changing economic world

What is development?

The development of a country is the improvement in the standard of living through progress in economic growth, use of technology and human welfare.

What is the development gap?

The difference in standard of living between the world’s poorest and richest countries.

What is an LIC?

An LIC (Low Income Country) has a GNI per capita of US$1,135 or less.

What sector is an LIC’s economy mainly based off of?

The primary sector (agriculture).

What are some examples of LICs?

Afghanistan, Somalia, Uganda, Chad.

What is an NEE?

NEEs (Newly Emerging Economy) refer to countries currently experiencing increasing economic growth as a result of an expansion in the industrial (secondary) sector.

What are some examples of NEEs?

BRICS (Brazil, Russia, India, China, South Africa)

MINTS (Mexico, Indonesia, Nigeria, Turkey)

What is an HIC?

An HIC (High Income Country) has a GNI per capita exceeding US$13,846.

What sectors are the economies of HICs based on?

The tertiary (services) and quaternary (research) sectors.

What is an economic indicator of development?

GNI (per capita/head).

What is GNI?

Gross National Income (per capita) refers to the total value of goods + services produced by a country in a year (divided by the total population).

What are the strengths of using GNI as an indicator for development?

It shows how economically developed a country is

What are the weaknesses of using GNI as an indicator for development?

• It only measures economic development and doesn’t factor in quality of life

• Because it is an average, it doesn’t show the immense variations in wealth present in some countries and thus makes the country appear more developed than it is.

What are the social indicators of development?

• Birth rate

• Death rate

• Infant mortality rate

• Literacy rate

• People per doctor

• Access to safe water

• Life expectancy

What is birth rate?

The number of live births per 1000 of the population every year.

What are the strengths and weaknesses of using birth rate as an indicator of development?

Strength: it shows a country’s social progress (a low birth rate is often the result of more women being educated, meaning they end up having less kids, later in life in priority of their career)

Weakness: usually inaccurate and underestimated in LICs where not all births are recorded

What is death rate?

The number of deaths per 1000 of the population every year.

What are the strengths and weaknesses of using death rate as an indicator of development?

Strength: shows quality + availability of healthcare

Weakness: often unexpectedly high in HICs due to ageing populations

What is infant mortality rate?

The number of deaths of children under the age of one years old per 1000 of the population, every year.

What are the strengths and weaknesses of using infant mortality rate as an indicator of development?

Strength: shows quality + availability of healthcare.

Weakness: usually inaccurate + underestimated in LICs where not all infant deaths are recorded.

What is literacy rate?

The percentage of adults who can read and write.

What are the strengths and weaknesses of using literacy rate as an indicator of development?

Strength: shows quality + availability of education

Weakness: inaccurate in countries where there are rural populations, conflict zones and squatter settlements which make it difficult to determine.

What is people per doctor?

The average number of people that depend on a single doctor.

What are the strengths and weaknesses of using people per doctor as an indicator of development?

Strength: shows both quality + availability of healthcare + education (better educational facilites = more doctors)

Weakness: doesn’t include people who use their phones for medical advice (often in rural popultaions.

What is access to safe water?

The percentage of people that have access to safe drinking water.

What are the strengths and weaknesses of using access to safe water as an indicator of development?

Strength: shows quality of infrastructure, i.e sewage networks

Weakness: water quality may decrease due to other reasons other than poor infrastructure like flooding.

What is life expectancy?

The average number of years a person can be expected to live.

What are the strengths and weaknesses of using life expectancy as an indicator of development?

Strength: shows quality + availability of healthcare

Weakness: given that it is an average, it appears lower in areas that have a high infant mortality rate.

What is HDI?

The Human Development Index is an indicator of development that combines income (GNI per capita), health (life expectancy) and education (average number of years of schooling) to form a value between 0 and 1.

What are the strengths of using HDI as an indicator of development?

Strength: it includes both economic and social factors (health/education), providing a broader perspective on the development of a country that isn’t solely focused on income.

Weakness: the data used to calculate HDI may be inaccurate/outdated, particularly in LICs.

What is the DTM?

The Demographic Transition Model shows the change in birth rate, death rate + population growth and size as a country develops.

What is natural increase?

When the birth rate is higher than the death rate, causing the population to grow.

What is natural decrease?

When the death rate is higher than the birth rate, causing the population to become smaller.

Describe stage 1 of the DTM.

• The birth rate is high and fluctuating as there is no use of contraception and people are having many children due to high infant mortality rates.

• The death rate is also high and fluctuating as a result of poor healthcare provision.

• The population size is low and steady.

• Remote communities + tribes are at this stage.

Describe stage 2 of the DTM.

• The birth rate remains high but steady as people have a lot of children to work on farms and because some won’t survive due to high infant mortality rates. There is also a continued lack of contraception being used.

• The death rate is quickly falling because of the improvement in healthcare in global effort to tackle malnutrition and disease.

• The population size is rapidly increasing.

• Most LICs are at this stage.

Describe stage 3 of the DTM.

• The birth rate declines rapidly as the use of contraception increases, fewer people work in agriculture (kids no longer needed to work the land) as the economy becomes more industrialised and more women begin to work instead of having children.

• The death rate falls slowly as healthcare continues to improve.

• The population size is increasing.

• Most NEEs are at this stage.

Describe stage 4 of the DTM.

• The birth rate is low and fluctuating because women have careers due to their improved societal status and thus have fewer children, later in life.

• The death rate is low and fluctuating as a result of the good standard of healthcare.

• The population size is high and steady.

• Most HICs are at this stage.

Describe stage 5 of the DTM.

• The birth rate is slowly falling given the heightened expense of childcare, the increased number of societal opportunities women receive and the frequent use of contraception.

• The death rate is low and steady but above the birth rate given that the population is aged and there are few children being born.

• The population size is slowly decreasing.

• Some HICs such as Japan are at this stage.

What physical factors cause uneven development?

• Extreme/tropical climate

• Landlocked countries

• Frequent natural disasters

• Few raw materials

How can an extreme climate cause uneven development?

It is difficult to grow crops in really hot/cold/dry climates meaning people have less disposable income they can use to spend on local goods and services because they have fewer crops to sell. This means the government earns less money from taxes and thus has less to spend on development projects.

How can a tropical climate cause uneven development?

A tropical climate results in more-climate related diseases such as malaria, meaning fewer people are able to work, go to school and be productive. This means some people will have a lower income and be unable to spend as much on goods + services in the community and so the government earns less through taxes. Therefore, they have less money to improve infrastructure and develop the country.