Key vocab K.O.
1 Development
Development =The process of change which allows all
the basic needs of a country or region to be met, thereby
achieving greater social justice & quality of life and
encouraging people to fulfil their potential.
GDP/GNP = Gross Domestic Product & Gross National
Product GDP =the total market value of all final goods
and services produced annually in an economy.
GNP = includes value of goods & services produced by
nationals both inside and outside the country.
GNI - Gross National Income =Total value of goods &
services produced within a country together with the
balance of income & payments from or to other
countries.
Development Gap =The difference between the most &
least advanced countries - the HICs & LICs.
North - South Divide =The socio-economic & political
division between the wealthy countries of Europe and
North America, Japan and Australia and the generally
poorer countries of Asia, Africa, and Latin America.
HDI Human Development Index ( rated 0-1)
3 indicators 1. Longevity ( life expectancy) 2. Knowledge -
adult literacy rates & enrolment rates at primary to
university levels. 3. Income - GDP per capita (PPP)
PPP Purchase Power Parity =An adjustment in gross
domestic product per capita to reflect differences in the
cost of living
Multidimensional Poverty Index =Developed by the UN
in 2010. It uses different factors to determine levels of
poverty rather than just economic factors.
Life expectancy - the average age to which a person lives
Infant mortality - number of babies, per 1000 who die
under the age of one year.
Child mortality - number of children, per 1000, who die
under the age of 5 years.
Literacy rate - the % of adults who can read and write.
+ and – of different indicators
•Birth rate – good indicator of social progress and the most MEDCs have low birth rates. However, birth rates
can be changed by government policies. These policies do not always mean that a country is developed.
•Death rate – effective as it shows how good a country's healthcare system is. It can also indicate a good
standard of living. However, very MEDCs have many older people, so death rates can be higher than expected.
•GNI per capita – this measure only shows economic development and says nothing about whether people in a
country have a good standard of living. It is also an average and so it hides information about people who are
very rich or very poor.
•HDI – this is widely recognised as a good measure of development. It takes into account economic measures,
such as income, but also social measures, such as levels of education.
Development indicators –
Comparing countries & problems with
relationships & scatter graphs
indices.
Geographers compare the statistics for different
Development indicators countries to see if there is a relationship or correlation
•Vietnam and Pakistan have a similar per capita GDP. However, life between the data for different countries. A correlation
expectancy and literacy are considerably higher in Vietnam than they helps to show what factors contribute to
are in Pakistan. development.
•Saudi Arabia has a per capita GDP comparable to that of Croatia. The example below compares GDP This scatter graph
However, in Saudi Arabia there is greater inequality between men and shows that there is a correlation between the wealth
women when considering access to education and political power. So, of a country and their adult literacy rate.
although they are equal on an economic development index - Saudi
Arabia is less developed on a human development index.
Problems with indices
Development indices can be misleading and need to be used with
care. For example:
•Many indices are averages for the whole population of a country.
This means that indices do not always reveal substantial inequalities
between different segments of society. For example, a portion of the
population of a highly developed country could be living below the
poverty line. Can hide regional inequalities within countries & cities.
•In some countries, the data used in indices could be out of date or
hard to collect. Some countries do not wish to have certain index data
collected - for example, many countries do not publish statistics
about the number of immigrants and migrants.
 Inequalities -Global Scale K.O. 2 Development National Inequalities - UK
The Brandt line It has long been recognised that there is a north/south
In the past, the Brandt line, which divided the planet into divide in the UK.
the rich north and the poor south was used. However the Causes of Global Inequalities What is the divide?
world has changed a lot in the last 20 years and the Brandt As many businesses choose to set up in the south of
line is now too simplistic. For example, China and India are England, this creates a wealth divide. Those living in the
Levels of development are determined by several factors:
no longer seen as poor countries. north of the country experience lower incomes,
•Physical factors – some areas have a hostile or difficult
higher unemployment and a lower standard of living than
landscape. This can make development more difficult. Examples
those living in the south. The North has also suffered more
of this are very hot climates or arid climates (with a lack of
heavily from deindustrialisation.
water) which make it difficult to grow sufficient food.
•Economic factors – some countries have very high levels
of debt. This means that they have to pay a lot of money
in interest and repayments and there is very little left over for
development projects.
•Environmental factors – some places experience
environmental issues, which can prevent them from developing.
Examples might be extreme flooding or desertification.
•Social factors – some parts of the world have issues that are
caused by people. These include low levels of education, poor
water quality or a lack of doctors.
•Political factors – some countries are at war or the government
may be corrupt. Therefore money does not reach the people
who need it most and spending on areas such as education and
infrastructure may be insufficient.
•Natural resources – some countries have an abundance of raw
The World Bank classification
A country's level of development is now classified in a
materials such as oil or precious minerals. These can be sold Local Inequalities - Brussels
and the money invested into developing the country.
different way. The World Bank uses the names:
•low income countries (LIC) - these are countries with a GNI
per capita of $1,045 or less, eg Chad and Ethiopia
•medium income countries (MIC) - these are countries with a These inner city
GNI per capita of more than $1,045 but less than $12,746, eg neighbourhoods have high
Mexico and Iraq concentrations of
•high income countries (HIC) - these are countries with a unemployment, youth
GNI per capita above US$ 12,746, eg Germany and the USA unemployment and social
ethic segregation due
to deindustrialisation.
 Types of industry
Employment Structure - The % of workers in primary,
secondary, tertiary and quaternary sectors in a country.
The primary sector of industry is concerned with the
extraction of raw materials or natural resources from the
land. Any business that grows goods or extracts materials
from the land would be classed as a primary sector
business.
Examples: farming, mining, fishing or oil production.
The secondary sector of industry is concerned
with manufacturing. This would involve taking the raw
materials from the primary sector and converting them
into new products.
Examples: car manufacturers, food production or building
companies.
The tertiary sector of industry is concerned with
providing a service. Services are activities that are done
by people or businesses for consumers.
Examples: hairdressers, banks, supermarkets or cinemas.
The quaternary sector consists of those industries
providing information services, such as computing, ICT
(information and communication technologies),
consultancy (offering advice to businesses) and R&D
(research, particularly in scientific fields).
The quaternary sector is sometimes included with the
tertiary sector, as they are both service sectors
K.O. 3 Development
Development & Industrial structure
Changing employment structure
Changing employment structure
In the UK in 1800 most people would have been employed in
the primary sector. Many people worked on the land, and
made their living from agriculture & related products.
During the industrial revolution, more people were needed
to build ships, work in steel-making and with textiles. All of
these jobs are found in the secondary sector. By 1900 +50% of
the workers were employed in secondary industries.
Since 1900 mechanisation meant that fewer people were
required to work on the land and in industry, as machines
could carry out most of the work that people previously did.
Foreign industries also became more competitive
and imports such as coal became more affordable. As the
availability of coal declined in the UK, more coal
was imported. This led to a further decline in primary sector
employment in the UK.
The demand for work increased in schools ( people can afford
to educate their children & pay for health car), hospitals
and retail industries. Also people had more money to
purchase services & goods. By the year 2000 +50% of the UK
workforce were employed in tertiary industries and only a
small number were employed in primary industries.
Quaternary industries are a relatively new concept. We now
have a more educated workforce. It has thus become an
important and growing sector in the UK as many firms want
to carry out research and development for their products.
 K.O. 4 Development
Globalisation
Key definitions
Globalisation refers to a process of change that
Drivers
leads to increasing economic, social and
political integration between countries and
•Improvements in transportation - larger cargo ships
regions.
mean that the cost of transporting goods between
Economic – largely caused by the growth of TNCs.
countries has decreased. Economies of scale mean the
Cultural – impact of Western culture, art, media, sport
cost per item can reduce when operating on a larger
& leisure.
scale. Transport improvements also mean that goods and
Political – Growth of Western Democracies, the UN.
people can travel more quickly.
TNC - A firm that owns or controls productive
•Freedom of trade - organisations like the World Trade
operations in more than one country through foreign
Organisation (WTO) promote free trade between
direct investment.
countries, which help to remove barriers between
Global Supply Chain - a worldwide network to
countries. Trade Blocs – EU – encourage free trade
maximize profits in production.
between member countries.
Global value chain - refers to the full range of
•Improvements of communications - the internet and
activities that economic actors engaged in to bring a
mobile technology have allowed greater communication
product to market.
between people in different countries.
Global Shift in manufacturing - the movement of
•Labour availability and skills - countries such as India
manufacturing from HICs to cheaper production
have lower labour costs (about a third of that of the UK)
locations in LICs
and also high skill levels. Labour intensive industries such
as clothing can take advantage of cheaper labour costs
and reduced legal restrictions in LEDCs.
•Growth of TNCs
Impacts – Specific examples
• Child labour & chocolate production ( Nestle,
Mars) on the Ivory Coast.
• TNCs – Nike..footloose
• Niger Delta – Oil spills & exploitation - Shell
• Rana Plaza disaster in Bangladesh & fast fashion.
Impacts on MEDCs
Deindustrialisation in Newcastle – impact on the
Quayside.
Impacts
Some of the positive impacts are:
•Inward investment by TNCs helps countries -new jobs and skills for local people.
•TNCs bring wealth & foreign currency to local economies when they buy local
resources, products and services. The extra money created by this investment can
be spent on education, health and infrastructure.
•Stable jobs – can avoid health care & education.
•The sharing of ideas, experiences and lifestyles of people and cultures. People
can experience foods and other products not previously available in their
countries.
•Globalisation increases awareness of events in faraway parts of the world. For
example, the UK was quickly made aware of the 2004 tsunami and sent help
rapidly in response.
•Globalisation may help to make people more aware of global issues such
as deforestation and global warming and alert them to the need
for sustainable development.
Some of the negative impacts include:
•Globalisation operates mostly in the interests of the richest countries, which
continue to dominate world trade . The role of LEDCs in the world market is
mostly to provide the North and West with cheap labour and raw materials. TNC
may bring own employees from home country ( MEDC)
•There are no guarantees that the wealth from inward investment will benefit the
local community. Often, profits are sent back to the MEDC where the TNC is
based. Transnational companies, with their massive economies of scale, may
drive local companies out of business. If it becomes cheaper to operate in another
country, the TNC might close down the factory and make local people redundant.
•An absence of strictly enforced international laws means that TNCs may operate
in LEDCs in a way that would not be allowed in an MEDC. They may pollute the
environment, run risks with safety or impose poor working conditions and low
wages on local workers.
•Globalisation is viewed by many as a threat to the world's cultural diversity. It is
feared it might drown out local economies, traditions and languages and simply
re-cast the whole world in the mould of the capitalist North and West. An example
of this is that a Hollywood film is far more likely to be successful worldwide than
one made in India or China, which also have thriving film industries.
•Industry may begin to thrive in LEDCs at the expense of jobs in manufacturing in
the UK and other MEDCs, especially in textiles.
 Shell – Operations
Global distribution
KEY VOCAB:
Upstream operations concern the exploration for and
extraction of crude oil, natural gas and natural gas liquids.
It also markets and transports oil and gas, and operates
the infrastructure necessary to deliver them to market.
Its main upstream
Downstream operations provides petroleum based
products to over 30 million customers at about 46,000
retail service stations every day. It processes crude oil and
other chemicals into a range of products which are
moved and marketed around the world for domestic,
industrial and transport use.
•Facts: Shell operates in over 70 countries- HQ – The
Hague, Netherlands
•Shell employs 86,000 people
•in 2014 Shell awarded 90% of its contract work to
Nigerian companies
•In 2020 Shell produced 605 million barrels of oil and
gas though it own operations and a further 35 million
barrels through joint ventures.
•In 2020 Shell revenue was $180.54 billion and profit
was $2.6 billion
•In 2020 Shell invested $970 million in Research and
Development
K.O. 5 Development Negative impacts
Social & Environmental
Positive impacts
Oil Spills
Amnesty Research – 2011- 2017 a total of 17.5 million litres was
spilled into the Delta.
 Since 2011, Shell has reported 1,010 spills, with 110,535 barrels or
17.5 million litres lost. That’s about seven Olympic swimming pools.
The Bodo Spill
In 2008 and 2009, two massive oil spills in the fishing town of Bodo.
Thick black oil leaked into rivers and creeks for weeks, killing fish
and robbing people of their livelihoods. Shell, understated the
volume of oil spilled – and offered the community only a tiny
compensation, of just $4,000.
Amnesty International supported the Bodo community In taking
egal action. Shell admitted, paying the community £55 million in
compensation.
Upstream operations in Niger Delta. Reasons: 1. poor maintenance of sites and pipelines -pipes corrode
Largest in Nigeria with 5,000km of pipelines, 8 natural and leak. 2. Sabotage.
gas plants and +1,000 active oil wells and drills within
oil fields. Its operations are mainly onshore but it also Armed conflict
includes some offshore drilling sites, Niger Delta struggled 30 years with ethnic unrest and armed
conflict. In some cases, local state officials have directly
Economic Opportunities funded paramilitary groups for their own political agenda. 
Most instability problems have been concentrated in Delta
Shell Nigeria and Rivers States. Shell even admits it has fuelled this conflict
by gaining access to land & deals with communities –
Shell Up to 65,000 jobs through corruption & violence due to oil.
In 2020 Shell produced 226 million contractors
barrels of oil equivalent amounting 90% of contracts awarded to Greenwashing?
to over $9 billion Nigerian companies Shell pays money to the Niger Delta Dev commission $2bn
This production rate was slightly Oil revenue represents a mean 9% 2002 – 2018 and it also has spent $1bn on own social
below its 5 year average of 625,000 of total GDP development projects. They focus on energy, health &
barrels a day Oil delivers 90% of Nigerian exports energy.
Shell has operated in Nigeria for In 2020 Nigeria earned $2.62 billion
Scholarship scheme to help students study in Nigeria &
over 60 years in oil revenue and a further $3.62
abroad.
in oil royalties from Shell
Also supports community driven development schemes.