1.2 LICs

Question 1

Malawi stats and reasons

Answer 1

63 Life expectancy - Malaria, poor healthcare service - no access, AIDs, Famine and drought, lack clean water
-Less economically active, many unwell, increase birth rates

Fertility rate of 4.4 - children assets - have many
-high dependency, women have children instead of work, future generations less education, low productivity so need many - youthful population

83.9 dependency ratio - stage 2 DTM, high proportion of young people - economically active ‘work off’ dependents

Literacy rate of 81 for men, 66 for women - lack investment, children asset, women have less rights - more kids - only primary and secondary work no TNCs invest

Landlocked, suffers from extreme weather due to latitude - hard to trade and develop - concentrates on relief

0.483 HDI
1080 GNI/capita
20m population, 153 per km2
corruption perception 31/100
63% of children in absolute poverty, 94% in rural areas

Question 2

Why is Malawi and LIC - historical and environmental

Answer 2

1. Historical reasons - Portuguese slave traders, British took control in the late 19th century, plantation farmers and mining companies took the land

Colonialism - ‘power vacuum’ when liberated, nobody knew where power should go. Resources and money left during colonialism as they relied on the imperial force
-Resource curse - cursed by having oil because other countries come and take it

2. Environmental reasons - minimal rainfall - 6 months with no rain, deserts with less than 250mm monthly rainfall. Water shortages, water disease and mosquitos - hard for vegetation to grow, no natural stores and hard to store - high cost for storing. 82% rural population

Landlocked - no nearby trade partners, no ports - ports cheaper than other methods - 90% export revenues from agriculture and 80% in agriculture

Drought - can’t grow crops, food shortages - weak population and proportion of funding spent on this

Disease - high strain on healthcare, death rates, pressure on industry and weaker workforce - 70% of hospital beds of HIV patients

Question 3

Socio economic reasons for Malawi LIC

Answer 3

3. Socio-economic reasons:
   90% primary sector - low revenues especially in drought
   5.8% of labour force dying of HIV/AIDs, government funding into this, low growth rates and productivity
   -$575m in aid - loan, debts
   -2000 IMF stopped aid due to corruption
   -Malawi inputs petrol - money leaves economy, weaker current account
   -Heavy export on tobacco - now high demand or profitable, risk of shock as price slumped
   -Trade deficit
   -Girls less likely to go to school
   -Youth literacy improving but still 80-85 meaning lack of skilled workforce in future

Question 4

CAR:

Answer 4

CAR - resource curse - has gold, timber, uranium diamonds and oil - fuelled internal conflict and been sold to fund conflict. Instability and violence since 1960 due to ethnic tension - 2.9m people in need of humanitarian assistance, 600,000 people displaced. Cash crop price volatility.

Question 5

DRC:

Answer 5

DRC - one of richest countries in terms of natural resources over $24tn - 70% global reserves of coltan, 33% cobalt, 30% diamond and 10% copper - most goes to China’s FDI - corruption conflict etc. meant not used efficiently. 45,000 die from conflict, famine and disease each month - may be related to conflict.

Question 6

South Sudan:

Answer 6

South Sudan - drought, extensive oil but relies on processing facilities outside the country - civil war in 2013, indeedent in 2020 - 2 million deaths, 4 million refugees.

• $38bn iin debt
• 1 doctor per 500,000
• 50% population below 18