5 Paper 2 Changing Economic World
5 Paper 2 Changing Economic World
Aid Trade
Development is an improvement in living standards through LICs Poorest countries in the world. GNI
better use of resources. per capita is low and most citizens • Aid can help some • Countries that export
have a low standard of living. countries develop key more than they import
Economic This is progress in economic growth through projects for have a trade surplus.
levels of industrialisation and use of technology. infrastructure faster. This can improve the
NEEs These countries are getting richer • Aid can improve services national economy.
as their economy is progressing such as schools, • Having good trade
Social This is an improvement in people’s standard of from the primary industry to the hospitals and roads. relationships.
living. For example, clean water and electricity. secondary industry. Greater • Too much reliance on • Trading goods and
exports leads to better wages. aid might stop other services is more
trade links becoming profitable than raw
Environmental This involves advances in the management and established. materials.
protection of the environment. HICs These countries are wealthy with a
high GNI per capita and standards
Measuring development of living. These countries can
spend money on services. Education Health
These are used to compare and understand a country’s level of
development. Causes of uneven development • Education creates a • Lack of clean water and
skilled workforce poor healthcare means a
Economic indictors examples meaning more goods large number of people
Development is globally uneven with most HICs located in Europe, North America and services are suffer from diseases.
and Oceania. Most NEEs are in Asia and South America, whilst most LICs are in produced. People who are ill
Employment type The proportion of the population working Africa. Remember, development can also vary within countries too. •
in primary, secondary, tertiary and • Educated people earn cannot work so there is
quaternary industries. more money, meaning little contribution to the
they also pay more economy.
Gross Domestic This is the total value of goods and services Unit 2b taxes. This money can
help develop the country
• More money on
healthcare means less
Product per capita produced in a country per person, per year. in the future. spent on development.
The Changing Economic World
Gross National An average of gross national income per
Income per capita person, per year in US dollars. Physical factors affecting uneven development Politics History
Natural Resources Natural Hazards • Corruption in local and • Colonialism has helped
Social indicators examples
national governments. Europe develop, but
• Fuel sources such as oil. • Risk of tectonic hazards. • The stability of the slowed down
Infant mortality The number of children who die before Minerals and metals for fuel. Benefits from volcanic material government can effect development in many
reaching 1 per 1000 babies born. • •
• Availability for timber. and floodwater. the country’s ability to other countries.
• Access to safe water. • Frequent hazards undermines trade. • Countries that went
Literacy rate The percentage of population over the age redevelopment. • Ability of the country to through industrialisation
of 15 who can read and write. invest into services and a while ago, have now
infrastructure. develop further.
Life expectancy The average lifespan of someone born in Climate Location/Terrain
that country.
• Reliability of rainfall to benefit • Landlocked countries may find
Mixed indicators farming. trade difficulties. Consequences of Uneven Development
• Extreme climates limit industry • Mountainous terrain makes
and affects health. farming difficult. Levels of development are different in different countries. This
Human Development A number that uses life expectancy,
• Climate can attract tourists. • Scenery attracts tourists. uneven development has consequences for countries, especially in
Index (HDI) education level and income per person.
wealth, health and migration.
The Demographic Transition Model People in more developed countries have higher
Wealth incomes than less developed countries.
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
The demographic Better healthcare means that people in more
transition model (DTM) BR Low Rapidly Slowly developed countries live longer than those in less
shows population change High DR Low DR Health
Declining falling DR Falling DR developed countries.
over time. It studies how High BR Low BR
DR Low BR Low BR
birth rate and death rate Steady Zero
Very High High Negative
affect the total population If nearby countries have higher levels of
of a country. Migration development or are secure, people will move to
e.g. Tribes e.g. Kenya e.g. India e.g. UK e.g. Japan seek better opportunities and standard of living.
Reducing the Global Development Gap Case Study: Economic Development in Nigeria Case Study: Economic Change in the UK
Foreign-direct investment
Microfinance Loans This is when one country buys Location & Importance UK in the Wider World
This involves people in LICs property or infrastructure in
receiving smalls loans from another country. Nigeria is a NEE in West Africa. The UK has one of the largest
traditional banks. + Leads to better access to Nigeria is just north of the Equator economies in the world.
and experiences a range of The UK has huge political, economic
+ Loans enable people to begin finance, technology & expertise. and cultural influences.
their own businesses - Investment can come with environments. The UK is highly regarded for its fairness
- Its not clear they can reduce strings attached that country’s Nigeria is the most populous and and tolerance.
poverty at a large scale. will need to comply with. economically powerful country in The UK has global transport links i.e.
Africa. Economic growth has been Heathrow and the Eurostar.
base on oil exports.
Debt Relief
Aid This is when a country’s debt is Causes of Economic Change Towards Post-Industrial
This is given by one country to cancelled or interest rates are
another as money or resources. lowered. Influences upon Nigeria's development
De-industrialisation and the decline of The quaternary increased, secondary
+ Improve literacy rates, building + Means more money can be the UK’s industrial base in the 1980s has decreased. Numbers in primary and
dams, improving agriculture. spent on development. Political Social Globalisation has meant many industries tertiary industry has stayed the steady.
- Can be wasted by corrupt - Locals might not always get a have moved overseas, where labour Big increase in professional and
governments or they can say. Some aid can be tied under Suffered instability with a civil war Nigeria is a multi-cultural, multi- costs are lower. technical jobs. Working from home
become too reliant on aid. condition from donor country. between 1967-1970. faith society. Government investing in supporting increased due to internet connections.
From 1999, the country became Although mostly a strength, vital businesses. Science parks opening near main roads/
stable with free and fair elections. diversity has caused regional motorways for easy access and near
Technology Stability has encouraged global conflicts from groups such as the University cities for good employees.
Fair trade
This is a movement where Includes tools, machines and investment from China and USA. Boko Haram terrorists.
farmers get a fair price for the affordable equipment that
improve quality of life. Example: Modern Industry being more sustainable – Torr Quarry, Somerset
goods produced.
+ Paid fairly so they can develop + Renewable energy is less Cultural Industrial Structures
expensive and polluting. • Transporting rock by rail = less congestion
schools & health centres. • Planting trees = less noise, dust and hides the ugly “scar”.
-Only a tiny proportion of the - Requires initial investment and Nigeria’s diversity has created rich Once mainly based on agriculture, • Blasting in the day to reduce noise for locals
extra money reaches producers. skills in operating technology and varied artistic culture. 50% of its economy is now
The country has a rich music, manufacturing and services. Area of Population Growth –Monkton Area of Population Decline – Outer
literacy and film industry (i.e. A thriving manufacturing industry Heathfield Hebrides, Scotland
Nollywood). is increasing foreign investment
A successful national football side. and employment opportunities. 4,500 new homes by 2028 50% decline since 1901 – now 23,000
CS: Reducing the Development Gap In Jamaica
Buyer incentives – help to buy etc. Young people left – lack of employment
Location and Background
The role of TNCs Changing Relationships
Impacts: Impacts:
Jamaica is a LIC island nation TNCs such as Shell have played an Nigeria plays a leading role with the
part of the Caribbean. Location - Rising house prices have caused - Aging population – leading to
important role in its economy. African Union and UN. tensions in villages problems in care when the
makes Jamaica an attractive + Investment has increased Growing links with China with - Lack of affordable housing for local population reach later life
place for visitors to explore the employment and income. huge investment in infrastructure. first time buyers. - Loss of local services, such as Post
tropical blue seas, skies and - Profits move to HICs. Main import includes petrol from - Influx of poor migrants puts pressures Offices
palm filled sandy beaches - Many oil spills have damaged the EU, cars from Brazil and phones on local services – schools etc - School closures from a reduction in
fragile environments. from China. - Villages are unpopulated during the children. Loss of jobs and
Tourist economy Multiplier effect day causing loss of identity community.
+ More people can live in the
countryside
-In 2015, 2.12 million visited. -Jobs from tourism have meant + More business for shops and pubs
-Tourism contributes 27% of GDP more money has been spent in Environmental Impacts Aid & Debt relief
and will increase to 38% by 2025. shops and other businesses.
-130,000 jobs rely on tourism. -Government has invested in The 2008/09 oil spills devastated + Receives $5billion per year in aid.
infrastructure to support tourism. swamps and its ecosystems. + Aid groups (ActionAid) have Improvements to Transport UK North/South Divide
-Global recession 2008 caused a
decline in tourism. Now tourism -New sewage treatment plants Industry has caused toxic improved health centres, provided
have reduced pollution. chemicals to be discharged in open anti-mosquito nets and helped to A £15 billion ‘Road Improvement - Wages are lower in the North.
is beginning to recover. Strategy’. This will involve 10 new roads - Health is better in the South.
sewers - risking human health. protect people against AIDS/HIV. and 1,600 extra lanes. - Education is worse in the North.
80% of forest have been cut down. - Some aid fails to reach the people £50 billion HS2 railway to improve + The government is aiming to support
Development Problems This also increases CO² emissions. who need it due to corruption. connections between key UK cities in a Northern Powerhouse project to
the North (Leeds etc) to London. resolve regional differences – road and
- Tourists do not always spend much money outside their resorts. £18 billion on Heathrow’s controversial rail connections
- Infrastructure improvements have not spread to the whole island. third runway. + More devolving of powers to
- Many people in Jamaica still live in poor quality housing and lack Effects of Economic Development Crossrail in London is increasing disadvantaged regions.
basic services such as healthcare. connections throughout the city
Life expectancy has increased from 46 to 53 years. 64% have access to
safe water. Typical schooling years has increased from 7 to 9.