AQA GCSE Geography - The Changing Economic World

What is 'development'?

- the progress in economic growth, use of technology, and improving welfare that a country has made
- when a country develops, the residents' quality of life improves

What is the 'global development gap'?

- the difference in development between more and less developed countries

What does 'GNI' mean?

- gross national income
- the total value of goods and services produced by a country in a year, including income from overseas
- often given in US$
- it is a measure of wealth and as a country develops, their GNI gets higher

What is 'GNI per head'?

- the GNI divided by the population of a country
- sometimes called 'GNI per capita' (per person)

What is 'birth rate'?

- the number of live births per thousand of the population per year

What is 'death rate'?

- the number of deaths per thousand of the population per year
- its a measure of the countries health
- it gets lower as the country develops

What is 'infant mortality rate'?

- the number of babies who die before they are 1 year old, per thousand babies born

What is 'people per doctor'?

- the average number of people for each doctor
- as a country develops, it gets lower as there are more doctors available so less people are assigned to one doctor

What is 'literacy rate'?

- the percentage of adults who can read and write
- a measure of education
- as a country develops, it gets higher

What is 'access to safe water'?

- the percentage of people who can get clean drinking water
- a measure of health

What is 'life expectancy'?

- the average age a person can expect to live to
- as a country develops, the life expectancy gets higher as people have access to potable water, good medicine, etc

Why is 'GNI per capita' misleading?

- GNI per capita can be misleading on its own because it is an average so variations within a country do not show up and anomalies are still used

Why are some social indicators and measures of development misleading?

- these can be misleading if used on their own because, as a country develops, some aspects develop before others so it might seem like a country is more developed than it actually is

Why may a country's GNI be inaccurate?

- GNI usually misses out informal employment, which can account for a large proportion of national income
- informal employment is the part of any economy that is neither taxed nor monitored by any form of government

What is the difference between LICs, HICs and NEEs?

- these are the most common ways of classifying a country's level of development (by looking at its wealth)

- HIC's are the wealthiest in the world, where the GNI per head is high
- LIC's are the poorest in the world, where the GNI per head is very low
- in NEE's, the wealth does not stay the same but instead, these countries are rapidly getting richer as their economy moves from being based on the primary industry to the secondary industry

Give four examples of HICs.

- UK
- USA
- Canada
- France

Give three examples of LICs.

- Afghanistan
- Somalia
- Uganda

Give nine examples of NEEs.

- the BRICS
=> Brazil
=> Russia
=> India
=> China
=> South Africa

- the MINT countries
=> Mexico
=> Indonesia
=> Nigeria
=> Turkey

What is 'HDI'?

- the Human Development Index is a combination of different measures and it tells you about both the country's level of economic development and the quality of line for people who live there

How is HDI calculated?

- calculated using income (GNI per head), life expectancy and educational level (eg avg years of schooling)
- every country has a HDI value between 0 (least developed) and 1 (most developed)

What does the Demographic Transition Model show?

- the DTM shows how birth rates and death rates affect population growth
- when the birth rate is higher than the death rate, the population grows (natural increase)
- natural decrease is when the death rate > the birth rate

What happens during Stage 1 of the DTM?

- least developed

- the birth rate is high and fluctuating (no use of contraception)

- people also have lots of children due to high infant mortality rate

- the death rate is also high and fluctuating due to poor healthcare or famine, and life expectancy is low

=> the population growth rate is zero

=> population size is low and steady

- no countries are currently in Stage 1 but examples would be some tribes in Brazil

What happens during Stage 2 of the DTM?

- still not very developed

- many LICs are in this stage

- the birth rate is still high but steady; the economy is agriculture-based, so people have lots of children to work on farms

- better healthcare increases life expectancy so death rate begins to fall

=> population growth rate is very high

=> population size is rapidly increasing

- eg Afghanistan

What happens during Stage 3 of the DTM?

- more developed

- most NEEs are at this stage

- the birth rate falls rapidly as contraception use increases and more women work instead of having children

- the economy changes from farming to manufacturing (secondary industry) so fewer children are needed to work on farms

- improved healthcare means that the death rate falls and life expectancy increases

=> the population growth rate is high

=> population size is increasing

- eg Nigeria

What happens during Stage 4 of the DTM?

- highly developed

- some HICs are at this stage

- birth rate and death rate is low and fluctuating

- people expect a high standard of living, and may have dependent elderly relatives, so there is less money available for having children

- healthcare is good, so the death rate is low and life expectancy is high

=> the population growth rate is zero

=> population size is high and steady

- eg USA

What happens during Stage 5 of the DTM?

- the most developed

- some HICs are at this stage

- birth rate is slowly falling

- death rate is low and steady

=> the population growth rate is negative

=> population size is slowly falling

- eg Japan (HDI=0.9)

How is having a poor climate a physical factor that causes uneven development?

- some countries have a really hot, really cold, or really dry climate where not much will grow => not much food can be produced => malnutrition (eg Chad and Ethiopia) => low quality of life

- people also have fewer crops to sell => less money to spend on goods and services => less is sold and bought => government gets less money from taxes => less money to spend on developing the country (eg by improving healthcare and education)

How is having poor farming land a physical factor that causes uneven development?

- if land in a country is steep or has poor soil (or no soil) => difficult to grow crops or graze animals to produce food => safe effects as having a poor climate

How is having few raw materials a physical factor that that causes uneven development?

- countries without many raw materials (eg coalm oil or metal ores) have fewer products to export to other countries => make less money => unable to spend much on development projects

- some developing countries have a lot of raw materials but cannot afford to develop the infrastructure needed to exploit them (eg roads and ports)

How is having lots of natural disasters a physical factor that causes uneven development?

- countries that have a lot of natural disasters (eg Bangladesh, which often has floods) have to spend a lot of money rebuilding after the disasters occur

- natural disasters reduce the quality of life of the people affected, and reduce the amount of money the government can spend on development projects

How is having poor trade links an economic factor that causes uneven development?

- trade is the exchange of goods and services between countries
- world trade patterns (who trades with whom) influence a country's economy and so affect its level of development
- if a country has poor trade links (only trades a small amount with only a few countries), it won't make a lot of money => less to spend on development

How is having lots of debt an economic factor that causes uneven development?

- very poor countries borrow money from other countries and international organisations (eg to help cope with the aftermath of a natural disaster) => this money has to be paid back (sometimes with interest) => less for development

How is having an economy based on primary products an economic factor that causes uneven development?

- countries that mostly export primary products (raw materials like timber and metal) tend to be less developed than countries that export manufactured goods because primary products are sold for less profit than manufactured goods
- the prices of primary products also fluctuate (sometimes the price falls below the cost of production) => no profit is made
- wealthy countries can also force down the prices of the raw materials they buy from poorer countries

How is colonisation a historical factor that causes uneven development?

- countries that were colonised (ruled by another country) are often at a lower development level when they gain independence than they would be if they hadn't been colonised

- European countires colonised many countries in Asia, Africa, Australasia and the Americas between the 16th and 20th centuries
- the colonisers removed raw materials and sold back manufactured goods => profit went to the colonisers rather than the colonised countries, increasing inequality

- prevented the colonised countries from developing their own industries

How is conflict a historical factor that causes uneven development?

- war, especially civil war, can slow or reduce development, even after the war is over
- money is spent on arms and on training soldiers instead of development; people are killed and damage is dealt to infrastructure and property
- important services, such as, healthcare and education, are disrupted => increase in infant mortality rate and a decline in literacy rate
- eg in 2008, Syria had a HDI value of 0.65 but in 2016, after 5 years of war, this had dropped to 0.54

How are disparities in wealth a consequence of uneven development?

- people in more developed countries have a higher income than those in less developed countries
- uneven development can also lead to big inequalities in wealth within countries (eg in 2017, the richest 10% of Kenya's population earned, on average, 23x more than the poorest 10%)
- wealth can impact people's standard of living; the wealthy can afford goods and services that make their live more comfortable and convenient (eg cars)

How are disparities in health a consequence of uneven development?

- healthcare in more developed countries is usually better than in less developed countries
- people in HICs live longer
- infant mortality is much higher in less developed countries
- in LICs and NEEs, the lack of adequate healthcare can mean people die from diseases that could be easily treated in HICs

How is international migration a consequence of uneven development?

- many people from LICs and NEEs move to HICs to escape conflict or to improve their quality of life
- eg >130,000 people from Mexico (an NEE) to the USA (an HIC) legally each year (and thousands more enter illegally) in search of better paid jobs and a higher quality of life)
- migrant workers contribute to the economies of the HICs they move to instead of the LICs they leave from, which further increases the development gap

How can investment reduce the global development gap?

-Where countries and TNCs invest moneyin LICs which provide employment and income
-Example - Chinese companies investing in Africa (mainly energy, mining, construction and manufacturing)

How can industrial development reduce the global development gap?

- in countries with a very low level of development, agriculture makes up a large portion of the economy
- developing industry boosts GNI and development, as productivity, skills and infrastructure are improved
-Brings employment, higher incomes and opportunities to invest in housing, education and infrastructure
-This has a multiplier effect

How has industrial development in Malaysia reduced the development gap?

-seen a dramatic growth in its wealth since 1970s
-made use of foreign investment to exploit its natural resources and develop a thriving manufacturing sector
-today, it has a highly-developed mixed economy

How can aid reduce the global development gap?

-Countries or non-governmental organisations (NGOs such as Oxfam) donate resources to a country to help/improve people's lives
-Aid can take the form of money, emergency supplies, food or technology, specialist skills
-Helps reduce the development gap through investing in development projects
-Focus is usually on health care,education and services
-Example:Goat Aid helps families to buy goats which produce milk and meat

How can tourism reduce the global development gap?

-Some countries have become tourist destinations
-Which leads to investment and increased income
-Infrastructure is improved and direct and indirect jobs created
-Tourism can become vulnerable during a recession

How can the use of intermediate technology reduce the global development gap?

This is where suitable/appropriate and sustainable projects,equipment and ideas are used
-These are fitted to the needs and wealth of a local community
-Example: Adis Nifas Dam project in Ethiopia- created a reservoir close to field for irrigation
-Provides enough electricity to improve life for the villagers:enables children to study at night,families to watch TV and use mobile phones and the internet

How can fair trade reduce the global development gap?

-International movement that helps producers in poor countries get a fair deal by setting standards for trade
-Farming is done in an environmentally friendly way
-Product has a better position in the global market
-Part of the end price is invested back into the local community and future development projects

- however, there are problems: in some cases, only a tiny proportion of the extra money reaches the producers, while the rest boosts retailers' profits

How can debt relief reduce the global development gap?

- debt relief is when some or all of a country's debt is cancelled, or interest rates are lowered, meaning the country has more money to spend on development
-Many LICs borrowed money to develop their economies during the 1970s and 1980s
-Some of these countries have fallen into serious debt and are unable to payback these loans because of the high rates of interest In 2006,the International Monetary Fund (IMF) agreed to cancel the debts of 19 of the world's poorest countries
-This money saved in debt can now be used for development projects such as industry, resources and infrastructure
-But corrupt governments may keep money

How can microfinance loans reduce the global development gap?

- microfinance is when small loans are given to people in LICs who may not be able to get loans from banks => this enables them to start their own businesses and become financially independent
-Small-scale financial support for small start-up businesses and usually aimed at women to help them to become more self-sufficient

How has the growth of manufacturing industries stimulated economic development?

- provided people with reliable jobs (compared to seasonal agricultural work)
- employment can lead to a positive cycle of economic growth, as workers spend their income in local shops and other businesses; these businesses pay taxes, allowing the government to spend more on development, eg education and infrastructure, which attracts more industry to the area

What are 'transnational corperations'?

- TNCs are companies that operate in more than one country

What is 'short-term aid'?

- when money and supplies are given to help countries cope with emergencies

What is 'long-term aid'?

- money is invested in longer-term projects to help countries become more developed

What is 'top-down aid'?

- an organisation or the government decides how aid should be used

What is 'bottom-up aid'?

- money or supplies are given directly to local communities so they can decide how to use the aid by themselves

How is the UK's economy changing?

- economy used to be based on manufacturing but since the 1960s, manufacturing has declined, and tertiary and quaternary industries have grown
- in 2017, these industries employed 83% of the UK's workforce, and this proportion is increasing

What are the four sectors of economic activities in the UK?

-Primary - mining, fishing,farming etc.
-Secondary - factory workers,clothing, steel production etc.
-Tertiary - nurses, lawyers,teachers, shop assistants,chefs
-Quaternary - hi-tech scientists,research and development

What are the three stages of how the UK economy changed?

-Pre-industrial stage - most people worked in primary sector (eg farming or mining)
-Industrial stage - more people moved into the secondary sector of manufacturing
-Post-industrial stage - emphasis is on service based tertiary sector and quaternary sectors of research and ICT

What are the three main causes of economic change in the UK?

-de-industrialisation
-globalisation
-government policy changes

What is de-industrialisation?

The decline in the manufacturing industry.

How has de-industrialisation caused economic change in the UK?

-machines and technology have replaced employees in factories
-countries, like China can produce cheaper goods because labour is cheaper
-lack of investment, high labour costs and outdated machinery makes UK products expensive

What is globalisation?

The growth and spread of ideas around the world.

How has globalisation caused economic change in the UK?

-many people now work on global brands in the quaternary sector, eg in IT
-increased world trade and cheaper imported products have contributed to the decline in UK manufacturing

How have government policies caused economic change in the UK in 1945-79?

1945-79
-government created state-run industries-eg british rail
-government money 'propped up' unprofitable industries

How have government policies caused economic change in the UK in 1979-2010?

1979-2010
-privatisation - state-run industries sold to private shareholders
-many older industries shut down
-new private companies bought innovation and change

How have government policies caused economic change in the UK from 2010 onwards?

2010 onwards
Rebalancing the economy by relying less on service industries. Policies have included:
-improvements to transport (eg HS2)
-more investment in manufacturing
-encouraging global firms to locate in the UK.

What is a post-industrial economy?

A post-industrial economy is where manufacturing industry declines and is replaced by growth in the service and quaternary sectors.

How has the development of information technology moved the UK towards a post-industrial economy?

-internet access-enables people to work from home
-over 1.3 million work in IT sector
-UK - one of the leading digital economies

How has the service industries and finance moved the UK towards a post-industrial economy?

-UK service sector-grown rapidly-contributes over 79% of UK's GDP
-finance-important part of service sector
-UK-world's leading centre for financial services
-financial services sector-accounts for 10% of UK's GDP

How has research moved the UK towards a post-industrial economy?

-this sector employs over 100,000 highly qualified people
-contributes over £13bn to the UK economy

-e.g.British Antarctic Survey employs over 500 skilled and professional staff from several areas of expertise in Cambridge,Antarctica and the Arctic

How have science parks moved the UK towards a post-industrial economy?

-Tap into research and employ recent graduates with scientific and technical knowledge.
-They are usually based on a single site and linked to a university, allowing the use of research facilities.
-There are over 130 UK science parks that employ over 120,000 people

How have business parks moved the UK towards a post-industrial economy?

-areas of land occupied by a cluster of businesses located on the urban fringes where land is cheaper and readily available with less congestion, and businesses can benefit from collaboration e.g.printing companies can provide materials for other businesses in the park
-growth of science and business parks has helped IT, service, finance and research businesses to work together

What are the negative effects that industry is having on the physical environment?

-manufacturing plants can look dull and affect the visual effect of the landscape
-industrial processes and waste products can cause air, water and soil pollution
-transport of raw materials and manufacturing products increases levels of air pollution

How can industrial development be more sustainable?

-care in design can reduce the visual impact
-technology can be used to reduce harmful emissions
-desulphurisation can remove harmful gases
-heavy fines can be imposed when pollution incidents occur

What are the impacts of quarrying in the UK?

-destroy natural habitats
-pollute water courses
-scar landscapes

How is quarrying being more sustainable?

-there are strict controls on blasting, removal of dust from roads and landscaping
-recycling is encouraged
-companies are expected to restore or improve a quarry after it has been used

What is an example of how modern industrial development can be more environmentally sustainable?

Torr Quarry, Somerset
(limestone quarry in the Mendip hills)

What does Torr Quarry do?

-employs over 100 people
-contributes more than £15million to the local economy each year

How is modern industrial development making Torr Quarry more environmentally sustainable?

-quarry is being restored to create wildlife lakes
-200 acres of the site have already been landscaped
-regular monitoring of noise, vibration, dust and water quality
-rail transport of quarried rock minimises the impact on local roads and villages

What are some changes that have occurred in an example of population growth?

South Cambridgeshire
-Ageing (65+) population increasing
-Population of 150,000 increasing due to inward-migration - most come from Cambridge and Eastern Europe

What are some social effects that have occurred in an example of population growth?

South Cambridgeshire
-80% car ownership - Increased traffic congestion and pollution
-Housing developments- Lack community spirit and many young people cannot afford house prices

What are some economic effects that have occurred in an example of population growth?

South Cambridgeshire
-Expensive houses - Pressure on services (due to increased population)
-Reduction in farming employment - Farmers diversifying or selling land for houses (lack of affordable housing)
-high demand leads to high petrol prices

What are some changes that have occurred in an example of population decline?

Outer Hebrides
-Limited employment - young people move away
-Population declined by more than 50% since 1901

What are some social effects that have occurred in an example of population decline?

Outer Hebrides
-Ageing population with too few younger generations to look after them
-Expected fall in children = schools closing

What are some economic effects that have occurred in an example of population decline?

Outer Hebrides
-Services closing - Farms can only provide small amount of work
-Tourism increased - But not enough infrastructure

How have improvements and new developments in roads been made in the UK?

-100 new road schemes by 2020
-1300 new lane miles added to motorways and major roads
-Extra lanes added to turn main motorways into 'smart motorways': Traffic flow can be controlled remotely-reduces congestion
-Hundreds of construction jobs will be created which will boost local and regional economies across the UK

eg: south-west super highway- £2 billion road widening project on A303 between Basingstoke (M3) and Exeter(M5)

How have improvements and new developments in railways been made in the UK?

Development of the UK's railways aims to ease congestion and stimulate economic growth especially in northern England
-improving trans-Pennine rail links reducing journey times by up to 15 minutes
-HS2 - a planned high-speed rail line to connect London with Birmingham, Sheffield, Leeds and Manchester, but it is controversial as the route passes through countryside and close to many homes
-London Crossrail project involved 32km of new line beneath central London which improved the east-west connections and reduced commuter times

How have improvements and new developments in ports been made in the UK?

- a new port, London Gateway, opened at the mouth of the River Thames in 2013
- it can handle the world's largest container ships and it is hoped that it will become a hub for global trade
- other major ports, such as Felixstowe, are increasing their capacity

How have improvements and new developments in airports been made in the UK?

- the UK Government has agreed that a new runway is needed in the southeast
- one proposal is for a third runway at Heathrow airport, which would allow an extra 700 planes a day
- however, this would increase noise and air pollution in the area and increase greenhouse gas emissions

What is the north-south divide in general?

- economic and social factors tend to be more positive for the south than the north

What is some evidence for the UK's north-south divide?

- wages are generally lower in the north than the south (eg the 2014 average weekly wage in Huddersfield was 40% lower than in London)
- healthy is generally worse in the north than the south (eg life expectancy for male babies born in Glasgow in 2012 was 72.6 years, but in East Dorset, it was 82.9 years)
- GCSE results are generally better in the south of England than they are in the Midlands or the north

What is one reason for the north-south divide?

- the decline of heavy industry has had more of a negative impact on the north of the UK (including Wales, Scotland and Northern Ireland)
- however, the growth of the post-industrial service industry has mostly benefited the south

What are some exceptions regarding the UK's north-south divide?

- there are wealthy areas in the north, eg parts of Cheshire
- there are places with high deprivation in the south, eg some areas of Cornwall
- some cities do not fit the trends, eg Liverpool and Manchester
- not everything is worse in the north

How is the UK's government trying to resolve regional differences by devolving more powers?

- Scotland, Wales and N. Ireland have their own devolved governments, and some powers are being devolved to local councils in England too
=> this allows them to use money on schemes they feel will best benefit the local community, eg better public transport or regeneration projects to turn disused buildings into modern office spaces to attract businesses to the area

How is the UK's government trying to resolve regional differences by creating Enterprise Zones?

- ~50 Enterprise Zones have been created across England, Scotland and Wales
- companies get a range of benefits for locating in Enterprise Zones, including:
=> reduced taxes (business rates are reduced by up to 100%)
=> simpler planning rules (certain developments, eg new industrial buildings, are automatically allowed within Enterprise Zones)
=> financial benefits (in some Enterprise Zones, businesses who invest in buildings or equipment can reduce future tax bills)
=> improved infrastructure (the government ensures superfast broadband is available)
- these measures can be used to encourage companies to locate in areas of high unemployment, bringing jobs and income which could help to reduce the north-south divide

Give an example of an Enterprise Zone. What were its effects?

- the Sheffield City Region Enterprise Zone
- in 2011, the UK government approved the creation of an enterprise zone in the Sheffield region
- projects which have been set up as part of the Enterprise Zone include:
=> McLaren Composites Technology Centre - McLaren worked with researchers from the University of Sheffield to build facilities for developing cutting-edge materials
- they estimate that this could bring £100million to the local economy
=> Great Yorkshire Way - a major new road is being built to connect the Sheffield City Region with Doncaster Sheffield Airport, making it easier for people to travel to the region
===> by 2017, the Enterprise Zone had already helped to create 16,000 new jobs in the area and brought in £318million of investment from private companies

How is the UK's government trying to resolve regional differences by using the Northern Powerhouse?

- the Northern Powerhouse is the government's plan to reduce the inequality between the north and south by attracting investment into the north and improving transport links between northern cities
- the plan includes working to extend the coverage of superfast broadband and spending £70million on improving schools

- it has been criticised for being more of a concept than an actual plan; it is not always clear how the money promised is going to be spent
- critics have also pointed out that it focuses on Manchester and other big cities but ignores smaller towns and cities in the north

How is the UK connected to the wider world via trade?

- the UK trades globally, and its overseas exports are worth over £160billion per uear
- links to the USA, Europe and Asia are particularly significant

How is the UK connected to the wider world via culture?

- the UK's strong creative industries mean that UK culture is exported worldwide, eg the Shaun the Sheep™ TV eries made by Aardman Animations in Bristol is shown in 170 countries
- immigration has helped shape the UK's culture, leading to cultural diversity in food, art, music, etc

How is the UK connected to the wider world via transport?

- the Channel Tunnel links the UK to France, providing a route to mainland Europe
- large airports like Heathrow act as an international hub, linking the UK to the rest of the world

How is the UK connected to the wider world via electronic communications?

- telephones and the internet make it easier for people in the UK to communicate with people in other countries, strengthening the UK's overseas links
- Trans-Atlantic cables (carrying phone lines and internet connections) linking Europe with the USA are routed via the UK

How has the UK formed economic and political links with other countries via the European Union?

- the EU is an economic and political partnership of 27 countries
- goods and people can move freely between EU countries, strengthening links between members
- the UK has left the EU in 2020