Economic world

Human Development Index: This is the number that’s calculated using life expectancy, literacy rate and GNI. Every country has a HDI score of between 0 (least developed) and 1 (most developed).

The demographic transition model:

Stage 1: High fluctuating Birth rate High Death Rate High Population Low and fluctuating • Little health care, low life expectancy and no birth control. • Population fluctuates due to disease, famine and war.

Stage 2: Early expanding LIC Birth rate High Death Rate Rapidly decreasing Population Rapidly increasing • Improved standards of living, hygiene and access to health care reduce down the death rate. • Life expectancy increases. • The gap between birth rate and death rate leads to a high natural increase in total population.

Stage 3: Late expanding NEE Birth rate Rapidly decreasing Death Rate Slowly decreasing Population Slowly increasing • The death rate continues to fall, albeit slowly. • The birth rate falls quickly as birth control becomes available. • It also becomes beneficial to have smaller families as children become more expensive (i.e. they go to school rather than working) – this also leads the birth rate to fall

Stage 4: Fluctuating HIC Birth rate Low Death Rate Low Population High • Low birth and death rates will fluctuate with economic situation (i.e. people have more children when jobs are plentiful and wages are high)

Stage 5: Population’s decreasing HIC Birth rate Slowly Decreasing Death Rate Slowly Increasing Population Slowly Falling • Death rates increase as the proportion of older people goes up due to longer life expectancies wages are high). • Birth rates fall as people choose careers over family, or as economic uncertainty puts people off having children

Physical Factors affecting development:

Natural Resources:

• Fuel sources such as oil.

• Minerals and metals for fuel.

• Availability for timber.

• Access to safe water

Natural Hazards:

• Risk of tectonic hazards.

• Benefits from volcanic material and floodwater.

• Frequent hazards undermines redevelopment

Climate:

• Reliability of rainfall to benefit farming.

• Extreme climates limit industry and affects health.

• Climate can attract tourists.

Location/Terrain:

• Landlocked countries may find trade difficulties.

• Mountainous terrain makes farming difficult.

• Scenery attracts tourists.

Human Factors affecting development:

Aid:

• Aid can help some countries develop key projects for infrastructure faster.

• Aid can improve services such as schools, hospitals and roads.

• Too much reliance on aid might stop other trade links becoming established.

Trade:

• Countries that export more than they import have a trade surplus. This can improve the national economy.

• Having good trade relationships.

• Trading goods and services is more profitable than raw materials.

Education:

• Education creates a skilled workforce meaning more goods and services are produced.

• Educated people earn more money, meaning they also pay more taxes. This money can help develop the country in the future.

Health:

• Lack of clean water and poor healthcare means a large number of people suffer from diseases.

• People who are ill cannot work so there is little contribution to the economy.

• More money on healthcare means less spent on development.

Politics:

• Corruption in local and national governments.

• The stability of the government can affect the country’s ability to trade.

• Ability of the country to invest into services and infrastructure.

• War, especially civil wars, can slow development as money is spent on arms and fighting instead of development.

History:

• Colonialism has helped Europe develop, but slowed down development in many other countries.

• Countries that were colonised (ruled by another country) are often at a lower level of economic development when they gain independence as a lot of the wealth has been stripped.

• Countries that went through industrialisation a while ago, have now develop further.

Consequences of Uneven Development

Uneven development leads to great differences in wealth & health and caused large amounts of immigration

Wealth — People in more developed countries have higher incomes than less developed countries. For example, GNI in the UK is 40 times higher than Chad in Africa.

Health — Better healthcare means that people in more developed countries live longer than those in less developed countries. Eg life expectancy in the UK is 81, but Chad in Africa is 51. Infant mortality is also much higher in LICs.

Migration — If nearby countries have higher levels of development or are secure, people will move to seek better opportunities and standard of living. Eg every year 130,000 Mexicans move to the USA to seek better jobs and education.

Reducing the development gap

Microfinance Loans:

• This involves people in LICs receiving small loans from traditional banks.

• Loans enable people to begin their own businesses

• It’s not clear they can reduce poverty at a large scale.

Foreign-direct investment:

• This is when one country buys property or infrastructure in another country.

• Leads to better access to finance, technology & expertise.

• Investment can come with strings attached that countries will need to comply with.

Aid:

• This is given by one country to another as money or resources.

• Improve literacy rates, building dams, improving agriculture.

• Can be wasted by corrupt governments or they can become too reliant on aid.

• Long Term Aid = Aid given that ensures long term change.

• Short Term Aid = Aid given when there is an immediate need

Debt Relief:

• This is when a country’s debt is cancelled or interest rates are lowered.

• Means more money can be spent on development.

• Locals might not always get a say. Some aid can be tied under condition from donor country. Fair trade:

• This is a movement where farmers get a fair price for the goods produced.

• Paid fairly so they can develop schools & health centres.

• Only a tiny proportion of the extra money reaches producers.

Technology:

• Intermediate technology includes tools, machines and affordable equipment that improve quality of life.

• Renewable energy is less expensive and polluting.

• Requires initial investment and skills in operating technology

Tourism in Tunisia

Location:

- Tunisia is in North Africa
- Neighbouring Algeria and Lybia
- It is a coastline country with the Mediterranean sea
- Capital city is Tunis

Why Visit?:

- Short flight (no jetlag)
- Clear water
- Culture, food
- Natural wonders
- Climate
- Historic sights

Juicy Facts:

- Time difference is 1 hour
- Cheap flights
- Package holidays
- 13.7% of all jobs are provided by tourism
- Tourism all year round

Impacts of Tourism:

- Tunisia is now one of the wealthiest countries in Africa
- Higher incomes meant longer life expectancy, better healthcare and better standard of living.
- Also has contributed to greater equality, girls now go to school.
- Literacy rates have increased by up to 79%
- The economics benefits of tourism have spread due to the linked multiplier effect
GDP → Higher Taxes → Build More Schools → 80% of the population are literate
(more people in skilled jobs means more money earnt)

Is Tourism the Best Solution?:

- It is polluting some of the environment
- Leakage of profits, holiday makers keep a large % of profits meaning it slows down the rate of economic growth
- Two large terrorist attacks in 2015 aimed at tourists, a large number were murdered. It therefore makes people apprehensive about visiting/returning

How does it Reduces the Development Gap:

Hot Climate → Tourists → 13.7% of Jobs → More Money → Better Healthcare → Higher Life Expectancy

Nigeria

• Nigeria is a west african country

• Nigeria has the highest GDP for Africa, and has the 27th largest economy in the world

• Nigeria has a large supply of oil, which they sell to the world, meaning they have large political influence over countries that dont

• Nigeria has the 7th largest population in the world(200 million)

Life Expectancy:

• 54 years (the average for the world is 73 years, which is significantly higher than Nigeria's life expectancy

Literacy Rates:

• 65.1% - This is very low, especially in girls, due to inequality in girls and boys' aspirations. Only one in three children stay in school.

Human Development Index (Rank out of 188 countries):

• 158 out of 188 - Low life expectancy and large inequality in wealth has resulted in this low rank

Industry:

• Has a large agriculture industry, Agriculture has the largest number of workers, many of whom grow just enough food to feed themselves and their family (called subsidence farming). This is unusual for a developing country, as farmers don't make much profit.

• In Nigeria, manufacturing is mainly in the form of processing oil that has been mined

TNCs

• The most influential TNCs in Nigeria are oil companies:

  • Foreign companies (such as French company Total or the USA's Exxon-Mobil) that invest in Nigeria and buy rights to export oil from the country.

  • Nigeria has its own TNC - Transcorp - which provides hospitality services across the globe, as well as energy.

• Foreign TNCs are important to Nigeria, because they influence Nigeria's economy directly:

  • Foreign oil TNCs can invest in new production & mining sites, which provide more jobs. In addition, TNCs also share technology across countries; for example, new safety measures or mining practices developed in a different country can be shared with Nigerian oil workers.

  • However, oil is very damaging to the environment. Oil spills can damage habitats and harm wildlife. The Niger river has regular oil spills, affecting wildlife and local residents' health. In addition, burning fossil fuels like oil contributes to Global Warming, which impacts Nigeria's environment directly (droughts & desertification in some places, increased flooding and extreme weather in other regions of Nigeria).

Aid

• several NGO campaigns in Nigeria to improve the quality of life and health of locals

  • Christian Aid

    • Protecting displaced Nigerians, who have had to leave their homes due to violence in North Nigeria.

    • Supporting individuals with HIV in support groups, to reduce discrimination in the community against people with HIV

    • Medical treatment to 200,000 children under 5 years old for Malaria, Pneumonia & Diarrhea.

  • Action Aid

    • Encouraging girls to go to school by constructing girls toilets and providing sanitation products, so they don't miss school because of their period.

    • COVID-19 meant some families couldn't afford food. Action Aid have delivered food parcels to families out of work due to the virus.

    • Pressuring TNCs to pay their taxes in Nigeria, so the government can invest in communities

The key causes of economic change in the UK are:

• De-industrialisation

  • De-industrialisation is the decline of the UK’s industrial base – de-industrialisation meant fewer jobs were available in manufacturing (secondary jobs such as car manufacturing). These used to be the UK’s main source of employment and income.

• Globalisation

  • Globalisation – a lot of manufacturing has moved overseas, where labour is cheaper. TNC headquarters are often still located in the UK, but production is often in a NEE (such as India)

• Government Policies

  • Governments make decisions on investment in new infrastructure and technology. Membership to trading groups make it easier for companies to trade across the world.

Post-Industrial economy

• A post-industrial economy is one where manufacturing industry has been replaced by the service industry or tertiary jobs. A new sector of the UK economy that is growing rapidly in the twenty-first century is the quaternary industry

• The quaternary sector is sometimes described as the ‘knowledge economy’ because is involves providing information and the development of ideas. This includes information technology, biotechnology and new creative industries.

• It is estimated that 15% of the UK workforce now works in the quaternary sector.

• Only about 10 per cent of employment is in manufacturing compared to 55 per cent in 1900. • The M4 corridor from London to Bristol, has become home to high tech industry over the past 30 years. Many well know companies such as Microsoft are based there,

SCIENCE & BUSINESS PARKS

• Science Parks

  • A science park is a group of scientific and technical knowledge based businesses located on a single site.

  • Science parks focus on technology so quaternary sector

  • Many science parks are located on the edges of towns, near good transport links and always near prestigious universities

  • Science parks often contain laboratories as well as offices.

  • Low rise buildings with plenty of parking and green spaces

• Business parks

  • A business park is an area of land occupied by a cluster of businesses located on a single site.

  • Business parks focus on commerce and service so tertiary sector

  • Business parks are normally located on the edges of town near transport access.

  • Business parks contain offices that are low rise with excellent parking and green spaces

  • Cheaper land is more of a priority than near universities

Birmingham Science Park

• Birmingham Science Park is a leading science park in the UK, established in 1983 it is the 3rd oldest in the country.

• The science park specialises in ‘Life Sciences’ which are sciences that have to do with 'organisms', like plants, animals and human beings.

• Specifically, the park is at the forefront of working on drugs to combat diseases and viruses.

• The Science Park was built adjacent to Aston University that provide a highly educated and skilled workforce

• There are currently 22,000 people employed in the sector across the Park and more than 600 companies working in this area.

• The park has excellent transport links – close to M6, New Street Station and Birmingham International airport

• In 2022 the Science Park will move to the suburbs of Selly Oak and reside next to Birmingham University

NORTH/SOUTH DIVIDE

Why does a North / South divide exist?

• Economic investment and jobs are centred inside the capital (London) and places nearby.

• London is a global city and financial services centre which is well connected to the European continent via rail, road and airport links. Therefore the south of England has higher wages, house prices and in general better quality of life indicators.

• Deindustrialisation in the 1970’s and 1980’s in the northern towns and cities has led to unemployment and weaker economic growth overall

Evidence

• Wages are generally lower in the north, for example the average wage in Huddersfield was 40% lower than that of London.

• Health is generally worse in the north than the south; for example life expectancy in Glasgow, Scotland is 72.6 whereas in Dorset on the south coast it is 82.9.

• Education is generally better in the south; for example in London 50% of children go onto higher education, whereas in the north this figure is 35%.

SOLUTIONS:

• Transport Improvements

  • A new high speed rail service (HS2) between London (started in 2017) and the north and the electrification of the Trans-Pennine railway (due to be completed 2018).

  • Upgrade of the M62 cross-Pennine motorway (due to be completed by summer 2018).

  • The new Liverpool2 deep water container port (opened in 2016).

  • The Mersey Gateway (opened Oct 2017) is a new 6 – lane toll bridge over the River Mersey to improve access to the deep- water port

• Local Enterprise Schemes

  • In 2015 the government launched a new strategy for a ‘Northern Powerhouse’ to help balance the wealth and influence of London and the South East by providing…

    • A £62 million BT investment will extend superfast broadband across 97% of the north by 2025.

    • A new business rate discount of up to £275 000 over a five year period to encourage businesses to move to the north.

    • Financial incentives for companies (eg Nissan in Sunderland) to locate in the North

International migration is a significant consequence of uneven development across regions and countries, predominantly driven by economic opportunities. Many individuals from areas with limited economic prospects are motivated to seek out countries that promise better employment options, higher wages, and improved living standards. For example, many citizens from less developed nations migrate to developed countries in search of sustainable jobs that offer financial stability and a better future. Disparities in quality of life act as another major contributing factor to international migration. Countries that provide superior healthcare, educational opportunities, and enhanced living conditions attract migrants from less developed regions, where such basic services may be lacking. Access to better health facilities and educational institutions greatly influences an individual's decision to relocate. Furthermore, political stability plays a crucial role in shaping migration patterns. Individuals from regions marked by political instability, conflict, or authoritarian rule often flee to more stable countries for safety and freedom. This desire to escape violence and persecution pushes many to seek refuge in nations that offer protection and a more stable environment. Established social networks in developed countries can also encourage further migration, as individuals are more likely to follow family members or friends who have successfully migrated abroad, benefiting from the supportive systems in place. Education and skill development complicate the migration scenario, as many individuals seek better educational and training opportunities not available in their home countries. This phenomenon, termed "brain drain," negatively impacts countries that lose skilled labor while simultaneously addressing skill shortages in host nations. Moreover, global economic policies and globalization significantly influence migration, often widening the gap between developed and developing nations. As open economies attract job seekers from regions less integrated into the global market, these migration flows respond to economic realities, compelling individuals to cross national borders in search of better livelihoods. In summary, uneven development generates both push factors—such as poverty, lack of services, and instability—and pull factors, including better jobs, education, and healthcare, driving international migration. Until these disparities are addressed, individuals will continue to migrate in search of improved living conditions and opportunities.

The manufacturing industry can stimulate economic development in Nigeria through various interconnected mechanisms that significantly impact the nation’s economic landscape. Firstly, it serves as a crucial source of job creation, employing millions of Nigerians. According to the National Bureau of Statistics, the sector contributed to the employment of over 1.39 million people in 2021, effectively helping to alleviate unemployment, which stood at approximately 33% in 2020. This increase in employment provides families with stable incomes, aiding poverty reduction. Secondly, the manufacturing sector enhances overall productivity by effectively utilizing local resources and labor. With a contribution of around 8.8% to Nigeria's GDP in 2021, the sector indicates a pressing need for growth and expansion, which can lead to significant economic gains. Moreover, manufacturing facilitates value addition by processing raw materials, allowing Nigeria to capitalize on its abundant resources. For instance, as the largest producer of cassava globally, Nigeria could enhance its economic value by processing cassava into flour rather than relying on raw exports. Additionally, the manufacturing sector attracts Foreign Direct Investment (FDI), having received approximately $2.3 billion in manufacturing FDI in 2020. This influx not only signifies foreign interest and confidence in Nigeria’s manufacturing potential but also brings essential capital, technology, and expertise that further foster industrial growth. Collaborations with foreign companies provide access to advanced technologies, enhancing local production capabilities. For example, partnerships with companies like Procter & Gamble have led to the establishment of local manufacturing plants, driving innovation within the sector. Furthermore, a robust manufacturing sector aids in diversifying Nigeria's economy, which heavily relies on oil exports accounting for about 90% of export revenues in 2020. Developing the manufacturing sector can mitigate this dependency and create a more balanced economic framework. The growth of the industry also encourages infrastructure development, as there is increased demand for better roads, electricity, and transportation systems, benefiting not only manufacturers but other sectors such as agriculture and services. Lastly, successful manufacturing businesses significantly contribute to government revenue through taxation, essential for national development. The World Bank has estimated that enhanced tax revenues from this sector could play a vital role in boosting public spending on infrastructure and social services, stimulating further economic growth and improving living standards across the nation. Overall, the manufacturing industry in Nigeria is pivotal in driving economic development by creating jobs, increasing exports, and supporting infrastructure and technological advancements.

Improvements in transport and infrastructure play a crucial role in shaping the economic future of different parts of the UK. Enhanced transport networks and better infrastructure can help reduce regional inequalities, boost investment, and create jobs, ultimately driving economic growth across the country.

Firstly, improved transport links increase connectivity between different regions, making it easier for businesses to operate efficiently. For example, projects like HS2 (High-Speed Rail 2) will reduce travel times between London and northern cities such as Manchester and Leeds, encouraging businesses to expand outside of the capital. This will help reduce the north-south economic divide and attract more investment to less developed regions.

Secondly, better transport and infrastructure encourage economic growth by supporting businesses and industries. Improved roads, railways, and airports make the movement of goods and people faster and more cost-effective, which can attract companies to invest in areas with good transport links. This, in turn, leads to job creation and increased economic activity, benefiting local communities.

Moreover, infrastructure projects create employment opportunities both directly and indirectly. The construction and maintenance of transport systems require workers, boosting employment in the short term. In the long term, improved transport encourages business growth, leading to sustained job opportunities in different sectors such as retail, logistics, and tourism.

Additionally, better infrastructure can help reduce congestion and pollution, making cities and towns more attractive places to live and work. For instance, investment in sustainable transport solutions, such as electric buses and cycling lanes, can improve urban environments, leading to healthier and more productive populations.

Overall, transport and infrastructure improvements are vital for the UK’s economic future. They enhance connectivity, attract investment, create jobs, and improve the quality of life, ensuring balanced economic growth across different regions of the country.