domestic factors + role of int trade Flashcards
list of domestic factors
- education and health
- appropriate tech
- credit and micro-credit
- empowerment of women
- income distribution
- institutional factors
education and health (+analysis)
developing often has excess labour, but quality not high enough. ⇒ invest in ed
analysis
- opp cost
- entrepreneurs needed
- social+cultural barriers to change
strong stat evidence that enducation/health → income growth + SoL
appropriate tech
needs tech to reduce poverty
investment
foregoing of current consumption for increased future consumption
credit and micro-credit
investment requires saving and surplus income
(stock xchanges, invest bank.. not available)
micro credit analysis
small loans for income generating activities
- allows poor communities econ stability
- allows resources without encouraging debt (debt crisis)
- granted after training?
- diversifies skills in community
- encourages saving
women empowerment
can play important role in development (unused labour)
- education→ lower birth rates
- ⇒less dependancy & pressure on infrastructure
income distribution
unequal income → slowed growth (low income, high propensity to consume)
institutional factors
taxes, legal, lack of prop rights, traditional culture → no development
Trade problems for LEDCs
- overspcialization
- MEDC proctionism + specialzed→large damage
- primary product price vulnerability
- Unable to access int. markets
- MEDCs promote free trade, but subsidize and trade barriers (quality standards that are too expensive)