Causes/Impact on Countries and Governments Flashcards
Causes/Impact of Issue
Introduction Debt Poor Trade Conflict Health (Individuals) Corruption (Countries and Governments) Conclusion
Introduction
- Out of Africa’s 54 countries, 34 are least developed in world
- Population rose form 220m in 1950s to 1 billion today
- In Namibia, 29% live in extreme poverty and life expectancy is 51 years
Debt
K- By 2013, the continent owed $400bn in debt, which is
3/4 GDP
- Loan repayments are $14bn a year, money diverted
from vital resources.
An- Getting SAPs from providers of loans (World Bank,
IMF) which focuses countries’ budgets on repaying
loans instead of investing into development.
- Eg Angola spends 7% GDP on repayments, more than
triple what it spends on healthcare (2%)
K- In 2005, experienced debt cancellation where UK and
numerous other countries cancelled debts. (25 most
deprived for UK)
- Allow countries to invest
- Zambia introduced primary health care and Ghana
introduced free early education.
An- However, countries including US refused to
participate, saying it rewards poor economic policy.
- Zambia owed $1.4bn in 2011 but now owe $7bn
Ev- Debt has huge consequences on development as it stops countries from investing into resources. Because of lack of development caused, no economic growth which traps countries in cycle of debt. Why 319million in sub-saharan africa have no clean water.
Poor Trade
K- Country is actually rich in mineral resources
- In 1980s, had 6% world share of trade but now halved
to 3%.
- Because of poor trade terms where WTO voting rights
are distributed based on economic size.
An- Impact is rich countries (eg USA, UK) dominate
international markets.
- Set rules for their own profits that force African
farmers to pay high taxes and sell for low prices.
- All reduces their profits
K- SAPs don’t allow governments to give farmers
subsidies and force countries to grow cash crops.
- Really prevalent as 40% farmers in cash crop industry.
- Many countries also sell or lease land to large
companies such as Mosanto to grow cash crops
- Mozambique has leased 20% of agricultural land
An- Impact is less land being left for subsistence farmers
to grow food to feed themselves, their families and
their communities.
Ev- If able to gain 1% of world trade, earn $70bn which is much more than aid.
Conflict
K- Nearly half of Africa’s 54 countries in active or recently
active conflict.
- Death toll from Sudan was 2 million, Congo civil war
cost 5 million lives.
An- Impact is depletes workforce, stops productivity and
destroys any chance of economic growth.
- All money is diverted to war effort instead of
development.
- Oxfam reports civil war costs $18bn a year, or $300bn
over 15 years.
K- Also affects trade.
- Eg conflict in 2011 in Ivory Coast blocked main seaport
for Mali, Niger and Burkina Faso.
An- Mali and Burkina Faso both lost $30m in first 3
months of conflict.
- Hurt their financial position, ability to invest.
Ev- Conflict has social, economic and political impacts on not only the country in conflict but those surrounding it
Health
K- No country in Africa has universal healthcare
- No country spends near as much as western countries
- UK spend $110bn (10% GDP) whilst Ethiopia, Nigeria,
Kenya spend 4-6%.
K- Many of these countries struggle with diseases such as
HIV/AIDs
- Swaziland has the highest prevalence rate
An- Families are losing main source of income, cannot
work and do not contribute financially.
- No healthcare system so medical costs are high,
pushing families even more into poverty.
An- Employers like hospitals, factories, schools have to
constantly train and find staff to replace ill.
- In many countries, more teachers with HIV/AIDs than
being trained.
- Brain drain
Ev- No development as millions dying in prime working
years, no contribution to economy.
Conclusion
- Combination of social, economic, political causes that have caused the lack of development
- If these are not all addressed, will be trapped in the cycle.
