16. The Development Gap

Question 1

What is development?

Answer 1

• increasing people’s standard of living and quality of life in a country

Question 2

What is the development gap?

Answer 2

• difference in standards of living between the richest and poorest countries

Question 3

What factors go into HDI?

Answer 3

1. life expectancy at birth
2. number of years of education
3. GNI/capita
   (values between 0 and 1)

Question 4

What could affect usefulness of development data?

Answer 4

1. could be out of date or hard to collect
2. may be unreliable
3. do not take in informal economies
4. corruption means data is unreliable

Question 5

What is happening to Mexico’s population?

Answer 5

• large proportion of young people
• death rate and birth rate are both falling as people have better healthcare and live longer, and at the same time fewer children are being created
• population will level out by 2050

Question 6

What is happening to Japan’s population?

Answer 6

• death rate is low, and citzens are living longer
• the population is aeging
• the young people marry later and less often, decreasing birth rate since 1975

Question 7

What are 4 physical causes of uneven development?

Answer 7

1. access to coasts - if a country is landlocked it has no access to the sea leaving it cut off from seaborne trade which is major
2. Diseases and pests - impact whether a population can stay healthy or not
3. Extreme Weather - can affect specific areas badly leading to costs of infrastructure replacement and other associated costs
4. lack of food and water supplies

Question 8

How can economic causes affect development?

Answer 8

• rich countries and international companies dominate trade and since there are many sources of raw materials LIC’s provide they can force LIC’s to agree to their prices
• HIC’s is often where the processing of the goods take place, so the raw mats are taken from the LIC, processed and the goods are sold back to the LIC leading them into debt

Question 9

What is the copper in Zambia case study?

Answer 9

• Zambia mainly exports copper and raw materials to Switzerland, and the price of copper fluctuates a lot

Question 10

What historical causes can affect development?

Answer 10

• colonialism - independence struggle has been difficult since colonialism
• often this has lead to political instability and corruption and civial wars
• money is spend on arnaments and army instead of development

Question 11

What are the general trends of disparities in wealth due to uneven development?

Answer 11

• USA and Europe hold much more %wealth than global population
• opposite for Asia, Latin America and Africa

Question 12

What are the disparities in health due to uneven development?

Answer 12

• much more infectious diseases and infant mortality rates are higher in LIC’s
• main causes od death are chronic diseases in HIC’s and most who die are over 70(70% aswell)

Question 13

What are some statistics on malaria?

Answer 13

• in Africa 1 child dies per minute from it
• caused 500,00 deaths in 2013, mostly Africam kids
• concentrated in the Tropics
• needs money and development for vaccination programs

Question 14

What are the 5 types of migrant?

Answer 14

1. Economic Migrant - moves voluntarily for better life
2. Refugee - forced to move from country as a result of special circumstance
3. Emigrant - out of a country
4. Immigrant - into a country
5. Displaced person - forced to move from home but still in country of origin

Question 15

What is the economic migration UK case study?

Answer 15

• 1.5 million economic migrants to the UK, 1 million Polish
• can earn much more in the UK
• strain on housing and healthcare
• most do pay tax helping economy, however do manual labour

Question 16

What are the 8 ways to reduce the development gap?

Answer 16

1. Investment
2. Industrial Development
3. Tourism
4. Aid
5. Intermediate technology
6. Free/Fair Trade
7. Debt Relief
8. Microfinance

Question 17

How can investment be used to decrease the development gap?

Answer 17

• investment can be used to develop infrastructure
• can be used to construct dams for electricity
• improvements to harbours and ports
• developments to new industries
• investments from TNC’s and other countries

Question 18

What is the African FDI case study?

Answer 18

• more than 2000 Chinese companies have invested billions into Africa, mainly energy construction and manaafcturing
• e.g power plant in Zimbabwe, railway in Sudam
• $200 million African Union HQ made by China

Question 19

How can industrial development reduce the development gap?

Answer 19

• industrial development brings employment, infratsructure and higher incomes which leads to the positive multiplier effect

Question 20

How can tourism reduce the development gap?

Answer 20

• countries can use tourism as a source of income and investment
• however it is vulnerable in times of recession and may only help the tourist areas

Question 21

What is the Jaimaca tourism case study?

Answer 21

• popular tourist destination which contributed to GDP along with minerals
• contributed 34% or 2$billion to the GDP of Jaimaca per annum
• provied 200,000 jobs directly and indirectly, however they are menial jobs but still pay better than before
• imrovements in infrstructure however mainly only for the parts that tourists vist (coasts+ North)
• ecotourism is also expanding but tourism can also lead to excessive waste and harmful emmisions

Question 22

How can aid reduce the development gap?

Answer 22

• aid can be people, loans, money, supplies or food
• only aid that is long term and freely. given can help the development gap (allows investment in infratsructure projects )
• UK spends 0.7% GDP on aid, mainly on Pakistan and the education sector

Question 23

What is the Oxfam goat aid case study?

Answer 23

• money donated is used to buy african families a goat
• can be used for milk and meat
• manure can be sold as fertiliser
• goats can be bred easily
• improves QOL

Question 24

What is intermediate technology and how does it reduce the development gap?

Answer 24

• intermediate technology is used to boost the needs or work of the local people, but must not put them out of work

Question 25

How can free trade reduce the development gap?

Answer 25

- when countrues charge no tarrifs or have quotas on trade - this helps as generally richer countries can pay subsidies for goods with tarrifs and make thier products seem cheaper - joining a trading group also helps as it encourages trade between member countries, members can get a higher price, rich countries cannot shop around

Question 26

What is the Ghana Cocoa Free Trade Case Study?

Answer 26

- EU has large tarrifs on cocoa powder and chocolate but not on beans which forces the ghanians to export the raw materials insytead of processing and developing its chocolate industry, which would be better

Question 27

How does fairtrade reduce the development gap?

Answer 27

- farmers get all the money from the sale of crops - guarantees the farmer a fair price - some of the price is invested back into the community - the farmer agrees to farm environmentally friendly

Question 28

What is the Ugandan Coffee Farmers case study

Answer 28

- a group of coffee farmers have grouped together to gain economies of scale - they also earn a lot from fairtrade premium - the processing of the bean is aslo done before being exported, adding value to it

Question 29

How did the debt of LIC's occur

Answer 29

- during 1970's and 1980's built up debt as they tried to develop their economies through borrowing - low commodity and high oil prices increased debt

Question 30

How can debt relief reduce the development gap?

Answer 30

- help poor countries invest in infrastructure and government projects - e.g education, healthcare - can be misused by corrupt governments and countries may also assume they can get in more debt and it will be written off

Question 31

What is microfinance?

Answer 31

- small-scale financial support for individuals to start businesses, especially in poor places

Question 32

What is the Bangladesh microfinance case study?

Answer 32

- Grameen Bank, loans are less than $100 with little interest - e.g one loan was to a woman to buy a mobile phone, and people pay her to use it, repaying her loan - it helps them get better medical advice, see prices of good, and keep in contact