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Macro Economics > 4.3 > Flashcards

4.3 Flashcards

1
Q

What is development ?

A
  • refers to the process by which a society/economy improves its standard of living, increases its wealth & enhances its overall well-being
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2
Q

Current development trends (stats) ?

A
  • 2018: almost 9% of the worlds pop. live on an income below $1.90 per day PPP
  • the average per capita income in a high-income country is $43,000 vs $795 in a low-income country
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3
Q

What are the 3 aspects of development ?

A
  1. life sustaining goods & services: to increase the availability & widen the distribution of basic life sustaining goods eg. food, shelter, health & protection services
  2. higher incomes: to raise living standards incl. the provision of more jobs, better education + greater attention to cultural & human values
  3. freedom to make economic & social choices: to expand the range of economic & social choices available to individuals & nations by freeing them from servitude & dependence to other people and nation-states
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4
Q

What is economic growth ?

A
  • a sustained rise in a country’s productive capacity
  • an increase in real value of GDP/ GNI per capita
  • increases in the productivity of factors of production
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5
Q

What is economic development ?

A
  • progress in expanding economic freedoms
  • sustained improvement in economic & social opportunities
  • growth in personal & national capabilities
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6
Q

What is the Human Development Index (HDI) ?

A
  • a broad composite measure of improvements in people’s lives (weighted index)
  • developed by the UN to identify the stage of development for an economy
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7
Q

What are the 3 aspects of HDI ?

A
  • focuses on basic education, longevity & income:
  1. knowledge: educational component- mean years of schooling & expected years of schooling
  2. longevity & health: life expectancy calculated using min value for life expectancy of 25 years & max value of 85 years
  3. a decent standard of living: GNI per capita adjusted to purchasing power parity (PPP)
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8
Q

How does the HDI work ?

A
  • each of the 3 measures is given a value between 0 & 1 (0 being very low development & 1 very high)
  • then an average is taken of the 3 composite indicators to give an overall measure of development
  • it can be expressed as a number between 0 & 100 (if the measure is multiplier by 100) or 0 & 1
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9
Q

HDI values ?

A
  • 0 to 0.49: low development
  • 0.5 to 0.69: medium development
  • 0.7 to 0.79: high development
  • 0.8 & above: very high development
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10
Q

What are the advantages of using HDI ?

A
  • allows for comparisons between countries
  • provides broader comparison between countries than GDP does by incorporating education & health
  • education & health are important development factors to consider (provide info on a country’s infrastructure & opportunities + people tend to live longer if there is better access to doctors & healthcare, along with access to good sanitation & housing)
  • relatively easy date to collect & compare
  • as objective as possible - it could be difficult, for example, to come up w/an accurate/reliable measure of more qualitative factors like freedom of speech
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11
Q

What are the disadvantages of using HDI ?

A
  • does not consider qualitative factors eg. how free people are politically, their human rights, gender equality or cultural identity
  • does not take the environment into account
  • does not consider the distribution of income (a country could have a high HDI but be very unequal thus inaccurate)
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12
Q

What is the Gender Inequality HDI ranking ?

A
  • includes indicators that reflect the extent to which there are deep & persistent imbalances in economic, social & political freedoms for women & girls in developed & developing counties
  • Rwanda has made significant progress in addressing gender inequalities eg. female lawmakers make up 64% of parliament, outperforming a world average of 1 women in 5
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13
Q

What is the difference between gender equality & gender equity ?

A
  • gender equality: denotes women having the same opportunities in life as men incl. the ability to participate in the public sphere
  • gender equity: denotes the equivalence in life outcomes for women & men, recognising their different needs & interests
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14
Q

What are the economic factors influencing development ?

A
  • industrialisation & diversification: transition from agriculture to industry (reduces dependancy on a primary products + enhances resilience to shocks)
  • commodity price volatility: prices on world markets may change dramatically due to supply shocks eg. abundant harvests (affects export revenue if dependant on commodities, trade imbalances, investment uncertainty, macroeconomic stability eg. inflation & interest rates)
  • savings gap: household income is low so there is little savings available for investment (underinvestment in critical areas that drive economic growth & development) = lack of infrastructure, access to education/health care, limited tech
  • lack of foreign currency: weak currency means that the country cannot afford to import technology, trade constraints, discourage FDI, exchange rate instability
  • capital flight: potential investment funds are diverted to other countries as investors lose confidence in economy
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15
Q

What are other factors influencing development ?

A
  • geography: natural resources, climate, accessibility + transport, health, culture
  • demographic factors: pop. growth, age structure, education levels, urbanisation, migration, fertility rates
  • technology: tech innovations & advancements enhance productivity, efficiency & competitiveness
  • debt: smooths consumption & investment + buffers external shocks BUT can crowd out investment & more unstable/vulnerable
  • access to credit eg. loans for investment or housing
  • infrastructure: enhances productivity & competitiveness, fosters urbanisation, attracts investment & promotes trade + facilitates economic activity (movement of goods/services/people)
  • education/skills: develop a skilled workforce, higher productivity, innovation, stimulates entrepreneurship
  • political instability: economic disruption (fluctuations in currency, reduced investor confidence), reduced govt effectiveness, social unrest
  • corruption: distorts economic decision making, undermines market efficiency + impedes investment, misallocation of resources, undermines access to essential services eg. healthcare & education, reduces foreign aid & investment, environmental degradation
  • access to clean water/improved sanitation facility
  • degree of primary export dependence
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16
Q

Examples of sustainable development goals (SDGs) ?

A
  1. end poverty in all its forms everywhere
  2. end hunger (achieve food security & improve nutrition, promote sustainable agriculture)
  3. ensure healthy lives & promote well-being
  4. ensure inclusive & equitable quality education & promote life long learning opportunities for all
  5. achieve gender equality & empower all women/girls
  6. ensure availability and sustainable management of water and sanitation for all
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17
Q

Characteristics of advanced/developed economies ?

A
  • industrialised
  • high tech
  • not focused on agriculture
  • low pop growth
  • high GNI

eg. Norway, Switzerland, Australia, Ireland, Germany, Iceland, Sweden, Netherlands, Germany, Uk

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18
Q

Characteristics of developing economies ?

A
  • reliant on agriculture
  • low tech
  • high pop. growth
  • reliant on aid
  • corrupt govt

eg. Niger, CAR, South Sudan, Chad, Mali

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19
Q

Characteristics of emerging economies ?

A
  • rapid economic growth
  • increased investment
  • manufacturing
  • high income growth & inequality

eg. Egypt, Russia, Saudi Arabia, Nigeria, Iran, Thailand, Brazil, India, China, South Africa

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20
Q

Primary product dependancy and development ?

A
  • less developed countries tend to export a narrower range of products
  • many developing countries have high dependancy on exporting primary commodities eg. coffee, cocoa, oil, natural gas, metals, timber
  • ❌ over-specialisation: increased specialisation in primary commodities, increases the supply thus causes prices to fall quite significantly
  • ❌ trade vulnerability: primary products may not keep pace with prices of manufactured goods
  • ❌ limited diversification: resources & investment may be disproportionately allocated to the primary sector = vulnerable to external shocks + limited employment opportunities
  • ❌ natural resource cure: resource rich countries experience negative development outcomes eg. corruption, rent-seeking behaviour, environmental damage, inequality, wasteful consumption thus do not use revenues to improve HDI through investment (slow GDP growth & low HDI)
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21
Q

What does the Prebisch-Singer Hypothesis suggest ?

A
  • over the LR, prices of primary goods eg. coffee decline in proportion to price of manufactured goods eg. cars & washing machines
  • theres is likely to be a long-term decline in real commodity prices (partly due to income elasticity of demand for commodities being lower than manufactured goods) ➡️ worsens the terms of trade for primary exporters
  • countries might be better off focusing on import substitution policies which encourage rapid industrialisation & improved export diversification (more resilient to price shocks)
  • ❌ BUT this had not happened for many countries as labour intensive manufactured goods are now signficiantly cheaper due to gloabalisation, tech improvements & economies of scale
  • ❌ rising global pop & increase per capita incomes has seen a increase in world prices of many primary commodities eg. price of rare earths in phones
  • ❌ many primary commodity exporters in developing counties have seen their terms of trade rise
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22
Q

What is Dutch disease ?

A
  • refers to the negative impact of sudden discovery of natural resources on the national economy via the appreciation of the real exchange rate & decline in export competitiveness
  • the influx of wealth from natural resource exploitation will have negative consequences on other sectors of an economy especially manufacturing & agriculture
  1. resource boom: discovery or exploitation of natural resources leading to a surge in export revenues & govt revenues
  2. currency appreciation: increased export rev often lead to a rise in the currency’s value thus makes exports of other goods less competitive internationally
  3. deindustrialisation: the appreciation of the currency can lead to a decline in the competitiveness of non-resource sectors esp. manufacturing (domestic producers find it harder to compete with cheaper imports = decline in output, employment & investment in these sectors
  4. resource dependancy: reliant on rev from natural resource thus focus of maxing rev from this at the expense of diversifying the economy & investing
  5. volatility: dependance on natural resource export = more vulnerable since commodity prices are subject to volatility
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23
Q

Price volatility and development ?

A
  • economies heavily reliant on commodity exports will be vulnerable to price volatility
  • ❌ export earnings & govt rev: unpredictable changes in export rev = hard for govts to plan & budget from investment
  • ❌ trade balance & current account: decline in commodity prices can lead to deteriorating trade balances (persistent trade deficit can lead to currency depreciation)
  • ❌ investment: uncertainty surrounding commodity prices can deter investment in sectors reliant on commodity esports (eg. energy, mining, agriculture) impeding job creating, industrialisation & limiting diversification
  • ❌ poverty
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24
Q

Strategies for reducing primary product dependency & price volatility ?

A
  • better govt: more transparency & accountability to taxpayers so its clear how natural resource revenues are being spent
  • stabilisation fund/ sovereign wealth fund: eg. to fund human capital & infrastructure or inject money into an economy when AD dips
  • higher taxes of natural resource profits: ie. extracting resource rents & reinvesting in the domestic economy to increase supply-side capacity
  • buffer stock schemes: designed to reduce some of the effects of price volatility (BYT most less developed countries have limited ability ti influence the world prices of their key exports)
  • diversification: shifting resources into processing, light manufacturing & tourism (higher value added & making the economy less susceptible to external shocks)
25
Q

What is the savings gap ?

A
  • many rich countries have excess savings whereas in low-income countries, extreme poverty make it almost impossible to sufficiently save to fund capital investment projects
  • furthermore the financial/banking sector may be extremely underdeveloped in developing economies so no guarantees provided by govt for depositors to get their money back in case of bank failure
  • increase reliance on foreign aid or borrowing from overseas (higher external debt)
  • eg. In Sub Saharan Africa saving rate of around 17% of GDP compared to 31% on average for middle-income countries
26
Q

What is the Harrod Domar Model of Growth ?

A
  • stresses the importance of saving & investment
  • the rate of growth depends on: level of national saving & the productivity of capital investment (capital-output ratio)
27
Q

Correlation between GDP and savings ?

A
  • rate of growth of GDP = savings ratio / capital output ratio
28
Q

What is the role of higher savings ?

A
  • increase in national savings leads to an increase in investment leading to larger capital stocks which leads to increase in real GNI and then increased factor incomes which turns more households to save
29
Q

What is the importance of capital investment for developing countries ?

A
  • injection of demand for capital goods industries
  • creates positive multiplier effects
  • increased capital stock can increase rural productivity thus per capita incomes & consumption in rural areas
  • investment in new machinery & factories supports economies of scale especially in new/infant industries
  • can help to achieve export-led growth due to the increase in productive capacity
30
Q

What is a foreign currency gaps ?

A
  • refers to when there is a shortage or insufficient foreign currency reserves in a country relative to its external obligations
  • many developing countries face imbalance between inflows & outflows of currencies eg. US $ & Euros
  • ❌ import dependancy: restrict a country’s ability to import essential goods/services eg. food/fuel (face shortages, inflationary pressure & reduced consumer purchasing power)
  • ❌ not enough FC to pay for essential imports eg. medicine, food, raw materials (hamper SR economic growth/development)
  • ❌ investment: can deter FDI + lead to capital flight as investors lose confidence in stability of domestic currency
  • ❌ exchange rate instability: exchange rate volatility (govt may be forced to devalue domestic currency or impose capital controls to conserve foreign currency reserves0 = reduced purchasing power, import inflation + reduced consumer/investor confidence
  • ❌ trade imbalances: affect value of exports relative to imports (trade deficits as import costs remain relatively stable while export revenues decline)
  • ❌ external financing constraints: FC shortages constrain access to external financing eg. aid, grants = less investment
31
Q

How can developing countries attract external finance ?

A
  • FDI: create an attractive investment climate through policies promoting foreign investment eg. tax incentives, investment guarantees & streamlined regulatory process (remains largest external source of finance for developing countries - almost 40% of total incoming finance)
  • foreign aid & grants: donor countries & international organisations provide foreign aid & grants to support development projects (don’t need to be repaid)
  • concessional loans: international financial institutions eg. World Bank offer concession loans to developing countries at below-market interest rates & flexible repayment terms
  • Remittances: from migrant workers abroad are a significant source of external finance for developing countries (govt can facilitate remittance flows by reducing transaction costs, improving financial infrastructure, promoting financial inclusion initiatives)
  • tax incentives
  • investment guarantees
  • portfolio equity flows
32
Q

What is capital flight ?

A
  • the uncertain & rapid movement of large sums if money out of a country often due to economic or political uncertainty/instability eg. Russia, Nigeria
  • ❌ currency depreciation: put pressure on domestic currency = depreciation (imports of essential goods more expensive leading to inflation)
  • ❌ reduced investment: investors may more their assets abroad = less fund available for domestic investment
  • ❌ loss of human capital: sometimes accompanied by flight of skilled individuals eg. entrepreneurs ie. brain drain
  • ❌ debt burden: govts may resort to borrowing to finance budget deficits or stabilise the economy
33
Q

What reasons are linked to a lack of investor confidence ?

A
  • political turmoil/unrest/risk of civil conflict
  • fears that a govt plans to take assets under state control
  • exchange rate uncertainty
  • fears over the stability of a country’s financial system
34
Q

What is meant by demographic factors ?

A
  • demography is concerned with the size & composition of a population
  • over time demographic change can have a powerful impact on the growth & development prospects of a country
  • past half a century the world has experienced an unprecedented increase in its pop 3 bill (1960) to 7 bill (2010)
  • World Bank projects that in next 35 years another 2.5 bill people will be added to the planet (over 90% of this in developing countries)
  • 2018 to 2030: the working age pop will grow to 552 million in low/middle-income countries & in high income countries it will decrease by 40 million people
  • world population is projected to reach almost 10 billion by 2050
35
Q

Life expectancy ?

A
  • globally life expectancy has risen by 7 years
  • in some countries, the rise has been as much as 19 years
  • since 1990 life expectancy has improved in 96% of countries
36
Q

Ageing populations & pop decline ?

A
  • in a growing no of rich nations, pop growth is slowing down
  • in some cases there is negative natural pop growth not offset by inward migration
  • in Japan an ageing pop combined with low female participation & low net inward migration is causing a contraction in the size of their active labour force
  • in Latvia & Bulgaria the resident pop is declining by more than 1% each year
  • UK has an ageing pop: around 12.4 mill people of pensionable age (prediction that there will be 16.3 mill by 2041)
  • ❌ could lead to a slowdown in innovation, reduced output growth, reduced real interest rates + societies may become more risk averse = reducing investment in stock market or extent of self employment
  • eg. Japan, Italy, Findland, Germany
37
Q

Micro effects of ageing pop ?

A
  • changing patterns of consumer demand in markets - affecting profits of businesses in particular sectors
  • impact on govt welfare spending & tax rev eg. health care for the elderly, treatment of chronic illness
  • impact on housing market: people can live in their own homes for longer OR some older people need specific things eg. retirement communities or assisted living facilities
  • labour market dynamics: older people choose to retire reducing available workforce = labour shortages & skill gaps (impacting productivity & economic growth)
  • savings & investment patterns: older people may draw down their savings to finance retirement = reduced consumption & investment
38
Q

Macro effects of ageing pop ?

A
  • impact on rate of growth of productivity & long term GDP growth eg. increase in age dependancy ratio
  • impact on business competitiveness if median age continue to rise rapidly
  • increased demand for state funded health care inc. social care & possible reduction in tax revenues if the active labour force contacts
  • innovation & entrepreneurship: +ive = accumulated experience, skills & resources BUT -ive = less adaptable to change & less likely to engage in risk taking behaviour
  • economic growth: downward pressure on growth due to shrinking labour force, reduced productivity & lower levels of investment + hard to adapt to tech advances
39
Q

Population growth in developing countries ?

A
  • in many lower & middle income countries, rising per capita incomes can cause an increase in pop growth (higher incomes & consumption = improved access to health care leading to higher fertility & lower infant/child mortality)
  • eg. Niger, Uganda, Gambia, Mali, Chad
40
Q

Opportunities from rapid pop growth ?

A
  1. expanding pop of working age = increase LRAS causing an outward shift of the PPF
  2. providing per capita incomes are rising then pop growth increases the size of domestic markets - encouraging economies of scale & increased capital investment spending
  3. more people in work = widening of the tax base to help govt finances
  4. pop growth & urbanisation tend to go together - pop growth increases density & rural-urban migration can lead to benefits from agglomeration economies (urbanisation liked to stronger innovation + stimulates demand for new infrastructure = creates jobs & positive multiplier effects)
  5. challenge of feeding a growing pop can be a catalyst for R&D & innovation in farming designed to increase crop yields
41
Q

Risks/drawbacks from rapid pop growth ?

A
  1. large no of young people entering the labour market creates challenges (providing sufficient jobs in the formal economy to prevent a large increase in youth unemployment)
  2. fast growing pop hold back the annual growth of per capita incomes (income spread more thinly across large households = harder to satisfy everyone’s basic needs & wants + rising malnutrition)
  3. increasing pressure on the environment incl. demand for water & energy + can threaten bio-diversity
  4. high rates of rural-urban migration = problems associated w/urban density eg. crime, spread of disease & increased inequality
42
Q

What is meant by brain drain ?

A
  • describes the movement of highly skilled or professionals from their own country to another country where they can earn more money
  • ❌ can lead to de-population
  • eg. Latvias pop is forecasted to contract by 200,000 people between 2017-30 (fall over over 10%)
43
Q

Disadvantages from a brain drain ?

A
  1. loss of human capital: damages LR supply-side potential & is a barrier to development
  2. loss of entrepreneurship & innovation
  3. skills shortages: affecting HDI outcomes eg. emigration of skilled doctors, teachers & engineers
  4. risk of a fall in AD because of a smaller pop
  5. depopulation makes the country less attractive to inflows of foreign investment
  6. dependancy of remittance: dependance may perpetuate a cycle of dependancy + hinder efforts to promote self-sufficiency & sustain development
44
Q

Advantages of brain drain ?

A
  1. remittances: from emigrants flow back to increase a nation’s GNI
  2. people living overseas (the diaspora) may be able to help finance private sector capital projects in the future
  3. acquisition of human capital: by working & studying in other countries e.g. learning languages, earning
    degrees – possibly leading to brain gains if they return to their country of origin
  4. may help to offset risks from rapid natural growth of population such as higher inflation + pressure on
    the built environment & natural resources
  5. knowledge transfers & exchange: skilled migrants often bring valuable knowledge/expertise that can enrich the intellectual capital of destination
  6. skills gaps: sometime brain drains can help address skill shortages in destination countries
45
Q

What is external debt ?

A
  • debt owed to external (overseas) creditors eg. govt bond sold to foreign investors & private sector credit borrowed from foreign banks
  • scale of external debt is measured as a % of a country’s GNI
  • debt not necessarily a problem if the borrowing is being used to help fund capital investment projects which will increase a nation’s productive potential & increase economic growth
45
Q

When do external debts rise ?

A
  1. a govt is running a budget deficit & finances this by selling govt bond to overseas creditors
  2. a. country is running a sizeable current account deficit which is partly funded by borrowing from overseas institutions eg. IMF
  3. households & business borrow money in a foreign currency incl. mortgages & corporate bonds
46
Q

Risks of increasing external debt ?

A
  • returns on investment might fall short of expectations esp if investment goes on projects not subject to proper cost benefit analysis
  • if a country experiences a depreciation/devaluation of their exchange rate the real value of debt will increase (harder to repay)
  • a recession can make it harder to meet the interest payments on debt since govt tae revenues shrink
  • if international investors become nervous about the ability of a govt to repay external debt then a country may suffer a credit-rating downgrade (increase interest rate needed to finance new loans)

➡️ high levels of external debt combined with high interest rates lead to the problem of a country’s interest payments being a high % of GNI & even bigger % of their export earnings each year (led to pressure for debt relief policies involving forms of debt forgiveness or debt rescheduling)

47
Q

How does access to credit & banking impact the economy ?

A
  • improving access to basic financial services eg. bank account, credit & insurance is crucial in improving people’s lives
  • Financial inclusion is on the rise globally (accelerated by mobile phones & the internet) BUT gains uneven across countries
  • financial access makes day to day living easier + allows them to build assets, mitigate shocks, ilness + make productive investments
  • Globally 1.7 bill adults remain unbanked
    -millions of the world poorest people rely on informal loans often at high interest rates
  • many find it difficult to find loans for businesses or to fun education as they have no collateral infrastructure
48
Q

Infrastructure & development ?

A
  • infrastructure consist of a spectrum of public, semi-public, & private goofs
  • eg. water & sanitation, electricity, roads, airports
  • needs to be robust to cope with effects of rapid urbanisation & climate change
  • World Banks states over the next 35 years urban populations are estimated to expand by 2.5 bill people
  • more people live in cities than in rural areas (growing need for renewable energy infrastructure to build reliance to effects of climate change
49
Q

How infrastructure gaps can limit growth & development ?

A
  • increase supply side costs for businesses: higher prices thus hitting real incomes for consumers
  • reduces geographical mobility of labour causing higher structural employment (labour market failure)
  • damages export competitiveness + limits intra-regional trade
  • can make a country less attractive to FDI (may slow economic growth)
  • makes a country vulnerable to climate change/natural disasters
  • contributors to gender inequality
  • have direct impact on basic human development eg. access to basic water & sanitation services
50
Q

What is human capital ?

A
  • the skills, knowledge, talent, experience & ability of workers
  • can be increased through investment in education & training
  • Globally more than 260 mill children/youths not in school + nearly 60% of primary school children in developing countries fail to achieve minimum proficiency in learning
51
Q

Human capital & development ?

A
  • poor human capital capital hits labour productivity + ability to adapt to new tech
  • low productivity keeps
    wages down
  • human capital deficiencies closely linked to malnutrition
  • better basic health care & nutrition helps to unlock improved human capital by avoiding brain impairment & effects of stunted growth
52
Q

What are property rights ?

A
  • refers to the legal rights & protections granted to individuals or entities to own, use and dispose of property (provides individuals with authority to control & benefit from their assets)
53
Q

Why are property rights important for development ?

A
  1. rights to own land & to est businesses are seen as crucial for wealth creation eg. private plots to farm
  2. protection of property rights is a major barrier to corruption
  3. property rights are important to tackle gender inequalities
  4. community ownership/ husbandry of natural resources can help overcome threats to eco-systems
  5. las on patents are important to secure investment in research industries
  6. common rules encourage trade & investment between countries by reducing trade friction costs
54
Q

Gender inequality & development ?

A
  • no society can achieve its potential w/o the full & equal participation of women & men
  • in 2017 the global labour force participation rate was 49& for women but 75% for men
  • 62 mil girls are not in school (pregnancy & early marriage key reasons)
  • worldwide over 100 economies have laws that keep women out of certain jobs
  • across the global women occupy on average 23% of parliamentary seats in 2016
  • gender inequality has cost the world an estimated $160 trill
  • huge differences in gender development outcomes when we contrast high development countries & the
    least developed nations: maternal mortality is more than ten times higher (adolescent birth rate is more than x3 higher in LDCs and only 1/4 of females in the least developed countries have at least some secondary education compared to nearly 90% in countries ranked as reaching very high human development)
55
Q

What is corruption ?

A
  • due to a failure of governing institutions who lack transparency in where tax revenues are coming from & how resources are spent. – the misuse of public power for private benefit
  • ❌ high levels of corruption damages long term growth & development
56
Q

Effects of corruption on development ?

A
  • deters FDI by increasing the cost of doing business
  • leads to allocative inefficiency/ ie. diverting public resources for private gains, there are numerous extreme examples of extravagant wealth in economically less developed countries
  • govt decisions are often unduly influenced by lobbying
  • contributes to income & wealth inequality + reduced progress in cutting the incidence of extreme poverty
  • causes a loss of trust - i.e. a breakdown of social capital
  • leads to poorer development outcomes because governments are not collecting sufficient tax revenues
  • most corrupt countries worldwide 2018 Somalia, South
    Sudan, Syria, North Korea & Yemen
  • Denmark, Norway, Sweden and Finland came top of the latest index.
57
Q

Non economic factors that can affect development ?

A
  • poor governance
  • degree of corruption
  • cvil war and political unrest
  • the geography of a country e.g. landlocked, mountainous etc

Macro Economics (13 decks)

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