Measuring development

Development is measured with indicators:

• GNP (or GNI) per capita — average income per person; a purely economic measure.
• Literacy rate and life expectancy — social measures of education and health.
• HDI (Human Development Index) — a composite indicator combining income, education and life expectancy into one figure from 0 to 1.

Development is uneven — there are big gaps between countries and within them.

Employment sectors

Jobs fall into four sectors:

• Primary — extracting raw materials (farming, fishing, mining).
• Secondary — manufacturing raw materials into products (factories).
• Tertiary — providing services (shops, health, education, transport).
• Quaternary — knowledge and research (ICT, biotech, R&D).

As a country develops, primary employment falls and tertiary (and quaternary) employment rises — its employment structure changes.

Which sector?

Tap a job, then tap the sector it belongs to.

Your turn — sector percentage

Globalisation & TNCs

Globalisation is the growing links between countries through trade, technology and travel. A key driver is the TNC (transnational corporation) — a company operating in several countries.

• Advantages to host countries: jobs, investment, new skills and technology, exports.
• Disadvantages: low wages, profits sent abroad, environmental damage, decisions made overseas.

What is a TNC?

Farming as a system

A farm is a system with inputs, processes and outputs:

• Inputs — natural (relief, climate, soil) and human (labour, seed, machinery, money).
• Processes — ploughing, sowing, harvesting, rearing animals.
• Outputs — crops, meat, milk (and profit).

Farms can be commercial or subsistence, arable, pastoral or mixed, and intensive or extensive. Food shortages are caused by drought, floods, pests, war, poor distribution and low investment — helped by irrigation, better seeds and food aid.

Industry as a system & where it locates

A factory is also a system: inputs (raw materials, power, labour) → processes (manufacturing) → outputs (products and waste).

Location factors for industry include land, labour, raw materials, power, transport, markets and government policy.

Match each factor to its example

Tap a location factor on the left, then its matching example on the right.

Tourism — growth & impacts

Tourism has grown due to physical attractions (climate, scenery, beaches) and human attractions (culture, history, cheaper air travel, more leisure time).

• Benefits: jobs, income, foreign currency, improved infrastructure.
• Disadvantages: seasonal/low-paid jobs, pollution, damage to environment and culture, leakage of profits abroad.

Sustainable (eco) tourism tries to protect the environment and benefit local people for the long term.

What is sustainable tourism?

Energy — non-renewable vs renewable

Energy sources are split into two groups:

• Non-renewable — will run out: fossil fuels (coal, oil, natural gas), nuclear fuel and fuelwood.
• Renewable — will not run out: solar, wind, hydro-electric (HEP), geothermal, tidal, wave and biofuels.

Renewables are cleaner but can be expensive to set up and depend on conditions (sun, wind, rivers).

Renewable or not?

Water supply & environmental risks

Water is supplied from reservoirs and dams, wells and boreholes and desalination, and used for agriculture, homes and industry. Rising demand causes water shortages.

Economic development brings environmental risks:

• Soil erosion — bare, overused land is washed or blown away.
• Desertification — land turns to desert at the edge of dry areas.
• Enhanced global warming — burning fossil fuels adds greenhouse gases.

Case study flag: Cambridge expects a named TNC and a named area affected by environmental risk. Check any specific figures against your class notes before quoting them.

Your turn — income gap

Your turn — change in tertiary jobs

Which is a composite indicator?

The big ideas to know

You've covered the core of Cambridge Theme 3 — Economic Development. Press Finish to see your score.