changing economic world

strategies for reducing the development gap

fairtrade:

  • paying producers a fair wage for their work
  • gives farmers a fair wage which can allow them to escape the poverty cycle.

debt relief:

  • debts are reorganised to make them more manageable, or reduced.
  • if a country is too indebted, they have no money to put into development.

microfinance loans:

  • small loans with reasonable interest rates given to businesses and people
  • often individuals wouldn't be able to get credit, so it allows them to develop
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types of aid

bilateral aid:

  • money is given from one government to another
  • the recipient country is normally tied to the donor, has to buy their goods.

multilateral aid:

  • aid given from international agencies, e.g: world bank, WHO
  • usually focus on what the country actually needs

aid from NGOs:

  • given from charities such as oxfam, in the form of donations
  • go towards small-scale local projects which genuinely help individuals
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impact of international aid in an LIC (Mumbai, Ind

Vision Mumbai:

improving living conditions in Dharavi by building flats instead of slums, and improving services such as a school and health centre, make new jobs.

advantages:

  • improve living conditions for the locals
  • allows them to get out of the poverty cycle
  • more hygienic and safer- actual sanitation.

disadvantages:

  • estimated cost of $2 billion so hasn't even started!
  • high rise flats tear up communities.
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impact of international aid in an LIC (Mumbai, Ind

LSS:

a bottom-up health clinic which aims to stop the spread of leprosy as well as improving education on the need for sanitation.

advantages:

  • goes to the root of the problem to stop it reoccuring
  • has nurseries to help young parents work

disadvantages:

  • requires on its own fundraising and its own volunteers
  • is unable to access all parts of the slum so can't help everyone
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changing industrial structure of a NEE (India)

<1980s:

  • mainly primary, substinence farming on an individual scale
  • provides little profit, so little room for development

late 1980s:

  • government encouraged TNCs to set up factories
  • led to a rise in secondary sector, which provides more profit

modern day:

  • lots of tertiary in the form of call and help centres
  • rather a lot of quaternary in the form of research universities
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the role of a TNC in a NEE ( Unilever in India )

it's an attractive country for a TNC because the workers speak english, has strong IT skills and have lower wages.

advantages:

  • created jobs and provided education training to employees
  • infrastructure of the country has been improved, new roads etc
  • pays tax to the government which can be spent on development projects

disadvantages

  • take advantage of weaker environmental laws by seriously polluting
  • a lot of the profit is taken from India to the TNC's country of origin
  • the best jobs are normally reserved for international workers
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the importance of India in the wider world

trading:

  • imports raw materials such as oil from China and UAE
  • exports valuable items such as jewellry and clothing to the UK and USA

this allows them to make a large profit as they export the more expensive items

politics:

  • it's an important trading partner with HICs
  • population of 1.2 billion; second largest population in the world
  • has a seat on the UN security council
  • it's a member of the G-20; one of the 20 most influential countries
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north south divide

income:

£13,560 disposable house income in the north, £20,509 in the south

unemployment:

7.7% in the north east, 4.4% in the south east

house prices:

average of £154,000 in the north east with £305,000 in the south east

life expectancy:

71.8 years for a male in manchester, 83.1 years for a male in Dorset

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strategies to reduce the north south divide

HS2:

  • high speed train linking London and northern cities
  • encourages businesses to set up bases up north

enterprise zones:

  • 24 have been created since 2011, provide economic incentives to be there
  • creates new jobs for locals improving the local economy

local enterprise partnerships:

  • partnerships betweenlocal authorities and businesses
  • identify business needs and encourage companies to invest
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place of the uk in the wider world ( politically )

European Union:

  • over 50% of our trade is with the EU
  • we're one of 28 countries

The Commonwealth:

  • group of 57 countries, our old colonies
  • celebrated in the commonwelath games

G7:

  • 7 most politically powerful nations
  • meet yearly to discuss global economic problems
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place of the uk in the wider world ( culturally )

transport:

  • high speed rail link to europe
  • lots of global airports ( Gatwick, Heathrow )

culture:

  • books such as harry potter are sold globally
  • english is a major global language

sport:

  • London Marathon is one of the Abbot World Marathon series
  • the premier league attracts the best footballers from the around the world
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decline of heavy industry

causes:

  • increase in oil prices
  • cheaper overseas production

effects:

  • decline in population in urban areas
  • large levels of unemployment

modern economy:

  • finance, service, research and IT industries
  • require less energy, less polluting= more sustainablr
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