Section B - The Changing Economic World

The demographic transition model shows change over time in the population of a country.
On the right side, or the y-axis if you will, there is births and deaths per 1000 people per year.
On top ‘x-axis’, there are five stages:

• Stage 1 - High fluctuating
• Stage 2 - Early expanding
• Stage 3 - Late expanding
• Stage 4 - Low fluctuating
• Stage 5 - Natural increase.
  There is also a key to represent natural increase, natural decrease, birth rate, death rate and total population.
  Overall, the:
  Birth rate DECREASES
  Death rate DECREASES
  Total population INCREASES (but is somewhat slowly decreasing now)
  Natural increase COMMON in stages 2 and 3
  Natural decrease INCREASING at the moment.

Each stage in the DTM matches with a time period and example country:
Stage 1 - Pre 1760 - Traditional rainforest tribes - High birth rate, high death rate and both fluctuate because of disease, famine and war, and population fairly stable.
Stage 2 - 1760 to 1880 - Afghanistan - Death rate decreases, birth rate remains high and population grows.
Stage 3 - 1880 to 1940 - Most countries at lesser stages of development (e.g. Kenya, India, Brazil and Nigeria) - Birth rate drops rapidly, death rate continues to decrease but more slowly and population still grows, but often not quite as fast.
Stage 4 - Post 1940 - Most countries at further stages of development (e.g. USA, France and UK) - Low birth rate, low death rate and birth rate tends to fluctuate depending on the economic situation.
Stage 5 - Present day and future - Italy, Germany and Japan - Birth rate very low and falls below death rate, death rate increases slightly because of ageing population and total population starts to decrease.

Physical Causes:

• Drought
• Extreme weather
• Landlocked countries (where countries are bordered by land and therefore economic development is reduced because they can’t participate in see born trade).

Economic Causes:

• Poverty
• Lack of fair trade
• Lack of production of resources.

Historical causes:

• Colonialism (Europeans exploring to find resources, and Africans set to be slaves for plantations. Countries were divided up between the power of Europe. European countries have powerful empires and colonies, which could result in civil war or political struggles for power. Lots of countries spend money on armaments, and some governments have been corrupt. This political instability has held back development in some places.

Immigrant - A person who moves into a country
Emigrant - A person who moves out of a country
Economic Migrant - A person who moves voluntarily to seek a better life, such as a better-paid job or benefits such as education or healthcare.
Refugee - A person forced to move from their country of origin; often as a result of civil war or a natural disaster such as an earthquake.
Displaced person - A person forced to move from their home but who stays in their country of origin.
Asylum Seeker - The same as a refugee, but not yet recognised by the country or have been granted a legal place in.

• Investments - TNCs may choose to invest money and expertise into LICs to increase their profits, and this may including improving areas, adding factories, or rebuilding something.
• Industrial Development - More tertiary and quaternary sectors, higher paid, more skilled jobs and more resources/housing.
• Tourism - Taking advantage of the surroundings and using them to make money.
• Aid - Bottom down or top up, multilateral or bilateral, and provides money, skills, technology, food and emergency supplies and resources.
• Intermediate technology - Creates new ways of living and more advanced ways of completing day-to-day tasks for the country.
• Fair trade - Makes sure everyone in the process of trade are paid equally and fairly; not just the supermarket getting all the profit.
• Debt relief - Rich countries provide a ‘loan’ to help poorer countries pay back their debt.
• Microfinance - Small loans set up and handed out by the bank, to help poorer people and communities because self-sufficient and create small businesses, for example.