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Strategies to reduce the development gap between countries, including investment, industrial development, tourism, aid, intermediate technology, fair trade, debt relief, and microfinance loans. The text also provides a case study of Nigeria, focusing on its economy, political history, and relationship with the UK and other countries.
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Measuring Development Development measures how economically, socially, culturally or technologically advanced a country is. It suggests: advancement, evolution, expansion, growth, improvement, increase, maturity, progress, changes for the better. Development Indicators GNI Rocks that bash together to become smooth/smaller. HDI A chemical reaction that dissolves rocks. Infant mortality Rocks hurled at the base of a cliff to break pieces apart. Literacy rate Water enters cracks in the cliff, air compresses, causing the crack to expand. You need to know the advantages and disadvantages of each of these UK Links Ports Air Roads
Economic and Industrial Change in China History and Landscape
Social Measures ( Measure an aspect of quality of life) Infant mortality – the number of babies that die per 1000 before their first birthday. If this is high, the country must not have good hospitals = Developing. Birth rate – The number of births per 1000 of the population per year. If this is high, then the country probably has little access to contraception and sex education = Developing. Death rate – The number of deaths per 1000 of the population per year. This is misleading - see below Literacy rate – The % of people that can read and write. If this is low, it shows people cannot read and write, so must not have access to schools = Developing People per doctor – The average number of people to one doctor. If this is high, it means the country has little money to employ doctors = Developing. Access to safe water – This is the % of people with access to clean water. If this is low, it means that the people do not have clean water running in to their homes, either because they can’t afford it or the Government cannot afford to install it = Developing. Human Development Index: This is a number which is calculated using life expectancy, literacy rate, education level and income per head. It measures the health, wealth and education of a country. Countries have a HDI value between 0 and 1. 0 = the least developed, where as 1 = most developed. The problem of using individual indicators is it can be misleading. Some indicators improve at different rates to others. So it might means that a country is more developed than it actually is. For example if you looked at GNI per head of Russia it might seem quite high enough to be a HIC, however in reality there is huge disparity (difference) between the rich and poor.
The problem of using individual indicators is it can be misleading. Some indicators improve at different rates to others. So it might means that a country is more developed than it actually is. Economic: GNI per head It hides variations within a country. For example, cities may be rich where as rural areas may be very poor, this is true in LICs. The wealth might only be in a few hands. For example, Russia it might seem to have a high enough GNI per head to be a HIC, (it has many millionaires and billionaires) which increases the GNI score. However, there are many extremely poor people in Russia as well. So there is huge disparity (difference/variation) between the rich and poor. GNI per head does not tell us black market economic activity. $ currency changes daily. Social: Death rate is high, many people would assume it is a developing country where many people are dying from poor sanitation and lack of health care. However, in very developed countries like Germany, death rate is high due to the proportion of the population who are over 65. Birth rate data can be influenced by governmental policies like China’s One Child rule. Measuring literacy rates in developing countries, or conflict zones or squatter settlements is very difficult. Limitation to using access to safe water is that water quality can decline following flooding or poor maintenance to water pipes. Also in urban areas increasing costs of water, force the poorest residents to use unsafe sources of water. Infant Mortality – in the world poorest countries it is difficult to measure infant deaths, as many are buried in unmarked graves. Resulting in official data being an estimate.
DTM – Demographic Transition Model – it shows how birth and death rates affect population growth (Population Growth Rate – How fast the countries population is growing.
Aid:
Fair trade:
Industrial development
Tourism:
The location and importance of the country, regionally and globally
What is a Transnational Corporation (TNCs)
How has the economy the UK economy changed?
1. De-industrialisation and the decline of the UK industrial base - fewer jobs in primary and secondary industries such as mining and steel making. And manufacturing. These industries were once a primary source of employment and income for the UK. 2. Globalisation and government policies – A lot of manufacturing has moved overseas, where labour costs are lower, though headquarters of manufacturing companies have often remained in the UK. Trade with other countries is an increasingly part of the UK GDP. In 1945 – 80s the UK government propped up the declining UK economies (coal, steel and British Rail) as they were unprofitable (equipment was old, outdated practices). The 1970s was full of strikes. In the 80s to 2010, state run industries were sold off to private companies, this is called privatisation and it brought change. The UK derelict industrial areas were redeveloped into financial centres. 2010 onwards – the government had to rebalance the economy. This was to be done by rebuilding the UK’s manufacturing sector and relying less on service industries in particular the financial sector. This included: improving infrastructure (Crossrail), more investment in manufacturing industries, easier access for loans for small businesses and encouraging global firms to locate within the UK 3. Mechanisation – Less workers are needed in primary and secondary industries as machines can now do these jobs. Primary Industries – These collect raw materials such as; farming, logging, oil rigging, mining, quarrying etc Sector employment of employment in the UK Quaternary – Knowledge and Information services Tertiary Industries – These provide a service such as; teaching, accounting, health care, sales assistants etc Secondary Industries – These manufacture goods into products such as; car manufacturers, food processing plants, toy assembly plants, builders etc The UK is moving towards a post-industrial economy – continued next page Post industrial economy is the economy of many economically developed countries where most employment is now in service industries. Services are more important in the UK as we become Post-Industrial. Tertiary and quaternary industries are growing in the UK and in 2011 accounted for 81% of the workforce. As secondary manufacturing is declining, Important industries in this sector include: Quaternary Industries: Defined as hi-tech , research and design. They include hardware and software designers for computers, pharmaceutical companies which are designing the new medicines for tomorrow, or aeronautical (planes and space) engineering. These are the growing industries in developed countries.
Impacts of industry on the physical environment Large scale extraction of industries such as mining and quarrying can and have an impact on the environment. This has been the case in the UK. Where quarries have been cut out of the countryside and huge wastes topes pilled up on the edges of mining settlements. Additionally, manufacturing plants can look very dull and can have a negative visual effect on the landscape. Other issues include: It can destroy natural habitats, pollute water, scar the coastline, transportation of raw materials and manufacturing products is usually by road, which increases levels of air pollution and damage to the environment when roads are widened to build wider roads to cope with large trucks. For Example Hanson Cement in Lincolnshire is a cement work and was voted the ugliest eye sore in Britain in 2010, it also creates noise and dust from blasting, scaring wildlife and the dust causing breathing problems locally. More sustainable today due to planning regulations : However today Hanson Cement plants 7 trees for each 1 it cuts down returning habitats – it has now planted 13,000 trees , it only blasts once per day, reducing noise and dust. It has installed a 63m long bat caves to protect endangered species on the land. It has the largest solar farm in the UK to produce electricity, all of which make it a better for the surrounding environment. Its policy is to a good neighbour. As well as making sure the environment is protected, as well as this the company ensure it provides a practical and financial support for local groups. Modern Industrial developments are more environmental sustainable than older plants as they are regulated by strict environmental regulations, better environment awareness and increasing energy and waste disposal cost.. For example Jaguar Rover in Wolverhampton, has solar panels which produce 30% of it’s energy, almost all waste is recycled. The UK is moving towards a post-industrial economy – continued
1. Services – E.g retail, entertainment, and personal services like hairdressing. This is the largest sector. 2. Information Technology – This is now an important part of the UK economy. Over 60,000 people are employed in the IT sector by companies like Microsoft and IBM. 3. Finance – The UK and especially the City of London is the home to important financial institutions. HSBC have their headquarters in London (Canary Wharf). 4. Research – Research and development (R&D) is increasing in the UK, making use of the university graduates in the country. In 2013 nearly £ billion was spent on R&D. Quaternary industries are found in science parks or business parks. A science park is a group of scientific and technical knowledge based businesses located on a single site. There are over a hundred science parks in the UK e.g University of Southampton Science Park. A business park is an area of land occupied by a cluster of businesses example Cobalt Business Park, Newcastle upon Tyne which included IBM, Siemens offices and Santander. They are often:
The UK’s improving transport network: Although the UK is developed and has much transport infrastructure, but congested transport networks can slow development, so the UK is improving its infrastructure to ensure continued economic growth: Roads – Capacity on motorways is being increased by upgrading motorways ‘smart motorways’ with electronic signals to control speeds and stop accidents, extra lanes are also being added e.g M4. Railways - Crossrail (currently under construction) it will increase central London rail capacity by 10% when it opens in 2018. The proposed H2H line linking London, Birmingham, Leeds and Manchester will increase capacity and allow faster journeys between major English cities eg Manchester and London in 1hr 8 mins. Airports – The UK government has agreed that a new runway has been planned for Heathrow, this will mean greater transport around the world. This is needed as existing airports are full or filling up. Ports – a new port London Gateway is operating at the mouth of the River Thames. It is a hub of global trade and can transport some of the world’s largest container ships. It is able to handle the world’s largest container ships and hopes to become a hub for global trade. The UK’s place in the wider world The UK has strong links with other countries: Trade – The UK trades globally, with links to the USA, Europe and Asia being the most significant. UK’s overseas exports are worth £250 billion per year. Culture - Our creative industries are exporting our culture worldwide eg the X-Factor is now on in 172 countries worldwide. Transport – The Channel Tunnel connects the UK to Europe, provides a route for goods and people to access mainland Europe. Large airports like Heathrow is an international hub connected to hundred of countries. Electronic Communications – As well as being home to offices to many global IT firms like Microsoft research centre is in Cambridge. Trans-Atlantic cables (carrying phone and internet lines) linking Europe and the USA come through the UK European Union – The EU is an economic and political partnership of 28 countries. £130 billion worth of exports went to the EU, as the UK is in economic and political partnership with the 28 other countries. This provides a large market without trade barriers. The Commonwealth – This contains 53 independent states, and advantageous trade links and deals are done with these countries, due to past relationships.
GCSE The Changing Economic World Knowledge Organiser KI : There are global variations in economic development and quality of life KI : Various strategies exist for reducing the global development gap Key terms Definitions Birth rate Number of births in a year per 1000 of the population Death rate Number of deaths in a year per 1000 of the population Demographic Transition Model A model showing how populations change over time in terms of their birth rates, death rates and total population size Development The progress of a country in terms of economic growth, technology and welfare Gross National Income (GNI) Gross national income divided by the size of the population Human Development Index (HDI) Development measure using GDP per capita, life expectancy and adult literacy. Given as an index figure Infant mortality Average number of deaths of infants under 1 year of age per 1000 live births per year Life expectancy Average number of years a person might be expected to live Literacy rate Percentage of people who have basic reading or writing skills Access to safe water Percentage of people with access to clean water People per doctor Number of people per doctor Key terms Definitions Development gap Difference in standards of living and wellbeing between LICs and HICs Fair trade When producers in LICs are given a better price for the goods they produce Intermediate technology Simple, easily learned and maintained technology used in a range of economic activities serving local needs in LICs Microfinance loans Very small loans given to people in LICs to help start a small business Classification of countries LIC – Low Income Countries US $1045 or less GNP 30 countries NEE – Newly Emerging Economy 80 countries. Number increasing due to globalisation HIC – High Income Country US$ 12,736 or more 80 countries Indicator Limitations LICs Not higher death rate as have younger population Birth rate Useful except where government policies Infant Mortality Rate Decreasing in HICs. Increasing in LICs. Close link to wealth, access to services. Data can be inaccurate Life Expectancy Rising in HICs though may decrease due to obesity Gross National Income Blunt tool. No measure of how much $1 will buy. Hides variations HDI Most useful indicator. Economic and social element. Data can be unreliable. Does not account for subsistence economy, corrupt governments etc. Causes of uneven development Physical Climate Few raw materials Poor farming land Lack of safe water Extreme weather Natural hazards Economic Poor trade links Primary economy Debt Corrupt government Lack of education Poor health and water quality Historical Colonialisation Conflict Consequences of uneven development Disparities in wealth and health HICs – higher income, better health care, higher life expectancy, lower IMR NEE – wealth not evenly distributed LICs depend on HICs for aud. Borrow from world bank causing debt North America 35% of global wealth, Africa 1% International migration Migration to countries with higher development e.g. Mexico to USA Depends on push and pull factors. Money sent home Strategy for reducing the development gap Investment Governments, organisations of companies invest in big projects. Provides employment and income leading to development. TNCs from NEEs and HICs inject FDI leading to multiplier effect Industrial development and tourism HEP helps economic growth in Africa and Asia. Brings employment, income and opportunities. Investment occurs in housing, education and infrastructure Move from primary products as issues with overproduction and import taxes. Manufacturing goods lead to more profit Tourism leads to investment and more income. Vulnerable to recession. Aid Gift (not repaid). Can be funding for development e.g. infrastructure which boosts economy and leads to an increase in quality of life. From countries / IMF / World Bank UK spends 0.7% GDP on aid Intermediate technology Comines sophisticated ideas with cheap readily available materials. Local knowledge and tools used eg. Afridev handpump, solar ovens Fair Trade Prevents exploitation with realistic prices and better working conditions. Increases standard of living, health care and education. Debt relief Writing off debts / making repayments lower and terms longer IMF / World Bank Highly Indebted Poor Countries Initiative helped 41 countries (mainly in Africa) control their finances, show no government corruption and agree to spend saved money on education, healthcare and decreasing poverty. Tanzania now has free education and Uganda has safe water for 2 million people African countries are over US$300 billion in debt Microfinance loans Provided by investors in HICs to entrepreneurs in NEEs and LICs. Many borrowers are women e.g. Glameen Bank in Bangladesh. Vital cash to escape cycle of poverty EG of how tourism in a LIC can reduce the development gap Case Study : Tunisia Reasons for tourism Climate Links with Europe History and Culture Landscape Cheap package holiday How has it helped? Multiplier effects helped souks and farmers. Jobs and income Now one of wealthiest African countries with increasing life expectancy, literacy rates, jobs and gender equality Concerns Pollution of the environment Leakage of profits Terrorism in 2015
GCSE The Changing Economic World Case Studies Knowledge Organiser Key terms Definitions Commonwealth Voluntary association of 53 independent and equal sovereign states Deindustrialisation Decline of a country’s traditional manufacturing industry European Union International organisation of 28 European countries formed to reduce trade barriers and increase cooperation among its members Globalisation The process which has created a more connected world Information technologies Computer, internet, mobile phone and satellite technologies North south divide Economic and cultural differences between Southern and Northern England Post industrial economy Economy of many HICs where most employment is in service industries Science and business parks Business parks are purpose built areas of offices and warehouses. Science parks are near universities and high tech industry is established here. Service industries Economic industries that provide a service (tertiary industries) Trade The buying and selling of goods and services between countries KI : Major changes in the economy of the UK have affected, and will continue to affect, employment patterns and regional growth Causes of economic change Deindustrialisation and decline of traditional industrial base