Transcript Comparing South Africa and Nigeria*s Economies

TO REVIEW FROM YESTERDAYCountry
Type of Economy
Growing or struggling
South Africa
Wealth is divided between
whites/ blacks most whites
have good incomes, many
blacks live in povertyWorking to fix this
Mixed
Growing, strongest
Oil, gas, postal some
economy in sub-Saharan of the
Africa, gone from mostly telecommunications
mining, fishing
agriculture to
manufacturing and
service industries
Nigeria was wealthy from oil
Mixed (moving
in the 70’s (top 50 wealthiest from command to
country) economy collapsed market economy)
in the 70’s when oil prices
fell. (government neglected
agriculture sector)
What the government
controls
Struggling; most
Post office, schools, 2
Nigerians are poor, most of 3 TV stations
are in agriculture, public
schools crumbling
SS7E3 DESCRIBE FACTORS THAT INFLUENCE
ECONOMIC GROWTH AND EXAMINE THEIR
PRESENCE IN NIGERIA AND SOUTH AFRICA
Factors that influence Economic growth:
Human capital-people who perform labor
Capital-factories or machinery
Natural resources-things that come from nature like minerals or
trees
Entrepreneurship a person with an idea or product who takes a
risk to start a business
GDP (Gross Domestic Product) - total market value of goods and
services produced by an economy during a period of time.
SS7E3 A. EXPLAIN INVESTMENT IN HUMAN
CAPITAL AND GDP
A country needs to invest in HUMAN CAPITAL. Investing in
education and skills training will help to increase the
country’s GDP. A smarter more productive workforce
leads to economic growth.
South Africa invests a lot in education. They realized they
needed to improve their workforce. This is paying off! SA
GDP has been growing yearly.
Nigeria has very little in their budget for education so
human capital growth is difficult. They relied so much on
oil that they ignored education and training in other
areas. The oil wealth belongs to a small group of people.
SS7E3. EXPLAIN INVESTMENT IN CAPITAL
AND GDP
South Africa has also invested in capital growth.
Electrical output, to help the transportation of
goods-they invested in railways and ports.
HOWEVER-50% still lives below the poverty line.
The Nigerian government has not spent money
wisely. It has little money to invest in capital
resources.
SS7E3 EXPLAIN HOW THE DISTRIBUTION
OF GOLD DIAMONDS URANIUM AND OIL
AFFECTS THE ECONOMIC DEVELOPMENT
OF AFRICA
UNEVEN DISTRIBUTION OF WEALTH
Should a country rich in natural resources be wealthy? You
would think the answer should be yes. However, government
instability plays a part in this! (AGAIN!)
Half of the world’s diamonds are found in Africa. Botswana
has used this wealth towards its economy to build
infrastructure. BUT rebels in other unstable countries have
stolen diamonds and used the money to support their
wars.
South Africa has half of the world’s gold. It is the basis for its
strong economy. But other countries that have gold are not
as strong.
OIL AND URANIUM
Oil
In Nigeria- it has caused serious pollution problems. oil money
goes directly to corrupt politicians. Most Nigerians are very poor.
They rely on foreign investment to help with infrastructure and
China sends workers that take Nigerian jobs along with its
investment money. They also import cheap Chinese goods that
wipe out local competition.
URANIUM
This is a radioactive element used to produce nuclear power and
make weapons. Many African countries have uranium. It is easy
to mine as it is close to the surface. This is bringing in jobs as well
as money. This holds a lot of promise for African nations as the
world turns to alternative resources of power.
FIRST CAUSE
Nigeria is rich
in oil:
SECOND
CAUSE
Different
countries want
that oil
EFFECTS
Countries become involved in Nigeria’s
economy.
International energy companies spend money
for hospitals and schools
China aids economy, but Chinese workers take
jobs from Africans.
Cheap Chinese goods wipe out competition
and cause unemployment.
SS7E3D DESCRIBE THE ROLE OF
ENTREPRENEURSHIP
ENTREPRENEURSHIP
Nigeria could use some good new ideas but banks
won’t lend money. International companies are
trying to invest so they help the entrepreneurs.
South Africa has many small businesses. 98% of the
firms in the country are small. Colleges are
investing in teaching people how to run a business.