1) Explain the First, Second, Third and Fourth World System
First World countries are western European. Second World countries are richer colonies like Australia and America, as well as former Soviet bloc countries. Third World countries are poorer countries. Fourth World countries (added later) the poorest countries that are standing still or declining in economic growth.
2) What are the Problems with this System?
It’s from a Western European perspective, making America a second world country. It has no clear place for Communist countries, which were added unsatisfactorily to the Second World.
3) What is the North/South Divide?
In 1971, the Brandt report on the state of world development was published. It made a simpler division: economically wealthier, industrialised countries versus less mature and largely agricultural ones. A line called the North-South Divide was drawn on the map to make the difference clear. The development indicator used was GNP per capita.
4) What is the Problem with the North/South Divide?
Economics have become more varied, and it’s just too simple. (Also only used GNP to measure development)
5) What is an LDC and an MDC? What are the Problems with these?
LDC = Less Developed Country; MDC = More Developed Country But, development is not only economic, but also cultural and to do with society. It is negative to suggest that a country had a low level culture just because it wasn’t very economically developed.
6) How was it Changed? What are the Problems with these?
LEDC = Less Economically Developed Country; MEDC = More Economically Developed Country. But, world order has changed tremendously since the late 20th century.Globalisation means there are more contacts and trade between countries than ever before. Some LEDCs are growing more rapidly than developed countries.
7) How was it Changed? What are the Problems with these?
A new category was introduced to cover quickly developing countries, NIC = Newly Industrialising Country. But, the middle class is growing in many poor regions. The capital cities, along with surrounding cities are often indistinguishable from any MEDC city. So, the LEDC/MEDC division is becoming less useful.
8) What are the Five Categories in the Five-Fold Division System Based on Wealth?
The UK would be classified as this; we are still wealthy, but our wealth has declined over recent decades.
10) Describe Oil-Exporting Countries
There is a great spread of wealth in society. Huge amounts of money is made from exporting oil. Rich people and countries are investing their money in businesses abroad, for example some UK football clubs have been bought by middle-eastern oil billionaires. The majority of people remain poor in oil-exporting countries, such as the United Arab Emirates (UAE) and Venezuela. Some profit is used for development projects, so eventually everyone will benefit.
11) Describe Newly Industrialising Countries
Similar to NICs and LEDCs, or third and fourth world countries.
12) Describe Formerly Centrally Planned Countries
Covers a wide variety of countries. Russia still has considerable Communist influence. Its old ‘allies’ like Poland and the Czech Republic are becoming more like Western European countries and are part of the EU. China still has its Communist government, but is becoming one of the world’s fastest growing economies, with a phenomenal industrialisation speed.
13) Describe Heavily Indebted Countries
A reason why countries can’t move their economies forward is because of the burthen of debt. They have borrowed large sums of money from organisations like the world bank, but earning enough to repay the debt with interest is using funds which should be spent on development projects.
Measuring Development
1) Give Four Correlations between Different Measures
Birth rate is closely correlated with level of development - the lower the birth rate is, the higher the level of development. A country at a further state of development is likely to have a high HDI, a low infant mortality rate, and widespread access to clean water. There are likely to be many doctors for the number of people and the literacy rates will be high because the government will have sufficient money to spend on health and education. Poorer governments may not be able to provide even basic services like clean water and a living wage.
2) What are the Benefits and Disadvantages of using Birth Rate as a Development Indicator?
It’s an excellent measure of development - in rich industrialising countries women achieve higher levels of education and career prospects. As it is difficult to pursue a high-flying career and bring up several children, having children is often sacrificed for the working world. Some countries such as France have tried to encourage career women to have children, using tax advantages and benefits.
3) What are the Benefits and Disadvantages of using Death Rate as a Development Indicator?
A poor indicator of development, as almost all countries have low death rates today. After a point, the more economically developed a country is, the higher the death rate. This is because when birth rates fall there are fewer young people and improved healthcare allows most people to live longer. Therefore, death rates increase because there is a higher proportion of elderly people.
4) What are the Benefits and Disadvantages of using GNI per capita and GNP per capita as Development Indicators?
They are limited measures of development as they are only economic and say nothing about quality of life. It doesn’t tell us what people earn, how much that buys, how educated people are or the cultural quality of their lives. It doesn’t show the distribution of wealth, 10% could hold the vast majority of wealth, which is common in oil rich countries like Saudi Arabia.
5) What is the Difference between Standard of Living and Quality of Life?
Standard of living refers to the economic quality of a person’s life - whether they are comfortably off, or whether they fall below the income of $1 per day (global measure of absolute poverty). Quality of life is about happiness, health and education.
6) What is PQLI?
PQLI = Physical Quality of Life Index, is a measure that only uses social measures of wellbeing.
7) What is HDI?
Human Development Index, an index based upon three variables: life expectancy at birth, level of education (including both adult literacy rate and years spent at school) and income adjusted for purchasing power. The maximum HDI is 1, wealthy countries like Japan have an HDI of about 0.9, whereas poor countries may have an HDI of less than half than that. It was created to show that people and their capabilities should be more important than economic wealth.
Global Development Inequalities
1) How can Physical Factors make Global Development Inequalities Worse?
Climate related diseases - many people in the Tropics are debilitated by climate related diseases such as malaria. Tropical Africa, South America and Asia tend to be the poorest world regions and they suffer from more climate related diseases than richer countries. People cannot improve their standard of living when they are so ill, and children are orphaned. Climatic hazards - drought regularly strikes Africa, especially Ethiopia, Eritrea and Somalia in the east. This limits future development and destroys what may have already been achieved. Being landlocked - this makes trade less easy (no ports, have to rely on other countries letting goods through them). Africa has more landlocked countries than any other continent.
2) How can Economic Factors make Global Development Inequalities Worse?
In general, when income is low, so is the level of welfare. Poverty - low life expectancy and low standard of living make an almost impossible base from which to develop and expand. Poorer countries Burundi, Somalia and Sierra Leone are those just emerging from civil war. Competition - poorer countries often find themselves competing against each other for business and have lowered their price to attract buyers. There is often more supply than demand, which keeps prices low. Poor farmers do not receive enough to support their families. Trade policies - these have not favoured the poorest countries. Richer countries pay as little as possible for raw materials from developing countries. Sometimes tariffs are placed upon goods by the purchasing country. Africa is the least industrialised continent; it has very cheap labour, yet processing is usually done in the purchasing country, which benefits from the jobs created from this. Most African exports are primary goods (raw materials)
3) Why do Companies not Invest in Africa?
Banks financing industry want financial stability. Good infrastructure to move raw materials, finished goods and labour needs to be in place. A reliable electricity supply must be available. An educated workforce is necessary. Asia has supplied these and the industry has been attracted, pushing forward its development.
4) How do Environmental Factors make Development Inequalities Worse?
Abusing the land - starving farmers are unlikely to be concerned about the rainforest they are cutting down to feed their families. Throughout the Sahel region in the Sahara deforestation and overgrazing have increased desertification. Wildlife has been sacrificed to poachers when it could have been the basis of a successful tourist industry. Poor governments have little to spare to protect and develop environmental resources.
5) How do Social Factors make Development Inequalities Worse?
Water Quality - Poor water quality causes disease, which debilitates people and prevents economic development. Many tropical countries suffer from endemic malaria, yellow fever, bilharzia and river blindness. Diseases are carried in water and water quality is unreliable. Amount of Water - Inadequate water supplies limit crop yield and therefore food supply. There is not enough water for irrigation to allow crops to be increased. If it’s in short supply then people have to spend time searching for it and wasting valuable energy carrying it. Education - a poor country finds it difficult for to fund education for all children to a good level, and investors are put off by a lack of educated workforce. Health - When Sierra Leone gained independence in 1963 it had a health system in place, but has not been able to maintain this as a poor country. It is difficult for sick people to work hard, so Sierra Leone’s economy has spiraled downwards. It is one of the most distressed countries in the world, with an HDI of any 0.048.
6) How do Political Factors make Development Inequalities Worse?
Corruption - corrupt politicians enrich themselves illegally at the expense of the country’s development. When this happens, money is not available for health services, education, roads, clean water and sanitation. Corrupt governments are unstable, foreign investors and aid providers are discouraged from putting funds into a country where they cannot rely on aid reaching the target. Economies that are already weak cannot afford to miss out on this income.
7) Give an Example of This
In Zimbabwe, highly productive land was previously owned by white farmers but was taken over by the government and ‘war veterans’. The country’s economy has been almost completely destroyed and inflation has exceeded 1000%.
Hurricane Ivan
1) Give 8 Features of Hurricane Ivan
It was one of the Caribbean’s most powerful and destructive hurricanes, hitting several Caribbean countries as well as the USA. It hit the island of Grenada on the 7th September 2004 with full force. The storm was well organised with sharply defined eyes. Winds of 200km per hour caused major damage, though rainfall was not as heavy as predicted as the storm moved through Grenada quite rapidly. Category 4 on the Saffir-Simpson scale. The island was exposed to hurricane force winds for almost 6 hours. Loss of life was mitigated by the lack of rain and the hurricane’s arrival during the day. It affected the entire island of Grenada, especially the south.
2) What were the Environmental Impacts of Hurricane Ivan? (5)
Streams flooded and debris piled up to block water flow, in areas such as bridges and culverts flooding was more pronounced. Crop damage was nearly 100% for banana and sugar cane. Nutmeg and spice production infrastructure was also seriously affected. Landslides were uncommon due to the dry nature of the storm. The Grand Etang forest reserve suffered extensive and severe damage. On inspection, an estimated 50% of canopy trees were on the ground. Broken and uprooted trees blocked roads.
3) What were the Social Impacts of Hurricane Ivan? (3)
The electrical distribution network and communications grid were the public utilities most affected by the storm. The Princess Alice Hospital (the island’s second largest) was more than 70% destroyed.
4) What were the Economic Impacts of Hurricane Ivan? (3)
In some cases, looting has further exacerbated the losses. At the time, demand for services in the tourism sector was expected to drop over the coming 2-3 years. The recreational boating industry was also expected to lose its safe-haven insurance status.
5) What were the Other Effects of Hurricane Ivan? (6)
37 people died from the effects of Hurricane Ivan on Grenada, before it continued around Jamaica to the USA. Around 90% of houses were damaged or destroyed. Most people were affected in some way, half being made homeless. Water, power and telecommunications services were disrupted, which was potentially a major health risk for the island. Water was prioritised as the most basic health issue and was efficient within 3 weeks of the storm. People lacked food, clean water and medical care.
6) What was the Long Term Damage of Hurricane Ivan?
Agriculture, tourism and infrastructure were badly hit and took much longer to repair and replace and at a greater cost. Even 10 years is not long enough to catch up with what was destroyed in a major hurricane like Ivan, and poorer countries have a low tax base and and individuals are usually without insurance to help them recover.
Ways to Reduce Global Inequalities
1) What is Aid?
Aid is the giving of resources by one country or organisation to another country. These resources may be in the form of money, goods, people or technology. Its basic aim is to help poorer countries develop their economy and services in order to help improve their standard of living and quality of life. Many LEDCs have come to rely on aid.
2) Why do Countries Need Aid?
Large and increasing trade deficits - countries need to borrow money in order to buy goods from the richer MEDCs. By borrowing money these countries fall further into debt. To improve their standard of living - this could involve borrowing money for large schemes such as building an international airport or huge dam. These schemes do not often benefit the majority of the population. Disasters - many countries suffer from natural disasters like drought, flooding or earthquakes, or human-induced disasters like civil war or genocide.
3) What is Bilateral Aid?
It’s a ‘strings attached’ aid between two countries, which means that the recipient country has terms and conditions imposed on them by the donor country.
4) What is Multilateral Aid?
Multilateral aid is where richer countries give money to international organisations such as the World Bank and IMF. These organisations then redistribute the money to poorer countries. Theoretically, there should be no political ties. For example, the Global Fund to Fight Aids, TB and Malaria is a global public/private partnership that was given £1 billion by the UK in 2013
5) What is Voluntary Aid?
There are no political ties and the projects are usually on a smaller scale and use appropriate technology. These organisations are generally the first to provide food, clothing and shelter following a major disaster. E.g. Oxfam, Save the Children, Christian Aid, Cafod &c
6) What are the Benefits of Aid? (3)
Aid can go to directly where it is needed. Aid is not always provided in the form of money, and in sometimes provided in the form of expert advisers. Aid allows for money given to a country to be allocated well against need.
7) What are the Disadvantages of Aid? (3)
Aid can be seen as a form of charity. Aid budgets can be cut. Aid can be misused and lead to corruption.
8) What are the Benefits of Trade? (4)
Trade makes a developing country more independent of aid-giving countries. Trade helps developing countries maintain their dignity. Trade establishes a strong impression on the international market. Trade improves the economic performance of a country.
9) What are the Disadvantages of Trade? (5)
Trade can distribute resources inefficiently; the benefits of it are usually confined to an elite group within society. Trade needs a good infrastructure to prosper, and it is very difficult for developing countries to maintain a good infrastructure. Exposing fragile developing countries to free trade is risky. Trade requires investment first. Trade does not necessarily mean free trade.
10) What are Loans? Give an Example
Loans are sums of money, often borrowed from other countries or international banks, that have to be paid back with interest some time in the future. For example Brazil borrowed huge sums of money in the ‘70s to build factories, manufacturing goods for export to make a profit. The loans were repaid from the profit and the results of the policy were mainly successful.
11) What can be Problems with Loans?
However, things do not often go to plan and the country defaults on the debt, which has to be paid back with interest over a longer period. People in the debtor country have to work hard to produce goods for export to fund the interest on the loan. Standard of living and level of development simply cannot improve.
12) What is Debt Relief and Abolition? Give Examples
Poorer countries can be helped through debt relief, which means reducing the interest rate or amount on a loan. Sometimes debts can even be abolished or written off. Debtor nations can benefit hugely as they can begin to improve life for their citizens. In the UK, the Midland Bank wrote off some debts owed by countries at lesser stages of development in the 1980s, but found its own finances suffered so much it was taken over by HSBC. In the 21st Century, there is a move from wealthier governments, such as those in the G7 economic group, to write off all the debts of the poorest countries.
13) How are Micro-Enterprises Loan Solutions?
Micro-enterprises may be the way forward. Non-for-profit groups in the USA have been lending money to individuals in poorer countries. Today, this system has expanded greatly. Small businesses are the basis of any economy and they employ a surprising number of people and support their families. It is an important way forward and everybody gains.
14) What is the Grameen Bank?
The Grameen Bank is an example of microfinance. It gives out small loans with on interest. It was initially aimed at women. It’s made up of very small ‘companies’ that earn income to raise standard of living. Examples are: purchasing mobile phones and charging local people to use them, or buying small flocks of chickens to sell eggs, remove insects or get natural fertiliser.
15) What are Conservation Swaps?
In their attempt to develop, poor countries tend to use every resource that is available to them, even if it is something valuable whose loss will result in future difficulties for the country itself and sometimes the rest of the world. Some richer countries have realised that, although conservation of valuable resources and landscapes are important, the poorer countries should not lose out on development opportunities. Conservation swaps are agreements whereby a proportion of a country’s debt is written off in an exchange for a promise by a debtor country to undertake environmental conservation projects. Usually, areas of valuable land are set apart for protection, especially tropical rainforest.
16) Give Details about Conservation Swaps
They were first set up by environmental groups in the 1980s to reduce the debt problems of poorer countries and to promote the conservation of important environments. Between 1987 and 2001, 50 countries took part. The first swap occurred in Bolivia, South America, where a North American conservation group took over $650,000 of debt in exchange for Bolivia’s government setting aside a large area of rainforest as a nature reserve. Since then, other countries that have taken part include Guatemala, Peru, Ecuador, Costa Rica and Poland.
17) What is Fair Trade?
Fair Trade is an international movement ensuring producers in poor countries get a fair deal. They receive a minimum wage guaranteed price for their crop, which provides them with a living wage, long-term contracts for security, and skills to develop their business. The volume of good produced increased by 150% in 2006-7 alone. Around 7 million farmers, farm workers and their families in 58 poorer countries benefit from the improved trading conditions brought by fair trade. As of 2009, almost 60% of adults in the UK know what it means.
Cahora Bassa Dam
1) Describe the Cahora Bassa Dam
It was begun in the 1960s by the Portuguese government, but only finished in 1997 due to civil war. It’s the largest HEP scheme in southern Africa. It dams the River Zambei Basin with two other dams, but it is the most recent and potentially important. It has a catchment area of 56,972km squared.
2) What are the Successes of the Dam?
Some communities are protected from flooding. Money is generated for the economy by selling most electricity produced to South Africa.
3) What are the Problems with the Dam?
Only 1% of Mozambique’s homes still have direct electricity supply - most of the power has been sold to South Africa, which makes money for the economy, but does little for the country’s citizens. The dam has much greater potential than it produces, and could provide the whole of Mozambique with all the power it needs for the foreseeable future, as long as other projects are developed to serve the most rural areas. Having 3 dams in one basin has caused environmental damage. River flow is low as so much water is held in reservoirs. The shrimp fishing industry in the lower valleys as almost been destroyed.
The EU
1) What is the EU?
It is made up of 28 member states. It provides half of developmental aid in the world. It is a major trading power, providing 15% of global exports and 20% of services, more than the USA. It also works on combatting pollution and disease by providing cleaner water, more strict farming rules, and improving environmental conditions. It has a GDP of €13.5
2) What are Core Countries and Peripheral Countries?
Core countries joined between 1952 and 1995. They have established economies, high levels of development and sophisticated infrastructure and levels of service. Peripheral countries joined between 2007 and 2013. These are former Communist bloc countries with unstable economies, high levels of outmigration, weak economies, less developed infrastructure and lower levels of service provision.
3) What is the Single Market?
This is an EU policy that allows for the freedom of goods, people, capital and services throughout EU member countries. It has led to significant reductions in prices of products and services, and migration throughout Europe.
4) What is ‘Schengen’?
No police or customs checks between EU countries at borders. Police co-operating between countries. Being able to buy and bring back goods for personal use between EU countries. International border control strengthened for internation borders with non-EU members.
5) What does CAP stand for and when was it set up?
Common Agricultural Policy. It was set up in 1962.
6) What were the Basic Aims of the CAP? (5)
To create a single market in which agricultural products can move more freely. Make the EC more self sufficient by giving preference to EC products and restricting imports from elsewhere. Giving financial support to EC farmers, which included guaranteed prices (subsides) and therefore a guaranteed market. Increase the average field size, farm size, and therefore farmer’s income. Taxes imposed on foreign imports so prices can be undercut.
7) What are the Benefits and Disadvantages of the CAP?
It guarantees the survival of rural communities, where more than half of EU citizens live, and preserves the appearance of the countryside. But, of 5% of EU citizens work in agriculture, which only generates 1.65% of GDP, so the CAP costs too much.
8) What is the Urban II Fund?
Urban II fund money comes from the European Regional Development Fund and is for sustainable development in districts of EU cities. It aims to provide economic and social regeneration. Most Europeans live in urban areas because they are centres of economic activity and hold greater opportunities. However, all cities have concentrations of social, environmental and economic problems. Any successful idea in one city is shared with others to try and improve living conditions as widely as possible.
9) Give Examples of the Social and Economic Regeneration
Improving living conditions (e.g. regenerating older buildings). Creating new jobs in services that benefit the whole population. Integrating less favoured groups into education and training so they can find satisfactory employment. Developing environmentally friendly transport systems. Making greater use of renewable energy. Using the most up-to-date ICT systems to make work more efficient and to improve people’s skills and prospects.
10) Give an Example of the Urban II Fund in Action
The town of Teruel in northern Spain has a new ring road, paid for by Urban II funds. It will reduce traffic flow through the town by at least 20% cutting congestion and improving travel times and air quality in the town. The new road also links previously isolates neighbourhoods. There are paths for cyclists and joggers. The project cost €16.6 million.
Bulgaria and Ireland
1) What is the Population of Bulgaria like? What is the Population of Ireland like?
Bulgaria’s population in 2008 of more than 7.6 million people was lower by almost 300,000 people than 1998. People are leaving to find better opportunities in the rest of the EU, which it joined in 2007. Ireland’s 2008 population of about 4.4 million is growing slowly due to migrant labour and natural increase.
2) What was Bulgaria like Before it Joined the EU? What was Ireland like Before it Joined the EU?
Bulgaria was previously a Communist country, politically and economically dominated by the USSR. With the break-up of the Communist bloc in the 1990s, its standard of living fell by 40%. Until Ireland joined the EU in 1973, it was a poor country within Europe.
3) How is Being in the EU Benefitting Bulgaria? How has the EU Benefitted Ireland?
Although Bulgaria is the second poorest country in the EU and on its economic periphery, new funding and projects are improving quality of life. Membership has benefitted Ireland enormously, changing its focus from agriculture to high-tech services. It’s 10% per annum increase from 1995-2000 earnt it the name ‘Celtic Tiger’. Ireland is no longer part of the economic periphery, but part of the economic core.