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Economic Inequality Revision NotesWorld Economic DivisionsDeveloped WorldQuickly Developing EconomiesSlowly Developing EconomiesWealthy countries with well developed economies. Huge income gap between the North and the South.?Known as ‘Tiger Economies’, with rapid industrialisation. Mainly exporting goods.The poorest countries with problems such as war, famine, harsh climate and high population growth.Mainly in the Northern Hemisphere but includes Australia and New Zealand.?South East Asia, Eastern Europe, Central and South America.African and Asian countries.Causes of exploitation of poor countries(Hint: If a country exports a lot of raw materials it tends to be a poor country.)(1) Trade:Historically the North has used the South for the production of cheap unprocessed raw materials.A lot of the South is under cash crops, approx. 110 million hectares, are sold for unfair prices to the North.The prices of these crops e.g. cotton, have fallen in recent times so people have to produce more to earn the same amount.(2) Colonialism:European countries have colonised the South for thousands of years e.g. Britain = India, Spain/Portugal = Latin America.They exploited the mineral wealth, people and resources of these countries.(3) Debt:Many countries in the South are in debt to foreign banks due to corrupt government spending more on arms than on healthcare.Most of these countries are run by military regimes and the people have no say.People have turned to producing illegal drugs to increase their incomes e.g. Colombia, this is leading to a lot of problems in the North. (Debt Boomerang)?Higher Level OnlyIreland in the pastBritain colonised Ireland and exploited it as a source of raw materials.In the 16th century forests were cut down to supply wood for English iron works.1800’s Ireland was a granary for Britain even supplying food during the Famine.Live cattle were also exported reaching a peak in the 20th century.Kerrygold was the first brand of Irish butter sold in Britain as a finished product for a higher price.1960’s meat processing developed rapidly in Ireland and products are sold to the EU.Ireland is no longer economically tied to Britain and it has broken its colonial relationship.Case Study: International Commodity Coffee(Marking Scheme: 10 marks)What? Protectionism of coffee. (2 marks name it)Where? Coffee is grown in the Tropics.? ? ? ? ? ? ? Altitudes are between 1,000 and 1,500 m.? ? ? ? ? ? ? Temperatures above 21 ?C, e.g. Latin America to East Asia.Why? Coffee is an important export crop for 22 countries.?? ? ? ? ? Grown on plantations or by small farmers as a cash crop.Production? Harvested manually, dried, bagged and exported.? ? ? ? ? ? ? ? ?Coffee is processed and packaged in the North for big profits.? ? ? ? ? ? ? ? ? The South exports only 5 % of its coffee processed.(4 marks outline what happened) (2 marks statement, 2 marks explain)Effects? Negative? Large Northern multi-national company’s profits are protected by governments introducing tariff barriers.?? ? ? ? ? ? ? ? ? ? ? ? ? High tariffs on fully processed goods imported from the South, means they are unable to compete with Northern products.?? ? ? ? ? ? ? ? ? ? ? ? ? Brazil tried to sell coffee in the US but it had to stop as the US threatened to stop its aid to Brazil.?(Negative effects @ 2 marks) (1 statement, 1 explaining it)? Positive? Such inequalities have led to the setting up of the Fairtrade network.? (Positive effects @ 2 marks) (1 mark statement, 1 mark explaining it)?? ? ? ? ? ? ? ? ? ? ? ? It provides more money and better working conditions for producers in the South.AidThe wealthy countries give aid to the South.It can save lives, improve communities, forge links between countries and create local employment.Aid can also be seen as a disadvantage as it gives people in the South a dependent mentality, it often doesn’t reach the poorest, it can fund corrupt governments and prevent democracy.Types of Aid(Marking Scheme: two types of aid @ 5 marks each, 2 marks name it, 2 marks statement and 1 mark development.)Bilateral Aid: Aid given from one country to another.Multi-Lateral Aid: Given through international agencies e.g. United Nations.Emergency Aid: Aid given to countries in times of crisis.Tied Aid: Aid given by countries with conditions attached.Voluntary Aid: Aid given by people to non- governmental organisations (NGO’s) e.g. Concern. Projects are small scale and they help people to help themselves.Development Aid: Aid spent improving agriculture, healthcare, education etc.Irish Aid ProgrammesIreland’s aim is to find sustainable solutions to problems of poverty.Irish aid has focused on providing clean water by drilling well’s as it will prevent diseases in the future e.g. Kasama Rural, Supply Project in Zambia.They aim to use appropriate technology (local skills, equipment and materials).The programme is also trying to improve health by building health centres and training local health workers.Factors that slow up economic development e.g. Sudan(Marking Scheme: 12 marks, three explanations @ 4 marks each, 2 marks statement and 2 marks development.)31 million people, low population density and mainly rural. Sudan’s main export is unprocessed raw materials e.g. peanuts:(1)Climatic Changes:To the North is the Sahara Desert and below it the Sahel, people here are nomadic herding sheep and goats.Only along the Nile is there vegetation due to irrigation.(2)Population Growth:High population growth (4 children per mother), in stage 2 of the population cycle.It scores 89/100 on the human suffering index (this index measures peoples quality of life, maximum points = highest suffering)46 % of women are literate.(3)Arms Expenditure:Spending on arms is high with little left over for education etc.?(4)War:Civil war since 1983 between Arabs (majority and control government) in the North and black non- Muslim population in the South.The war was caused by the introduction of a strict Islamic regime.One million people were killed and most social services and supplies were disrupted.Irish Economic InequalitiesBorder, Midlands and Western Region (BMW)Southern and Eastern RegionPopulationLow population density approx 1 million people, a few small urban centres e.g. Galway, small workforce therefore difficult to attract industry.PopulationHigh population density approx 3 million people, large urban centres e.g. Dublin (highest earners in the country), large workforce to attract industries e.g. services.InfrastructurePoor transport system with only one airport at Knock, industry is not attracted to its peripheral location.InfrastructureGood transport system with 3 airports, motorways and ports. Has benefited from its core location.?LandscapeHarsh terrain, much is covered by blanket bogs and mountains.LandscapeMainly lowlands with mild climate receiving a lot of sunshine needed for ripening crops.Economic Activities25 % is primary, farming is pastoral, small scale and part-time.Economic ActivitiesMainly tertiary. Farming is tillage, which is more profitable e.g. Golden Vale.Higher Level OnlyItalian Economic InequalitiesNorthern ItalySouthern ItalyWealthy region, with a fertile landscape, rich productive soils.Poor region, mountainous landscape unsuited to commercial farming due to steep slopes and poor soils.Main industries located here e.g. Fiat, Gucci.Little profit from agriculture of olives, citrus fruits.Excellent infrastructure, road, rail, ports and Alpine passes.Harsh climate, summer drought.A lot of inward migration from the south.?Due to peripheral location and distance from EU markets there is little industry. Transport costs are high.Resolving Economic InequalityAid: Aid must not be tied and must target the real needs of the people.Trade: Free trade with the South needs to be encouraged, and tariffs on imported Southern goods must be stopped ................
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