Paper 2 geography revision - The Development Gap

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Terms in this set (...)

Development gap
The difference in levels of economic and social wellbeing between the richest and poorest people on the planet.
GDP
Gross Domestic Product. The value of goods and services produced by a country divided by its total population. Foreign income is not included.
GNP
Gross National Product. The value of goods and services produced by citizens of a country in a year.
GNI
Gross National Income. The total value of goods and services produced within a country including income received from and payments made to other countries.
Rich industrialising countries
Wealthy countries whose manufacturing industry is declining eg UK
Oil exporting countries
Countries that have a few very rich people from oil exports but the majority are very poor eg UAE
Newly Industrialising Countries (NICs)
Countries that have developed rapidly in recent years eg India, China, Mexico
Heavily indebted poor countries
The world's poorest countries who took loans in the past and are now unable to pay them off, which makes it very hard to develop eg African countries
HDI
Human development index. An index based on three variables - life expectancy at birth; level of education (literacy rate) and GDP per capita. Maximum HDI is 1.
Development indicator (measure)
Statistics used to show the level of development, which allows countries to be compared.
Infant mortality rate
The number of babies that die under a year of age per 1,000 live births.
Literacy rate
The percentage of adults in a country who can read and write
Birth rate
The number of live births per 1,000 people in a year.
Death rate
The number of deaths per 1,000 people in a year.
People per doctor
The average number of people for each doctor in a country
Access to safe water
The percentage of people who have access to safe water
Life expectancy
The average age a person can expect to live, measured at birth
Standard of living
The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area
PQLI
Physical quality of life index. The average of three social indicators - literacy rate, life expectancy and infant mortality.
Debt repayment
Paying back money that was borrowed to support development to banks or governments
Conservation swaps
Agreements made between countries where some debts are written off in exchange for conservation projects being done
Fair trade
A system whereby agricultural producers in countries at lesser stages of development are paid a fair price for their produce to help them attain a reasonable standard of living
Short term aid
Aid given to relieve a disaster situation
Long term aid
Aid given over a long period, which aims to promote economic development
Donor country
A country giving aid to another country
Recipient country
A country receiving aid from another country
Bilateral aid
Aid given by one government to another. It may include trade and business - tied aid
Multilateral aid
Richer countries give money to international organisations (IMF, UN) which then pass it on to development projects in lesser developed countries
Trade surplus
When a country's exports are greater than its imports, making it wealthier
Trade deficit
When a country's imports are greater than its exports, making it poorer.
Tariffs
Government taxes placed on imported goods, favouring home produced goods
Subsidies
Farmers receive grants to produce certain crops. The excess is bought by the trade bloc or government. The farmer receives a guaranteed price
Quotas
Farmers are told an amount of crop to grow to reduce overproduction. Imports are also restricted to protect home farmers
Economic periphery
The edge of a country or region in terms of economics. It is a less developed area but not necessarily the physical border
Economic core
The centre of a country or region economically where businesses thrive. It is a highly developed area
Sustainable development
This allows economic growth to happen over a long period of time without harming the environment. It benefits current and future generations
Schengen area
An area in the EU where a passport is not required to cross the borders of the countries within it.
Standard of living
An economic measure
Quality of life
A social measure
North-South divide
An old way to divide the world in to the rich north and poor south. It is no longer valid as it is purely based on wealth
Factors leading to global inequalities
Social, economic, environmental and political factors
Social factors causing inequalities
Women's ability to work, education system and water supplies
Economic factors causing inequalities
Global trade favours developed countries, tariffs make trade more expensive, poor countries produce mainly primary products which don't make much money and poor countries are in debt so spend money on interest payments rather than development
Environmental factors causing inequalities
Landlocked countries can't benefit from trade by sea. Poor countries are blighted by tropical diseases which affect people's ability to work. Poor soils and arid conditions make it difficult to farm and some countries suffer from natural hazards and don't have the money to repair the damage caused
Political factors causing inequalities
Political instability scares off investment. Wars disrupt the economy, destroy the infrastructure and causes displacement of people and corrupt governments tap development for themselves
Trading groups
Developing countries can join a trading group where they can negotiate higher prices and set a fair price for products. As they work together they are less likely to undercut each other on price
Advantages of aid for donor countries
Charity donations make people feel they are helping. Government aid can bring countries closer together and build alliances
Disadvantages of aid for donor countries
People who give to charity feel their aid is wasted. Some people feel that charity should begin at home. Charity-giving fatigue
Advantages of aid for recipient country
Emergency aid helps saves lives. Development aid builds new skills, creates jobs and improves health and education. It often encourages sustainable approaches
Disadvantages of aid for recipient country
Emergency aid sometimes doesn't provide what is actually needed. Tied aid makes the recipient country reliant on the donor country. Large-sclae projects benefit big companies and urban areas rather than most local people
How the EU reduces inequalities between countries
Structural fund (the European Regional Development Fund and the European Social Fund), The Cohesion Fund and The Common Agricultural Policy (CAP)
The European Regional Development Fund
Improves investment and infrastructure. This includes the Urban II fund: sustainable development projects for cities
The European Social Fund
Pays for education, training and job creation
The Cohesion Fund
Improves the environment and transport. Supports the development of renewable energy. Only for countries with living standards that are less than 90% of the EU average
The Common Agricultural Policy
Pays subsidies to all EU farmers; favours countries with big agriculture sectors