3.6.2 reducing poverty Flashcards
What does economic development refer to? [3]
Living standards, freedom, and life expectancy.
Essentially covers the moral side to economic growth.
What can help fill savings gaps in developing countries?
Capital inflows, including those in the form of aid.
What does aid provide?
Temporary assistance to a country, such as humanitarian aid to countries after conflicts or natural disasters. Could also be a grant for a project that a country can’t afford.
How are the benefits of aid limited? [3]
- Corrupt leaders
- Size of aid payment
- Potential for the dependency of recipient country
What does Dambisa Moyo think of aid?
She is generally against it.
What does Jeffrey Sachs think of aid?
He is generally pro-aid.
What are two of Moyo’s arguments about aid?
That corruption means aid does not go where it is intended, and that dumping goods into a country means private firms cannot compete and are forced out of buisness.
What is microfinance?
Borrowing small amounts of money from lenders to finance enterprises. Increases the incomes of those who borrow, and can reduce dependency on primary products.
What does microfinance allow for the borrowers?
Financial independence.
Why are microfinance loans beneficial to the poor?
They detach them from high interest, exploitative loan sharks.
What are some poverty reduction policies? [4]
- Promotion of FDI
- Microfinance schemes
- Development of human capital
- Infrastructure development
What are some examples of physical infrastructure? [4]
- Transport
- Energy
- Water
- Telecommunications
