Theme 3—People, Work and Development GCSE Revision Guide 2011

Exam Dates: Unit 1—Monday 13th June am. Length: 1 hour (Themes tested = Theme 1: Challenge of Living in a Built Environment and Theme 2: People and the Natural World Interactions) Unit 2—Friday 17th June am. Length: 2 hours

(Themes tested = Section A: 30 minutes test on Theme 3:People, Work and Development, Section B: 1hr 30 mins test on all three themes through a decision making exercise)

Case Studies

There will be one question (30 minutes long) based on Theme 3 or People, Work and Develop-ment. It is worth 30 marks so should take 30 minutes to answer (a mark a minute!)

At the end of this question you will have a choice of 2 case study questions! You will pick one of these and answer it. This section is worth 8 marks and so should take 8 minutes to answer!

Any of the case study questions could ask you to draw a sketch map so you need learn these for certain case studies.

The case study section will ask you to:

Name the case study Locate the case study Describe something about it Explain something about it (nearly always asking for you to refer to specific groups of people in this section i.e. teenagers, councils officers, elderly people, dock workers etc.)

It is vital that you learn every case study in this booklet so that you are prepared for this section.

Look at the past case study questions in this booklet and practise matching case studies to ques-tions and writing answers in 8 minutes.

Theme 3—People, Work and Development Glossary Please learn these key words!!

Word Meaning

Adult literacy The percentage of the adult population that can read and write

Aid

The giving of resources by one country, or an organisation, to another country.

Anomaly An unexpected event or piece of data that does not follow the normal trend or ex-

pected pattern

Appropriate Technology

Technology suited to the area where it is used.

Bilateral Aid

Aid that is passed directly from one country to a partner country. Often in the

form of money which means countries getting into debt when they have to pay the

loan back.

Brain drain The reduction in the number of highly qualified workers due to emigration

Brandt Line

As outlined in the Brandt Report in 1980, the Brandt line depicts the north/divide

on a world map. Separating the rich north from the poorer south.

Business rates A type of tax paid by a company

Carbon-neutral develop-

ments

Developments that do not add any extra carbon dioxide to the atmosphere. The

buildings are highly energy efficient and may use renewable technologies

Commute When people who live in rural areas travel every day to jobs in urban areas

Conurbations

When cities grow so large that they merge together i.e. Liverpool and Manchester

Core

Economic growth tends to be the most rapid in one part of a country

Deindustrialisation

A shift in employment from manufacturing to jobs that provide a service.

Development

The level of economic growth of a country or region and the processes of change

taking place within it.

Development aid Aid/help that is give to tackle poverty and improve quality of life e.g. improving

education or healthcare

Development gap The difference in wealth between rich and poor countries

Digital divide The gap between those who have digital technology (usually defined as computer

ownership and internet connection) and those who do not

Direct benefit An immediate advantage created by an improvement in the economy (a direct bene-

fit of a new company is new jobs)

Displaced People who have lost their home due to conflict, or an environmental disaster or

because their land has been used for a new development e.g. the creation of a new

reservoir

Diversification Where a much wider range of new business opportunities and jobs are created in a

region

Economic migrant A migrant who moves in order to find work

Emergency aid Help that is given urgently after a natural disaster or conflict to help protect

the survivors

Employment Structures

The number of people working in the primary, secondary and tertiary sectors of

the economy

Enhanced greenhouse effect A strengthening of the greenhouse effect caused by the release of greenhouse

gases by humans

Exports

The sale of products from one country to another.

Fair Trade

When producers and plantation workers are given up to 60% more of the profit

from selling produce. Less is given to the importers and exporters resulting in

greater profit for growers equalling a greater quality of life.

Foreign exchange The way in which countries earn money from abroad e.g. by the sale of exports

or by attracting foreign tourists

Formal occupations Jobs that receive a regular wage and are recognised and controlled by the state

Free Trade When countries trade without any limits to the amount of goods that can be

exported and imported.

Fuel poverty A family who cannot afford to heat their home. In the UK households that

spend more than 10% of their income on fuel fall into this category

Gender inequality Differences in income or quality of life that exist between men and women

Globalisation Flows of people, ideas, money and goods are making an increasingly complex

global web that links people and places from distant continents together

Gross Domestic Product

The total value of goods and services produced exclusively within a nation's do-

mestic economy

Gross National Income

GNI

The average income per person. Also known as GNP per person

Gross National Product per

person

(GNP per person)

The total value of goods produced and services provided by a country in a year,

divided by the total number of people living in that country.

Human Development Index

A social welfare index, adopted by the United Nations as a measure of develop-

ment, based upon life expectancy (health), adult literacy (education) and real

GNP per capita (economic)

High-tech industries The use of advanced technology in manufacturing such as defence systems and

medical equipment

Imports

The purchase of goods from another country.

Import duty A tax placed on goods brought into the country to make them more expensive

Inappropriate

Technology

Technology not suited to the area where it is used for example, providing electric

ovens to a poor rural area that has no electricity supply.

Indirect benefit An advantage that has come from a new business but not to the business itself e.g.

the new company will create trade for other businesses e.g. nearby shops, transport

Infant mortality

rate (IMR)

The number of children who die before the age of one for every 1000 that are born

Informal sector The sector of the economy that includes many types of irregular jobs (e.g. shoe

shining, street selling) as well as types of work such as housework, childcare and

studying.

Infrastructure

The systems needed to make a region work efficiently. These include paved roads,

communication facilities, power supply, water supplies and sewers.

Interdependence

The complex patterns of trade, communication and aid which link countries together

Knowledge econ-

omy

Jobs which require a high level of education and training

Knowledge Inten-

sive Service (KIS)

Industries such as finance and education

Labour intensive Work that is still done by hand rather than labour-saving machines

LEDC

Less Economically Developed Country

Life expectancy The average age to which people can expect to live

Manufacturing The production of goods and processed materials by the secondary sector of the

economy

MEDC

More Economically Developed Country

Millennium Devel-

opment Goals

(MDGs)

Development targets set by the United Nations with aims to met by 2015

Multilateral Aid

Aid that involves a third party. For example money could be passed to the World

Bank and then passed onto a poorer country.

Multinational Com-

panies

Companies which, by having factories and offices in several countries, are global in

that they operate across national boundaries.

Multiplier Effect

(Negative and

Positive)

Positive – when a business moves into an area it brings with it many positives such as

creations of jobs, improvement of infrastructure. Introduction of more services to

accommodate increase in population.

Negative – if a business moves out of an area it has a negative affect such as loss

of jobs, unemployment, rise in crimes levels, people leaving the area.

Newly Industrial-

ised Countries

(NICs)

Countries, mainly in the Pacific rim of Asia, which have undergone rapid and suc-

cessful industrialisation since the early 1980s.

Non-governmental

organisations

(NGOs)

Non-profit-making organisations, such as Oxfam, ActionAid or WaterAid, which are

independent of the government.

Overseas Develop-

ment Aid

Government funding given to many different long-term development projects

abroad

Periphery

The places that are left less developed and less well-off due to the result of the

economic growth being the most rapid in one part of the country.

Poverty/poverty

line

A level of income. If someone earns less than this amount they are said to be poor.

PQLI

The physical quality-of-life index (PQLI) is an attempt to measure the quality of

life or well-being of a country. The value is the average of three statistics: basic

literacy rate, infant mortality, and life expectancy at age one, all equally weighted

on a 0 to 100 scale.

Primary

An industry, such as farming, fishing, forestry and mining, that extracts raw mate-

rials directly from the land or sea.

Private sector People who are either self-employed or work for a larger company or organisation

Public sector People employed by either the local, national or regional government

Quality of life

The satisfaction of people with their environment and way of life.

Quaternary

An industry, such as micro-electronics, that provides information and expertise.

Quotas Restrictions on the amount of particular goods that can be imported each year

Research and De-

velopment

R&D. Discovering new knowledge about products, processes, and services, and then

applying that knowledge to create new and improved products, processes, and ser-

vices that fill market needs

Rostow Model A theory suggesting a five-stage model of economic development, based mainly upon

Secondary

An industry that processes or manufactures primary raw materials (such as steel-

making) assembles parts made by other industries (such as cars) or is part of the

construction industry.

Self-employed People who are their own boss

Self-sufficient

Growing food for your own consumption – not to make a profit.

Science parks A group of industrial buildings used for research and design or high-tech proc-

esses. Also known as technology parks

Standard of living A measure of the relative wealth of individuals or families

Sub-Saharan Af-

rica

The continent of Africa south of the Sahara desert

Subsidy A payment which a country makes to its own farmers and businesses so that heir

goods can be sold at a lower price to consumers

Subsistence Farm-

ing

Where all farm produce is needed by the farmer’s family or village, and where

there is no surplus for sale.

Sustainable devel-

opment

Making changes that improve the quality of life for people today but without dam-

aging the environment so that future generations will also be able to have a reason-

able quality of life

Tele-working Jobs where most of the working week is spent working from home – more widely

Tertiary An occupation, such as health, education, transport and retailing, which provides a

Trade blocs Trading partnerships between different countries e.g. the EU

Trade Deficit

A negative balance of trade, imports exceed exports. (Money lost through trade)

Trade Surplus

A positive balance of trade exports exceed imports. (Money gained through trade)

Unsustainable At a rate that cannot be maintained

Voluntary Aid

Aid that is provided but requires no repayment. Is often not in the form of money

but instead may be education or appropriate technology which is much more effec-

tive.

Year Question (worth 8 marks) What case study to use?

Speci-men

CASE STUDY: The decline of an economic activity. a) Name an economic activity that has declined. b) Describe the location of this economic activity. You may use a sketch map if you wish. c) Explain why this economic activity went into decline.

Speci-men

Name a country that has received aid. Describe the different kinds of aid it has received and explain how the aid affected people in the country.

2010 Name an area where the natural environment has been affected by the activities of people. Describe the activities and explain how the natural environment has been affected.

OR

The location of an economic activity Name and locate an economic activity Describe the location of the economic activity. You may draw a sketch map. Explain the advantages and disadvantages of the location of this eco-nomic activity.

2009 Name and locate an economic activity you have studied. Describe the effects of the economic activity on people and explain why the activity was located there.

2009 Name and locate a trade scheme or trading group you have studied. De-scribe its main features and explain how it has brought benefits to peo-ple.

2008 CASE STUDY: A country that has received Aid. a) Name a country that has received Aid. b) Describe the nature of Aid received by this country. c) Explain why this Aid was necessary.

2008 A country that trades with other countries a) Name the country that trades with other countries b) Describe this country’s main imports and exports c) Explain the advantages and disadvantages of the trade for this country

2007 A location where a Multi-national company has created employ-ment opportunities

Name a location where a MNC has created employment opportunities-Describe the direct and indirect employment opportunities that have been created

Explain why the MNC located at this place. You may wish to draw a sketch map to help

Past Case Study Questions

Year Question (worth 8 marks) What case study to use?

2007 A country that has received aid. Name a country that has received aid Describe the type of aid received by this country Explain the extent to which the country has benefited from this Aid

2006 The location of an economic activity (i) Name a primary or secondary or tertiary economic activity you have studied. (ii) Name the place where this economic activity can be found. Draw a labelled map to show the location of this economic activity. Explain how this economic activity affects different groups of people and the environment in the area around its location.

2006 The location of new job opportunities. Name a place where new job opportunities have been created. Draw a labelled sketch map to show the location of this place. Explain why the new job opportunities were located in this place. You may annotate your map to show this.

2005 Overseas investment in an MEDC Name a MEDC you have studied. Describe the nature of the overseas investment in the MEDC. Explain how the overseas investment has affected people and the envi-ronment in the MEDC.

2005 The effect of overseas investment on a country or region. Describe how overseas investment has affected employment opportuni-ties. Explain any social and environmental impacts that the overseas invest-ment has had on the country or region.

2004 A country or region of a country that has received or is receiving aid. (i) Name a country or a region of a country you have studied that is receiving or has received aid. (ii) Describe the aid that has been given to the country or region.

Explain the impact of the aid on the country or region.

2004 A country that trades with other countries. Name a country that trades with other countries. Describe the country’s pattern of trade. Explain how this country is affected by this trade.

Past Case Study Questions

Case Studies and Theory

How is technology changing the way we work?

The world of work is changing fast. The government believes that as many as seven out of ten children who are starting primary school today will eventually work in jobs that haven’t been invented yet! Find that hard to believe? Just consider some of the jobs that we take for granted today. For example, when you surf the web you are viewing pages designed by web designers: a job that didn’t exist in the 1980s. Technological change is having a massive impact on all sectors of the economy. Mechanisation, which is the increased use of machines to replace human labour, has been a major cause of job losses on many European farms and factories. At the same time, new computer and communication tech-nology is creating new jobs in some service industries. For example, the growth of some of the world’s fastest-growing businesses is connected directly to growth in the internet. Google™, the search engine, and eBay, the online auction site, have grown rapidly since the mid-1990s as a direct result of the increased internet access of consumers like you and me. The Internet has also encouraged the growth of teleworking, where employees work from home. Access to teleconferencing facilities, the internet and mobile phones has increased the number of people working from home. This allows businesses to cut costs and allows flexibility for e.g. enabling mothers to work from home.

Year % UK households with broadband connection

% of all UK retail sales made online

£ billions spent online purchases

2003 11 1.5 9.2

2004 16 2.3 18.1

2005 32 4.1 21.4

2006 44 6.0 No data

2007 57 7.0 No data

Formal Sector Informal Sector

Location Factory/office Home/streets

Cost of goods Fixed Negotiable

Wages Regular Uncertain

Employees Mostly Men Often Children/women

Hours Long Irregular

Legality Legal Illegal

Government Role Strong None

Informal versus Formal Sector Work

Case Study 1 — Informal Work in Mali, Africa (LEDC) Topics: A case study that looks at the impact of informal work in Mali

Waste recycling: an example of informal work Bamako is the capital of Mali. It has a population of at least 1.2 million and has grown quickly in recent years. The number of formal jobs available in the city has not grown as quickly as the city has, so many people find it hard to get a job with a regular salary. Consequently, many people work in the informal sector of the economy. Typical informal jobs include working on street markets, running bars and recycling waste. Some workers collect waste, sort it and wash it. Others recycle it into useful tools and these are sold on market stalls. Organic waste is composted and sold to farmers on the outskirts of the city. The city authorities recognise the value of the informal sector. The collection and disposal of solid waste had become a problem but has been solved by the informal sector.

There is a large market area in Bamako. All sorts of scrap metal is collected from all over the city and brought here where it is sorted and sold to specialist dealers. Everything from car parts to railways is brought here. Some of the smaller scrap is sold simply as scrap, but a lot of it goes directly for recycling. There are workshops every-where in this area, all making different items out of recycled metal: trunks, wheelbarrows, braziers and farming implements are just a few of the things they make. The recycling market has been here for more than 20 years. Recycling began in the rural areas but now it has become more commercial. Ploughs and hoes, as well as other farming implements, are made from scrap metal. Through this recycling market a car from Europe, say a Renault or a Peugeot, could end up being used to make ploughs for a poor rural farmer in the smallest, most distant village in Mali. When a car is imported it is used for as long as possible and when it can no longer be driven it's dismantled and every last piece of it is used to make something else. Daouda Ballo, Bamako Market

Case Study 1 continued — Informal Work in Mali, Africa (LEDC)

Topics: A case study that looks at the impact of informal work on LEDCs

What are the costs and benefits of informal work for people and government? Workers in the formal sector usually have a contract, which gives them some rights. They earn a regular wage, which means they can save and plan ahead. Regular wage earners find it eas-ier to borrow money and pay rent for housing. This sector is regulated by the state, so most employees will pay some tax. The government can then use this money to improve quality of life by investing in health and education. But many people in Mali work in the informal sector of the economy. Earnings in this sector are low and irregular. This means that informal workers find it very hard to save, borrow money, or pay rent. That’s why many people in African cities live in shanty towns (or informal settlements). Furthermore, the informal sector is not regulated by the state, so the govern-ment does not earn any tax from it. In this respect the informal sector can be seen as a prob-lem for LEDCs like Mali, one of the world’s ten poorest countries that need to invest heavily in better health and education. However, governments of poor countries like Mali would find it hard to create enough formal-sector jobs for the number of children leaving education each year. During the 1990s, the in-formal sector created 90 per cent of all new jobs in African countries. If people didn’t take up informal work they would be unemployed.

Impact of informal sector on the nation of Mali and it’s economy Informal sector wages are low, workers in the informal sector do not pay tax which means the government is unable to raise much income and cannot afford to invest in schools and hospi-tals. This in turn leads to children failing to get the education they need to get a job in the formal economy. As wages are low, children are kept out of school so that they can also work, to help support the family. Low wages also lead to families struggling to afford basic needs such as clean water.

Theory: Development and the development gap

The Brandt Line Public awareness of the development gap is not new. It was first brought into the news headlines in the Brandt Report in 1980. This report, by Willy Brandt, a German politician, drew a line on the map that separated the richer countries from the poorer ones. This map was developed to separate the More Economically Developed Countries (MEDCs) from the Less Economically Developed Coun-tries (LEDCs). As you can see on Figure 4, the MEDCs are situated mainly in the northern hemi-sphere. The LEDCs are mainly in the tropics and southern hemisphere. The line loops around Aus-tralia and New Zealand to include them in the richer half of the map. This famous map draws at-tention to the gap between the richer North and the poorer South and is still in use today. But is it still relevant and accurate? Using the Brandt Line to split the rich north from the poor south is out of date. There are now countries south of the Brandt Line which have Newly Industrialised for e.g. Thailand and China which are now no longer classed as LEDCs. Oil producing countries such as Saudi Arabia are also quite wealthy but again are south of the line.

Factors used to measure development

Table B

2002

GNP

US$

Birt

h

rate

Dea

th

rate

Na

tur

al

In-

cr

ea

se

In-

fant

mor-

talit

y

rate

Pop

ulati

on

un-

der

15

(%)

Life

Ex-

pect

ancy

Peo-

ple

in

pri-

mar

y

jobs

(%)

En-

ergy

con-

sump

tion

per

per-

son

Ur-

ban

dwel

lers

(%)

People

per

doctor

Adu

lt

lit-

era

cy

(%)

Japan 39,640 10 8 2 4 18 80 7 498 77 608 99

USA 26,980 15 9 6 7 21 76 3 1139 78 421 98

UK 18,700 13 11 2 6 19 76 2 533 89 350 99

Malaysia 3890 26 5 21 23 38 70 26 229 51 2564 82

Brazil 3640 20 9 11 53 35 62 25 85 81 844 81

India 340 25 9 16 69 37 60 62 37 29 2459 50

Kenya 280 32 11 21 55 50 54 81 12 25 21,970 75

Bangladesh 240 30 11 19 100 44 55 59 9 21 12,884 36

Rostows Model of Economic Development

1 The Traditional Society

2 The pre-conditions for take off

3 Take off

4 The drive to matur-ity

5 The age of mass consumption

Case Study 2 — Trade between Kenya and the UK (Interdependence)

Topics: A case study to look at the interdependence (trade links) between the UK and Kenya

Trade and Interdepence The provision of a service is a form of trade. Tourists from the UK trade with Kenya because they are buying a service from them. This means that the UK and Kenya are interdependent on each other be-cause they rely on each other for trade.

Name of country

Kenya in Africa - Tourism

Describe pat-tern of trade i.e. what does the country trade and with which coun-tries

Trade is the exchange of goods or services for money or other goods. 43% of Kenya’s exports go to the EU and 16% of that goes to the UK. The UK is Kenya’s most important trading partner. It exports goods such as tea and horticultural products such as flowers and beans. Tourism is one of Kenya’s largest foreign exchange earners and employs directly around 300,000 people. Kenya also provides a service for UK tourists. It has many attractions for Europeans, es-pecially the British: Climate (hot all year, little rain) Beaches, water sports, coral reef ecosystems at Mombasa Wildlife (the Big Five) in the and traditional culture in the villages e.g. Masai Mara British tourists have plenty of money to spend on services in Kenya e.g hotels, restau-rants, souvenirs, transport, safaris in mini-buses and balloons. Kenya earns more from tourism than its main exports. Kenya imports goods such as machinery and manufactured goods, chemicals and oil.

Explain the ef-fect of this trade on the country. Include good effects and bad

Positive

Creates job opportunities for Kenyans in bars, hotels, shops etc as well as opportunities in the informal sector e.g. street selling of souvenirs, carrying bags, show shine Provides income for families for food, medical and schooling for children Creates a market for local products e.g. food and traditional crafts Provides income for government through business and personal taxes. This can be used to help the country develop hospitals, schools, transport infrastructure. Provides money to help protect wildlife in the reserves

Negative

Many hotels are owned by foreign companies and so profits leave the country Balloon noise frightens animals and prevents breeding – some migrate. Minibuses go off road and cause erosion of grass, soil then washed away by rain – re-duced grazing Risk of damaging the very things that the tourists go to see Sustainable ideas and careful management are being used in some places to try and mini-mise the problems Kenya has a trade deficit this means that it does not make money from trade as the price of the products it has to buy are more than the price of the products it sells.

Case Study 3 — Trade between Kenya and the UK (Interdependence)

Topics: A case study to look at the interdependence (trade links) between the UK and Kenya

Name of country

Kenya in Africa - Horticulture (Green Beans)

Describe pat-tern of trade i.e. what does the country trade and with which coun-tries

Trade is the exchange of goods or services for money or other goods. 43% of Kenya’s exports go to the EU and 16% of that goes to the UK. The UK is Kenya’s most important trading partner. It exports goods such as tea and horticultural products such as flowers and beans. 80% of Kenya’s population are employed in agriculture. Large farms supply crops like broccoli and green beans to the UK market. Last year alone Kenya sold £115 million pounds worth of fruit and veg to the UK market. Horticulture is the country’s second biggest earner.

Explain the ef-fect of this trade on the country. Include good effects and bad

Positive

Creates job opportunities for Kenyans on large farms run by multi national companies. Workers get fed and paid wages. Provides income for families for food, medical and schooling for children Provides income for government through business and personal taxes. This can be used to help the country develop hospitals, schools, transport infrastructure.

Negative

Naivasha in Kenya is one farm that produces Green Beans for the UK market. Food is be-ing grown to sell to the UK even though there is a food shortage in Kenya caused by drought. The food shortage is so bad that the government declared it a national disaster, but still Kenya continue to export food to the UK. A lot of the farms are run by multinational companies so profits do not stay in the country. Only 1/5 of Kenya’s land is suitable for farming but a lot of this land is being used to feed the UK even though Kenyan people are starving. The large farms are using valuable resources such as water which is short in Kenya. A lot of the crops grown are rejected by exporting companies (up to 25%) due to the beans being an odd shape, or scarred or covered in soil!! These rejected crops are then used to feed cattle! Land is being over used and becoming infertile which can lead to problems of desertifica-tion.

Theory - Trade Blocs and Free Trade

Should trade be free and uncontrolled? Free trade, or trade that takes place without any limits or control, is the aim of many countries. The ad-vantage of free trade is that a country can export as many goods as it wants to its trade partners. This is good for the farmers and businesses who produce the exported goods and services. The disadvantage of free trade is that a country can find itself swamped by cheap imports made in countries that have lower labour costs. These cheap imports are good for consumers, but could cause jobs to be lost in similar in-dustries within the importing country. To avoid this problem some countries protect themselves from cheap products. They can do this in one of three ways: • Placing quotas that restrict the amount of these imported goods each year. • Placing an import duty or tax on the imports to make them more expensive. • Paying a subsidy to its own farmers and businesses so that their goods can be sold at a lower price to consumers. The current international pattern of trade is a mixture of free trade and protected trade. This causes problems for both More Economically Developed Countries (MEDCs) and Less Economically Developed Countries (LEDCs).

Trade blocs Trade is made easier where partnerships have been agreed between countries. These trading partnerships are known as trade blocs. The European Union (EU) is one example of several trade blocs that exist around the world. Figure 6 shows two more. Each country within each bloc already has a free trade agree-ment with other countries in the bloc, or is working towards a free trade agreement. For example, China already has free trade agreements with some members of the Asia-Pacific Economic Co-operation (APEC) and is working towards similar partnerships with the other LEDC members of the group by 2010. However, it has no free trade partnership with the UK or with the EU. That is why the EU is able to impose the quota on imports of Chinese shoes.

Trade blocs: APEC and G20

Case Study 4 — Fair Trade flower scheme in Kenya, LEDC Topic: A Case Study to look at Fair Trade (a trade scheme) and how the Kenyan Flower Council are using Fair Trade to improve the quality of life for Kenyan people.

What is Fair Trade? The concept of fair trade has been around for more than 30 years. The Fairtrade Foundation was established in 1992 as an independent certification body that licenses the FAIRTRADE Mark to prod-ucts that meet international standards that are set by Fairtrade Labelling Organisations International (FLO). The FAIRTRADE Mark guarantees a better deal for farmers and workers in developing countries so that they can enjoy a better standard of living. • The farmer receives a payment that is agreed and stable. • The farmer also receives an additional payment called a Fairtrade Premium. • One of the many aims of Fairtrade is to develop a long-term trading partnership with the producers.

Background Facts Kenya is the biggest exporter of flow-ers in the world. In 2003 sales of flowers were worth £77 million, 8% of Kenya’s export earnings. Kenyan flower farms employ up to 100,000 workers.

Problems that the flower industry create 65% of Kenyan flower workers are employed as cas-ual workers so are not entitled to benefits and can be fired at any time. Some workers are only paid £1 a day. Large foreign companies own 90% of flower farms so a lot of the profits made do not stay in the country. The environmental impact is also large. Lake Naivasha is disappearing as flower companies based around the lake are using it to water crops.

Fair Trade Scheme and it’s benefits Out of the 150 flower farms in Kenya, 17 have improved working conditions for their workers. These 17 are members of the Kenya Flower Council which encourages Fair Trade. These 17 farms produce 60% of the flowers in Kenya. The benfits of belonging to a fair trade scheme are listed below:

Farms use chemicals that are environmentally friendly Computerised drip-irrigation systems are used to reduce water wastage Farmers are encouraged to wear protective clothing when dealing with dangerous chemi-cals Fair wages, with workers paid above the government minimum wage of 2000 Kenyan Shil-lings (£28 a month) A six day working week of 46 hours Overtime pay Twenty one paid holidays a year Two months paid maternity leave One month paid sick leave Reasonable housing

Case Study 5 — Aid in Tanzania (LEDC) Topics: A case study to look at the effectiveness of different types of aid within one country.

Tanzania Background Tanzania has a weak economy and is one of the poorest countries in the world. Like many other LEDCs, Tanzania borrowed large amounts of money from MEDCs and the World Bank in the 1960s and 1970s. It was promised low interest rates and offers of support. In the 1980s interest rates soared and soon Tanzania owed nearly £5 billion. This was equivalent to each person in Tanzania owing £161 and they average wage is just 50p per day. Basic services had to be cut in order to pay the country’s debt. Schooling had once been free but families had to start paying £12 per year for their children’s education. This is more than many families could afford.

Aid Type 1—Bebati Goat Scheme The Farm Africa Project Babati in northern Tanzania is a rural and mountain-ous area. The people depend on farming. Farm Af-rica is a British aid project that has begun a £200,000 project in the village of Dorada. They have brought dairy goats for the village, the Goat Programme. The goats are bought from the UK and cost £400 each. Because of the cost, several families share one goat. Goats are important in the village because they sup-ply meat. These special dairy goats also provide milk, up to 3 litres per day. Local cows only produce 1 litre a day. The goats milk is a valuable food especially for the children. It can be made into cheese and can also be sold. When the goats have kids these can be sold to make more money. Farm Africa also sup-ports local schools and it teaches the children about new and better agricultural methods. The children then take these methods home and help there par-ents produce greater crop yields. This additional money can then be used to improve standard of living for the people of Dorada by sending children to school, having a healthier diet etc. This aid project has brought many benefits to the local community. It is a sustainable aid project because the villagers have been involved with planning and running the project. This means that the project will continue to bring benefits in the future.

Aid Type 2—Clothes Scheme Lots of second hand clothes are sent from well off countries in Europe and America to Tanzania. Tanzania receives so many second hand clothes that it has damaged the clothing manufacturing industry in Tanzania. This aid is a hindrance rather than a help. Tan-zanian clothing companies cannot make a profit as there are too many clothes flooding the market. No one will pay for clothes when they can get them for nothing! This aid is not sustain-able!

Case Study 6 — Inappropriate aid in Malaysia—Pergau Dam (LEDC)

Topics: A case study to look a form of inappropriate, tied aid and it’s impact.

Background to the Pergau Dam Project A controversial bilateral aid project, involving the British Government in 1988, was the construction of the Pargau Dam on the Pergau River in northern Malaysia. This project took up £234 million of British aid. The 600-megawatt Malaysian HEP project was originally planned to be a 200-megawatt dam. The plan was opposed by the local people who favoured a small gas-fired power station which would have cost a third as much. The scheme cost the Malaysian government £100 million more in electricity costs than using some cheaper alternative. The dam itself coat £415 million in total, covered 4 square miles and had a lifespan of 25-30 years.

Why was the dam controversial? 1) The electricity produced at Pergau will not benefit the poorest Malaysians. Most of it will go to Ma-

laysia’s booming capital, Kuala Lumpur. 2) Pergau is controversial because it is tied aid. Agreeing to build the dam allowed the British Govern-

ment to secure a huge arms contract to supply military aircraft to Malaysia. This would provide ex-ports and jobs for the UK.

3) Pergau is controversial because of its harmful environmental effects. Although the reservoir created by the dam has not displaced local people, it has devastated large areas of rainforest. Deforesta-tion has led to erosion as rainwater has stripped away the topsoil. Already, the soil has started to silt up the River Pergau and its tributaries and the reservoir behind the dam.

Other environmental problems have also emerged. The destruction of the rainforest threatens rare animals including the Sumatran rhino and tiger. And roads driven through the region for building electricity pylons have opened up previously inaccessible areas to commercial logging, causing further environmental de-struction.

Case Study 7 — Appropriate Technology in Ethiopia (The Merti Stove) Topics: A look at how problems can be solved by small scale simple technology (appropriate technol-ogy) and the positive impact this has on people.

PROBLEM Ethiopia has recently gone into decline. Civil war and drought have claimed hundreds of thousands of lives. It is one of the poorest countries in the world. Three stove fires used to cook food – have been used for centuries. They produce a lot of smoke and burn people easily. The average family produces 20kg a week on the three stone fire so it is not good for the envi-ronment either. People spend a lot of time collecting wood (when they could be working) or they buy it from markets in Addis Ababa. A lot of trees are being cut down at an alarming rate (deforestation) causing some land to turn into desert (desertification) This is not sustainable and need a technological solution!

Technological Solution The Merti Stove uses half the wood that the three stone fire uses, it is a lot less smoky and safer too! It is also made in Ethiopia so not only does it benefit the environment and health of people but it also provides local people with jobs. Women in Addis Ababa have set up business making the stoves and business is booming. The stoves use simple technology, they are made from volcanic ash, cement and water—all local materials. This innovation is appropriate and affordable. The environment is now better off as the number of tree being chopped down has been reduced. Women have benefitted as they have been provided with work in making the stoves. This extra money may mean that they can send their children to school and provide the family with a healthier diet. They also do not get burned or inhale as much smoke now! Children benefit as they do not have to spend time collecting wood. Their parents may now have the extra money to send them to school!

Ethiopia

Location Map of Ethiopia

Case Study 8 — Economic activity and it’s impact on the environ-ment—Tourism (tertiary industry) and it’s impact on Masai Mara

National Park in Kenya (LEDC) Topics: A case study to show the impact of an economic activity on the people and the environment.

Masai Mara National Park. Popular with tourists who come to see the big 5:

Lion Buffalo Leopard rhino Elephant.

In their natural habitat

Nairobi, capital city Tsavo National Park, larger and quieter than Masai Mara

The Equator runs through Kenya giving year round high temperatures. This attracts many tourists es-pecially from the UK who want to escape from the colder more unreliable climate of the British Isles.

Location

This economic activity can be found in the National Parks of Kenya such as the Masai Mara. Kenya is located in east Africa. It is north of Tanzania. To the south east is the Indian Ocean, as shown in the map above.

A map to show why tourists visit Kenya

Impact of this activity on people

Employment opportunities in the hotels, souvenir shops, restaurants. Safari bus drivers and park rangers are needed and this creates work for unemployed people. This means that people can afford to improve their quality of life and send their children to school and pay for food and medical care.

Informal employment opportunities – Masai tribe performing dances and selling local crafts such as beads and carvings. This means that they also can improve their quality of life. However, some people believe it is destroying their culture as dancing and crafts are being adapted and changed to appeal to British tourists. A lot of the profits from tourism do not stay in Kenya as hotels are owned by foreign companies based in MEDCs.

In 2004 visitor numbers had grown to 1.1 million. Tourism remains one of Kenya‟s largest foreign exchange earners and employs around 300,000 people. Income, tourists spend money on the above meaning profits that the govern-ment can use to improve services such as health care and education. This benefits all Kenyans

Case Study 8 — Economic activity and it’s impact on the environ-ment—Tourism (tertiary industry) and it’s impact on Masai Mara

National Park in Kenya (LEDC) continued. Topics: A case study to show the impact of an economic activity on the people and the environment.

What is the impact on the environment?

The impact on the environment has been mainly negative. Mini bus drivers go off road in the national parks so that they can get the tourists closer to the wildlife and so gain extra tips. This scares the animals and can disrupt their breeding patterns. Buses should be 25m away but these rules are not always followed. It also destroys the grass so that there are no longer plant roots to anchor the soil. When the rains come the soil is washed away meaning that the grass cannot re-grow. Grass is the bottom of the food chain and so all other wildlife suffers and is often forced to migrate elsewhere.

Air balloon trips across the Masai Mara are noisy and disturb breeding patterns. The rubbish created by hotels can cause monkeys to become obese as they scavenge for food and can also poison animals.

Hotels built are unsightly and do not blend in with the natural environment

The Tourism Multiplier Effect

Foreign Visitors attracted

Growth of construction Industry – hotels, airports, roads, etc

Tourists spend money on hotel bills, souvenirs, trips etc

Extra food needed

Jobs created: waiter’s drivers, builders, guides etc

Local farmers encour-aged to grow food

Local people with higher wages to spend on clothes, shoes luxury goods etc

Industry grows to meet demand for clothing, shoes etc

More wealth generated from taxes to pay for hotels, roads, airports, restaurants, etc

Millenium Development Goals

1 End extreme poverty and hunger: • Halve the number of people living on less than a dollar a day. • Halve the number who suffer from hunger. 2 Achieve universal primary education: • Ensure that all boys and girls complete a full course of primary schooling. 3 Promote gender equality: • Make it easier for girls as well as boys to access primary and secondary education. 4 Reduce child mortality: • Reduce by two-thirds the number of children who die before their fifth birthday. 5 Improve health for mothers: • Reduce by three-quarters the number of women who die in childbirth. 6 Combat AIDS, malaria and other diseases: • Halt and begin to reverse the spread of these killer diseases. 7 Ensure environmental sustainability: • Protect the environment, so that future generations can continue to benefit from it. • Halve the number of people without access to clean water. • Improve life for 100 million people who live in shanty towns by 2020. 8 Build global partnerships for development: • Make improvements to aid. • Boost freedom, justice and democracy. • Make it easier for the poorest people to have access to medicines.

Cancel some debts and reduce others. Make world trade fairer.

The Millenium Development Goals The United Nations (UN) has set development targets known as the Millenium Development Goals (MDGs), which it aims to meet by 2015.

What progress has been made towards Goal 2. Globally, there are some 75 million primary-aged children not enrolled in school – 55 per cent (41 million) of whom are girls (UNESCO Institute of Statistics, 2008). This lack of basic education deprives young people of choices and opportunities, and makes it harder for countries in the developing world to tackle poverty and disease. Sub-Saharan Africa accounts for more out-of-school children than any other region: 35 million, including 19 million girls (UIS). Meanwhile, across South and West Asia 18 million primary-aged children are out of school, 10 million of them girls (UIS). But progress is being made. Global enrolment in primary education increased by over 41 million between 1999 and 2005. There are now 95 girls enrolled in school for every 100 boys, compared with 92 girls for every 100 boys in 1999. The number of primary-aged children not enrolled in school fell by over 28 million between 1999 and 2006. DFID is spending £8.5 billion pounds over ten years to ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete at least five years of quality education. Most of the money will be going to sub-Saharan Africa and South Asia. We are working closely with the governments of poor countries to improve both the access to and the quality of schooling. Although it’s a tough target, the achievements of some countries do give grounds for optimism. In countries like Uganda and Malawi, for example, the number of children enrolling in primary school has doubled in five years and is now over 90 per cent.

Case Study 9 — Ebbw Vale, South Wales (MEDC) Topics: A case study to look at the location of a secondary industry and the impact industrial decline has on people and the environment.

Location Ebbw Vale is located in the South of Wales. It is directly North of Cardiff and north west of Bristol. In 1860 there were 35 iron works in South Wales. These were mainly centred around towns like Ebbw Vale.

Why was the steel industry located in Ebbw Vale? This industry developed here because:

The raw materials needed to manufacture the iron and steel (iron ore, coal and limestone) were found locally. Energy – Fast flowing rivers provided power to turn the water wheels. These formed due to the high rainfall that ran down the steep valley sides. Good labour force - Plentiful supply of workers World – wide market due to the British Empire which included:

For example, the railway in India was British built with British iron and steel and British and largely run on coal.

The steel industry moved from Ebbw Vale and other valley areas to coastal sites such as Port Talbot.

Consequences of Industrial Decline

Water pollution from discharge from the mines.

One of the lowest life expectan-cies in Europe.

A third of the population without any qualifications.

A workforce which lacks appro-priate skills.

100,000 lost jobs since 1976

Migration of young people

A landscape scarred by industrial waste heaps

High levels of long term illness

Why did the steel industry move from Ebbw Vale to Port Talbot and Llanwern? The commonwealth declined in size so the market was not as strong. Coal and ore resources were running out. Valley sites were too small for modern factories. Coal and iron ore now needs to be imported, so coastal areas are much more favourable loca-tions.

The decline of the iron and steel industry in South Wales has continued – there is only one remaining steelworks in South Wales, located at Port Talbot. The Llanwern steelworks closed in 2001 causing 1340 jobs to be lost.

An example of a case study question that you could use Ebbw Vale.

Case Study 10 — Nokia in Farnborough (MEDC) Topics: A case study to look at the factors that affect the location of industry

A large number of secondary and tertiary businesses are located in a region stretching from South Wales eastwards towards London and northwards towards Cambridge. This region is often described as the M4/M11 corridor. These businesses include many multi-national companies. Nokia, the Finnish manufacturer of mobile phones, is one such multinational company (MNC). Nokia employs 2,000 people in the UK at three sites. Two of these are close to Cambridge and the third is in the M4 corridor. Figure 5 gives some of the reasons for this region’s success in attracting industries.

Why did Nokia chose Farnborough? It is located close to first-rate universities so can tap in on highly skilled research and development staff. There are international airports close by at Bristol and London which al-lows overseas business to be carried out with more ease. There are large container ports at Bristol and Southampton which allow for export of goods. 2.2 million people live in Hampshire—access to a large labour force. The M3 and M4 motorways provide excellent access for deliveries of parts and shipment of finished products.

Case Study 10 — Nokia in Farnborough (MEDC) Topics: A case study to look at the factors that affect the location of industry, why MNCs have branches all over the world and what impact it has when it locates branches in other countries (positive multiplier effect)

Nokia Site

Why is the Nokia site in Farnborough a good site for industry on a local scale using map evi-dence:

Ease of access for workers using motorway junction 4A/in GR 8456 or 8457 Potential workforce/housing for workers at Cove/Pondtail/Ralfborough or appropriate GR Leisure activities for workers at Fleet Pond/sail training centre/woodland with GR Pleasant outlook south over woodland in GR 8355 Ease of travel for managers using Farnborough airfield

Nokia’s plant in Farnborough is one of the companies research and development centres—it is where Nokia tests new development and technology. The staff who work here are highly skilled and have expertise in Science, engineering or specialist ICT skills. Companies like Nokia often chose to locate this kind of plant close to other businesses that supply specialist compo-nents or specialised technical advice and support. They therefore cluster together in specialist Science Parks.

Case Study 10 — Nokia in Farnborough (MEDC) Topics: A case study to look at the factors that affect the location of industry, why MNCs have branches all over the world and what impact it has when it locates branches in other countries (positive multiplier effect)

Where are Nokia phones made?

Type of Employ-ment

Example Place MEDC or LEDC

Primary Drilling for oil Mining for coltan

Middle East Congo

LEDC LEDC

Secondary Processing coltan Manufacturing batteries

Also - SIM card manufacture

Australia China China, Taiwan, Singa-pore

MEDC LEDC LEDCs

Tertiary Research and development Marketing e.g. ‘product placement’

Also – new technology/ research and development HQ and Decision making

Farnborough, UK USA South Korea Finland

MEDC MEDC LEDC MEDC

Fifty-two per cent of Nokia’s employees work in the continent of Europe. A total of 27 per cent of their employees work in China and the Asia Pacific region. Many of these work in secondary industries making items such as batteries and SIM cards. Most of Nokia’s sales are in Europe, second is the Asia Pacific re-gion with 22% of sales.

Why do Nokia make different parts of their phone in different parts of the world? Nokia want low labour costs Cheap land or building costs Low business rates company (taxes) If any one country no longer offer these then Nokia can switch most of production to the country that does. Nokia also wants to be close to its customers to reduce transport costs

Nokia is the world’s largest manufacturer of mobile phones and other mobile devices. It also provides net-work and communication services to other businesses, improving communications. Nokia is a Finnish MNC. It’s head office is in Helsinki, Finland, but it has offices and factories all around the globe. Nokia and Nokia Siemens Networks employ more than 112,000 people worldwide. Nokia has plants in many different coun-tries:

Research and development laboratories (R & D) in ten countries employing 30,415 people Factories in ten countries Sales offices in more than 150 countries.

Positive Multiplier Effect

When companies like Nokia set up factories in other countries it has a positive impact on the area

and it’s people.

An MNC such as Nokia opens a new branch

Local firms that supply the MNC with parts or services such as cleaning, maintenance or cater-ing have more work. They take on extra staff.

Jobs are created directly within the firm.

Local families have larger incomes. They have more spare cash.

More money is spent in local shops, pubs and restaurants.

Workers can afford to take out lar-ger loans so they might buy new cars or extend their homes.

Local shops, pubs, etc. have more business. They may have to take on extra staff.

As businesses expand they pay more tax in the form of business rates and income.

Local government has more money to spend on improving roads, reclaiming derelict land and marketing the region.

The image of the region is improved and the other new businesses may be attracted to locate there.

Case Study 11 — Nike in LEDCs Topics: A case study to look at the why MNCs locate in poorer countries and the impact that this has.

Nike Background Nike trainers are sold and worn throughout the world. Nike is a typical transnational corporation. It’s head-quarters are in the USA, where all the major decisions and research take place, yet its sports shoes are manu-factured in many countries around the world. Nike sub-contracts or uses independently owned factories in different countries to produce its trainers. Often this takes place in LEDCs where labour costs are low. Nike’s main activities are in south-east Asia, and up until recently it manufactured many of it’s trainers in South Korea. In the late 1980s labour costs in South Korea rose, so Nike decided to move production to Indonesia where costs were lower. This would have a big negative impact on South Korea (negative multiplier effect)

The true cost of Nike trainers Many of the workers in the Indonesian factories come from the surrounding countryside where they live in pov-erty. The conditions they move to are not much better. Some of the problems they face are:

Low wages and long hours Industrial accidents No workers’ rights—trade unions are illegal in Indonesia.

Where workers do complain or protest they can lose their jobs. Workers are continually exploited and Nike’s profit margins on it’s products remain high.

The impact of multi-national companies Multi-national or Trans-national companies are ones which locate their factories throughout the world. This gives them many benefits, such as access to the world market, cheap labour, cheaper production costs, and therefore greater profits. The headquarters of the company remains in its original country, usually one of the most developed countries in the world, such as the UK or USA. They then have factories throughout the world, which either make parts or entire finished products for the company to sell on the world market. Most of the largest multi-national companies are oil companies such as BP and Exxon, as well car companies (e.g. Ford, Toyota, Nissan and Volkswagen). Other well-known companies such as Coca-Cola, IBM and Sony are also defined as being multi-national. Multi-national companies locate around the world for their own benefit i.e. to make as much money as possible. They bring with them both advantages and disadvantages for the country that plays host to them. How do multi-national companies affect their host country? Investment: Advantages: The companies bring much needed money into the country. Although most of their profits do re-turn to the company’s country of origin, the local economy does benefit. Disadvantages: The wages paid to local workers are often low and some companies have been accused of ex-ploiting the local workforce rather than benefiting it. There are often tax incentives for these companies to locate in countries in the Developing World. This added to the fact that they take most of their profits out of the coun-try, means that the actual economic benefit to the country could be minimal. Technology: Advantages: The companies help the development of the country by bringing in technology and knowledge that the host country does not possess. Disadvantages: Unless the company actively participates in a program to educate local companies in the new technologies, the country’s industry will not really benefit. Multi-national companies might be worried by sharing too much information, as they could find themselves with more competition from local companies. Transport: Advantages: The new companies often help to improve transport links around the area. Disadvantages: The transport links that do receive financial help from the multi-nationals often only serve the direct routes and needs of that company, not the wider area as well. Employment: Advantages: They create jobs for the local population. Disadvantages: Often the jobs are highly skilled and so the company brings in their own people to do them. Also, the technological nature of many of these companies means that there few jobs available Growth poles: Advantages: The new multi-national companies act as growth poles for other similar companies. They could encourage more companies to locate in that country once they see the benefits that it brings. Disadvantages: Only a limited range of companies find that moving to a Developing World location is beneficial. They will only move there if it makes economic sense and do not consider potential benefits to the host country. Environment/Safety: Advantages: Companies bring with them the technology and expertise to reduce harmful pollution and create a safe working environment. Disadvantages: Many multi-national companies have very poor records on pollution and worker safety. They have been accused of trying to cut corners with both safety and pollution in order to keep costs down.