Development Profiles Flashcards
What was housing like in Finalndd during the early 1990s
- Early 1990s there was limited supply of rental properties (the number of rental properties fell by 11% between 1975 and 1985 ) in a highly regulated market.
- Rising costs and unable to raise prices due to rent control caused exodus of landlords from market
- Caused black market to emerge, avoiding rent control and tax, and caused tenants to pay significantly more than market value for their properties’ rent
What was the effect abolishing rent control in 1995
- Rent control was abolished in 1995 causing rental supply to increase 45% in 1990-2000
- This caused black market to fall apart and prices to fall
How did Botswana esacpe the natural resource curse
- Use resources creatively; 50/50 ownership, trade deal with European Economic Committee, loan from IMF
- Upheld civil liberties and freedom of law; lowest for corruption + instability
- Diversify and improve human capital; 90% of citizens have ana education and 65% employed in service sector
How much did the welath of a citizen in Botswana increase by in just 13 years
12,000%
However, it places high on inequality due to diamond sector being biggest growth and exporter
How has the EU countered Chinese aid in Africa
150 billion of the Global Gateway funding will go to Africa
How has Africa used aid for influence in China
- Involved in estimated 35 countries, ports, power plants, railways
e.g. China has estiimated to invested more than $340 billion in Africa
e.g. important infastructure such as the Railyway line from mombasa to Nairobi or the Addis Abbada - Djibouti Railway
How much of Bangladesh’s exports are from the Garment Inudstry
2018: 83.49% as it has the 2nd lowest pay for production i n the world
What are the challenges facing Bangaldesh’s continued 7% growth
- Severe infastructure gap - only 20% of Dhaka has a sewage system
- Low complexity of imports - limited linkages to rest of economy
- Climte Change - threatens to get rid of 30% of food production by 2050
How is Rwanda utilising microfinance
initiated the Business Development Fund (BDF) which is providing guarantees and grants to accompany the ongoing financial inclusion initiatives with a deliberate effort targeting marginalised women and young girls
What are Rwanda’s financial policies
- Government- supported LTSS Long term saving scheme for basic pension benefits for half population
- Authorities prmoting a cashless economy; high mobile penetration, value of e-money has increased from0 in 2011 to 34% of GDP in 2018
What are Rwanda’s Supply-Side Policies
- Constructing 3 international airports; encourage trade + overcome landlockedness
- Carnegia Mellon Uniiversity Africa established in 2011 to produce creative and technically capable engineers - located in Kigali Innovation City
- Kigali Special Economic Zone to encourage manufacturing
What has been the effect of Rwanada’s strong instiutions, deregulation, property rights been on it’s ease of doing business
- Only Low Incoome Country in the top 100
- 29th easiest place to do business in the world
What has been the effect of the Kigali Special Economic Zone
- Creation of first phones made in Rwanda: Mara Phones in Partnership with Google
- Deal with Chinese firm Pink Mango to set up garment factory –> providing 7500 jobs and 20 million dollars in 5 years
How has Morocco diversified its export base away from farm exports to drive growth
Vehicles is now the biggest single export sector
Morocco overtook South Africa as Africa’s largest car maker with 400,000 cars in 2018
How has Morocco utilised its natural comparative advantage of benefits from 3,000 hours of sunshine per year
- The Noor Plant in Morocco is the world’s biggest concentrated solar power farm. It is the size of 3500 soccer fields and powers more than 1 million households.
How is Mexico in the Middle Income Trap
- Growth of 2.5% over past decade not fast enough (Malaysia 6%)
- Lowest Tax Level of OECD (13%) –> social welfare spending 7% of GDP
- Under-developed financial economy (cash ermaind dominant) –> 1/3 of Adult Mexican have a bank account
- 138th/180 on Corruption
- Crime also major barrier
How reliant is Mexico on the US
Gravity Theory suggest exports should be 1/3 from Mexico to USA while the acttual figure is 72%
94% of FDI flows come from the US
- Vulnerable to Protectionism of ‘the Wall’ and new Nafta
What ddo results from PISA 2015 show for Mexico’s progress
Only half of 15-yearr olds obtain the necessary skills to participate effectivvely and productively in society and in the labour market - World Bank
How reliant is Angola on oil
95% of exports
* Oil booms cause wide swings in economic growth e.g. 2015 oil slump caused recession –> causing Angola’s external debt to treble to over 60 percent of GDP
How has corruption impacted Angola `
Jose dos Santos took over 500 million in government funds
165/181
How has the natural resource curse impacted development in Angola
Angola had 1 physician per 10,000 people
Gini Coefficient of over 0.6
149th HDI ranking
How open is Cambodia to Trade
Trade as a share of GDP is 125%
membership of ASEAN
FDI 11% of GDP
How has Cambodia utilised growth for development
2017 Cambodia has the 8th fastest rate of HDI growth
1. reduction in poverty (47.8% in 2007 to 13.5% in 2014)
2. a fall in measured inequality (Gini from 40 in 1997 to 28 in 2012)
How is the garment industry both beneficial and restrictive to Cambodia
Beneficial:
- 75% of Annual Exports and main driver of growth to ASEAN market of 750 million
Restrictive:
- Parts of Garments are foreign so restricts multiplier
- Infastructure not built around it -106th on infastructure
- Too narrow Export base
How has Mozambique benefitted from discoveries of natural gas
- Increasing FDI: now 18% of GDP
e.g. Anadarko investment of $22 billion; double the size of its GDP
but has borrowed heavily with external debt reaching 100% of GDP
