4.3 Rough

Question 1

Factors influencing growth and development

Answer 1

• Primary product dependency.
• Volatility of commodity prices.
• Saving gap.
• Foreign currency gap.
• Capital flight.
• Demographic factors.
• Debt.
• Access to credit banking.
• Infrastructure.
• Education.

Question 2

Strategies influencing growth and development (market orientated).

Answer 2

• Trade liberalisation.
• Promotion of FDI.
• Removal of government subsidies.
• Floating exchange rate systems.
• Microfinance schemes.
• Privatisation.

Question 3

Strategies influencing growth and development (interventionist).

Answer 3

• Development of human capital.
• Protectionism.
• Managed exchange rates.
• infrastructure development.

Question 4

Strategies influencing growth and development (other strategies).

Answer 4

• Industrialisation.
• Development of tourism.
• Fair trade schemes.
• Aid.
• NGO’s