Nigeria in detail

Location—In west Africa, borders the Gulf of Guinea/ Atlantic Ocean. Bordered by Benin to the west ,Chad to north east, Cameroon to the south east and Niger to the north. Climate – tropical with variable wet and dry seasons – hot and wet most of the year in the south, inland there is a long dry season.

Nigeria—NEE

Why is Nigeria important globally? Nigeria is a NEE and is experiencing rapid economic growth (2014 world’s 21st largest economy) Predicted to have the World’s highest average GDP growth 2010-15. It supplies 2% of the World’s oil – 12th largest producer - this has fuelled much of its economic growth. Financial services , telecommunications and media are also important industries. Politically it ranks as the 1/5 largest contributor to UN peace keeping missions around the world.

Why is Nigeria important in Africa? Highest GDP in Africa in 2014, the third largest manufacturing sector. Population 182 + million, the largest of any African country. Low levels of productivity and widespread issues of land ownership but still has the highest farm output in Africa. 70% of population are employed in agriculture, most are subsistent farmers. Nigeria has over 19 million cattle, the largest number in Africa. It has huge potential despite corruption, and a lack of infrastructure

The political, social, cultural and environmental aspects of Nigeria Political Africa’s borders were decided by some European nations in 1883. Europeans exploited Africa’s resources, including its people who were traded as slaves. In 1960’s many African nations gained independence, Nigeria became independent from the UK in 1960, this lead to a series of dictatorships and a civil war between 1967-1970. Lack of political stability affected economic development and led to widespread corruption. Since 1999 the country has had a stable government, and fair elections. Several countries are investing in Nigeria China - investing in construction in the capital Abuja. S Africa is investing in banking American companies such as General Electric are investing in new power plants, American corporations, e.g. IBM, Microsoft and Oracle are operating in Nigeria

Social context Multi ethnic, multi faith country this social diversity is a strength but also a source of conflict. In 1967 the Igbo dominated south east tried to separate from Nigeria and become the Republic of Biafra, causing civil war until the Biafrans were defeated in 1970. Economic inequality between the North and south has created religious and ethnic tensions, with the rise of the Islamic group Boko Haram. This has created an unstable situation, having a negative impact upon the economy and a reduction in investment from abroad and a rise in unemployment. Regional variations Huge variations in wealth, urban areas have the greatest share of public services causing rural to urban migration, GDP varies, its highest in the south

Cultural context Diverse population = diverse culture Music, Nigerian cinema called Nollywood – second largest film industry in the world, Nigerian literature, sport – Nigerian football team has won the African cup of Nations 3 times. Environmental context To North is the Sahel and the Sahara Desert South – high temps, high annual ppn, much is forest, some crops – cocoa, oil palm and rubber

Tasks 1. Describe the location of Nigeria. 2. Highlight 3 reasons why Nigeria is important globally and

highlight 3 reason why Nigeria is important in Africa. 3. Read the information about the political, social and cultural

context of Nigeria. Explain how politics has shaped economic development (4 marks)

4. How have social and political conflict affected development in Nigeria in recent years? (4 marks)

Extension How important is political stability to the development of Nigeria’s economy? Describe the challenges and opportunities of Nigeria’s natural environment for promoting economic growth.

Nigeria’s changing relationships with the rest of the

world

How have Nigeria’s political links changed? Until 1960 Nigeria was part of the British Empire, its political links were with the UK and other member of the Empire. Since becoming independent it has become a member of the British Commonwealth and recognises the Queen as Head of the Commonwealth. It has become a leading member of African political and economic groups as well as international organisations. Nigeria is a member of… African Union - Economic planning and peacekeeping group. ECOWAS - Economic Community of West African States which is a trading group UN- Nigeria is a full member of the UN that helps out countries OPEC - Organisation of Petroleum Exporting Countries which helps manage global oil supply and stabilise the price of oil CEN-SAD - Community of Sahel-Saharan States similar to ECOWAS but also seeks to develop sporting links

Nigeria’s changing trading relationships Nigeria is a major global trading nation Past Exports (Goods Out) In the past, Nigeria’s main export to other countries was of agricultural products such as cotton and cocoa. These products don’t make Nigeria very much money. Past Imports (Goods In) In the past Nigeria’s main imports were cars and other large machinery like diggers.

Present Exports (Goods Out) Now, Nigeria’s main export to other countries is crude oil - it is a higher quality than Middle East Oil and can be refined into gasoline fuel/ petrol. The USA was its main customer but shale oil has meant that India is now its main customer. These products make Nigeria much more money than cotton and cocoa. This has reduce the importance of agricultural products. Australia and Indonesia are the biggest customers for Nigerian cotton, Cocoa and rubber exports are low most go to the Barbados for processing. It also trades a lot with Ghana and Ivory Coast Present Imports (Goods In) Now, Nigeria’s main imports are high tech items like mobile phones (7th in the world for the number of mobile phones used) and computers. It imports cars , rice and wheat. Although Nigeria now makes its own cars and large machinery like diggers so it doesn’t have to buy them off other people.

How is Nigeria’s economy changing?

The changing industrial structure of Nigeria The economy is shifting from mainly agricultural products such as cocoa, timber, oil palm, cotton. Employment has fallen in agriculture due to machinery and better pay and

Key terms Primary Industry- Getting raw materials from the Earth. Secondary Industry - Taking raw materials and making them into something. T Tertiary Industry- Doing a service (job)

Secondary industries have grown under a stable government E.g construction, motor manufacturing, sugar refining, paper, pharmaceuticals, leather items, textiles. In the past processing of raw materials was done abroad, but today manufacturing accounts for 10% of Nigeria’s GDP. With a growing home market, cheap labour force and improving infrastructure it is likely to continue to grow and become more diverse. This growth has stimulated the economy by giving regular paid work which in turn creates a home market for purchasing products. It stimulates growth due to close links with each other e.g. companies supplying car parts. AS industries grow, it creates more employment and more tax is raised. It attracts Foreign Direct Investment. Oil processing has created chemical by products, including soaps, detergents and plastics Tertiary is growing in terms of communications, retail and finance. These changes have given Nigeria a more balanced economy.

conditions in other sectors. Oil accounts for 14% of the country’s GDP and 98% of its export earnings.

Tasks 1,Describe how employment and industry has changed in Nigeria 2, Give a definition of ‘manufacturing’ (1 mark) 3., Explain how political and economic factors have influenced Nigeria’s changing relationships with other parts of the World. 6 marks

The impacts of TNC’s in Nigeria What is a TNC? A transnational corporation (TNC) is a huge company that does business in several countries. Many TNCs are much richer than entire countries in the less developed world. Such companies can provide work and enrich a country's economy - or some say they can exploit the workers with low pay and destroy the environment. They locates in foreign countries to take advantage of : Tax incentives cheaper labour Laxer environmental laws Access to wider market TNC’s in Nigeria 40 TNCs operate in Nigeria, most have their headquarters in the, USA or in Europe

Unilever in Nigeria Unilever is an Anglo Dutch TNC with headquarters in London and Rotterdam. It produces a range of food and drinks for the home. It started production of soap in 1923 using palm oil. It currently employs 1500 people in Nigeria. Unilever products are aimed at the growing Nigerian market and the development of brands to improve people’s quality of life. It works with the local communities and markets to develop new products and aims to achieve high standards of employment and environmental stewardship. It has provided improvements in health care, education and water supply as part of its social responsibility programme in Nigerian communities.

Shell oil in the Niger Delta Shell is an Anglo Dutch company. Since the discovery of oil in the Niger delta in 1958 it’s operations have remained controversial. The delta is one of the most difficult places in the world to extract oil from. Shell has invested money and expertise to extract oil. Benefits Makes major contributions in taxes and export revenue Provides employment for 65,000 Nigerian workers and 250,000 jobs in related industries. Gives 91% of Shell contracts to Nigerian companies. Supported the growth of the Nigerian energy sector. Disadvantages Oil spills have polluted water and caused soil degradation, reducing agricultural production and fishing yields. Frequent oil flares send toxic fumes into the air. Militant groups disrupt oil supply in the delta Oil theft and sabotage are big problems, reducing oil production, costing TNC’s and the government billions of dollars every year.

TASKS 1. How can manufacturing industries stimulate economic growth? 4 marks 2. How has the presence of TNC’s such as Shell and Unilever stimulated industrial

development in Nigeria? 3. Assess the costs and benefits of TNC’s in Nigeria. 6 marks

The impacts if international aid on Nigeria What is aid? Aid is assisting people it can be gifts of money, goods, food, machinery, technology and trained workers. The aims is to raise standards of living. Aid can be provided by individuals, non governmental organisations, other countries, international organisations e.g. world financial organisations (IMF, World Bank) or international banks. Developmental aid- this is long term aid given by charities, governments and multi-lateral organisations. It aims to improve quality of life by providing safe water, education or improvements in infrastructure such as roads and electricity supplies. Emergency aid- this usually follows a natural disaster, war or conflicts. Aid may take the form of food, water, medical supplies and shelter. Why does Nigeria receive international Aid? Despite rapid economic growth and wealth from oil reserves, many people in Nigeria are poor. They have limited access to services e.g. safe water and sanitation and reliable electricity supply. 60% of the population live on <$1 a day. Birth rates and infant mortality rates are high and life expectancy is low especially in NE of the country. What aid does Nigeria receive? Nigeria receives about 4% of Aid given to African countries. Most comes from individual countries such as UK and USA and some from World Bank. Charities and NGO’s have supported projects too. What is the impact of aid on Nigeria? The most successful projects have been community based by NGO’s and charities as aid is directed to where it is needed.

The allocation of multi-lateral aid to Nigeria in 2013. Education 6% Health and population 63% Social infrastructure and services 14% Economic infrastructure and services 7% Production 7% Multi-sector 5% Programme assistance 0.5% Humanitarian aid 0.5% Other 1%

How does Nigeria benefit? • Nets for Life project provides education on Malaria and give mosquito nets to

households to prevent the spread of the disease • World Bank funded loans to businesses to help diversify the economy away from

being dependent on oil so that new businesses and industries are developed • The UK government has funded health and HIV programme providing health and

education in rural areas. This will help to protect people against infection in the future and help them to work and improve their own lives.

Aid isn’t always used effectively in Nigeria because: • Corruption in the government and individuals means aid is lost or not given to the

right people • There have been claims aid money has been used to supply the Navy • Donors of aid may have political influence over who does and does not benefit.

They may use donations to promote themselves.

The Aduwan Health Centre In Aduwan they did not have a health centre, the few health workers used to use a shop as a clinic. The area has a high incident of aids/ hiv and high infant mortality With support of action aid they had funds from the World Bank for a new clinic built in 2010. The new clinic trains women to educate women about immunising their children, provides tests for HIV/AIDS and immunises children against polio.

Tasks 1) Explain why aid might not be used effectively.

Managing environmental issues How does economic growth affect the environment? Rapid economic growth, like in Nigeria, can bring many benefits. However, it can also have a negative impact on the environment. Industrial Growth Nigeria has around 5,000 registered industrial plants and 10,000 illegal small-scale industries. The fast and unregulated growth of industry has led to environmental problems. • In Kano, Lagos an Kaduna harmful pollutants go into open

drains and water channels, these are harmful to people and ecosystems.

• Some industries dispose of chemical waste onto the land, threatening ground water quality,

• Air pollution can cause respiratory illness • 70-80% of their forests have been destroyed to provide land. Urban Growth As Nigeria has developed, urban areas have grown rapidly. The rate of urbanisation has brought about many challenges. Squatter settlements are common in cities Services have failed to keep pace with the rate of growth Waste disposal is a major issue Traffic congestion, causes exhaust emissions Loss of greenfield sites and loss of biodiversity Commercial farming and deforestation The annual rate of deforestation in Nigeria is approximately 3.5%, which is between 350,000 and 400,000 hectares per year. In Nigeria forest has been cleared for logging, timber export, subsistence agriculture and notably the collection of wood for fuel which remains problematic in West Africa.

Mining and oil extraction Mining and extraction of raw materials and precious metals, particularly oil, can lead to serious pollution. These can damage ecosystems and affect people’s jobs. E.g. oil spills

Solutions Industrial Growth • Stricter laws to reduce amount

of illegal Industries • Petroleum Industry Bill will put

an end to the continued devastation of the environment in the process of exploring and exploiting crude oil Urban Growth • Introduce population and

migration laws • Provide affordable, permanent

housing • Introduce stricter waste

management Laws to clean the urban areas. Mining and oil extraction • Appeal against oil giants ( Use

Bodo case study)

Deforestation and commercial farming • Support local farmers • Introduce laws to restrict

number of trees cut down

Bodo oil spills (2008/09) In 2008 and 2009 two major oil spills devastated the area of Bodo. 11 million gallons of crude oil spilt over a 20km area. The disaster completely destroyed the local peoples farms and collapsed the fishing and livestock community. Throughout their time in Nigeria, Shell have claimed that the theft of crude oil, sabotage and illegal refining are the main sources of oil pollution. Do you agree with shell? Why might they say this? In 2015, following 7 years of protests and hard fought court battles from the victims in Bodo, Shell agreed to pay £55 million in compensation to the individuals and communities of Bodo. The money was spend to invest in local healthcare, schools and temporary homes. This was the largest pay out by an oil company to a community in history.

Task 1. Explain how economic growth can have harmful impacts on the environment (6 marks)

Quality of life in Nigeria How has economic activity affected quality of life in Nigeria?

Indicator 1990 2000 2005 2010 2013 Life expectancy at birth 46 47 49 51 52 Births attended by skilled staff (%) 31 - - 44 38 Mortality rate (per 1000) 213 188 159 131 117 Sanitation facilities % of population with access

37 33 31 29 28

Safe water % 46 55 59 63 64 Secondary school enrolment % 25 14 35 44 - Mobile phone subscriptions per 100 people 0 0 13 55 73

Internet users per 100 people 0 0 4 24 38

As a country’s economy develops its quality of life should improve. E.g. reliable and better paid jobs in manufacturing or services, Higher disposable income to spend on schooling, clothes, food etc. Improvements to infrastructure Improved access to a better diet. Reliable electricity supplies means its easier to go out at night and for children to complete homework Better access to safe water and sanitation Better quality health care. Quality of life is measured by the United Nations’ HDI (Human Development Index). In 2000 Nigeria was ranked amongst the least developed nations for health and education. Nigeria’s HDI has been increasing since 2005, so that in 2011 Nigeria had one of the highest average HDI improvements in the world over the last decade. Despite improvements, many are still poor, have limited access to services, safe water, sanitation and electricity supply. Corruption has been a factor and oil wealth has not been used to diversify the economy. The price of oil has fallen and technology has developed in shale oil, therefore Nigeria’s over dependence on oil could be a problem in the future. Will people’s quality of life continue to improve? It needs to cope with a number of challenges:- Political – the need for a continuing stable government to encourage inward investment Environmental – pollution from oil spills, pests like tsetse fly limit commercial livestock farming. The north of the country is at risk of desertification. Social- distrust between tribal groups and religious divide (Christians in south and Muslim in North), kidnappings by the Boko Haram spread fear among Nigerians and potential investors.

TASK 1. Evaluate to what extent economic development has improved the quality of

people’s lives in Nigeria (9 marks + 3 SPaG) Overall the evidence suggests that to a great / some / little extent quality of life has improved because…. Economic development in Nigeria has improved Quality of Life in many ways. HDI means….. Over the last decade Nigeria’s HDI has………………… this shows that……….. Another major change in quality of life is life expectancy. Life expectancy is………. Strategies that have improved life expectancy are……… Other indicators are……

Economic Development in the UK The UKs economy and industrial structure has changed over the last 100 years. For decades the UK has experienced de-industrialisation The decline in manufacturing (secondary) and the growth in tertiary and quaternary, because …………... De-industrialisation—Machines and technology have replaced many workers ( car manufacturing) Other countries can produce cheaper goods (China) , as they have cheaper labour costs. Traditional UK industries (coal mining, engineering and manufacturing have declined. Globalisation—many jobs have been moved overseas (lower labour costs), therefore bigger profits, however the HQs for these companies remain in the UK.

Pre-Industrial £ Industrial ££ Post-Industrial

£££ and ££££

The country’s money made mainly from primary industries

The country’s money made mainly from secondary industries

The country’s money made mainly from tertiary and quaternary industries

Post Industrial Economy Industrial Stages

The UK is now a post-industrial country, as manufacturing has declined as tertiary and quaternary has continued to grow. 2015 –78% workforce in tertiary and 10% in quaternary Quaternary jobs make lots of money and are good for the UK

Information on

technology

100,000+ IT firms in UK. Mobile devices allow companies to operate anywhere with internet access, from home instantly across the globe. Many manufacture hardware and design software, which attracts businesses from aboard.

Service 75% of UK economy ( health, education, retail, entertainment) - makes 79% of UKs money

Finance 10% of UKs economy. London home to Bank of England and London Stock Exchange

Research

Investment is good for long term economic growth. (Medical Research Council, UK Energy research Centre) Companies such as Rolls Royce do Hi Tech design of new jet engines for planes,

Science and

Business Parks

Provides buildings and communications for businesses in one location, placed on the edge of cities for easy access, often close to universities, where hi– tech research and design takes place. Helps to provide links to skilled workforce—British Antarctic Survey, employs 500+ people in Cambridge, Antarctica and Artic.

Services Industries that have grown in the UK incude

Government Policies—decisions for Investment in infrastructure, negotiate trade deals (effect eco0nomic growth) EG 1945-79 the UK government created state run industries—National Coal Board, British Rail &British Steel Corporation 1979-200—State run industries sold off to private shareholders-privatisation. Older industries closed down—jobs lost. 2010+ - Government aim to ‘rebalance’ the economy– done by rebuilding UK’s manufacturing sector, relying less on the service industries, particularly the financial sector.

Impacts of Industry Impacts -Mining and quarrying create spoil heaps—environmental– destroying habitats and loss of species. Visually they are ugly, cause water, air and soil pollution. The transport of raw materials can cause air pollution– global warming. Manufactured waste can cause waste which ends up in landfill. Harmful emissions –technology used to reduce harmful emissions. Desulphurisation can remove harmful gases from chimneys. Stricter environmental targets can be put into place on water, air and landscape damage. Heavy fines are given out to industry's who cause pollution incidents

Changing Rural Landscapes and also decline in population (Outer Hebrides) Population 274,000, mostly on the Isle of Lewis, an overall decline of approximately 50% since 1901 due to outward migration. There is limited opportunities for the young therefore they move away for better jobs. How can industrial

development be more sustainable?

Quarrying— Environmental effects—destroy natural habitats, pollute water courses, scar the landscape. Companies are expected to restore/improve landscape after materials have been removed—landfill, agriculture, habitat creation, housing, floods storage. There are controls on blasting, dust removal, are encouraged to recycle to reduce waste products. EG. Torr Quarry , Mendip Hills, Somerset (Aggregate Industries) - Limestone quarry, opened in 1940s. Employs 100, contributes £15 million into the local economy. Produces 5-8 million tonnes per year—construction materials, 3/4 is transported by rail to SE UK. It aims to be environmentally sustainable by, restoring the quarry to create recreational wildlife lakes, 200 acres of land have been landscaped, including planting of trees. Noise is monitored, as is vibration, air bourne emissions and water quality. The use of Rail to transport materials reduces any impact on roads. 2010 requests to deepen the quarry, to extend its life until 2040, this has less impact than extension out into the surrounding countryside, this was approved in 2012.

Key Terms Primary—getting natural materials, Farming, Fishing, Forest and Mining Secondary—Use Primary materials, to produce another product Tertiary—selling things and providing Quaternary—Research and development De-Industrialisation The decline of traditional manufacturing due to exhaustion of raw materials, loss of markets and competition from NEE’s Post—Industrial economy The economy of many economically developed countries where most employment is now service industries. Industrial structure The relative proportion of employed workforce in different sectors of the economy (primary, secondary, tertiary and quaternary) Service industries - Provide various services—commercial (shops & banks), professional, social (schools & hospitals), entertainment (restaurants & cinemas) and personal (hairdressers & fitness trainers) Wealthier countries have a higher proportion of jobs in these areas.

The UK in the Wider World—UK is an important country—most people employed in tertiary £££ and quarternary ££££ jobs. World leaders in trade, culture, transport and electronic communications. Trade—the movement of goods and services across the world UK exports over £25 + billion Culture—’The values of beliefs in society’ - writing, painting and creativity in the forms of fashion and music can be included. For example, TV—2013/14—1.28 billion of export earnings, shows created in the UK are sold over the world, eg., Top Gear, Dr Who, Sherlock and Downton Abbey Transport—London Heathrow , one of the business airports in the world, a hub airport where people change flights and go elsewhere. Also many of the UKs ports link us to the rest of the world, and the Chanel Tunnel links us underneath the English Chanel to Europe. Electronic Communications—98% of all internet traffic passes along a multi billion dollar network of submarine high power cables. The Uk is a focus for these cables between Europe and North America. Many of the large IT businesses have offices in the UL—Google, Microsoft, IBM and Facebook. The European Union (EU)—1973—a union of 23 countries, it was designed to make trading between the countries easier , ideally saving them money, and creating new laws centrally. Trade takes place without taxes, making goods cheaper. EU provides some money to support countries with infrastructure—European Structural Investment Funds. Financial support for farmers– a single payment scheme, information is shared on a central system with regards to crime and terrorists. The UK has voted to leave the EU, and negotiations are underway.

Issue Resolution Effect

Air pollution

The chimney has filters to remove poisonous gases

The plants and animals are not threatened

Energy The use of solar panels on the roof

Less greenhouse gases

Noise Pollution

Sound proofed walls

Less noise to effect people and animals

Waste Materials sorted to either recycle or to be re- used

Reduction of new materials used, making plastics last longer

Water Pollution

Water is filtered before being returned to the river

Plants and animals are healthier

Social Effects Economic effects of a growing population

Commuters continue to use the services where they work thus having a negative effect on the rural area

Reduction in agricultural jobs, as farmers sell land for housing, although this increases jobs in construction

80% car ownership-increase in congestion on narrow roads and reduces demand for public transport

Lack of affordable housing

Modern developments on the edge of villages and gentrification of abandoned farm buildings lead to loss on community spirit

The area has the highest petrol prices, due to demand

The young cannot afford the high cost of buying a house, so move away from the area.

Increasing migrant number, from poorer European countries puts pressure on services and increases costs.

Social effects Economic Effects

A fall in the number of school aged children, causes school closures

UK and Scottish governments provide subsidies towards operating costs for ferries and the maintenance of essential services

When the young move away it leaves fewer working aged people in the area.

The main farming is crofts, which can provide only two days of work per week. There has been an overall decline in the fishing industry.

An increased aging population, fewer children to support them may lead to care issues in the future

Tourism has grown although the infrastructure is unable to support the scale of tourism is needed to provide an alternative source of income.

What is the North South Divide? (this refers to the real or imaginary cultural and economic differences between the South (SE, Greater London, SW and parts of eastern England) and North (Yorkshire, The Humber, NW and NE) The South- Positives—Higher standards of living Longer life expectancy Higher incomes Negatives—Higher house prices More congestion Less happiness Why is there this divide? - In the past most of the economic growth was in the North of UK, (Manchester, Sheffield, Newcastle– primary industry((£))-coal mining. Secondary ((££)) - ship building.) Since the 1970’s many of these industries have moved abroad, meaning fewer jobs and economic problems. South - had already started working in the tertiary industry (£££), these didn't move overseas = no loss of jobs or industry moving abroad. This therefore caused the divide between the two areas as more people had jobs and money in the South than did in the North. Can this problem be addressed? - There have been attempts to reduce these problems, financial support from the government, The EU has helped new businesses and improved infrastructure, also foreign investments—Nissan plant opened in Tyne and Wear in 1984. 2015- ‘’Northern Powerhouse’’ launched to help balance wealth and influence of the South– led to development of northern cities—Liverpool, Manchester Food, tourism and energy are being developed in rural areas. Money has been invested in transport—HS2—Trans Pennine way, Liverpool2, the Mersey Gateway ( a new 6 lane toll bridge) which improves access to the new deep water port (Liverpool2) Local enterprise partnerships– Est 2011– voluntary partnerships between authorities and businesses to identify business needs in the local area, encourage investment, create jobs and therefore boost the local economy. Enterprise Zones—2011—24 new enterprise zones– to establish new business and jobs where there have been none before. The government supports this by -providing business rate reductions up to £275,000 over a 5 year period providing provision of superfast broadband -financial allowances for plant and machinery -simpler planning regulations to speed up business development. Northern Powerhouse—2015—plan to drive more skills and economic growth in the north. Improved infrastructure. Aims are to link core cities—Liverpool, Leeds. Manchester, Sheffield, Hull and Newcastle. Devolution—Giving power to local authorities, they will decide where/how to invest money locally. Scotland, Northern Ireland and Wales all have these powers.

Infrastructure in the UK How can improvements and new developments in infrastructure can help the UK economy? Transport development affect employment and regional growth Road improvements—2015-government announced £15 billion ‘Road Investment Strategy’ to increase capacity/improve condition of roads in UK—creating thousands of jobs, and boost local and regional economies 100 new roads by 2020 - 1300 new lane miles ( improve motorways and reduce congestion) - extra lanes to be added to turn them into smart motorways and to improve links between London, Birmingham and the North. A303 in SW England—converted into a dual carriageway. The £2 billion road widening project will take 15 years, create jobs. It will involve digging a 3km tunnel beneath Stonehenge. Rail improvements it is vital to improve the links between regions in the UK and Europe. This will also stimulate growth in the North of the UK. Electrification of the trans Pennine Express Railway between Manchester and York (2020) reduces journey time by 15 minutes Electrification of the Midland mainline between London and Sheffield (2030) HS2 a £50 billion plan for a new high speed rail link to connect London with Birmingham, and then Sheffield, Leeds and Manchester. Due to start 2017 and complete 2033. Many oppose as it passes through countryside, is close to homes . London's Crossrail links Reading and Heathrow in the west of London to Shenfield and Abbey Wood to the east. This line will improve journey times across London, include new tunnels underneath London,(£14.8 billion) thus reducing congesting, better connections and access to Europe. It will bring 1.5 million people within 45 minutes of the capitals business districts. Ports The UK’s port industry is the largest in Europe (our long coastline and long trading history) some ports handle containers and other deal with ferries and cruises, most will handle a range of goods and services. Approx. 34 million people pass through the ports each year, they create 120,000 jobs. The largest ports are run by private companies, who have invested in infrastructure. EG., Belfast—£50 million into offshore renewable energy sector. Liverpool2—a new terminal is being constructed, which doubles the ports capacity to over 1.5 million containers a year. This will create jobs, boost the NW economy and also reduce the amount of freight that is taken by road. Airports developments— \these are important economically as they develop global links. Thousands of jobs are created, and boost regionally and nationally. Aviation accounts 3.6% of UKs GDP employs over 300,000. Over 2 million tonnes of freight pass through UK airports each year, 750,000 international flights annually from the UK to 114 countries, over 420,000 domestic flights. London's airport expansion the government have recommended a third runway at Heathrow, a decision has yet to be made. This would create more jobs, and generate money for the UK. Local people are concerned about additional noise for the planes. The government has recommended financial support to sound proof homes and schools, and a ban on night flights.

Economic Development in the UK The UK’s economy and industrial structure has change over the last 100 years

Tasks 1) Describe how the percentage of people employed in different

industries in the UK has changed over time (2 Marks) 2) How has deindustrialisation caused economic change? What has

it done to the amount of people employed in different industries?

3) How has globalisation caused economic change? What has it done to the amount of people employed in different industries?

Key terms De-industrialisation The decline of a country’s traditional manufacturing industry due to exhaustion of raw materials, loss of markets and competition from NEEs. Post-industrial economy The economy of many economically developed countries where most employment is now in service industries. Industrial Structure The relative proportion of the workforce employed in different sectors of the economy (primary, secondary, tertiary and quaternary). Service Industries The economic activities that provide various services – commercial (shops and banks), professional, social (schools and hospitals), entertainment (restaurants and cinemas) and personal (hairdressers and fitness trainers). Wealthier countries have a higher proportion of jobs in these areas.

For several decades the UK has been experiencing de-industrialisation. This is the decline in manufacturing (secondary) industry and the subsequent growth in tertiary and quaternary employment. In the UK this has happened because… DEINDUSTRIALISATION Machines and technology have replaced many people in modern industries, for example car production Other countries, for example China, Malaysia and Indonesia, can produce cheaper goods because labour there is less expensive Lack of investment, high labour costs and outdate machinery made UK products too expensive Traditional UK industries – coal mining, engineering and manufacturing – have declined. GLOBALISATION A lot of manufacturing jobs have moved overseas, where labour costs are lower so more profit can be made. The HQs of manufacturing companies where designing happens have remained in the UK.

GOVERNMENT POLICIES For example decisions to invest in infrastructure, negotiate international trade deals can affect economic growth. E.g. 1945-79 the UK government created state-run industries such as the National Coal Board, British Rail and British Steel Corporation. 1979-2000 - State-run industries were sold off to private shareholders to create a more competitive business environment. This is called privatisation. Many older industries closed down and many jobs were lost. 2010+ The aim of the government from 2010 was to ‘rebalance’ the economy. This was done by rebuilding the UK’s manufacturing sector and relying less on the service industries, in particular the financial sector.

Post industrial economy Industrial stages Pre-Industrial (£) Most of the country’s money is made from primary industries such as farming and most people work in primary industries. Industrial (££) Most of the country’s money is made from secondary industries such as manufacturing and most people work in secondary industries. Post-Industrial (£££ and ££££) Most of the country’s money is made from tertiary and quaternary industries such as IT and hi-tech design and most people work in tertiary and quaternary industries. The UK is now a post industrial economy. The manufacturing industry has declined as tertiary and quaternary industries continue to grow and develop. In 2015 78% worked in tertiary sector and 10% in quaternary

Information technology

Over 100,000 IT firms in the UK. Mobile devices allow companies to operate from anywhere with internet access. It allows work from home and communicate with people across the globe instantly, many firms manufacture hardware and design software. This technology attracts business from abroad

Service This accounts for 75% of the UK economy, e.g. health, education, retail, entertainment. The service industry makes 79% of the UK’s money

Finance 10% of UK’s economy. London is home to Bank of England and London Stock Exchange

Research Investing in research is good for long term economic growth. E.g. Medical Research Council, UK Energy Research Centre. In the UK we have companies like Rolls Royce who do hi-tech design of new jet engines for planes

Science and Business Parks

They provide buildings and communications for businesses in one location, often on edge of cities providing ease of access and close to universities. This helps form business links with a skilled workforce. E.g. British Antarctic Survey employs over 500 people in Cambridge, Antarctica and Arctic

.

Services industries that have grown in the UK include:

Quaternary industries are often found in science and business parks. A science park is an industrial estate where a large number of hi-tech businesses are located. In this area they do hi-tech research and design to create new products such as medicines and jet engines. Quaternary jobs make lots of money and are good for the UK. Around 750,000 people work in the UK’s science parks. A businesses park is an industrial estate where a large number of service businesses are located. In this area they offer services to businesses and people such as accounting and IT. The jobs in this area are mainly tertiary (£££). Tertiary jobs make lots of money and are good for the UK. Both tend to locate on the edge of towns where there is more land available and it is cheaper. Where there is better access for workers and good access to transport links.

TASKS Task 1. Why do you think that it’s a good idea for a country to

have a post-industrial economy rather than a pre-industrial or industrial economy?

2. What are the main differences between a science and business park?

3. Why are science parks located near to universities? Extension How do science and business parks provide opportunities for regional growth (6 marks)

Impacts Large extraction industries such as mining and quarrying have an impact on the landscape and create spoil heaps Manufacturing have an effect on the landscape and the environment destroying habitats and causing loss of species. Visually they can look ugly, they can cause water, air and soil pollution. Transportation of raw materials can cause air pollution, which can cause global warming. Industry can cause a lot of waste which goes to landfill sites. And is not recycled causing material to run out How can industrial development be more sustainable? Technology can be used to reduce harmful emissions form power stations and heavy industry. Desulphurisation can remove harmful gases from chimneys. Stricter environmental targets can be put into place on water, air and landscape damage. Heavy fines imposed on industrial pollution incidents E.g. Quarrying Harmful effects = destroying natural habitats, polluting water courses, scaring the landscape. Companies are expected to restore or improve the environment, e.g. landfill, agriculture, habitat creation, housing, floods storage. Whilst in operation there are controls on blasting, removal of dust from roads and landscaping. Recycling is encouraged to reduce waste Torr Quarry Somerset It is operated by Aggregate industries. It is a limestone quarry in the Mendip Hills. Employs 100 people and it contributes £15 million to the local economy each year. Opened in 1940’s, it produces 5- 8 million tonnes a year. It produces construction materials. ¾ of the output is transported by rail to south east mostly. It aims to be environmentally sustainable by:- The quarry is being restored to create wildlife lakes for recreation and water supply. 200 acres have been landscaped to blend in with the surrounding countryside, including planting trees Monitoring of noise, vibrations, air borne emissions and water quality Rail transport minimises the impact on roads In 2010 a planning application was made to deepen the quarry and extend operations until 2040, deepening has less impact than extending the quarry outwards into surrounding countryside. This was approved in 2012

Example the impacts of industry

Tasks Use and example to demonstrate how modern industry can be more environmentally sustainable (6 marks)

Jaquar Land Rover

Changing rural landscapes in the UK How is the UK’s rural landscape changing? E.g. rapid population growth is some areas like Cambridgeshire, but population decline in areas such as the Outer Hebrides An areas of population growth – south Cambridgeshire This is a rural area surrounding Cambridge. The population of 150,000 is increasing due to migration into the area. Migrants mostly come from Cambridge and other part of the UK, but many also arrive from eastern Europe. In 2013 the number of registrations for National Insurance claims in the area soared by 25% from 2012. The proportion of people over 65 + is growing by 2031 it will reach 29% of the population. The population is estimated to grow to 182,000 by 2031

Social effects Economic effects of a growing population

Commuters continue to use services in places where they work, e.g. Cambridge this has a negative effect on the local rural economy

A reduction in agricultural employment as farmers sell their land for housing development, although this may increase jobs in construction

80% car ownership is leading to increased traffic on narrow country roads and reducing demand for public transport

Lack of affordable housing

Modern developments on the edges of villages and gentrification of abandoned farm buildings can lead to breakdown in community spirit.

This area has some of the highest petrol prices in the country due to high demand

Young people cannot afford the high cost of houses and move away

The increasing number of migrants from relatively poor parts of Europe can put pressure on services and increase overall costs

An area of population decline:- the Outer Hebrides Has a population of 274000 people, most live on the island of Lewis. Overall there has been a population decline of more than 50% since 1901 due to outward migration. There are limited opportunities so the younger generations move away in the search of better paid jobs.

Social effects Economic effects

The number of school children is likely to fall causing school closures

The UK and Scottish governments provide subsidies towards the costs of operating ferries and the maintenance of essential services. But it is a struggle to maintain the economy and many of these services, such as post offices are closing.

When many young people move away, there will be fewer people of working age in the area.

The main farming is crofts, which can only provide work for up to two days per week. Fishing industry has declined overall

An increasing ageing population with fewer young people to support them may lead to care issues in the future

Tourism has grown but the infrastructure is unable to support the scale of tourism needed to provide an alternative source of income

Tasks Contrast the economic challenges associated with rural areas of population growth and decline

Infrastructure in the UK- How can improvements and new developments

in infrastructure can help the UK economy?

Transport development affect employment and regional growth. Road improvements In 2015 the government announced a £15 billion “Road investment Strategy” to increase the capacity and improve the condition of roads in the UK. New roads will create thousands of jobs in the construction industry, boosting local and regional economies. Plans include:- 100 new roads by 2020 1300 new lane miles to improve motorways and reduce congestion. Extra lanes added to existing motorways to turn them into smart motorways and improving links between London, Birmingham and the North. The A303 in SW England is being converted into a dual l carriageway. The £2billion road widening project Will take 15 years, creating jobs. IT will involve digging a 3 km tunnel beneath Stonehenge. Rail improvement s Vital to improve links between regions in the UK and the rest of Europe. It will also stimulate growth in the north of the UK. Electrification of the trans Pennine Express Railway between Manchester and York by 2020, reducing journey time by 15 minutes. Electrification of the Midland mainline between London and Sheffield by 2030. HS2 a £50 billion plan for a new high speed rail link to connect London with Birmingham and then to Sheffield, Leeds and Manchester, IT is due to start in 2017 and complete in 2033. Many oppose the plan as it passes through several areas of countryside and close to many homes

London’s Crossrail links Reading and Heathrow in the west of London to Shenfield and Abbey Wood to the east. IT will involve new tunnels underneath London costing £14,8 billion. IT will improve journey times across London, easing congestion and offering better connections to the Underground and to the rest of Europe. It will bring 1.5 million people within 45 minutes commuting distance of London’s key business districts. Task 1. What is a smart motorway? 2. How can road and rail developments

improve the UK economy locally and nationally?

Ports The UK’s port industry is the largest in Europe due to it’s long coastline and trading history. Some handle containers and others deal with ferries and cruises. Most all purpose ports handle a range of goods and services. Around 32 million people pass through ports each year and they create 120,00 jobs. The largest ports are run by private companies and they have invested in infrastructure. E.g. Belfast - £50 million into offshore renewable energy sector

Liverpool 2 – a new container terminal is being constructed known as Liverpool 2 which will double the ports capacity to over 1.5 million containers a year to compete with other UK ports. It will create jobs, boost the NW economy and reduce the amount of freight traffic on the roads Airport developments They are important economically developing global links. They create thousands of jobs and boost the economy regionally and nationally. Aviation accounts for 3.6% of UK’s GDP Employs over 300,000 people Over 2 million tonnes of freight pass through UK airports each year 750,000 international flights annually from the UK to 114 countries Over 420,000 domestic flights London’s airport expansion A report commissioned by the government has recommended a third runway at Heathrow. A final decision has yet to be made. This will create more jobs and make more money for the UK. Locals are concerned about noise from the planes. The government report recommended financial support to sound proof homes and schools, and ban night time flights. Task 3. the arguments for and against expanding capacity of London’s airports? 6 marks

The North South Divide What is the North South divide? This refers to the real or imagined cultural or economic differences between… The south of England (the South East, Greater London, the South West parts of eastern England. The north of England (Yorkshire, the Humber, the North East and North West) and the rest of the UK. In general, the South enjoys…

Higher standards of living Longer life expectancy Higher incomes

But, it also has… Higher house prices More congestion Less ‘happiness’!

Why is there a North South divide in the UK? In the past, most of the UK’s economic growth was centred in the north of England in cities like Manchester, Sheffield, Newcastle and Sunderland who did primary industry jobs (£) like coal mining and secondary industry jobs (££) like ship building Since the 1970s many of these primary and secondary industries in the north of England moved overseas meaning that people in the north of England lost their jobs, this led to economic problems as lots of people didn’t have jobs Alternative forms of energy production reduced the importance of coalfields. London and the South East of England were fine as they had started working in tertiary industry jobs (£££) which didn’t move overseas which meant that everyone still had a job which helped the economy. People losing their primary and secondary jobs in the north and people in the south having their tertiary jobs still that earned more money created the north-south divide.

How can regional strategies address the issue? There have been many attempts to address the issues caused by deindustrialisation in the north, financial support from the government and the EU has helped new businesses and improved infrastructure. Foreign direct investment has been encourages e.g. Nissa n opened in Tyne and Wear in 1984 In 2015 the central government launched a new strategy for a “Northern Powerhouse” to help balance the wealth and influence of London and the SE. This means developing economies of the major northern cities e.g. Liverpool, Manchester. Food, tourism and energy are to be developed in rural areas. Money has been invested in transport improvements HS2, electrification of trans Pennine railway, Liverpool2, the Mersey Gateway a new 6 lane toll bridge over the Mersey to improve access to the new deep water port (LIverpool2) Local enterprise partnerships Established 2011 , voluntary partnerships between authorities and businesses to identify business needs in the local area and encourage companies to invest, crating jobs and boosting the local economy.

Enterprise zones Since 2011 24 new enterprise zones have been created to establish new businesses and jobs in areas where there are no pre-existing businesses. The government supports enterprise zones by Providing a business rate discount of up to £275,00 0 over a 5 year period Ensuring the provision of superfast broadband Financial allowances for plant and machinery Simpler planning regulations to speed up the establishment of new businesses The Northern Powerhouse A plan to drive business skills and economic growth in the north through improved infrastructure. innovation and governance. It aims to link core cities – Liverpool, Leeds, Manchester, Sheffield, Hull and Newcastle Devolution Involves giving power to local authorities To make spending decisions so they can invest money direccty where needed locally, Scotland, Northern Ireland and Wales all have their devolved governments

Tasks 1. Explain how improving transport

links can help reduce the north south divide 4 marks

2. Describe and explain how strategies can be used to resolve regional differences such as the north-south divide (4 Marks)

The UK in the Wider World In the wider world, the UK is a very important country. This is because we are a post-industrial economy (most people employed in tertiary £££ and quaternary ££££ jobs). We are world leaders in various different areas including trade, culture, transport and electronic communications. The UK was a superpower and had an empire in the Americas, Africa and the Asian Pacific. We have lots to give the world and because of this, we are able to make lots of money from it! Trade Trade involves the movement of goods and services across the world. The internet is becoming more important for trade, in finance and communications. The UK exports over £250+ billion of goods and services per year Culture This is the values and beliefs of society, it can include writing, painting and creativity in the forms of fashion, architecture and music. The UK is a global centre of culture for many things. For example, TV, in 2013-14 it accounted for 1.28 billion of export earnings. Many TV shows are created in the UK and sold all over the world such as Top Gear, Dr Who, Sherlock and Downton Abbey. The UK is a multicultural society accepting people from all over the world

Transport London Heathrow is one of the busiest airports in the world. It is an important hub airport where many people change flights to go elsewhere. The UK also has many sea ports which link the UK to the rest of the world and also a railway beneath the English Channel between the UK and France. Electronic communications 99% of all internet traffic passes along a multi billion dollar network of submarine high power cables. The UK is a focus for these cables between Europe and North America. Many large IT businesses have offices in the UK such as Google, Microsoft, IBM and Facebook.

Tasks 1. Describe the place of the

UK in the wider world and explain how this helps the UK economy(4 Marks)

2. How does the UK benefit from having close links with the rest of the world?

The UK has links to the wider world by organisations. The European Union In 1973 The UK became a member of the EU. The European Union is an organisation of 28 countries. It is designed to make trading (goods and services) between countries easier and quicker. It is also designed to help countries save money by making new laws centrally that other countries adopt. The EU allows good and services to be sent between countries without taxes (making goods cheaper). The EU provides money to parts of countries that need help with infrastructure to help their economy – the European Structural Investment Funds. The EU creates laws centrally on things such as pollution and crime. If the UK created all the laws it needs by itself this would cost a lot of money. Financial support to farmers – the single payment scheme EU countries share information by a central system on lots of things such as criminals and terrorists to help keep everyone safe. The UK has voted to leave the EU and negotiations are underway. The Commonwealth The Commonwealth the name given to a group of 53 countries that were previously part of the British Empire. The Commonwealth is a co-operational group where countries work together to try and help each other to improve things like education and healthcare. The UK has very good relationships with countries in the Commonwealth so lots of trade takes place. Workers can come from the Commonwealth for jobs that we need filled such as nurses Every 4 years there is a Commonwealth Games which is like an Olympics for all the countries in the commonwealth. How does the UK benefit economically and politically from its

membership with either a the EU / b the commonwealth?