Download Economic Geography of Africa - Coach Nokes World Geography

Economic Geography
Traditional Economy
• Economy where traditions, customs, beliefs and
needs shape the production of goods and services.
• Lack of consumer, popular cultural items
• Both monies and barter system is used.
Dual Economy
• Refers to two types of economies within a
country. One is capitalistic for global
production while the other is based off of
subsistence.
Distribution of Oil in Africa
Cash Crops---• Non-food crops grown and
sold for profit
Blood Commodities
• When the sale of commodities goes to fund
civil war, conflict or political corruption.
one commodity countries
• Economy focuses on one commodity
• Price fluctuations bring instability—mercy of
the global market
“All the economic eggs are in one basket”
Oil: Nigeria, Libya, Egypt, Gabon
Cocoa: Ivory Coast, Cameroon
Tobacco: Malawi
Cashew Nuts: Guinea-Bissau
Economic diversification
• Economy based on many sectors
• More stable, able to survive fluctuations
***solution to the one-commodity economy***
Resource curse
Africa has many resources, why
isn’t it more developed?
• Jobs at the primary level (low wages, low education)
• Lack infrastructure to make or sell finished products
(less trade)
• Foreign ownership (big money elsewhere)
• Raw materials exported (big money elsewhere)
• Corruption (leaders misuse income)
Stabilization Funds
• Countries save money when a commodity is
priced high to cushion the blow when the
commodity price falls.
Dutch Disease
• When focus is shifted to one sector of an
economy causing other sectors to fall behind
Cycle of Poverty----Why African countries remain poor
Brain Drain—see population LTs
• Brain drain is when young skilled/educated people
leave their home country in pursuit of a better
economic situation.
• Typically citizens from developing countries migrate
to the developed world. $$$$$$$