Barriers To Develpoment

Question 1

Barriers to development (7)

Answer 1

Low levels of education/health
Infrastructure gap
Trade policies of MEDCs

Debt
Resource trap/curse
Institutional weakness
Population barriers

Question 2

Primary product dependence

Answer 2

Also know as a resource trap, is when there is a high dependence on extracting and exporting primary commodities

Question 3

Problem with primary product development dependence (5)

Answer 3

Volatile commodity prices
Over specialisation
Dutch disease
Corruption
Profits not used productively

Question 4

Prebisch singer hypothesis

Answer 4

Prices of primary goods tend to decline relative to the prices of manufactured goods over time

Question 5

Paul Colliers 4 development traps

Answer 5

• Conflict
• Reliance on natural resources
• Landlocked with bad neighbours
• Bad governance

Question 6

Infrastructure gaps

Answer 6

When the current infrastructure doesn’t match the infrastructure required for development

Question 7

Why are infrastructure gaps damaging? (4)

Answer 7

• Increased costs for businesses
• Geographical immobility
• Less FDI
• Damage X competitiveness

Question 8

Human capital inadequacies (3)

Answer 8

• Skills of workers
• May suffer from brain drains
• Constraints of labour profit Tobit and ability to use tech

Question 9

Corruption

Answer 9

Failure of government institutions who lack transparency both in where their tax reverse coming from and where they are spent

Question 10

Negative effects of corruption

Answer 10

• Inhibits FDI
• Income inequality
• Loss of trust
• Not making use of tax revenue

Question 11

Barriers to development: Inadequate competition (3)

Answer 11

• High prices: fall in real income
• Few suppliers: employment is restricted
• Inefficiencies