Changing Economic World

Development is when a country is improving. Development is different in countries and can be measured by a number of things.

Wealth: Gross National Income- total value of goods and sales in a country per year including overseas income. GNI per head- GNI divided by the population. Gross Domestic Product- Just the country not overseas.

Womens rights: Birth Rate- Number of babies born. If there are low woman rights more babies are born.

Health: Death rate, infant mortality- how many babies die before 1. People per doctor, access to safe water, life expectancy.

Education also shows development.

Individual  factors can hide the actual development as one area may be good, but the others bad.The Human Develpoment Index HDI take into acccount a variety of things, so is the most reliable source.

Some countries are more developed than others. Richer countries are MEDCs more economically developed, and poorere as LEDCs, less developed. Generally European and Northern Countries are MEDCs and Southern are LEDCs. Australia breaks this, and is MEDC.

HIC, high inco me, are the wealthiest in the world. Usually they have high qualaties of life. LIC, low income, are the poorest wiith a low quallty of life. NEE, newly emerging economy, are rapidly growing like China.

Using wealth can be misleading, for example Russia seems very rich because of th top mega rich people, but in reality the people are mostly poor, living in poverty. 

Development is linked to the DTM. This shows the rising and falling death and birth  rates and their affects on the population size. Its split into 5 stages, the earlier ones have high death and birth rates. The top end have low birth and low death rates. Usally HICs sit at the top, beacuse they have better health care so live longer, but also use contraception, and dont need to hae as much kids. LICs are at the lower end because they have poor health and need to have more kids as they die earlier, and need them to work.

Physical factors: Poor climate:Poor climate reduces the amout of crops that can grow which leads to starvation but also it means the country cant sell any crops. The goernent get less ffrom tax and cant develop the country. Poor farmland also affects what can and cant be grown.

Few Raw Materials- If a country does not have oil or gas etc it wont be able to produce as many products so cant selll anything for money, leading to nothing being developed.

Natural Hazards- If a country suffers from storms, they will have to use money to rebuild instead of develop

Historical: Colonisation. Countries would clonise others. England colonised Africa, and took their resources, meaning they were left without them which affects what they can do.

Conflict- If a country is at war the money is used for arms, and buildings are destroyed by enemy, meaning they have to rebuild.

Economic: Poor trade links- If a country has poor links, it wont make as much money because it does not have a wide span of trade.

Debt: Very poor countries borrow money, but end up having to pay lots of debt back. This can have interest added so more effort is put into debt than developing.

Primary Products: Economies based on basic products like wood dont make as much profit as its not expenisve. So they have less money.

Aid- Other countries give those in need resources or money so the country does not need to buy it themselves. Usually after war or natural disaster.

Fair Trade- Gives poorer countries and workers a fair price for their products.

Debt Relief- When countries are allowed to forget the debt they owe as its been cancelled, so money can be used for development.

Industrial Development- Many LICs are farming countries, and this brings little profits. Industriaising can produce better products fro mor money.

Tourism- Can increase the money coming into the Country.

Kenya is an LIC. It attracts tourists because of its willdlife, and local tribes culture. The government is trying to boost tourism to help the economy. In 2009 visa fees were cut by 50% and landing fees were cut. Kenya saw a raise from 0.9 mil visitors in 1995 to 1.8 mil in 2011.

Benefits: Tourism contributes to over 12% of GDP. 600 000 people are employed in tourism. HDI score has increased by 0.10 since 2000.

Negatives- Only a small portion of the money go to the locals, most go to governments and big companies. Tribes people are forced off their land for national parks to be built. Vehicles damage vegetation and disturb natural life.

Trans-National Corporations are companies located over the world, usually in LICs, because labour is cheaper, and saftey rules are not strong. They can help development as they provide jobs, and give people skills. Eg: Sony has factories in China and India.

Advantages: Create Jobs in the countries. TNCs help improve roads and airports so they can trade easily. New technology is bought into poorere countries.

Disadvantages: Employees dont get a fair price,its very low pay.  They work long hours in unsafe conditions. The profits go to the mother country, not the one the TNC is in. They usually pollute the areas and use the poor countries resources.

India is an NEE, with over 1.3 billion people, second largest poulation. HDI of 0.6, but there is huge inequalities, 20% live in Poverty. 50% of working population are in farming, 22% in manufacturing, 29% in tertiary like IT. This is responsible for 50% of GDP. 

Unilever is a TNC in India. They employ 16 000 people there. Have an annual turnover of 4.5 billion. They have projects improving local areas. One helps women become entrepreneurs. They aslo provide Sanitation to over 100 million people

Mercury ended up in waste dump, instead of being safely disposed. Mercury is a poisonous chemical which could have caused harm. Unilever moves around India, looking for cheap areas and move when tax breaks end.

India is starting to grow its trade, its working with foreign companies.

India recieves aid from other countries.

Short term: After 2001 earthquake  UK sent 10million pounds. 

Long Term- Until 2015 India recieved 200million each year from the UK to combat poverty.

Aid can either be given to governments who decide what to do with it, or given to te people who decide.

Quality of life has been improved from development. More jobs are available and daily wages have increased since 2010 by 42 rupees.

However the environment is sufering because of al the fossil fuels used, and mining is destroying habitats.

Uks economy is changing: Deindustrialisation and decline of manufacturing has dropped. As globalisation has meant they moved abroad as labour is cheaper, trade is increasing.

In 2011 81% of the workfoce are in finance, ressearch, IT and services, all Tertiary

North South divide:Wages are higher in the south, and health and education too.

Rural Areas are decreasig in poulation as there is not uch work , and its expensive to live there. People move from local villages to towns with easy access to cities.

To solve the divides, there are more powers, each country have their own devolved governments that can invest in what they think will help. Governments set up areas for business with lower tax, to encourage more people to move.

Transport is improving. HS2 is a proposed scheme which will link London to Birmingham and Manchester. A new port London Gateway can take in huge container ships, ideal for trade.

Uk has strong links with other countries. Uk exports £250 billion of goods a year. Heathrow connects to cities all over the world. The EU includes over 28 countries, and there are no trade barriers. The Commonwealth has over 53 independent states.