Studied by 2 peopledevelopment 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
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