Key Idea 6: Interdependence
SEE CASE STUDY 18 – A CASE STUDY OF AID Mali,
West Africa.
6.1 – How are countries interdependent?
The world is becoming increasingly interconnected:
TV and
media
broadcasts
tourists
imports
exports
internet
Flows
that link
countries
together
migrants
loans
business
investment
information
repayments
of loans
This process is called globalisation and effect is that countries become increasingly interdependent on each other.
Key Term: Interdependence = The complex patterns of trade, communication and aid, which link
different countries together.
What has made countries more interdependent?
Trade
The exchange of goods and services between countries.
Influence of MNCs
Such as Nokia, Sony, Microsoft who invest in other countries and open factories and offices
overseas.
Improvements in transport and communications have happened in the last 50 years and made the
world better connected. Examples: aircraft design, satellites, communications (internet) and
computers.
People and businesses can communicate no matter where they are in the world – businesses can
be run more effectively.
Technology
Cheaper and faster air travel has encouraged business travel and tourism – countries further apart
now more likely to be visited / do business together.
Advantages
Disadvantages
Growth of business – better trading with larger groups
Countries become less independent
Spread of wealth
One side / country may become dominant and take advantage
Greater opportunities
Example: Advantages and disadvantages of interdependence based on the migration of people between countries for work or study:
Advantages
Disadvantages
If skilled, the migrant may get better pay for doing same job in a
more wealthy country. Good for migrant.
If unskilled, the migrant may end up doing dirty / dangerous /
low-paid jobs. Bad for migrant.
Migrants can fill a gap where there kill shortages e.g. doctors
and nurses in the NHS – many overseas qualified as too few UK
qualified. Good for host country.
The brightest and best qualified people are the ones to leave for
better jobs. This stops improvements in LEDCs – known as the
Brain Drain. Bad for home country.
Better training available in host country means skills develop
and could potentially return if migrant returns to home country.
Good for migrant and home country.
Hospitals are short of trained staff in poorer countries as many
leave. Waiting times and care is less good. Bad for home
country.
These ideas could be applied to different aspects of
interdependence.
6.2 – How does international trade operate?
Goods and services are bought and sold between countries. The balance of this affects the level of development in a country. The
development of trade has allowed for a greater range of products and services to be available around the world.
Imports
The purchase of goods from another country.
Exports
The sale of products from one country to another.
Trade Bloc
Trading partnerships between different countries. Preferential taxes etc exist for countries within the bloc. For
example: The European Union.
Trade Balance
The difference between the value of exports and the value of imports. If exports are higher there is a positive
value, if imports are higher there is a negative value.
Quotas
Restrictions on the amount of particular goods that can be imported each year.
Import Duty
A tax placed on goods brought into a country to make them more expensive.
Subsidy
A payment which a country makes to its own farmers and businesses so that their goods can be sold at a
lower price to consumers.
Dumping
The practice of selling goods cheaply abroad if they cannot be sold at home. Eg tomatoes that cannot be sold
in Europe are sold cheaply in Africa.
Fair Trade
Independent scheme that ensures farmers and workers in LEDCs are paid a fair price for their products so
that can have a better standard of living.
Free Trade
When countries trade without any limits to the amount of goods that can be exported and imported.
Emergency Aid
Help that is given urgently after a natural disaster or a conflict to protect the lives of survivors.
Development Aid
Help which is given to tackle poverty and improve quality of life. Development aid is usually given to combat
long-term problems such as improving education or healthcare rather than to deal with an emergency such
as a famine.
Bi-lateral Aid
Aid that is passed directly from one country to a partner country.
Multi-lateral Aid
Funding that involves many donor countries.
NonGovernmental
Organisation
(NGO)
Non-profit making organisations, such as Oxfam, ActionAid or WaterAid, which are independent of the
government.
System
Free Trade – trade takes place without
any limits or control.
Advantages
Disadvantages
- Countries can export as many goods as
it wants with its trade partners so good for
framers / businesses as they have a
market to sell to
- Countries can be swamped by cheap
imports made in places with lower labour
costs.
- Cheap imports are good for consumers
- Can cause job losses in industries where
cheaper imports can be brought in.
To protect against cheap imports countries can introduce:
Quotas – restrict the
amount of goods imported
(eg EU restricts the number
of shoes imported from
Asia)
- Protects the jobs of those working in industries
where imports are restricted (eg protects shoe
manufacturing jobs in Italy)
- LEDC countries that produce the cheap goods
lose out on manufacturing jobs and the income
associated with it (eg low paid shoe workers in
China / Vietnam lose jobs, income and ability to
improve quality of life)
Import Duty – place a tax
on any imports to make
them more expensive. (eg
chocolate bars from Ghana
are taxed by the EU to
make them more expensive
to buy than one made in
Belgium)
- Ensures that locally made goods are still
competitive in the market so that they continue
to sell and keep jobs / industries within the
country (eg Chocolate bars made in Belgium are
no more expensive than ones from Ghana
despite production costs being much higher)
- Prevents countries outside of the trading
partnership from adding value to products and
increasing their income as their products are not
competitive (eg Ghana cannot export chocolate
bars at a competitive price as they are taxed so
consumers but EU made ones instead)
Subsidies – given to
farmers / businesses in own
country to ensure that their
goods can be sold at a
lower price to consumers
- Cost of production Europe is low because of
subsidies which keeps costs down for
consumers (eg farmers paid money to keep
meat / vegetable prices low so products sell.
Can even be exported to Africa at a cheap price)
- Other countries cannot export their goods at a
competitive price to sell alongside local goods
with a subsidy so LEDC countries have fewer
markets to sell goods and can’t develop
- Imported goods with a subsidy can be cheaper
than locally produced products and so locals
cannot sell their goods (eg in Ghana imported
chicken, tinned tomatoes and rice are cheaper
than local farmers goods and so sell better)
Trade Blocs – these partnerships make trade easier between countries eg the European Union (EU). Each country within the Bloc has
a free trade agreement with other countries in the trading bloc. Countries within the bloc benefit by being able to trade freely whereas
countries outside have quotas or import duty imposed on their goods. Trade blocs make it hard for LEDCs to trade fairly in the world
market as they are often not in a bloc and so products are always of a higher price because of the duty etc. Trade blocs generally
benefit MEDCs and disadvantage LEDCs.
6.3 – How might different trade systems affect quality of life for
producers?
The LEDC Trade Cycle
Developing
Countries
Mainly export
low value
primary
products eg
fruit, coal, cocoa
Therefore the
balance of trade is
negative and
keeps the LEDC
poor and in debt
They import
higher value
secondary
products such as
cars and
medicines
This earns
the LEDC
little income
The LEDC trade cycle means that LEDCs are kept poor as they are exporting low value products and importing high value products.
This means they have a negative balance of trade (the value of imported goods is greater than the value of exported goods).
This benefits MEDCs as they are able to import cheap primary products whilst exporting higher value manufactured goods or services.
This gives them a positive balance of trade (the value of exported goods is higher than the value of imported goods) and allows their
wealth to grow.
An example of how trade systems can disadvantage a country – Ghana
Location
- Ghana is a LEDC in West Africa on the Atlantic coast north of the equator.
Main Exports:
- Primary products of Gold, Cocoa and Timber which have not been processed and are of low value
Main Imports:
- Mainly manufactured goods such as technology, machinery and medicines
- Also large quantities of oil which is expensive
- These are processed / manufactured goods (except oil) which means they are of higher value
Trade Issues:
- Not a member of any trade blocs so Ghana has no free trade and its products are subject to import duty and quotas / restrictions
- Unable to add value to cocoa and can only export the low value cocoa beans rather than processed chocolate products which has
discouraged the growth of manufacturing in Ghana and stops improvements in the quality of life for its residents
- Imported food from the EU is cheaper than local produce as farmers receive subsidies from the government
- Locals buy cheaper imported frozen products and local farmers lose out and are unable to sell goods. This is called dumping
Issues in the Cocoa Industry:
- Most cocoa grown on small farms where it is the only crop:
this means that if it fails the farmers and family are without an income
the farmers have little bargaining power to get a good price for their crop
the price farmers are paid fluctuates with supply and demand so farmers cannot plan / save
- Farmers get a low price for their crop (average wage is £160 a year):
They cannot afford to educate children so cycle of poverty continues
They cannot buy additional resources to improve their lives / farms
The way the cocoa industry is currently means that Ghana will struggle to develop its manufacturing industry therefore will find it
difficult to make more money as a country in order to invest in:
-
Healthcare
Education
Infrastructure (roads / communications which attract overseas investment)
An example of a trading scheme – Fair Trade, Ghana (Kuapa Kokoo Cooperative – Cocoa)
Location
- Ghana is a LEDC in West Africa on the Atlantic coast north of the equator.
Issues in the Cocoa Industry:
- Most cocoa grown on small farms where it is the only crop:
this means that if it fails the farmers and family are without an income
the farmers have little bargaining power to get a good price for their crop
the price farmers are paid fluctuates with supply and demand so farmers cannot plan / save
- Farmers get a low price for their crop (average wage is £160 a year):
They cannot afford to educate children so cycle of poverty continues
They cannot buy additional resources to improve their lives / farms
Fair Trade:
- This certifies certain products have met standards which aim to ‘Guarantee a better deal for farmers and workers in
developing countries so that they can enjoy a better standard of living’.
- This is achieved through:
Paying farmers an agreed and stable price which is higher than the price on the open market
Paying the farmer an additional amount called the Fair Trade Premium
Developing a long term trading partnership with the producers (farmers)
- In Ghana there is the Kuapa Kokoo Cooperative which is a group of cocoa farmers who sell their cocoa beans to a UK company
to make fair trade chocolate bars (Divine and Dubble bars)
Benefits:
- Farmers receive an extra US$150 per tonne which is 10% higher than the standard price
- The fair trade premium is used to fund village projects such as:
Village wells = clean drinking water means less water borne diseases and a healthier population with less chance of
illness / early death. More time to do productive tasks as no longer have to fetch water
Women’s projects = makes them more independent and able to earn their own income
Schools = better education for children so able to work in more skilled jobs when older and break the cycle of poverty
Farmer education projects = taught how to deal with pests / diseases so crop is better and more money can be
made
- Members of the cooperative are shareholders of the UK firm and profits are reinvested in development projects in Ghana
Many different people in the community (farmers, children, women and the community as a whole) benefit from being part of the Fair
Trade cooperative in Ghana – it is a long term example of how a country can be helped to develop.
6.4 – How Effective is international aid in narrowing the economic gap
between countries?
Development aid aims to tackle poverty and improve quality of life and is planned over long periods of time.
Emergency aid is given to relieve immediate suffering after a disaster such as war, famine or volcanoes.
Different development aid projects have different benefits and improve quality of life in different ways:
Aid Project
How will it help the country / people
Building a new school with
trained teachers to educate
more girls
- Girls will be better educated and therefore marry later so will have fewer children and will
therefore not need to rely on their children to support them.
Provide bore holes / wells
for villages
- Women will no longer have to walk large distance to collect water so will be less tired and more
able to do tasks that could improve quality of life by providing an extra income.
- Women will understand ill health and recognise the signs earlier so will seek help sooner and
therefore live longer.
- Water will be free from disease so people will be healthier and live longer. Illnesses that are
spread through water eg cholera will be lesson common.
Set up a training program
to teach sustainable
farming techniques
- Land will be less damaged and people will be able to get more cops from their land. They will
make more money and be less at risk if crops / the harvest fail.
Train more doctors and
nurses in the country
- Healthcare will be better and more available so less people will die from treatable diseases and
will be able to contribute to the economy and support their family by working longer.
Supply people with a
mosquito net
- Malaria will be reduced so people will be sick less often. They will be able to work more and
contribute to the economy and won’t need expensive treatment either.
Emergency aid offers short term relief to prevent further suffering and loss of life after a disaster:
Aid
Benefit
Food
- Prevents starvation and malnutrition which can reduce the number of deaths
Supply medicine
- Reduces the risk of illness / spread of infection and prevents the deaths of survivors
Water purification
systems
- Stops the spread of water borne diseases which can spread easily and kill thousands
Supply emergency
shelters
- Protects against exposure which can cause illness and death if the weather is hot / cold
- Therefore prevents further death / illness
An example of a country that receives Aid - Mali, West Africa.
The Sub-Saharan countries of West Africa are some of
the poorest in the world.
Mali
 Mali suffered drought in 2004 and in 2007 flooding.
 A plague of locusts destroyed the crops as well in
2004.
 By July 2005 3.3 million people were at risk of
starvation.
 NGO’s (Non-Governmental Organisations) deliver
food, shelter and medical supplies. This is described as
emergency aid.
 Examples of NGO’s are Oxfam, Action Aid and
Christian Aid.
 Most aid is planned over long periods of time to
tackle poverty and improve quality of life. This is known as long-term or development aid.
What was done to help this problem?

UNICEF (United Nations International Children's Emergency Fund) is a charity that raises money for disasters and aid
programmes.
 UNICEF gave $270,000 dollars to treat 14,000 malnourished children for 6 months.

245 cereal banks were opened in UNICEF’s intervention zones.
 Millet and sorghum available. When food supplies are low cereal banks loan food to mothers and after
harvest women repay their loans in cash or grain.
 Twice a year Vitamin A supplements are provided to all children under the age of 5.
 Other feeding centres receive therapeutic food for the severely malnourished children. The food is high in
protein and fat.

UNICEF also supports 300 women’s groups to promote breastfeeding and to monitor children’s growth in villages.
Other Aid projects in the Country aim to:
Improve village access to basic services
Provide quality basic education, especially for girls
Improve healthcare provision in villages
Provide fair loans to farmers
Through:
Constructing wells and bore holes in villages to ensure drinking water is
clean and accessible
Building community schools just for girls where needed
Development of health services training institute to improve
effectiveness of nurses and paramedics
Developing cooperatives and organisations which provide loans and
guarantee a fair price for crops
An example of a sustainable aid project in a LEDC – Send a Cow to Uganda (and other African countries)
Location:
- Uganda is a LEDC in East Africa which borders Kenya
- It is a land locked country (no border with an ocean) and sits on the equator)
The Charity:
- A UK charity asks for donations from people to support poor families in Uganda who struggle to make a living as the soil is poor
quality
- The money is spent on buying the family in Uganda a cow
- The cow benefits the family by:
- Producing milk to improve the diet which makes the family healthier
- Producing manure which can be used to fertilize the land to help grow more crops
- More crops means the family is better fed and healthier
- If there is any excess milk or crops these can be sold at market which benefit the family by providing a steady income which
means they can:
- Buy food if the crop fails
- Buy clothes and other essentials for the family
- Afford pens, paper and uniforms so the children can attend school and in time have a better quality of life
- The cows are bred and the claves are used to help others:
- Female calves are passed to other families in the village
- Male calves are kept and fed to sell and bring in further money
- Once the whole village has a cow, the next calf is passed back to the charity so that other villages can benefit
Why is it sustainable:
- Once the cow is donated there is no need from input from outside sources
- The cows are passed on to help other families in the future
- The family is benefiting from the project now without it damaging the future needs of the family / community
Millennium Development Goals:
The United Nations (UN) is an international
organisation supported by 192 different
countries – one of its aims is to encourage
and assist human development.
In 2000 (the Millennium!) they set 8
development targets known as the
Millennium Development Goals (MDGs).
The challenge was to meet the goals by
2015 and they are measured using
development data from 1990 to present day.
TASK: For each of the MDGs, try and think of a so what to explain why it is important
Example: MDG6 – Combating HIV, malaria and other diseases
-
These diseases result in death for millions of people, especially in some of the poorest nations of the world.
The diseases are also a major cause of poverty in many communities – making it harder for people to work themselves
out of poverty and into a better QoL
In 2007 an estimated 1.5 million Sub Saharan Africans dies of AIDS (linked to HIV) and more than 11 million AIDS
orphans were living here
The link between HIV and poverty:
Many people contracting HIV become ill and are unable to work, which means that
family income is lost and children in the household have to give up education and work.
The country therefore has fewer workers to pay revenue, which means less money can
be spent on health and education. With less revenue being spent on health and
education, the country is likely to suffer from poverty. Less education means that
people are less likely to get a well-paid job – more people in low paid jobs means that
less revenue is paid to the government and so the cycle of poverty continues.
Deaths amongst the workforce cause distress for the family but also reducing
the earning power of the family
It impacts on the future of the children as well as they are often forced to leave
school
The evidence suggests that the MDG may be reached as rates of infection are falling in
many African countries as a result of:

Fewer people becoming infected due to education programmes (training for
healthcare workers, people in education and members of the public)
Possible Exam Questions on Interdependence:
1.
What is meant by the term ‘interdependence’?
2.
Explain how countries benefit from a greater level of interdepence
3.
Explain how changing technology has made countries much more
interdependent
4.
Using examples, explain 2 possible advantages and 2 possible disadvantages of
interdependence
5.
For an area or country that has received aid:
Name and locate the area or country.
Describe the aid given.
Explain how the aid affected the lives of different groups of people.
Explain how improving the education of women may help the development of
a country.
6.
How may short term emergency aid help people in an area affected by
disaster?
7.
Explain how long term development aid might be used to help people living in
poorer countries.
8.
Explain how fair trade can help growers in LEDCs
9.
For a named trading scheme or trading group:
Name and locate the trading scheme or trading group;
Describe the main features of the trading scheme or trading group;
Explain how the trading scheme or trading group has affected different groups of
people.