The Changing Economic World

what is development?

improvement in a country’s capacity to produce goods and services for it’s population.

HIC examples

USA, UK, Germany

LIC examples

Somalia, Ghana, Nepal

NEE examples

Brazil, China, India

Measures of development

• GNI

• Literacy rate

• Access to safe water

• People per doctor

• Birth/death rates

• Life expectancy

• Human development Index

• Infant mortality rate

The Demographic Transition Model

(Death rates usually fall first as countries become more developed)

Natural increase

more births than deaths (increased population)

Natural decrease

more deaths than births (decreased population)

What does the DTM show?

how the population of a country changes throughout economic development

Stage 1

• birth rates high

• death rates high

Stage 2

• birth rates high

• death rates begin to fall

Stage 3

• birth rates begin to fall to death rate level

• death rates fall

Stage 4 & 5

• birth rates low

• death rates low

what is the development gap?

the widening difference in levels of development between the richest and poorest countries

Factors affecting the development gap

• poor climate

• few raw materials

• natural hazards

• colonisation

• war

• poor trade links

• political instability

ways to reduce the development gap

• investment

• aid

• intermediate technology

• free trade

• fair trade

• debt relief

• microfinance loans

advantages of tourism

• brings people to a country

• boosts local economy

• preserving culture

• gives locals jobs

• develops infrastructure from money made

• helps develop countries

disadvantages of tourism

• potentially damages environment

• locals may not like how busy it is

• most money goes towards flights to get there which won’t benefit locals

• can be costly & wasting money if it doesn’t take off

Case Study: Tanzania GNI

$174.5 billion

Case study: Tanzania

• 68 million

• high population density

• young country - half under 18

Case study: why travel to Tanzania?

• excellent safari location

• amazing beaches and ancient towns

• cultural/unique

• ancient history

• landmarks - Mt. Kilimanjaro, the Serengeti

• endangered species