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Callum Jeffrey – Geography Notes Geography Notes Development Introduction Development is the level of economic growth of a country or region and the process of change taking place within it. Classification of Industries Primary – This industry takes raw materials from the earth and sea e.g. Forestry, Farming, Fishing and Mining Secondary – This industry makes things from the raw materials (manufacturing) e.g. Steel and Furniture making. Tertiary – This industry provides a service e.g. Transport and Education. Quaternary – This industry provides information and expertise. Representing Employment Structures These indicate the percentage of people working in each sector, in a country. There are three ways to represent data which includes pie charts, percentage bars and triangular graphs. Triangular Graphs – Each side of the triangle represents a percentage scale: Primary, Secondary and Tertiary. The three percentages should add up to 100%. Differences in World Development Development equals growth. Geographers are interested in differences of levels of development and rates of growth between places across the world and within a country or continent. It is difficult for one individual method to represent this growth accurately. The three main methods are: Economic Wealth – The traditional method of measuring development is to compare wealth. Using wealth the world can be divided into two parts. (i) More Economically Developed Countries (MEDCs), the richer and more industrialised nations of the ‘North’ (ii) Less Economically Developed Countries (LEDCs), the poorer and less industrialised nations of the ‘South’. Callum Jeffrey – Geography Notes The wealth of a country measured by its Gross National Product (GNP) per capita i.e. The GNP per person. This is the total value of goods and services by a country in a year, divided by the total number of people living in that country. The disadvantage of using GNP is that id does not show differences in wealth between people and places within a country. Social Factors – Although wealth is the traditional way of comparing a country’s development, research suggests links between wealth and a range of social factors i.e. MEDCs have lower birth and infant mortality rates, longer life expectancy, a smaller proportion of the population aged under 15 and a higher proportion of the population over 65 than LEDCs. Human Development Index – It was introduced in 1990 by the United Nations. The HDI replaced GNP as the measure of developed countries. The HDI is a social welfare index, measuring adult literacy rate (education), life expectancy (health) ant the real GNP per person i.e. what a person’s income will actually buy in a country (economic). The HDI is an attempt to compare the quality of life between people and places and, unlike GNP, it can measure differences within a country. Factor MEDCs LEDCs GNP Majority over $5000 per person Majority under $2000 per per year, 80% of world’s person per year, 20% of income. world’s total income. Population Growth Slow, partly due to family Extremely fast, little or no planning, 25% of world’s family planning, 75% of population. Will double in 80 world’s population. Will years. double in 30 years. Housing High standard, permanent, Low standard, temporary, indoor amenities. barely any amenities. Types Of Jobs Secondary and tertiary, 75% Primary and some secondary, 25% Level Of Highly mechanised, 96% of Mainly hand labour or use of Mechanisation world’s spending on animals. development and research. Exports Manufactured goods Unprocessed raw materials Energy High consumption. Main Low consumption. Main sources are coal, oil, HEP and source is wood. 20% of nuclear. 80% of world’s world’s energy. energy. Communication Motorways, railways, airports. Roads, rails and airports near main cities. Diet Balanced, several meals a day, Unbalanced, 20% suffer high protein intake. malnutrition, low protein intake. Callum Jeffrey – Geography Notes Life Expectancy 75 years + 60 years+ Health Very good, lots of doctors. Very poor, few doctors. Bad Good hospital facilities. hospital facilities. Education Most have full-time secondary Little have formal education. education (16+). Females are disadvantaged. Differences in Regional Development Economic development is rarely evenly spread. Growth becomes concentrated in a few favoured places (cities or regions) whilst others are left relatively poor and under developed by comparison. Level More Developed Less Developed Local/British City Suburbia Old inner city Regional/National Capital city e.g. south-east Isolated, rural village e.g. England, north Italy north-west England, south Italy International EU – Germany, Netherlands EU – Portugal, Ireland The Core-Periphery The core is the most prosperous part of a country. This region is likely to include the capital city and the country’s main industrial areas. These provide a large local marker which attracts other industries and services to the region e.g. banking, insurance and government offices. As levels of capital (money), technology and skilled labour increase, the region becomes wealthier. This means that it can afford to invest in better schools, hospitals, modern transport, networks and better-quality housing. These are all positive points for the area and act as pull factors attracting people to the area. In many countries, the level of prosperity (wealth) decreases with distance form the core. The poorest parts of a country are found towards its periphery. At the periphery, jobs are fewer, poorly paid and likely to be in the primary sector. There is likely to be fewer opportunities, poor service provision and poor government investment. These are all negative points for the area and act as push factors that force many people to migrate towards the core region. As a country develops, industry and wealth spread out and secondary core regions develop. In the UK the south-east is the core region. The secondary cores are places like Yorkshire and Lancashire. Callum Jeffrey – Geography Notes Stages in Economic Development – The Rostow Model Walt Rostow (an economist) developed a model for economic growth. He suggested that all countries had the potential to pass through a series of stages of growth until they became fully industrialised and economically developed. 5. The age of high mass consumption. 4. The drive to maturing. 3. Take-off. 2. The preconditions for take off. 1. The traditional society. 5. Japan, USA, UK, Italy 4. Brazil, Portugal 3. India 2. Kenya, Bangladesh 1. South America Callum Jeffrey – Geography Notes Stages of Development Stage 1 – A subsistence economy based around farming. There are insufficient technology and capital to process raw materials or develop industries and services. Stage 2 – To progress to stage 2, a country usually need external help. Primary activities start to develop but most products are exported. There are limited technological improvements and an improvement in the transport network. Slow improvement in people’s standard of living (GNP). Stage 3 – Manufacturing industry grows rapidly. Improved technology to process raw materials. Increasing investment in agriculture, transport and services. Development limited to core regions. Improvement in standard of living. Stage 4 – Economic growth spreads to most of the country. Transport networks and industries develop further. Rapid urbanisation and declining primary activities. Living standards also improve further. Stage 5 – There is a rapid expansion of services and high-tech industries. There is a decline in manufacturing. Rostow’s model can be criticised. He said capital was needed from an MEDC before take-off. Many countries are unlikely to become industrialised due to lack of raw materials or capital. Sustainable Development This leads to an improvement in people’s: Quality of Life – Allows them to be more content with their way of life and the surrounding environment. Standard of Living – Enables them, and future generations, to be economically better off. This can be achieved in a number of ways: (i) By encouraging economic development at a realistic pace to avoid the country falling into debt. (ii) By developing appropriate technology. These are also skills that can be developed and handed down to future generations. Callum Jeffrey – Geography Notes Trade and Interdependence No country is fully self-sufficient in full range of raw materials and manufactured goods. To try and achieve sufficiency, different countries must trade with each other. Trade equals a flow of goods from producer to consumer. One way for a country to improve its standard of living and quality (and grow more wealthy) of life is to sell more than it buys (exports more than it imports). However, for every country that exports more than it imports, another has to import more than it exports. Therefore, some countries have a trade surplus whilst others have a trade deficit. Most of the world’s population lives in LEDCs. These countries produce the majority of primary raw materials which are needed by MEDCs They then buy the raw materials and process/manufacture the goods which are needed by themselves and the LEDCs. Trade of Developing Trade of Developed A legacy of former colonial Mainly manufactured goods are economies where a mineral once traded, as the countries are mined or a crop once grown is industrialised. exported in its raw state. Mainly primary products. Two or three items are exported. A wide range of products are exported. Prices and demand for the items Prices and demand for the items tend fluctuate annually. Prices rise less. to be steady. Prices have risen quickly. Trade is small. Trade is large. Exports come form transnational Profits are retained by the export companies, which send the profits country. back. Trade is hindered by poor transport Trade is helped by good transport networks. networks. Trade is severely hit at times of Trade is badly affected by times of world economic recession. world economic recession. Callum Jeffrey – Geography Notes Changes in Britain’s Trade EU 1973 The biggest Rest Of Europe increase has been with EU 4% North America countries. We 15% 32% have become Other Developed quite dependent 7% Countries upon it for OPEC trade. 10% In 1994, 80% of Other Developing Britain’s trade 16% Countries was with 16% Centally Planned MEDCs, Economies compared with 74% in 1973 EU and 68% in 1994 1951. 4% North America 5% Despite our 6% need for raw Other Developing materials (until Countries 7% the 1990s) there Rest Of Europe + was a decline in Former USSR trade between 8% Asian Tiger 57% us and LEDCs. Economies These links Japan were mainly 13% formed in Other Developed colonial times. Countries Britain’s links with OPECs have declined since the exploitation of North Sea oil. Although we are an MEDC, we have developed a trade deficit that is proving hard to reduce. Callum Jeffrey – Geography Notes World Trade Regional Trade Groups – The EU is an example of countries grouping together to try and increase trade. By eliminating import duties between members, they reduced the cost of products that were sold between them and increased its number of potential customers. This made it competitive, but they also made restrictions, which protected their goods against cheaper imports. This meant it was a lot harder for LEDCs to sell their products. The future seems to indicate the enlargement of regional trading blocks, like the EU and NAFTA. Direction, Volume and Value – The world’s trade is dominated by the few market economies of the MEDCs. In 1995 the world trade shares were: EU – 38%, USA – 44% and Japan – 8% (In 1990 they were: EU – 44%, USA – 13% and Japan – 9%). Japan had a slightly declining surplus, the USA had an increasing deficit and the EU had a slight trade surplus (the UK had a deficit). Older industrialised countries in the West have recently faced strong competition form the East. They now have 10% of world trade. The amount of Pacific trade now exceeds Atlantic trade. Although trade between LEDCs has increased, in 1995 over 60% of this was shared by only 8 nations. The trade gap for most developing countries remains wide as they continue to export raw materials and import manufactured goods. As it widens further, they fall into deeper debt, as they can’t buy as many overseas products and the volume of world trade decreases. OPECs share in world trade has declined since 1990 due to the Gulf War and the world recession. The world’s trade is becoming dominated by powerful, transnational corporations. GATT and the WTO GATT (General Agreement on Trade and Tariffs) was established in 1947, to encourage free and multiple trading between countries. It was hoped that GATT would help by finding ways of reducing tariffs, quotas and trade barriers, set up to protect domestic producers. It wasn’t until April 1994 that an agreement was signed. Tariffs were immediately reduced on many industrial products. This was to benefit many as increased competition should lower prices. Farm subsidies and agricultural tariffs were gradually cut over six years. This delay was to the detriment of many developing countries which relied on the export of agricultural products. Callum Jeffrey – Geography Notes In January 1995 GATT was replaced by the WTO (World Trade Organisation). It was designed to supervise the implementation of trade agreements and to settle disputes. Aid Aid is when one country gives another country a form of resource. It is given to try and help developing countries improve their standard of living, to help with natural disasters and to buy goods form richer countries. (i) Bilateral Aid – When resources are given directly from a rich country to a poor country, with ‘strings attached’. (ii) Multilateral Aid – When a richer country gives money to an international organisation. Then they give it out to poorer countries. They decide where it goes, if at all. (iii) Voluntary Aid – When charities raise money in rich countries and donate it for use on a specific project in a poorer country. They normally help with the after effects of a natural disaster. Disadvantages of Aid to a Recipient Country Aid rarely reaches the poorest people who need it most. Inefficient and/or corrupt officials direct it to themselves or urban areas, where they live. The gap between the wealthier urban dwellers and poorer rural dwellers therefore increases. Aid also forces the recipient countries to produce raw materials for the richer countries rather than growing food and developing industries for themselves. The recipient country can become dependent on aid. Aid is almost always in the forms of loans and so the poorer countries actually become poorer as they get into more debt as the interest increases. Advantages of Aid to a Recipient Country Short term aid includes: food, clothing, shelter and medical care. They tend to be provided after a natural disaster or civil war. Long term aid should encourage a recipient country to become independent and self-sufficient. This can be done by: improving educational standards, developing skills, encouraging the growth of higher yielding crops for themselves, developing sustainable industries using appropriate technology and improving water supplies. Richer countries can also help by buying products form the developing countries. Callum Jeffrey – Geography Notes Aid from donor. Donor cannot sell. Recipient sets up Recipient cannot buy. industry. Products cheap Recession and due to due local raw stagnation. material and low wages. Loss of income for Recipient earns money. recipient, can’t buy goods, The Traditional Donor loses some trade donor loses markets. Trade-Aid Cycle due to cheap imports. Donor sets up protection Recipient finds new policy, recipient loses markets previously markets. belonging to the donor. Loss of markets means increased unemployment in the donor country. Aid from donor. Recipient sets up industry. Recipient can afford more Products are cheap due to goods from the donor. local raw materials. The Recommended Both countries increase Trade-Aid Cycle Recipient earns production and income. money. Donor allows imports, making recipient better off. Callum Jeffrey – Geography Notes Case Study – Development in Japan and Kenya Levels of Independence Japan Economic Wealth and Employment Structures Japan is estimated to be the 14th richest country in the world. Its employment structure is typical of an MEDC. There is a small portion of the working population in the primary sector. This is due to young people preferring urban areas. Farming is now highly mechanised, but there is little of it and mining as well. A large portion lies in the secondary sector. Despite a lack of raw materials, it still has: the capital, to set up industries; an education system, which provides technological knowledge; a wealthy local market, to buy goods; and the ability to export goods. It has another large portion in the tertiary sector. Social Measures and the HDI Japan’s population data corresponds closely with that expected of an MEDC. The Japanese live longer than people in any other country. Japan has one of the largest HDIs – 0.937. Kenya Economic Wealth and Employment Structures Kenya is estimated to be one of the poorest countries of the world. Its employment structure is typical of an LEDC. It has a large portion of the working population in the primary sector. It is mainly farming, which is often at a subsistence level. There are also small amounts of mining, forestry and fishing. It has a low portion in the secondary sector, due to a lack of capital, energy supplies, education, the export of raw materials, equipment and a poor local market. It has a small portion in the tertiary sector. Tourism is the country’s main money earner. Callum Jeffrey – Geography Notes Social Measures and the HDI Kenya’s population data corresponds closely with that expected of an LEDC. In the 1990s, Kenya had the highest natural increase in the world. Kenya has an HDI of 0.481. Trade and Interdependence Japan Japan has a large population, limited flat land and few natural resources. This means it has to import almost all of its energy supplies (which are expensive), raw materials and minerals; and large amounts of foodstuffs (farming is intensive but there is insufficient land). But by working long hours and developing better technology etc, the Japanese can produce and export their high quality goods globally. Due to this, Japan has become the world’s 3rd largest trader. 41.8% of Japan’s trade in 1993 was with the USA and the EU, although during the 1990s there was an increase in trade with the NICs. Since 1983 it has had the world’s largest trade surplus. This is due to: using nuclear power and reducing their energy bill, importing cheap raw materials and exporting expensive goods, protecting (until GATT in 1994) its industries with tariffs, building factories abroad and financing research in developing countries, in return for non-renewable resources. Kenya The North is desert, but areas in the South are well suited to agriculture. Where the climate and soil are best, subsistence farmers grow their crops. With lots of rain and fertile soil; tea, coffee and fruit can be grown for export. Unfortunately, foodstuffs and raw materials make little money for the country. Kenya also has little industry, so it imports most of its manufactured goods, which are all very expensive. This means Kenya has a large trade deficit. Over 40% of its trade is with the EU. The UK remains the most important buyer and supplier. Three significant changes occurred during the 1990s: Japan became the largest overseas investor, so Kenya has to buy more Japanese goods; Kenya has developed a trade surplus, within Africa (although it is too small to balance out its trade deficit) and air freight is used to export perishable goods to Europe, making them fresher when they arrive earlier. Callum Jeffrey – Geography Notes Case Study – Core-Periphery in Japan The Core – Tokyo Land values here are the highest in the world. The Kanto region (surrounds Tokyo Bay) is where 30% of the population live and it’s the centre of the country’s industry, commerce and services. Tokyo Bay provides a deep, sheltered harbour for large ships to import raw materials and energy supplies; and export manufactured goods. Land is constantly being reclaimed from the sea to have new factories, offices, houses and port facilities built on. Tokyo is the centre of land communications. It has a high population density and a high cost of living, but its highly paid jobs continue to attract younger people. The Periphery – Hokkaido It is poorer than Tokyo, but still equal to many MEDCs, e.g. the UK. But by Japan’s standards, it is a periphery region. It used to be important for providing raw materials. This led to steel and ship-building industries. Due to problems and the distance to Japan’s major ports and internal markets, there has been a recent decline in these facilities. Hokkaido tends not to attract new industries as they perceive the island as a cold, prone to earthquakes and isolated. It has a low population density, probably because, although it has high wages, people tend to work somewhere else. Callum Jeffrey – Geography Notes Case Study – Sustainable Development in Ladakh, India ‘Global Concern’ is a British charity which supports projects in Ladakh. Ladakh is in the foothills of the Himalayas and it has an extreme climate. On average, temperatures are below, or near to, 0oC for over half the year. The growing season is less than five months and annual precipitation is under 20cm (making it a desert). There are also very strong winds. People in Ladakh do not want ‘Western’ development as it has many socio-cultural and urbanisation problems. Instead they promote development based n ecological principles, to take into account the local conditions, traditions and resources. This will protect the environment and preserve the traditional culture. Leh, the capital, The ecological is 3500m above development centre sea-level and it’s trains people in next to a river. traditional handcrafts. Houses Energy Solar power heats them and Strong winds and the sun are water. Ladakh important renewable sources of energy. Largest wall faces South, to get the most sunshine. Small hydro schemes generate electricity. Solar cookers avoid the use Water of precious resources and Solar greenhouses allow improves health (less Snow melt is used for vegetables to grow all year. smoke). irrigation and hydro-power. Cavity walls filled with mud Locally-made hydraulic and stones to conserve heat. rams pump water to higher levels, extending the cultivation area, and Ladakh remains self- sufficient.
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