26 March 2013

1. 26 March 2013 Should Britain let go of London? Thinker… This is a news article from 2013. How does it link to what we have learnt this week? "A first-rate city with a second-rate country attached." That is how one rather brutal friend of mine describes London. For a certain kind of "global citizen", London today feels like the new capital of the world - while, for people living in other parts of the UK, it all too often feels like another planet. London's top ten boroughs alone are worth more than all the property of Wales, Scotland and Northern Ireland, added together. The Office for National Statistics reckons that the average Londoner contributes 70% more to Britain's GNP than people in the rest of the country. Without London, the UK would look like a rather different economy - one less focussed on financial services, more reliant on manufacturing. Learn to change the world

2. The Informal Sector • LO: • To understand how employment conditions vary • To evaluate the effectiveness of economic measures Starter Describe what happens to employment structure over time Learn to change the world

3. Often subsistence farming Labour intensive Farming becomes capital intensive Industrialisation requires large secondary workforce Industry becomes increasingly mechanised Foreign imports become cheaper QOL improves so demands for services increase This graph represents the UK’s changing employment structure over time. A similar pattern can be seen when looking at countries at different stages of development. Learn to change the world

4. Nepal USA Brazil Learn to change the world

5. Which of these four is the best measure of economic activity? ? GDP GNP Trade balance Employment structure Learn to change the world

6. Evaluating measures of economic activity GDP vs GNP In the USA, revenue from McDonalds is included in it’s GDP but does not include money from foreign branches GNP. So there are problems in the calculation of these measures Learn to change the world

7. Evaluating measures of economic activity If we look at GDP or GNP what would it tell us about these countries? Kenya GDP: 37.23 bn UK GDP: 2.43 tr 64 times higher!! Learn to change the world

8. Evaluating measures of economic activity UK Kenya Rich or poor? Learn to change the world

9. Evaluating measures of economic activity So… As well as flaws in their calculation GDP / GNP do not measure the economic well being of society. Some economists suggest that the sustainability of the economy should be measured as well as the impact on the environment Learn to change the world

10. Evaluating measures of economic activity Employment structure and mechanisation: Generally LEDCs have larger numbers of workers in the primary sector – does this mean that this sector generates more money than farming in MEDCs? Learn to change the world

11. Evaluating measures of economic activity Factory worker - £32,500 Does working in the tertiary sector guarantee higher wages? Farmer - £26,000 Shop assistant - £12,500 Learn to change the world

12. Evaluating measures of economic activity Finally, none of the measures recognise illegal activity… It is estimated that Afghanistan exports $4bn of opium each year Learn to change the world

13. Like the Nando’s PERi-ometer, how much can you challenge yourself? EITHER: Compare the four measures of economic activity. How effective are they as measures of economic activity? OR: Describe one problem of using total GDP as a measure of economic activity and one problem of using employment structure as a measure of economic activity. Learn to change the world