Bottom Billion Flashcards
Civil war / conflict trap drastically reduces growth. Many rebel soilders are either forced to fight or only fight because they are very poor and want the chance to get money.
cc
Natural resource trap:
Having a boom in a natural resource can be bad by reducing the value of other natural resources (dutch disease — boom in one resource reduced value of currency and makes other exports less valuable). Natural resource booms are much better with effective governments who can properly invest long term in these resources. (too many democracies focus on short term priorities/ winning elections )
xx
Military intervention can actually be very effective
c
Landlocked trap: countries without sea access find it harder to trade and must rely on infrastructure of neighboring countries.
ben
Bad governance makes aid less effective and more air can lead to rebels wanting to take over the government more since there is more money to take.
Cc
Aid is technically foreign exchange , so aid is only valuable if a country can sell the foreign exchange to those importing other goods with that money
xc
Trade restrictions should be reduced gradually so competition can increase at a natural pace.
cc
Customs officers are currently very corrupt, which messes with international trade
xx
