Countries at very low levels of economic development Flashcards
Case studies for LDCs
Malawi
Burkina Faso
Bangladesh
Name some LDCs
Chad Ethiopia Haiti Sudan Nepal Uganda Burkina Faso
LDCs are defined by the following features
- Low incomes
- Poor human resource base eg nutrition, health,education ,literacy
- Poor physical resource base eg landlocked, drought,excessive rain,poor soils, natural disasters
- Economic vulnerability
What do many LDCs suffer from aside from poverty
Ongoing and widespread conflict
Extensive political corruption
Lack of political and social stability
3 characteristics and issues of LDCs
Quality of life
Debt
Social problems
Quality of life in LDCs
People in poverty
Income too small to meet needs of people
Economic freedom constrained
High population growth rate so number in poverty increased long term despite poverty falling
Dependent on external finance ie international aid
Debt in LDCs
From 1970s developing countries borrowed money from banks in developed world so LDCs in debt also due to increasing oil prices, higher interest rates, falling export prices, problems of domestic economic management
Social issues in LDCs
Causes of problems faced by LDCs can be classified into
- poor human resource base
- poor physical resource base
8 millennium development goals replaced with 2015 sustainable development goals to be achieved by 2030
Malawi is…….
One of the poorest countries in the world
Characteristics of Malawi (LDC case study)
- 2015 HDI ranking 173/188 countries
- GDP per capita one of lowest in the world
- life expectancy 52 yrs
- Ratio of debts to value exports was > 300%
Causes of Malawi being an LDC
- landlocked
- recent years drought ridden: food shortages
- one of subsaharan Africas most densely populated countries 115 people per square km
- population growth rate high 2.6% per yr , average 5.7 births per woman
- population 1998- 2016 -9.9 m- 17 m
Aid In Malawi
2000- became eligible for HIPC initiative but failed to meet conditions of IMF - higher than expected government spending from famine
Became eligible for debt relief +2 billion debts cancelled so capital to be invested in public services
Characteristics of Burkina Faso (LDC case study)
Small, landlocked, densely populated
- HDI ranked 183/188 countries
- 1/5 die before 5th b-day
- Few schools,health facilities, public services especially rural areas.
- <15% access to sanitation
- Life expectancy 53 years
- One of first countries to qualify for debt relief under HIPC initiative
Causes of Burkina Faso being an LDC
- Landlocked
- Regained independence from France in 1960 renamed in 1984. Spent many post independence years under military rule and endured many military coups.
- reducing rainfall levels and reoccurring droughts - rural rely on farming move to towns/cities for work causing unplanned slum and squatter settlements without services eg water and sanitation growing.