Economic World

Economic development

the growth of the standard of living within a country. The economy will move from low-income to high-income

Social development

how people’s lives change, a continuum

Brandt line

the concept of the gap between the Global North and Global South in terms of concept and wealth. Seen as no longer valid due to countries like Australia which are HICs within the Global South which is expected to have more NEEs/LICs

LIC GNI

$1045 or below

NEE GNI

$1046-12735

HIC GNI

$12736 or more

Standard of living

the amount of wealth a person has

Quality of life

a social measure of people’s wellbeing

Birth rate

the number of live births per 1000 people per year

Death rate

the number of deaths per 1000 people

Life expectancy

the average number of years a person born in a country might be expected to live

Infant mortality

the average number of deaths of children under 1 year of age per 1000 live births

Natural increase

birth rate minus death rate and shows population increase

People per doctor

the number of patients each doctor is responsible for on average

Adult literacy rate

the percentage of people who can read and write

GNP per capita

the total value of goods and services produced by its total population per person

Development gap

the difference between standards of living in the world’s poorest and richest

Human development index

a measure between 0 and 1 which is calculated by health, wealth and education. This combines both standard of living and quality of life, meaning it is arguable fairer than just using one

Demography

the study of human population

Demographic transition

the change in population over time as countries experience economic development, they also go through different stages of demographic transition

DTM Stage 1 (no countries fit this)

Birth rate: high and fluctuating

Death rate: high and fluctuating

Natural change: more or less zero (no change)

DTM Stage 2

Birth rate: high and steady

Death rate: falling rapidly

Natural change: rapid increase

DTM Stage 3

Birth rate: falling rapidly

Death rate: falling slowly

Natural change: very rapid increase

DTM Stage 4

Birth rate: low and fluctuating

Death rate: low and fluctuating

Natural change: more or less zero (no change)

DTM Stage 5

Birth rate: falling slowly

Death rate: rising slightly

Natural change: gradual decrease

Physical causes of uneven development

* landlocked countries
* tropical countries transmit disease
* extreme natural hazards
* water scarcity

Human causes of uneven development

* growth of TNCs
* technological development
* access to healthcare
* global links e.g. UN

Economic causes of uneven development

* Bartering of prices for natural resources means that LICs are paid as little as possible for raw materials and make very little profit


* Surplus natural resources means that there is more product than demand so the prices are kept low
* Lack of workers’ rights and minimum wage means that countries do develop, but is very slow

Physical causes of uneven development

* landlocked countries means that trade is limited and the money income is limited
* tropical countries transmit disease which means that people become infected and those who are not vaccinated may become very ill and be unable to work
* extreme natural hazards means that any progress made is destroyed and is expensive to replace

Historical causes of uneven development

* colonisation means that countries are low on raw materials which cannot be sold
* war torn countries due to colonisation which means that there is a power struggle/civil war so people are feeling unsafe
* corrupt governments means that money is unfairly distributed and people are struggling

Consequence

a result or effect, typically one that is unwelcome or unpleasant

Consequences of uneven wealth

* crime
* malnutrition
* corruption

LICs health consequences

* 1 in 100 deaths is among children under 5
* infectious diseases are main cause of death e.g. cholera
* main cause of child death is birth complications

HICs health consequences

* chronic diseases are main cause of death
* 7 in 10 deaths are among 70 and over
* lung infections are main infectious cause of death

Migration

the moment of people from one place to another

Temporary migration

migration that isn’t permanent; migrants will return ‘home’ after a period of time

Permanent migration

migration that is indefinite; migrant will not return to their original ‘home’

Voluntary migration

when a person makes their own decision to move e.g. Brits moving to places such as Australia

Forced migration

compulsory migration where people have little choice about moving

Economic migration

movement to another place to seek higher incomes

Environmental migration

movement to another place due to an environmental disaster

Internal migration

migration to another place within the same country

International migration

migration to another country

Push factors for migration

* unemployment
* a lack of services and amenities
* crop failure
* poor safety and security
* concerns about high crime rates

Pull factors for migration

* potential for employment
* better service provision
* fertile land
* potential security
* low crime rates

Remittances

money sent by workers of one country (often an HIC) back to the workers’ home country (often an LICs/NEE)

Tunisia location

* Northern Africa
* North hemisphere
* slightly west of the central and northern coast of Africa
* borders Algeria to the west
* on the Mediterranean Sea

Tunisia tourist appeal

* lots of tourist attractions e.g. deserts and beaches
* hot climate has lots of appeal

Contributions to Tunisia’s development (Income)

One of Africa’s wealthiest countries (income has quadrupled since the 70s)(an NEE)

* improved healthcare and services
* higher life expectancy
* as a result, 4% of GDP goes toward healthcare

Contributions to Tunisia’s development (Literacy rates)

Literacy rates have increased from 66-82% between 1995 to 2017

* universities have higher enrolment rates
* people have higher paid jobs and pay more taxes
* leads to economic development

Contributions to Tunisia’s development (New jobs)

Many new jobs have been created and allowed cultural exchange

* means possibly outdates ideas are changed
* girls have more rights and can go to school
* gender equality is better and better rights

Reasons people visit Tunisia

* traditional Hammam (bath/massage)


* culture
* architecture
* climate
* coastal location

Places to visit in Tunisia

* Tunis
* Houmt Souk (Souk= shopping market)

Advantages of tourism in Tunisia

* tourism leads to jobs with a more reliable income
* new infrastructure is built
* leisure activities open to locals as well as tourists

Disadvantages of tourism in Tunisia

* locals may not be able to afford new facilities
* foreign travel companies keep all income which doesn’t help locals
* the wealthiest tourists do not visit LICs/NEEs, and if they do, it’s only to fully inclusive holiday parks

Nigeria location

* on the west coast of Africa
* neighbours Cameroon to the south east, Benin to the west and Niger to the north
* on the Atlantic ocean to the south
* the capital city is central and called Abuja
* slightly north of the equator (northern hemisphere)

Region

an area of land that has common features - in this case Africa

Global

relating to the whole world

Facts about Nigeria

* the world’s 21st largest economy after rapid growth
* 7th largest population in the world
* 13th largest producer of oil according to the US Energy Information Administration
* plays an important role in United Nations peacekeeping
* 150% growth in GDP between 1999 and 2011

Nigeria has problems - corruption, poor infrastructure and power cuts meaning…

Nigeria is proved to be an NEE as it still has the challenges of an LIC which highlights the changes must undergo in order to gain HIC status

Nigeria has the highest farm output in Africa, meaning…

Nigeria is proven to be reliant on primary jobs which is a trait of LICs. This shows their importance within their continent, which is more of an HIC trait

Nigeria has a population of 184 million- the highest in Africa, meaning…

that it is in line with other NEEs like Brazil, India and China, which could prove a larger wealth gap which may be reflected by still having slums whilst also having business districts

Nigeria has 37050 million barrels in oil reserve, meaning…

* there is trade appeal which improves relations with other countries
* as a result of trading, their GDP will increase as they are worth more and have resources to sell
* their economy will increase as they have desirable products which means infrastructure can be invested in

About 70% of Nigeria’s population are under 30, meaning…

* there is a large working population, many of whom may have higher education


* the generation wish to support themselves and therefore are more productive so they earn
* money earned will be reinvested into businesses, which will be taxed, leading to the multiplier effect, which can then help infrastructure

Industrial structure

the percentage of the workforce which is employed in each economical sector (primary, secondary, tertiary and quaternary)

Primary sector

production of raw materials (e.g. agriculture, forestry, fishing, mining, quarrying, and the extraction of metals)

Secondary sector

uses the raw materials produced in the primary sector and makes manufactured goods and products (e.g. food processing and oil refining)

Tertiary sector

provision of services (e.g. nurses, teachers, waiters)

Quaternary

industries providing information services such as computing, ICT, consultancy and R&D (research specifically in scientific fields)

How does manufacturing cause economic development

* manufactured products are more expensive on the world market than raw materials
* new factories generate new jobs
* increased income as a result of trading
* no need to import manufactured goods

Cycle as a result of new factories

* a new factory moves in (so people are locally employed)
* employment opportunities increase (so more people earn income)
* more people pay taxes to the government (so they have money to make improvements)
* the government may invest in healthcare and education (so the population’s social and economic wellbeing improves)
* life expectancy and literacy rate increases which allows the country to develop further (people are educated to build new businesses)

The cycle repeats

Economic potential

the opportunities available of a region, nation, or corporation for financial development and growth

TNC

a company which has the head office in an HIC and conducts operations/production in LICs/NEEs and sell globally

Operations

factories, offices, research and development, shops

Nigerian TNCs

* Shell
* Unilever
* Michelin
* Nestle
* Volkswagen
* Total

Reasons for TNCs locating to Nigeria

* Cheap labour: means that countries spend less money on paying workers, so higher profit margins
* Large labour force: goods and services are produced quickly and more efficiently, so more money can e made quicker
* Natural resources e.g. oil and gas: resources are readily available and do not need to be imported, which makes the production of goods cheaper and profits are higher

Oil in Nigeria

* found on the south coast, near the border of Cameroon on the Gulf of Guinea
* Port Harcourt is where the oil is most densely concentrated, both in land and underwater
* the area around where oil is found is close to sea level, meaning flooding may occur, which could wash away any progress
* lots of people live on the delta who work for oil companies, so they may have to be relocated in the case of flooding

Shell’s impact on industrial development

Pros

* pays billions to Nigerian taxes
* offers SPDC healthcare including vaccination which 250,000 people attend
* 26,000 total employees (90% Nigerian)

Cons

* people think Shell should employ more youths
* education and health facilities are bad in areas of work
* their tax is ultimately insufficient to help at all

Pros of TNCs, oil and development in Nigeria

Social

* Shell plays a leading role in setting up health clinics to help vaccinate young children and provide medication for HIV/AIDS patients
* Shell provides direct employment for 65,000 Nigerian workers and a further 250,000 jobs in related industries
* Unilever promotes healthcare, education and water supply as par of its social responsibility scheme

Economic

* Shell supports small businesses by providing them with low-interest micro-credit loans
* Shell supports the growth of Nigeria’s energy sector which contributes to its economy
* Shell gives 91% of its contracts to Nigerian companies

Environmental

* Unilever tries to use environmentally friendly materials such as locally produced palm oil
* Shell is trying to reduce pollution from flaring by capturing the natural gas and turning it into a valuable product they can sell

Cons of TNCs, oil and development in Nigeria

Social

* militant groups disrupt oil supply in the delta, causing violence and suffering
* the production of oil (a valuable resource) can create a source of conflict as local people feel they are not benefitting from their country’s natural resource
* in 2008 and 2009, two oil spills devastated the livelihoods of thousands of farmers and fishermen living in swamps around the town of Bodo in the Niger delta

Economic

* oil theft and sabotage are big problems in the region, reducing production levels and costing TNCs and the government billions of dollars every year

Environmental

* tin mining has led to pollution of local water supplies which creates a health hazard
* 70-80% of Nigeria’s forests have been destroyed through logging, agriculture, urban expansion and road building
* damage to farmland has reduced agricultural production and fishing yields

Commonwealth help for Nigeria

Through electoral support, the Commonwealth works to strengthen electoral democracy and election bodies, institutions and processes

* this helps the people feel like they have an input upon the society in which live in which prevents conflict and corruption

If you trade within the Commonwealth, exporting from one member to another, it is approximately 19% cheaper to do so than it would be outside

* this means people who are trading are not penalised for wanting to trade with other countries which may not have as much money, allowing international relationships to form

They work to advance gender equality, women’s rights and women’s empowerment in all social, economic and political spheres

* if people are working, higher GDP/GNI per capita which allows the government to have more money in order to develop which means the country is more progressive

Nigeria’s political links

* ECOWAS (Economic Community of West African States) - trading group made up of the countries of West Africa with headquarters in Abuja which allows for trade between neighbouring countries, the headquarters is local which generates business visitors and increases contributions
* United Nations - in 2013, Nigeria contributed the 5th largest number of troops to the UN peacekeeping force. In 2014-15, it was a temporary member of the UN Security Council which helps the country feel safer
* OPEC (Organisation of Petroleum Exporting Countries) - aims to stabilise the price of oil and to ensure a regular supply which ensures local people have access to energy supplies and that oil is affordable

Relationship between China and Nigeria

* Nigeria needs investment in infrastructure, which China has a lot of recent experience with. In 2014, the China Railway Construction Corporation won a $12 billion contract to build a new 1,400 km railway along the coast of Nigeria
* China’s economy requires more resources to keep up with demand and Nigeria can help supply this. In 2014, China invested $10 billion in exploration and drilling in a new oilfield in Nigeria

Emergency aid

often follows a natural disaster, war or conflict. May take the form of food, water, medical supplies and shelter

Developmental aid

long term support given by charities, governments and multilateral organisations. Aims to improve quality of life by providing safe water, education or improvements to infrastructure such as roads and electricity supplies

Multilateral aid

given by countries through international organisations, like the World Bank or IMF

Bilateral aid

given directly from one country to another. Sometimes it is tied aid with conditions attached. For example, the recipient may be requires to buy goods from the donor country with the aid money

Official development assistance (ODA)

given by governments and paid for by taxes. For this reason, it is sometimes unpopular with taxpayers in these countries (includes multilateral and bilateral aid)

Short term emergency relief

to cope with immediate problems caused by disasters, like earthquakes and wars

Long term development assistance

helps people to improve their lives through education, healthcare or agricultural development

Voluntary aid

given by individuals or companies and distributes through charities and non-governmental organisations (NGOs) like Oxfam (includes short term emergency relief and long term development assistance)

Nigeria’s debt timeline

* 1960 : Nigeria gains independence. The economy is booming, Nigeria invests in large infrastructure projects like roads
* 1970 : A large economic slump means Nigeria borrows money to pay for public services. The country gets into debt
* 1980 : Debt begins to spiral out of control. Public services are cut
* 1990 : Nigeria becomes Africa’s most indebted country, with $36 billion in det. The UN sets Millennium Development Goals to eradicate extreme poverty by 2015
* 2000 : Leaders of the world’s rich countries agree to cancel the debt of NEEs like Nigeria
* 2010 : Nigeria’s economy, along with other African countries is growing again. It is now the largest African economy

Tertiary sector in the UK

* services such as retail, entertainment etc. Retail employs 4 million people in the UK
* information technology. 670,000 people work in IT
* finance. The UK is home to many banking and financial TNCs
* research. R&D is increasing in the UK, making use of the UK’s skilled university graduates. In 2016, over £33 billion was spent on R&D in the UK

Causes of UK economy change

deindustrialisation

* a part of economy change as a result of the shift in sectors from secondary to tertiary post the industrial revolution

globalisation

* included imports and exports throughout different countries (German is highest for imports, and USA is highest for exports)

government policies

* rules which an organisation/people must follow e.g. health and safety

Cambridge Science Park

* near to major roads like the M11 and the A1309. This means imports and exports can be transported efficiently.
* near to the city of Cambridge, meaning there will be a lot of educated workers
* quaternary industry
* Cambridge is cheaper to buy land in than London, for example

Secondary industry’s affect on the environment

* habitats : chemicals are released into lakes and oceans, habitats are directly destroyed to make space for factories
* pollution : chemical and gas pollution is released into the air and ground e.g. CO2 emissions
* natural resources : using energy or water to run, from transport to production

Tor Quarry facts

* 7th largest quarry in the UK
* makes concrete from limestone
* 3/4 of the products are transported around the country by rail
* good rail/road networks

Environmental impacts of Tor Quarry

* loss of habitat means there is no wildlife
* constant drilling noise/small explosions
* contaminated ground and water supplies

Sustainable aims of Tor Quarry

The owners recognised the environmental effects and:

* planted trees, built 2 wildlife lakes and noise, vibrations, dust and water quality are often monitored
* grained an award for Restoration and Biodiversity in an area

Pollution at Tor Quarry

* 200 acres of land on the border has been landscaped and trees have been planted
* as part of the sustainability plan, the noise, vibrations, dust and water quality are monitored