Development Gap - the EU

Question 1

Reasons for joining the EU?

Answer 1

To trade wth other EU countries

To hope that the EU will help them develop and improve the standar of living of their citizens

Question 2

The core?

Answer 2

Rich economic hub of Europe

• Skilled workforce
• High population density
• Has lots of transport routes
• Centre of economic activity

Question 3

The periphery?

Answer 3

The poorer part

• Hot/cold climate
• Remote mountainous
• Poor infrastructure
• Declining/ageing population
• Outward migration

Question 4

What is the multiplier effect?

Answer 4

An increase in skilled workforce (high level of economic activity)

More Investment in transport/infrastructure = high population density

= gets richer

Question 5

What is the spiral of decline?

Answer 5

Outward migration, population ages, poorer infrastructure then poor levels of investment and the area gets trapped in poverty

Question 6

What fraction of the EU budget is spend on regional aid?

Answer 6

1/3

Question 7

What is the idea of regional aid within the EU?

Answer 7

The idea is that regional aid will help them develop and benefit the people there, and then as they become better-off - the wealthier parts of the EU will benefit

Question 8

What is The European Development Fund used for?

Answer 8

Big infrastructire projects

Question 9

What is the European Social Fund spent on?

Answer 9

Things like training, jobs and skills in poorer

Question 10

What is the Conesion find spent on?

Answer 10

Sustainable development, covers environment + transport projecys /9that are economically friendly)

→ Only used on countries with a HDI 90% below the EU average (eg Portugal, Greece, Poland)

Question 11

3 ways in which the EU is trying to reduce inequality in and between its member countries?

Answer 11

• Using Urban Commuity initiative
• Using the Common Agricultural Policy
• Structural funds

Question 12

What is the Urban Community Initiative/

Answer 12

Money is given to certain EU cities to:

• Create jobs
• Reduce crime
• Increase areas of green space

Question 13

What is the CAP?

Answer 13

Common Agricultural Policy

Farmers are subsidised (paid) to grow certain producs

→Also when world food prices are low, the EU buys produce and guarentees farmers a reasonable income

→ The CAP also puts a high import tax on foreign produce so people in the EU are more likely to buy fod produces in the EU (eg New Zeland lamb is very expensive compared to sheep raised in England)

All these improve the quality of life for farmer

Question 14

Aims of CAP when it was set up in 1962?

Answer 14

• Increase food supply within the EU
• Create a single marker in which food could move around freely
• Increase the average size of field/farms/farmers income
• Portect farmers incomes by giving them subsidies to encourage unlimited production

Question 15

What happened in the 970’s & 1980’s because of CAP?

Answer 15

• 70% of EU’s budget spent on the CAP but farming only contributed to 5% of the income
• Farmers overproduced certain foods eg beef, cereal, butter (created wine and milk lakes)
• Very high duties were imposed on imports into the EU (MEDC’s priced out)
• As farmers got bigger, the environment suffered and only rich farmers benefitted

Question 16

Successes of CAP?

Answer 16

• Made EU sufficient in food production
• Average farm size increased
• Farmers had a higher income
• Reduced reliance on LEDC’s for food imports
• Increased yields
• Surplus; 1 year would off set fauliure in other years

Question 17

Failiures of CAP?

Answer 17

• Harmful to the environment (reduced biodiversity)
• Created a food surplus
• Increased soil erosion
• Often the poor farmers couldn’t buy the new technology and got poorer
• The policy cost a lot of money because of the high cost of subsisdies → politically unpopular in developed countries

Question 18

What are structural funds?

Answer 18

These provde money for research and development, improving employment oppourtunities, reducing discriminations and improving transport links

Question 19

Aim of structural fund?

Answer 19

To get all members of the EU to a similar level of development (aka reducing inequalities within Europe)