous conflicts + type of cause

Money is spent on weapons in war

Services dsirupted

Infrastructure destroyed

Uneven development seen in health differences

LICs - death from easily treated diseases e.g malaria, diarrhoea

HICs - death from chronic disease e.g cancer

WHo does Malaria effect?

Tropical climates

Poor countries without vaccination programmes

2013 → ½ miiion deaths

African children = 80% of malaria deaths

International migration cause by uneven development

People move from less developed countries to excape conflict / improve quality of life

Migrants go to HICs and contribute to their economy rather than the LIC they left, increasing the development gap

Economc migration to the UK

Mainly Polish

Money is often sent back home

Most migrants pay tax and are prepared to do hard, manual jobs

They put pressure on public services

Main strategies to reduce the development gap

• Investment

• Aid

• Fair Trade

• Intermediate Technolohy

• Microfinanace loans

• Industrial Development

• Debt Relief

Reducing development gap through investment

Money + expertise

Infrastructure

Employment + income provided from abroad

FDI (Foreign DIrect Investment)

Reducing the development gap through free trade

Countries do not charge tarrifs and quotas to restrict trade with eachother

World Trade Organisation (WTO) aims to remove barriers and make trade easier

Subsidies (financial support) can be paid to farmers to make cheaper products- often done by HICs → against free trade

Trading groups - countries group together to increase trade. E,g EU, NAFTA,ASEAN,MERCOSUR

Reducing the development gap through industrial development

Brings employment, higher income and opportunities to invest in housing, education and infrastructure. This is called the multiplier effect

Industrial Develpment in Malaysia

Used foreign investment to exploit resources + develop infrastructure

rich se asia country with mixed economy

Reducing the development gap through fair trade

Producers get good price + price guarnatee

Farmers must agree to farm environmentally sustainabl

People prepared to spend more for label

Products get stronger position in global markets

Profits invested into the local community