Development

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Development	A measure of how economically, socially, culturally or technologically advanced a country is
Social indicators	- life expectancy (average age) - infant mortality rate (babies/1000 that die under the age of 1) - % of people living under $1 per day - % of population with access to clean water and sanitation
Economic indicators	- Gross Domestic Product (GDP) - Gross National Income (GNI) - GNI per capita
Gross Domestic Product (GDP)	Total value of goods and services produced by a country in a year
Gross National Income (GNI)	Total income of a country, including earnings from abroad. Also known as Gross National Product (GNP)
Political indicators	- corruption (how corrupt government) - war - uses up resources, destroys buildings/infrastructure
Human Development Index	HDI combines data from GDP per capita, life expectancy, adult literacy and enrolment in education (higher better) to give each country in the world a score on an index 0-1
Social factors holding back development	- Discrimination: some groups have less opportunities - Overpopulation: population growth outstrips resources
Economic factors holding back development	- No minimum wage: people paid really low - GDP: less money available
Political factors holding back development	- Trade - easier or harder for some countries to gain trade licences - Corruption: country needs strong, stable and honest government - Wars: use up resources, ruin countries
Environmental factors holding back development	- Climate (e.g. cold weather for crops) - Natural resources (trade/domestic use) - Location (e.g. landlocked, communication)
Core area	Highly developed urban region to which people are attracted and which receives the most investment
Periphery area	Usually rural areas which people may wish to migrate from towards the core region because of low investment and low prospect, less opportunities, worse services
Inequalities within countries	Core areas are more developed than periphery areas. Cores are likely to experience greater growth, investment, inward migration, while periphery may well be exploited and suffer from lack of investment. This is due to the core having e.g. better land (flat, fertile), transport links, better education and healthcare
Primary sector of production	Employment involving extracting natural resources from the land or sea, e.g. fishermen, farmers, miners
Secondary sector of production	Employment that involves manufacturing raw materials into something else, e.g. factory workers, carpenters, builders
Tertiary sector of production	Employment that involves the worker providing a service, e.g. hotel chamber maid, train drivers, doctors
Quaternary sector of production	Employment that involves using high technology and innovation, e.g. software designer, graphic design, geneticist
Clarke-Fisher Model	Model that shows the employment structure in different periods of time in a country
Pre-industrial employment structure	Primary sector is dominant - lots of farming. Lack of funding for other sector - secondary and tertiary almost non-existent. Applies to LEDCs and ancient times
Industrial employment structure	Manufacturing and new factories spring up in many location. Tertiary grows slightly. Primary continues to decline
Post-industrial employment structure	Tertiary becomes the most important as people require more services and have more money for them. Secondary tends to die away. Quaternary jobs begin to form as the country becomes wealthier
Globalisation	It refers to the increasing integration of economies around the world, particularly through the movement of goods, services and capital across borders
Factors making globalisation faster	- Increased trade (larger profits available) - Labour availability and skills (LEDCs have cheaper skilled labour, land and fewer government restrictions) - Improvement in transport (cheaper, money can be moved electronically) - Quick communication (things done faster)
TNC	Transnational Corporation is a company with branches in many countries
Benefits of globalisation	- Money invested in LEDCs (improved standard of living, new jobs) - TNCs bring money to LEDCs (better services: healthcare, education) - Global competition - keeps prices low - Global issues force countries to cooperate, aid agencies can respond
Problems due to globalisation	- Richest countries dominate trade (LEDCs exploited due to cheap labour) - No guarantee that investment helps local people (TNCs may force local businesses to close du to competition)
Problems due to globalisation 2	- Outsourcing decreases jobs in MEDCs - Country develops, labour more expensive, TNCs move out to other LEDCs - Loss of individuality of culture (cultures interact)
Outsourcing	Obtaining goods or services from an outside supplier
Why outsource	Some LEDCs: - no minimum wage (low) - no environmental protection - cheaper raw materials - longer working hours - no/bad H&S laws
Why TNCs outsource	To reduce production costs, to maximise profits

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