LDC case study

LDC case study

1. economic

   • Economic low incomes in LDCs GNI's less than $745.
     • ethiopia $380 in 2010
   • poor trade links
     • many LDC's have little involvment in world trade- the poorest 49 countries make up 10% of the worlds population but only account for 0.4%
   • high levels of debt
     • many LDC's borrow money from more developed countries for development projects e.g building dams and roads. the loans are large and many have high interest rates-lots of LDCs are forced to spend money on debt repayments rather than on development
   • trade defecit
     • many LDC's will spend more on importing goods than they earn exporting goods. they sell low prodit primary products to more developed countries, who manafacture goods from these products . more developed countries sell the manufactured goods to less developed countries at high prices
   • Economic instability
   • trade in low profit goods
     • many less developed countries rely on the export of primary products e.g agricultural (such as sugar and cotten) or timber and minerals such as iron ore. the price paid for these are low

2. social

   • limited health care
   • High IMR
   • High levels of malnutrition
   • low levels of education
   • low literacy rates
   • access to clean water

3. demographic

   • low life expectancy

4. political

   • many LDC's dont havea democratic government
   • political corruption
   • war and conflict

5. cultural

   • inequality between men and women