Unit 6: Dynamic Development

development is

the improvement to a country's standards

economic development is

a progress in economic growth

social development is

improvement in people's standards of living

environmental development is

advances in the management and protection of the environment

gross domestic product is

the sum total of all the value of goods produced by the nation in a year
measured in US dollars

GDP per capita is

GDP divided by population
measured in US dollars

gross national income is

the total value of goods and services produced by a country per year and net income earned abroad
measured in US dollars

GNI per capita

GNI divided by population
measured in US dollars

birth rate

number of live babies born per thousand per year

death rate

number of deaths per thousand per year

life expectancy

average age a person can expect to live to

infant mortality rate

number of babies who die under 1 years old per thousand

literacy rate

percentage of adults who can read and write

human development index (HDI)

calculated using life expectancy, education level, and income per head
ranges from 0 to 1

happy index

calculated by dividing a country's life expectancy, well being and level of inequality by its environmental impact
graded either green, amber, or red

LIDCs are

the poorest in the world with the lowest GNI per capita
there are low standards of living

LIDC economies are usually

based on primary industry
not many goods are exported
not enough money to spend on development

examples of LIDCs

Afghanistan
Somalia
Mali
Nepal

EDCs are

generally getting richer
standards of living are improving

EDC economies are

moving from primary to secondary industry
high exports of manufactured goods
more money to spend on development

examples of EDCs

Brazil
Russia
India
China

ACs are

the wealthiest countries in the world
highest GNI per capita
high standards of living

AC economies are

based on tertiary and quaternary industry
lots of money to spend on services

examples of ACs

UK
USA
France
Canada
Australia

physical factors affecting development

poor climate
few natural resources
bad location
lots of natural hazards

poor climate

not much food will grow
reduces food production leading to malnutrition
less crops to sell so less income made

few natural resources

less to sell
some countries may not have infrastructure to extract or transport raw materials

bad location

landlocked countries cannot easily transport goods

more expensive to import and export goods

lots of natural hazards

cause deaths and injuries
destroy property and posessions
lots of money spent rebuilding after disasters occur

human factors affecting development

conflict
debt
disease and healthcare
politics
education
trade
tourism
aid

conflict

money is spent on arms and fighting
people are killed and the area is damaged
money spent repairing infrastructure and property

debt

money has to be paid back usually with interest
any new money made is used to pay the debt back

disease and healthcare

people who are ill cannot work
expensive medication or healthcare is needed

politics

corrupt governments may take money used for services
may prevent fair elections from happening
comapnies and other countries unlikely to invest
not many trade links made

education

produces a more skilled workforce so higher income
country can produce more goods
more services offered

trade surplus is

when the cost of a country's exports exceeds the value of its imports

trade deficit is

when the cost of a country's imports exceeds the value of its exports

exporting primary products is

less profitable than exporting manufactured goods
prices tend to fluctuate

tourism

more money entering the country so more income

aid

can be spent on development projects
however countries may only rely on aid
and will not develop trade links

Rostow's model

a model of economic development

describes a country's linear progression

occurs in five stages

stage 1 of Rostow's model

traditional society
farming, fishing and forestry based
little trade

stage 2 of Rostow's model

preconditions for takeoff
manufacturing develops and infrastructure is built
international trade begins

stage 3 of Rostow's model

take off
rapid growth and large scale industrialisation
increasing wealth

stage 4 of Rostow's model

drive to maturity
economy grows so people get wealthier
standards of living rise
widespread use of technology

stage 5 of Rostow's model

high mass consumption
lots of trade and goods are mass-produced
people are wealthy

millennium development goals (MDGs)

eight goals adopted by the UN to address inequality in the international system with the objective to improve people's lives globally by 2015

sustainable development goals (SDGs)

goals created by the UN to build on the work accomplished via the MDGs by 2030

top-down aid is when

an organisation or government receives the aid and decides where it should be spent

bottom-up aid is when

money is given directly to local people

tied aid

aid given to a foreign country with conditions attached

short-term aid is when

aid is sent to help countries cope with emergencies

advantages of short-term aid

country recovers faster
money for development isn't used for the emergency

disadvantages of short-term aid

doesn't help with long-term recovery
food aid may limit the price farmers can charge for their crops

long-term aid is when

aid is given over a long period to help countries develop

advantages of long-term aid

most projects aim to be sustainable
most projects aim to improve life for lots of people
most projects aim to build trade links

disadvantages of long-term aid

recipient country may only depend on aid
aid can often be tied

debt relief

the partial or total remission of debts
not all of the money borrowed has to be paid back

advantages of debt relief

frees up money that can be spent on development
donor countries can specify how the cancelled debt should be spent

disadvantages of debt relief

donor countries may be reluctant to cancel countries with corrupt governments
money will not be used where it is needed

trans national companies (TNCs)

companies that are located in or produce and sell products in more than one country

TNC factories are usually located in

poorer countries because labour is cheaper
less environmental and labour regulations

TNC offices and headquarters are usually located in

richer countries
more people with administrative skills