Development gap 3.2

Question 1

What is Marxism

Answer 1

Marx believes that we should all be on a level playing ground whereby there is a fair distribution of wealth dictated by the government. This is a top down method which leads to aspects of communism

Question 2

What is the role of the WTO in free trade?

Answer 2

They promote economic growth via trade and narrow the gap

Question 3

What is the role of TNCS in FDI?

Answer 3

Positive outcome by opening businesses internationally thus allowing a generation of income locally, however issues arise through exploitation

Question 4

The role of WB and IMF in lending money?

Answer 4

Money used for development and promoting economic liberalisation. Could cause debt but debt relief is also possible

Question 5

Role of NGO campaigns?

Answer 5

Fair trade and Live 8 etc

Question 6

The role of SAPs and PRSP?

Answer 6

EIther proote development or hurt the poor

Question 7

How much debt are Somalia in?

Answer 7

$2.2bn

Question 8

Arrears to the IMF and World bank?

Answer 8

$352m

Question 9

How much does Somalia owe the African Development Bank?

Answer 9

$70m

Question 10

When was Somalia recognised as a government?

Answer 10

2013

Question 11

When will Somalia be able to access fresh financing?

Answer 11

When all debts are paid off

Question 12

Political reasons for debt?

Answer 12

Al Shabaab rejected food aid. Saudi ban on cattle. CIvil war and fall of Siad Barr’s socialist regime.

Question 13

Environmental reasons for debt?

Answer 13

Famine killed 260,000. High IMR or 180/1000 children.

Question 14

Economic reasons for debt?

Answer 14

Saudi ban on cattle exports. No communications infrastructure. No banking facilities

Question 15

Social reasons for debt?

Answer 15

Food hoarding and tribalism/warlord fiefdom

Question 16

What is Black Gold?

Answer 16

Somalia acacia tree burnt to make charcoal. Burns longer for shisha and sold by al-Shabab.

Question 17

Where is black gold sold and what does it pay for?

Answer 17

It is sold to the UAE, Kuwait and OMan and pays for weapons in Yemen

Question 18

Strengths of Debt cancellation

Answer 18

Reduced government defecit. More competitive economy. Loans rescheduled makes them manageable. Foreign exchange through exports

Question 19

Weaknesses of Debt cancellation

Answer 19

Go from domestic food to cash crop. Cut certain health and education programmes. Privitisation of some businesses. Environmental pressure to generate export crops. Might be benefitting MDCs

Question 20

Why does Somalia have no bank?

Answer 20

It has no money to establish a bank or bookkeeping. Alot of counterfeit money means cash is worthless