Karteikarten
Development Issues: Trade vs Aid
Karten in diesem Stapel (18)
- 1Development Issues: Trade vs AidBooklet
- 2Since the 1940s, efforts to create development in the poorer countries of the world have centred around two approaches. What are they?- The use of trade to promote economic growth
- The provision of aid by the developed countries of the North (oil rich states) to the poorer ones in the South - 3What is neoliberalism?A free market economic philosophy that favours the deregulation of markers and industries, the reduction of taxes and tariffs, and the privatisation of government functions, passing them over to private business.
- 4In the 1980s what did economists believe would develop the South?Industrialisation - as they would then have goods to export
Manufactured goods have more value added than primary / raw materials. - 5What would the increase in trade allow more of? What would be the result?Revenue to flow into LEDCs
Increase in wealth -> improved living standards -> more money for social development (health and education) & development projects (improving transport infrastructure) - 6What are the 3 factors that depended on increasing development?- Adoption of Western-style capitalism
- Economic growth (multiplier effect)
- Promotion of free trade - 7Give evidence supporting development through trade and economic growthGrowth of NICs: Singapore, South Korea & Malaysia
They were less developed in 1960s so opened up markets & experienced huge rates of economic growth and industrialisation -> same as China & India - 8Give evidence against development through trade and economic growthCritics argue it wasn't just trade that enabled the development of NICs
E.g. Their governments often applied protectionist policies - quite the opposite to neoliberalism. - 9What do some economists argue against development through trade and economic growth?- Less developed countries can't be competitive in global market because of great difference in wealth
- Poorer countries rely on agricultural exports but prices have been falling
- Debt suffered by many poorer countries has put them in a difficult position - 10What happened to Sudan in the 1990s?Lots of their exports were low profit agricultural goods (e.g. cotton, nuts & livestock)
Sudan had a trade deficit & the production and trade of these goods decreased due to conflicts and droughts. - 11What happened to Sudan from 1999?Started exporting oil -> country had its first trade surplus
Over last decade oil has become the main export & trade surplus reached $1.4bn in first months of 2011. - 12What was the success of the oil industry in Sudan?Helped development because it brought economic growth and improves international relations
E.g. trade agreements made with US, EU, Egypt and Libya. - 13What are the obstacles Sudan faces to further development?- Concerns profits aren't funding development due to corruption
- Agriculture is important for the economy (40% of GDP and 80% of people employed)
- Trade is low profit and unreliable. - 14What is the luckiest nut in the world?American peanut
- 15What is trade liberalisation?Process of becoming more trade free by removing trade restrictions
- 16Why did Senegal need help from the World Bank and what did they advise?- They needed more money because they lacked in resources / money to invest in the development
- They encouraged to focus on exports by WB to repay the debt. - 17What happened to global groundnut production following this?Other developing countries produced them so the price went down (supply and demand) -> for more foreign currency (1980s)
- 18What was the effect of more developing countries producing groundnuts have on Senegal?There were more groundnuts on the market so their price fell -> when supply goes up without an increase in demand, price falls
Result: Senegal was getting less for their nuts so had to borrow more money.
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- GCSE Geography (Population - A Level) Karteikarten am Development Issues: Trade vs Aid, erstellt von Amy Arthur am 11/01/2017.
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- Amy Arthur
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