Development gap 3.2 Flashcards
What is Marxism
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
What is the role of the WTO in free trade?
They promote economic growth via trade and narrow the gap
What is the role of TNCS in FDI?
Positive outcome by opening businesses internationally thus allowing a generation of income locally, however issues arise through exploitation
The role of WB and IMF in lending money?
Money used for development and promoting economic liberalisation. Could cause debt but debt relief is also possible
Role of NGO campaigns?
Fair trade and Live 8 etc
The role of SAPs and PRSP?
EIther proote development or hurt the poor
How much debt are Somalia in?
$2.2bn
Arrears to the IMF and World bank?
$352m
How much does Somalia owe the African Development Bank?
$70m
When was Somalia recognised as a government?
2013
When will Somalia be able to access fresh financing?
When all debts are paid off
Political reasons for debt?
Al Shabaab rejected food aid. Saudi ban on cattle. CIvil war and fall of Siad Barr’s socialist regime.
Environmental reasons for debt?
Famine killed 260,000. High IMR or 180/1000 children.
Economic reasons for debt?
Saudi ban on cattle exports. No communications infrastructure. No banking facilities
Social reasons for debt?
Food hoarding and tribalism/warlord fiefdom
What is Black Gold?
Somalia acacia tree burnt to make charcoal. Burns longer for shisha and sold by al-Shabab.
Where is black gold sold and what does it pay for?
It is sold to the UAE, Kuwait and OMan and pays for weapons in Yemen
Strengths of Debt cancellation
Reduced government defecit. More competitive economy. Loans rescheduled makes them manageable. Foreign exchange through exports
Weaknesses of Debt cancellation
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
Why does Somalia have no bank?
It has no money to establish a bank or bookkeeping. Alot of counterfeit money means cash is worthless
