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| Question | Answer |
| 2.1 What does GDP stand for? | The total value of all goods and services produced domestically (inside a country) by a nation during a year |
| 2.1 What does GNP stand for? | The total market value of all goods and services produced by a nation in a year. It also includes the value of goods and services produced overseas |
| 2.1 What does GNI stand for? | Gross National Income: The total value of good and services produced within a country together with the balance of income and payments from or to other countries. GNI is increasingly become the preferred monetary indicator |
| 2.1 What are the problems with monetary measures? | Value of currencies change against each other, it is hard to make accurate comparisons. All countries have a formal and an informal economy. Some good and services go unpaid for (charitable work, parenting) however they contribute to the economy. Looking at an overall rate does not take intranational variations into consideration. Just looking at money neglect many other important aspect of development (eg. education and healthcare) |
| 2.1 What are the 5 stages of economic development according to Rostow's model? | 1. Traditional Society 2.Transitional Stage 3. Take Off 4. Drive to Maturity 5. High Mass Consumption |
| 2.1 What three aspects does the HDI look at? | GNI per capita Life Expectancy Comparing expected years of schooling for current school children and mean years of schooling for adults age 25 |
| 2.1 What is the HDI and how does it work? | Human Development Index: It is composite measure because it looks at more than one variable. The HDI scores countries between 0 (least) and 1 (most developed) |
| 2.1 Explain how the Rostow Model attempts to generalise the different stages of development? | All countries go through different stages of development. It states that all societies and countries started off being primary based (mainly farmers). Overtime countries may specialise in agricultural products that the physical geography of the area favours. With money earned from selling their products they will be able to invest in infrastructure and start to grow their industry (secondary sector). Again they may specialise in certain industries making more money. As companies and individuals become wealthier they may demand more services growing the tertiary sector. |
| 2.1 Which jobs does the Quarternary Sector encompass? | IT, consultation and Research & Development (R & D) |
| 2.1 Which are the BRICS countries? | Brazil, Russia, India, China, South Africa: They have formed a group to discuss development and economic strategies. Sometimes called the emerging markets. |
| 2.1 Which are the MINT countries? | Mexico, Indonesia, Nigeria and Turkey |
| 2.1 What is the G20? | The G20 is a group of the world's 20 biggest economies (it inculdes the EU as an economic union). They meet to discuss economic policies. |
| 2.1 What are considered three important indicators of development? | IMR, Education and Nourishment |
| 2.1 What are the widely-regarded economic indicators? | Internet Connectivity Mobile Ownership GDP/GNP/GNI per capita Unemplyment rate Debt Ratio (debt to GDP) Economic Freedom Index (index that looks a individuals freedom to work, hire, borrow, lend, produce and consume) Car ownership Average Income Home ownership |
| 2.1 What are the widely regarded social indicators? | Birth Rates Death Rates IMR CMR Life expectancy Total fertility rate Murder rate Adult literacy Scool enrollment Malnutrition rate |
| 2.1 What are the widely-regarded environmental factors? | Forest Cover Areas Protected Pollutant levels (the amount of different pollutants in land/water/atmosphere) Biodiversity Endangered Species |
| 2.1 What are the problems and limitations of development indicators? | Country-wide statistics disguise intra-country variations Data may be inaccurate or incomplete Most development indicators focus only on one aspect Most indicators use average and tend to neglect or highlight marginalised sections of the population Indicators are always out of date Development indicators aren't objective-they can be manipulated to suit people's needs |
| 2.2 Define Absolute poverty | When people dont't have enough money to afford their daily needs (less than 1$/2$ per day) |
| 2.2 What is the Brandt line? | An imaginary line that a German politican drew across the world in the 1970's Divided North from South He claimed thta the North was richer than the South Might have been true at the time but no longer applicable |
| 2.2 What are the factors causing disparities in wealth? | Residence (secure comes with some sense of job security) Ehtnicity/Religion (marginalisation, prejudice) Parental education (relates to parental employment and a secure nurturing environment) Diet (bad diet-->sick-->no job) Land ownership (if land is owned you can at least lead a subsistence lifestyle) Energy Supply (accomodating industry) Income (easier to generate money if you have money-->invest, microcredits) National Debt Sex |
| 2.2 What were the origins of debt? | The debt problems of many LEDCs started after decolonisation at which point they were encouraged to borrow money to invest in infrastructure. Money was widely available at this point. |
| 2.2 Why was money available when many LEDCs decolonised and started borrowing money and how did it lock them (in most cases) into the cycle of poverty? | Discovery in oil and rise in oil prices meant OPEC had huge oil reserves OPEC invest many of their reserves in western banks Low interests encouraged LEDCs to take large loans from western banks Corruption in LEDCs (dictators) made money disappear Rising interest rates-->loan repayments increased Inflation of LEDC currencies made repayments more expensive Lack of previous investment in economy meant LEDCs weren't generating much income |
| 2.2 What are the problems caused by debt? | Reduced investment in essential services (schools, hospitals) Reduced investment in infrastructure projects-->low FDI High levels of unemployment Increased taxation on individuals and companies to repay debt Increased reliance on aid Imposed reform in order to get debt Possible default Problems of raising future capital |
| 2.2 What are the general wealth trends in China? | The East is a lot wealthier than the Centre or the West. |
| 2.2 What are the physical affecting the wealth disparities in China? | Large areas of the north are covered by Gobi desert--> desertification further into south of China The South West of China is mainly the Tibetan plateau-->agriculture, transportation, construction and communication are hard South East has extensive coastline making transport and communication easy. Land in the East is much flatter and has good water supply (Yangtse River and Yellow River) makes more fertile |
| 2.2 What are the human factors affecting the wealth disparities in China? | Most of China's major cities are in the East (Shanghai, Beijing, Guangzhou, etc.) More investment in infrastructure-->more FDI, largest economic growth China is ethically predominantly Han marginalising minority groups like Tibetans and Uighers. |
| 2.3 What arguments did Andre Gunder Frank put forawrd for the Dependency Theory? | The development of the rich world was achieved by exploitation of the developing world. Developing countries moved into production of cash crops which meant they were no longer subsistent and were now dependent on developed countries for food importans and food aid. Development of countries was slowed/stopped by colonialists. Countries were richer before colonisation. |
| 2.3 Why has the Dependency Theory increased in popularity? | Many poor countries owe debts to developed countries or international banks More TNCs are outsourcing and thus exploiting poor countries. Developed countries tend to specialise in more value-added industries such as banking, impeding the technological development of poor countries Many international organisations are dominated by developed countries (World Bank, IMF, UN Security Council) Many developing countries have become reliant on NGO help |
| 2.3 Outline facts on global life expectancy and disparities within that parameter | The world's current average life expectancy is about 70 years, but there is a huge gap between the highest (Monaco at about 89 years) and the lowest (Angola at about 38 years). |
| 2.3 What are the reasons for an increased global life expectancy? | Improved diet and increased food production More access to potable water Immunisation programmes eliminate diseases such as small pox Better medical care Improved post-natal care Better education about diet and hygiene |
| 2.3 Despite the global rise in life expectancy, what are the reasons for some regions not experiencing this overall trend? | Prolonged civil war (Sierra Leone) Disease (HIV in Botswana) Famine and drought (Ethiopia) |
| 2.3 What does the World-Systems Theory state? | In a capitalist world economy some regions forged ahead creating a core region, making the rest of the world a peripheral region. A semi-peripheral area emerged and bridged the gap between the two. The periphery became specialist in the primary sector, while the corebecame specialist in the higher value secondary and tertiary sectors. |
| 2.3 What evidence is there for the World Systems Theory? | World System Theory does not state that countries become stuck in the periphery like dependency theory, but can develop and reduce disparities. NICs, the BRICS and MINT countries aregood examples of semi-peripheral countries fast reducing the disparities between the have and the have nots. |
| 2.3 When is education particularly vital to a country? | If countries want to reduce disparities, alleviate poverty and see an improvement in the standard of living. |
| 2.3 In which ways can education be measured? | Adult literacy Percentage of university graduates Education spending Pupil/teacher ratios Male/female education equality Years of schooling |
| 2.3 Why do differences on a nation-scale exist in education? | War Some countries cannot provide free education In many primary-base countries, children are needed for work In LEDCs children have to contribute to family income, care for parents or look after the family home |
| 2.3 State the 8 MDGs | 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDS, malaria and other 7. Ensure environmental sustainability 8. Global partnership for development |
| 2.3 What are the three main targets of the MDGs? | Poverty Reduction Education Health |
| 2.3 Name a fact on the global distribution of income | The 5 richest countries control 74.1% of the world's wealth and the 5 poorest only control 1.5%. |
| 2.4 What are the five possible solutions to reducing disparities? | Trade Market Access Debt Relief Aid Remittances |
| 2.4 Study EU as trading bloc case study | Study EU as trading bloc case study |
| 2.4 What is one of the biggest barriers to free global trade? | Protectionist policies carried out by developed nations |
| 2.4 Define Protectionism | Attempts to protect domestic markets by making foreign goods less competitive. This is most commonly done through tariffs and and quotas placed on foreign goods and subsidies given to domestic goods |
| 2.4 Define Quotas | A limit placed on foreign goods to reduce the supply of them, therefore forcing the price up reducing the demand for them |
| 2.4 What are the benefits of free trade? | Gives local companies a chance to become global companies Countries who participate in free trade grow faster Protectionism makes products more expensive Local companies can create pollution just as much as TNCs but may not have the money to clean up accidents Mexico has increased its exports since joining NAFTA Jobs are created for local workers Improvement to local infrastructure |
| 2.4 What are the benefits of Protectionism? | TNCs may take over local producers Workers are often exploited by TNCs and paid low wages for long hours Countries may become dependent on foreign countries' imports (EU dependent on Russian Gas) Producing locally should reduce transport costs and air miles Local companies will use more appropriate technology and take greater care of the environment |
| 2.4 Case Study: Name an example of Protectionism - Banana Wars | Bananas are one of the world's most popular fruits with 5.4 million tonnes of them eaten in Europe in 2008. Bananas are a tropical fruit and general grown by countries in the Caribbean, Central America, West Africa and parts of SE Asia. Since 1975 Europe gave Caribbean countries and a couple of other former colonies generous import quotas of bananas free from tariffs. The idea was to support former colonies and reduce the need for aid, by promoting trade. However, by favouring certain countries it made Latin American bananas more expensive because they had to pay tariffs despite the fact they should be cheaper to produce on larger plantations dominated by US TNCs (Dole, Chiquita and Del Monte) Because of the EUs hypocritical approach to free trade protests were made by the US and Latin American producers to the WTO. After years of failed negotiations a deal was finally struck in 2009 that would begin the slow reduction of tariffs on bananas. The agreement may hurt some Caribbean and African producers, but should see banana prices fall by up to 12% for EUcons |
| Case Study: Incheon Free Economic Zone | Incheon is located in NW South Korea, close to the capital city Seoul. The South Korean government started its Business Hub Project in April 1992 and Incheon was one of the free economic zones that it created. The free economic zones enjoyed tax breaks and relaxed bureaucracy in an aim to attract foreign investment. • Incheon free economic zone is an area of 200km2 and it is aimed to completed by 2020. It is strategically placed on the coast so has as access to the sea, has an international airport and is near the Asian giants of China and Japan. It is estimated that 2 billion people live within 3.5 hours flying time, including 61 cities with a population of over 1 million people. The scheme is expected to cost $21 billion and it is hoped that 510,000 will eventually live there. |
| 2.4 Name one HIPC and explain what a country must do to retain that status? | To remain eligible for debt relief countries had to enforce anti-corruption efforts, promote democracy and account for expenditure. • Nicaragua had unsustainable debt and therefore became eligible to HIPC status. In 2000 Nicaragua received debt relief of nearly $4.5 billion reducing its debt burden as a percentage of export earnings to below 150% and its annual debt service to below 9% of government expenditure. |
| 2.4 Define Multilateral Aid | Aid that is given by multiple donors to a specific country. Multilateral aid may be collected by an NGO or a UN organisation e.g. UNHCR or WFP |
| 2.4 Define bilateral aid | Aid that is given by one country directly to another country |
| 2.4 Define SAPs | Structural Adjustment Programmes were implemented by the IMF. Aid or loans was usually dependent on countries following SAPs. SAPs aimed to cut social expenditure, liberalise trade, privatise assets and reduce corruption. Unfortunately many of the policies were criticised because they ended up favouring MEDCs and TNCs who were able to obtain favourable trading terms and purchase undervalued government assets |
| 2.4 What are the advantages of aid? | After disaster, food and medical aid can be vital for survival Aid can help build expensive infrastructure projects Can help build schools and hospitals that improve heald and education of pop. Many aid agenices employ bottom-up development. Many charities provide education about hygiene diet and health, which isn't financial thus not creating dependencies |
| 2.4 What are the disadvantages of aid? | Countries can become dependent on foreign aid instead of developing their own economy Food aid/food dumping can make local food prodcution collapse; taking local farmers out of business Aid may stop because of political changes in donour county or receiving country or because of economic downturn Aid might fund inappropriate and/or harmful technologies that can't be sustained after aid has been removed (eg. nuclear power, dams) |
| 2.4 What is top-down development? | Usually large scale policies or schemes Usually carried by gov. or int. org. Work is often carried out by outside contractors Schemes usually have plenty of funding Often quick to respond after disasters Local people are often not consulted in decision making Schemes are not always appropriate/sustainable in long-term due to lack of local knowledge |
| 2.4 What is bottum-up development? | Usually small incentives Involves more local communities and workers Projects are often labour-intensive and for the benefit of the local community Funds are limited Teaches local people new skills Schemes are appropriate and sustainable long-term Reduces chances of corruption |
| 2.4 What are the advantages of Remittances and Migration? | Reduces unemployment Reduces pressures on schools and hospitals (if families are taken) Reduces pressure on infrastructure Remittances enter economy at local level Migrants can return with new skills Improved relation with countries |
| 2.4 What are the disadvantages of remittances and migration? | Remittances fall during economic downturn which is when they are most needed It can create dependency Creates familial division/pressure Increasing dependency ratio in source country Brain drain effect Reduces incentive of government to invest in job creation Migrants are open to extortion |
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