topic 2 : development dynamics

Gross Domestic Product (GDP)

the total value of goods and services produced by a country in a year

Gross National Product (GNP)

measures the total economic output of a country

GNP per capita

a country’s GNP divided by its population

economic growth

measures the annual (every year) increase in GDP, GNP or GDP per capita

inequality of wealth

the gap in income between a country’s richest and poorest people

inflation

measures how much the prices of goods, services and wages increase each year

what does high inflation suggest?

the governement lacks control over the economy

unemployment

the number of people who cannot find work

economic structure

shows the division of a country’s economy between primary, secondary and tertiary structures

demographics

• studies population growth and stucture

• compares birth rates to death rates, life expectancy and urban and rural ratios

life expectancy

the average age to which a person lives

infant mortality rate

counts the number of babies, per 1000 live births, who die under the age of one

poverty

indices count the percentage of people living below the poverty level, or on very small incomes

access to basic services

the availability of services necessary for a healthy life, such as clean water and sanitation

access to healthcare

takes into account statistics such as how many doctors there are for every patient

risk of disease

calculates the percentage of people with diseases such as AIDS, malaria and tuberculosis

access to education

measures how many people attend primary school, secondary school and higher education.

literacy rate

the percentage of adults who can read and write

access to technology

includes statistics such as the percentage of people with access to phones, television and the internet

male/female equality

compares statistics such as the literacy rates and employment between the two

government spending priorities

compares health and education expenditure with military expenditure and paying off debts

fertility rate

the average number of children born to a woman in her lifetime

maternal mortality rate

the annual nummber of deaths of women from pregnancy related causes per 100,000 live births

what is development?

a process that creates growth, progress, positive change or the addition of physical, economic, environmental, social and demographic components

basically meant: any improvement in the standard of living of people in the country

list all the social factors

• GNP

• GNP per capita

• Inequality of wealth

• Unemployment

• Demographics

• Life expectancy

• Infant mortality rate

• Access to basic services

• Access to healthcare

• Risk of disease

• Access to education

• Literacy rate

• Access to technology

• Male/female equality

• Fertility rate

• Maternal mortality rate

list all the economic factors

• GDP

• economic growth

• inflation

• economic structure

• poverty

list all the political factors

government spending priorities

population pyramid

a bar chart arranged vertically, which shows the distribution of a population by age and sex

how to read a population pyramid?

1. shape of the pyramids

2. highest/lowest age groups

3. reasons for different shapes

Corruption Perceptions Index

a ranking of countries according to percieved levels of corruption

Gini Coefficient

• a way of measuring inequality in a country

• the higher the value of the Gini coefficient, the more unequal the country is

explain one factor that causes the fertility rate to vary so much around the world.

• access to education

• access to healthcare

  etc.

capitalism

the government allows individuals and businesses to make money in the most efficient way

socialism

a social orgaisation in which the main sectors of the economy are owned by the government

capitalist countries

America, Singapore, Australia

socialist countries

North Korea, Norway, Poland

colonialism

developing countries remained in poverty as the ruling, while developed countries exploited their resources

five steps of Rostow’s Modernisation Theory

1. the traditional society

2. pre-conditions for take off

3. take off

4. drive to maturity

5. high mass consumption

the traditional society

based on subsistence: farming, fishing, forestry and some mining

pre conditions for take off

building infrastructure needed before development can take place: communication, power supplies and transport network

take off

• introduction and rapid growth of manufacturing industries

• better infrastructure and financial investment

drive to maturity

• new ideas and technology improve and replace older industries

• economic growth throughout the country

high mass consumption

• people have more wealth so buy services and goods

• trade expands

when was UK at the traditional society?

in the Middle Ages

when was UK at pre conditions for take off?

in the 1750s

when was UK at take off?

in the 1820s

when was UK at drive to maturity?

in the 1850s

when was UK at high mass consumption?

by 1940

Frank’s Dependency Theory

• made in 1960s

• this benefitted the developed countries more than the developing

economic core

the developed world which exploits the economic periphery

economic periphery

countries that have low levels of economic development: usually in Africa and Asia

top-down development

• development where decisions are made by governments or large companies

• often involve large-scale projects

bottom-up development

• development where decisions are made by local people

• often involve small-scale projects aimed at local communities or small areas

sustainable development

development that meets the needs of the present without compromising future generations to meet their own needs

difference between large-scale technology and intermediate technoogy

• large-scale technology is expensive and not sustainable

• intermediate technology doesn’t have a high cost and are sustainable

globalisation

the process in which the world is becoming more connected economically and politically

positives of the Three Gorges Dam

• flood risk is reduced

• atracts lots of tourists

• provides enough energy and electricity required for middle China

negatives of the Three Gorges Dam

• to build the dam, many people were displaced and huge areas of land were flooded

• critisms include fear of dam collapse and the pollution of the reservoir from the building work

TNCs short for?

Transnational Corportations

TNCs

businesses that have a global reach

examples of TNCs in India

• BT invests in India

• outsourcing its call centres to India could save money

• Indian call centre workers are cheaper than in the UK

positive social impacts of TNCs in India

• employment access improved

• more training/education

• increased literacy rate

• increased urbanisation leads to more people moving to cities

negative social impacts of TNCs in India

• poor working conditions

• overcrowding due to increased urbanisation

positive economic impacts of TNCs in India

• increasing amount of trade

• boosted economy → more trade and more employment

negative economic impacts of TNCs in India

• low minimum wage

• incentives →no paying tax and lack of money for local government

environmental impacts of TNCs in India

• loss of land to factories

• strain on natrual resources

• pollution

• deforestation → loss of habitat

• increased waste

• relax environmental laws

social impacts of India’s economy

• gender gap narrowing

• change of social customs (less religion involvement)

• lower dependency ratio = lower taxes

• urban expansion = population growth

the cycle of poverty

1. no investment in land improvement + machinery + materials

2. subsistence agriculture

3. little or not surplus farm produce

4. little or no income

geopoitical influence

where a country’s geography and economy affect its relationships and influence with other countries

maharashtra’s GDP

36000 above national average

bihar’s GDP

41000 below national average

three facts about maharashtra

• hosts bollywood, world’s largest film industry = more jobs

• IT and banking services = maharashtra’s key economic growth

• second largest port in India

three facts about bihar

• 59% population has electricity

• 1/3 of children complete primary school

• women are poorest with India’s lowest literary rates