emerging

Question 1

hdi

Answer 1

education expected years of schooling of a current 5-year-old over their lives
health - live expectancy at birth
income ​as measured by real GNI per capita at purchasing power parity
3 factors easy to calculate but what ab equality

Question 2

primary product dependancy

Answer 2

inelastic demand and supply so unstable prices
slight decrease in quantity will lead to massive increase in prices so less fdi as harder to predict profits
buffer stock schemes - too much supply government buys it and sells when excess demand but incentives overproduction as gov will buy and expensive
prepsich singer - world income increases demand for primary products decline but manufacturing increases

Question 3

dutch disease

Answer 3

country becomes a significant commodity producer in a short amount of time, causing an increase in demand for the currency which pushes its value up. This increases export prices and leads to a reduction in competitiveness of the economy, causing a fall in output in other areas.
buffer stock schemes

Question 4

savings gap

Answer 4

Bangla low saving and low income and no access to banks so no loans savings and borrowings
ad falls and real gdp falls
Harris domar model
microfinance schemes reduce savings gap but they have Hugh interest rates and dont trust banks

Question 5

education

Answer 5

poor means low income and low tax revenues so low gov spending
improving it will increases productivity
but education means less people working so less income and it depends on the standard of education received

Question 6

poor infrastructure

Answer 6

reduces productivity LRAS left
higher costs and everything takes longer so less competitive
promote fyi by reducing corporation tax and reduce wage costs to attract investment
but repatriations of profit and exploitation

Question 7

poor health

Answer 7

disease less productive LRAS left and lower growth
keeps children out of school since they need to work to help family so low human capital
help by giving aid eg to Kenya 650 million to treat HIV
but corruption

Question 8

population growth

Answer 8

overcrowding and parents home to raise children
improve education on sex education nut religion dont allow condom
only 17% of Iran woman work

Question 9

property right

Answer 9

absence = dead capital
9.3 tn dollars of dead capital
no collateral do cant borrow
reduce dead capital so people can borrow but doesnt mean they’ll take out a loan

Question 10

corruption

Answer 10

eg veneuzuela politicians accept bribes
use tax revenues for themselves
300bn gone missing from Venezuela funds
fairtrade schemes give money directly to farmers but only 1% so barely any rise in income

Question 11

landlocked

Answer 11

Burundi - harder to export and more expensive so less competitive
SRAS left gdp is low and costs are high
debt relief eg 833 bn from world bank bur corruption and moral hazard

Question 12

infant industries

Answer 12

protectionism like subsidies but dependance
devalue the XR to make more competitive but retaliation and currency wars

Question 13

foreign currency gap

Answer 13

import more than export cost push inflation as high import prices
encourage fyi and diversify exports to increase export led growth