Economic Development

Levels of development Least developed countries (LDCs)

North-south divide line- showing the rich and

poor.

Less economically developed countries

(LEDCs)

Newly industrialising countries (NICs)

Middle income countries (MICs)

More economically developed countries

(MEDCs)

LDCs- These are the poorest countries with the lowest quality of life.

LEDCs- These are the least economically developed countries.

NICs- these are rapidly getting richer by moving from primary to secondary industry.

MICs-These countries are not poor but not rich.

MEDCs- These countries are the most economically developed.

Quality of life

Happiness

Freedom

Job security

HousingFood/ water

Family/friends

Climate

Natural hazards

(volcanoes)

Education

Health

Factors affecting development

Social Economic

Environmental

Political

Poor climatePoor soil

Few raw materialsNatural hazards

Limited water supply Unstable government

Corrupt governments

War

Drinking waterWomen’s place

Child education

Poor trade links

Debt

Economy based on primary

Measuring development

Economic

o GDP- Gross domestic product. The total value of goods and services a country produces per year.

o GDP per capita- GDP divide by the total population.

Social

o Birth rate- measures

female education and

birth control.o Death rate- measures

healthcare and quality

of life.o Infant mortality-

measures sanitation

and health care.o People per doctor-

measures access to

health care.o Literacy rate-

measures education.o Access to safe water-

measures sanitation.o Life expectancy-

measures access to

health care and

quality of life.o Calorie intake-

measures access to

healthy diet.

Other

o Human development index- A number calculated using life expectancy, literacy rate, educational attainment and GDP per capita.

o Physical quality of life index- A number calculated using life expectancy, literacy rate and infant mortality rate.

Increase/decrease with development

Aid International aid

Voluntary aid

Long-term Short-termBilateral aidMultilateral aid

Official governmental

aid

Given by many countries and paid out by an international organisation e.g. UN.

Given from one country to another.

Given to cope with immediate problems caused by disasters.

The good…..o Aid which is long term can

help development. o Overtime the country can

become less reliant on foreign aid.

o Aid can help combat poverty. o It can be used to help a boost

a countries economy. For example money can be used to set up new industry.

The bad…..o The recipient can become

dependent on the aid. o Some aid may not reach the

people who need it. o Some aid only lasts a short

time- will not help development.

o Some aid can be tied. o The benefits of aid can take a

long time.

Given for constant improvement. To help development.

WaterAid is an international NGO (non-governmental

organisation /charity) that focuses on the provision of safe domestic

water, sanitation and hygiene education to the world's poorest people.. WaterAid's vision is of a world where everyone has access

to safe domestic water and effective sanitation.

In Mali, current national figures indicate that only 50% of the people have access to clean drinking water and only 4% of the population have

access to adequate sanitation facilities (toilets).Women spend much of their time searching for

water. Children also spend precious school hours looking for water at the expense of their

education

Poor sanitation means bad health. Bacteria, viruses and parasites found in

human waste are responsible for the transmission of cholera, typhoid and

other infectious diseases that kill millions of people each year. The problem is huge

in both urban and rural areas

Mali’s environment is harsh and deteriorating. Rainfall levels are already low and falling further.

In Mali, the water industry is privatised but often fails to the provide water to rural and

urban aeas.

Wateraid is first targeting Slums in Mali’s capital, it wants to show

the government that projects in slums are

easy to set up and sustainable.

Wateraid employs local people, who

they are training up to maintain the

system and raise money to keep it

running.Then invest in the

community – THIS IS SUSTAINABLE

Health has now improved

include reducing the deaths from diarrhoea –

65% improvement

Education is now improving, money is being invested into the infrastructure

Employment structuresPrimary industry

Secondary industry

Tertiary industryQuaternary

industryResearch and development. Services

Environmental

o Close to raw materials.

o Plenty of flat land

o A local water supply.

Economico Suitable

local market.

o Government grants given to encourage set up.

o Lots of workers.

o Good transport routes.

Environmental

o Lots of raw materials.

o A suitable climate.

o Good soil.

Economico Cheap land

as farming uses large areas of land.

o Good transport routes to export.

Environmental

o Green open spaces for a pleasant environment.

Economico A suitable

local market.

o Good transport routes.

o Skilled and educated workers.

Socialo Enough local people to

support the service.

Socialo Nice quality housing

nearby to encourage workers to move.

Environmental

o Green open spaces for a pleasant environment.

Economico Near similar

businesses so that information can be shared.

o Skilled and educated workers.

Employment structures and development

As a country develops they loose their primary industry and begin to industrialise as the country becomes further developed and the land too expensive the secondary industry is moved. Any secondary industry that is left if carried out by machines. Tertiary industry then has enough money to fully develop.

LEDC

NICMEDC

The periphery is just outside the economic core, where most

people live and some industries are located

South East Brazil is the economic

CORE region of Brazil, it has

primary, secondary, tertiary

and quaternary industries.

The quality of life and wages

are higher than anywhere else

in Brazil

Primary Industries What influence the primary industries here?

-Warm temperature- Average rainfall

- Rich soils GREAT FOR FARMING

Coffee, beef, rice, cacao, sugar cane and fruit are grown here

MINING- Large deposits of gold, iron ore, manganese and

bauxite make mining very viable here

- ENERGY -Oil, gas offshore and hydroelectric power from the

large river ensure energy is produced

- FOREST/LOGGING- Warm temperatures create the forest

- FISHING-Off the coast many are employed in fishing and

supplies food for the locals

Secondary Industries It is the centre for foreign and national

investment in manufacturing.Investment was concentrated her in the 1950s/60s by the Government. Excellent

road and rail links here, as well as the most ports and airports. Solid pipeline

for oil and gas.

Car industry is the major activity – Ford, GM, VW, Fiat and Toyota manufacture

here.Other production includes clothing, food , printing and furniture. (Yet decreasing

due to competition in AISA)

TertiarySao Paulo is the largest financial centre in south America. Most

headquarters for Brazil’s banks.

Quaternary Centre of research and

development in public & private sectors. San Jose

Dos Campos is the key area. The Aerospace Technical Centre is where space & aviation is developed &

tested

Map showing Brazil’s regional Human

Development Index

Rio de Janerio,

Santos, Sao Paulo major

cities

PrimaryLots in the west. They produce coffee, tea, tobacco and fruits.The area has good soil and rainfall.

PrimaryLots in the north east. They rear livestock such as cattle.The area is too hot and dry to grow crops but suitable for grazing.

Secondary Lots of manufacturers in Nairobi . They produce clothes, food and drink .The area has good transport links and a good labour supply.

Secondary There are cement works in the coast. They use the limestone from nearby deposits as a raw material and can then ship it easily.

Tertiary Strong in the rift valley as there is lots of National Parks and lakes.

Tertiary Strong on the coast because of the beaches.

Global climate change

The greenhouse effect is the natural warming of the earth.

Climate change is any change in weather over a long period.

Global warming is the increase in global temperature over the

last century.

Global warming is caused by the enhancement of the greenhouse effect. This is done by creating a layer of greenhouse gases which trap the outgoing heat. Greenhouse gases: Cows (farming)- releasing

methane Cutting down trees (forestry)-

releasing carbon dioxide Cars- creating more carbon

dioxide Industry- creating more carbon

dioxide

Social effectso More people will die

due to extreme weather events.

o Diseases will spread more quickly due to hotter weather.

o Some areas will become uninhabitable due to becoming too hot and dry.

Economic effectso More money will

need to be spent on predicting extreme weather events in order to reduce their impacts as weather events are becoming more extreme.

o Industries that helps to reduce the effects of climate change will become bigger and make more money.

Environmental effectso Sea levels will rise as

increasing temperatures leads to expanding oceans and ice melt.

o Rising temperatures and decreased rainfall will turn some areas into desert.

Political effectso Water will

become scarce and competition could lead to war.

o Governments are under pressure to come up with ways to reduce the effects.

Global climate change responses

Global response

National response

Local response

Kyoto Protocol

o Most countries are part of this world agreement to cut greenhouse gas emissions.

o Each country is set a target.

o Countries can trade carbon credits- countries meeting their target can sell spare credits to countries who are not.

o Countries can earn credits by helping poor countries reducing their emissions.

Transport strategies

o Governments can improve public transport. For example they can make people want to use them by making them faster and cheaper- reducing the cars on the roads.

Taxationo Governments can

increase taxes on cars with high emissions- encouraging people not to drive.

Congestion chargingo Local authorities can charge people

for driving cars into cities during busy periods.

Recycling o Local authorities can recycle waste

material by building recycling plants and giving people recycling bins.

Conserving energyo Local authorities give money and advice

to make homes more energy efficient. If people use less energy, less energy is produced which uses carbon dioxide.

Globalisation ‘The increasing interconnectedness of countries economically, socially and culturally’.

Causes

Err what does that mean…well it just means that we are not more linked with other countries and

their cultures.

ICT- Improvements in email, internet, mobile phones and phone lines.This means that it is now quicker and easier for businesses to communicate all over the world.

Transport- Improvements in airports, trains and larger ships. This has made is quicker and easier for people to communicate face to face. It has allowed businesses to distribute their products all over the world.

Multi-national companies- they sell and produce products all over the world. They therefore increase globalisation by linking countries together through production and sale of goods.

Multi-national companies (MNC’s)Their effects on economic

development….

Their general positive effects…………….

…………………………..and the negative

They create jobs. The workers pay tax which increases the wealth of the area and the local people.

Taxes are used to improve infrastructure. This attracts other MNCs creating even more jobs.

MNCs are often located in LEDCs because of cheap labour, which means that they make a profit.

MNC headquarters and research centres are usually located in MEDCs, because of skilled labour.

MNC’s create jobs where they are located. This can lead to more jobs through the multiplier effect.

They create some skilled jobs in LEDCs. This encourages more education and training.

Workers can get higher wages and more reliable incomes compared to farming.

MNCs spend money on infrastructure, this helps to develop the country.

Local companies supply the MNCs with their resources therefore increasing their income.

Multiplier effect

Jobs

Taxes

Infrastructure

Education and training

Cheap labour

Profits

The jobs created are not always

secure.

Employees may have to work long

hours in poor conditions.

May be paid lower than

MEDCs

Local companies struggle.

Profits go back to MNCs origin

country.

Large sites create

pollution

Development

Wealth

Economy

Nike s the world's leading supplier of sports footwear and equipment. The company was founded in 1972. The company name comes from the Greek word for 'victory'. Nike does

not make any shoes or clothes itself but contracts out to factories in LEDCs.

These subcontracted companies then act on their own and re-

subcontract theiroperations in other Asian

countries that give low wages and have no employment laws. E.g. Vietnam, The Philippines and

Indonesia

The numbers…Yearly revenue of $19.2 billion (2009).

Products in 140 countries.Contracts to 700 factories in 45 countries.

Employing 800.000 people in the supply chain.

Negatives of Nike - Sweatshops

- Child labour.- Hazardous working

conditions- Below subsistence wages.

Measures taken by Nike,Code of conduct.

Decommissioning.Auditing tools and

task force.

The average pay at a Nike factory close in

Vietnam is $54 a month, 3x higher than

other jobs.

In 1998 Nike changed the minimum age requirements

to 17 yrs

Nike have hired independent auditors to make sure that the company subcontractors are living up to

Nike’s code of conduct.

Children as young as 10 making shoes,

clothing and footballs in Pakistan and

Cambodia

The Pearl Delta is in the Republic of China in the low-lying area surrounding the

Pearl River estuary where the Pearl River flows into the South China Sea. It is one of

the most densely urbanised regions in the world and one of the main hubs of

China's economic growth.

The Pearl River Delta is notoriously polluted, with sewage and industrial

waste. (Treatment facilities are failing to keep up with the growing population).

Much of the area is frequently covered with a brown smog. This

has a strong effect on the pollution levels in the delta.

In 2007, the World Bank approved a $96 million loan to the Chinese government to reduce water pollution in the Pearl

River Delta. 7.1 billion was spent on the river by mid 2010 to clean up the river's sewage problems. The city will build about 30 water treatment plants, which will treat 2.25 million tonnes of water per day. The program hopes to cut down the amount

of sewage in the area by 85%,

In October 2009, Greenpeace released a report, "Poisoning the Pearl River" that detailed the results of a study it

conducted. All samples they took contained hazardous properties including heavy metals such as beryllium,

copper and manganese. These substances are associated with a long list of health problems such as cancer, endocrine disruption,

renal failure and damage to the nervous system as well being known to harm the environment.

The Pearl River Delta has become the world's workshop and is a major

manufacturing base for products such as electronic products (such as watches and

clocks), toys, garments and textiles, plastic products, and a range of other

goods.

Nearly five percent of the world's goods were

produced in the Greater Pearl River Delta in 2001. Over 70,000 Hong Kong companies have plants

there.

Impacts of globalisationEconomic

EnvironmentalSocial

MEDCo Globalisation has caused

industry to move out of MEDCs because labour is cheaper.

o MEDCs have developed their tertiary and quaternary industries- increasing the gap between the rich and the poor.

LEDCs and NICso Globalisation has caused

industry to move to these countries

o MNCs create jobs which has brought wealth to some people- which increases the gap between the rich and the poor.

o Carbon emissions- transporting goods around the world, increases global warming.

o Waste-people have access to more products.

o Deforestation- cleared forests to make way for crops.

o Oil pollution- products being transported by ship.

o Improve peoples quality of life especially in LEDCs.

o Increased trade brings in more money and jobs.

o Loss of culture. o Expose to other cultures.