Flashcards
Conflict trap
•Constraints : Sudan’s civil war restrict AS on education wealthar + all finance goes towards attention for war.
• Sri laura had a long civil war that ended in peace+ development (26yrs).
Landlocked + bad neighbours
Def: A country with no access to the sea. Because most trace travels by sea this severly limits tue potential for x.
•Constraints: Burkina is surrounded by poorly lead countries which makes it hard for them to develop.
•Eval: It is impossible to stop being landlocked, but if neighbouring countries improve, they can benefit via transport systems
Education/skill
Definitiin: The lvl of education + skills of a countrys population which may impact the ability to participate in benefiting global economy
• Constraints: Afghanistan (although having rich in natural rescurces) has a low literacy rate. (60%)
•Eval: India has made a large progress due to right to Education Act in 2009.
Access to credit and banking
Definition: the availability of credit - banking services, which can impact a country’s ability to finance Investment.
+ Support econ growtn
• Constraits: Many African countries where access to credit and banking services is limited, dec. I + econ. growth.
•Eval: FDI helps developing countries access capital anen there is limited credit + banking.
Debt
Definition: The amount of money a country owes to its creditors. Can impact ability to finance and support its currency too.
Constrants decrease. Government spending on education, healthcare and infrastructure.
Eval: The debt relief program for Houduras was part of the
Infrastructure
•Def: the physical + institutional structures that support economic activity, such as transport, power
Taver communication.
•Constraints: African countries may have difficulties moving goods at high efficiency + harder to attract FDIs.
Capital flight
•Deg movement of capital out of a country, taking away resources + weakening the economy.
•Constraints: caused high inflation, political + econ. instability + dec. I (Argentina)
•Eval: there is an ease af doing business reforms, infrastructure development
Foreign currency gap
•Def.: gap between the amount of foreign currency a country has available + amount it needs to finance , pay debts, and support its currency.
•Constraints: Zimbabwe faced restrictions or M + econ. difficulties. → caused widespread shortages line good+medicine
Savings gap: Harrod domar model
Def: suggests a country’s rate of is limited by the rate of savings + potential growth.
Constraints: lack of domestic savings has caused restrictions in development of balancing sectors - limiting access to credit for private sector + restricting job creation
Eval: if countries are poor its hard to “just save”
•constraints: fast
restrictious in development of banking sectars →
take cave
limiting access to checut for privat sector + restricting jobcreation.
пе таку
•Eval: If Countries ave poor, it is nard to “ just save”
Demographic factors
Definition: Characteristics of a countries population (age , fertility, migration)
Constraints: Fast growing population resulting in less people being able to take care of them as there’s less young people. Growing young population means in the long term there will be more elderly
Eval: China’s one child policy, immigration fixes issue
Volatility of commodity prices
Definition: fluctuations in the prices of primary commodities that a country x, which can name a large impact on the country’s economy → limits future growth.
• Constraints: S+D dynamics e.g. copper price due to pandemic disruptions + Ukraine war.
•Eval: some countries have so much oil, that is cheap to produce that they can cope well with price fluctuations. (eg. Botswana’s 80% of x earnings was diamonds)
Primary product dependency
Definition: Reliance on x of a few primary products (e.g minerals or agriculture for countries income and employment
Constraints: volatile global copper prices, dutch disease, limited job creation
Eval: if the product is handled well it can boost economic growth (e.g Ghanastial discovery + transport management
