Other Strategies - Growth and Development Flashcards
1
Q
Lewis Model of Industrialisation
A
- urban workers tend to produce higher value of output than their agricultural counterparts
- Development of industrial sectors more economically important
2
Q
Tourism pros
A
- employment creation
- Employs higher % of women
- export earnings (helps generate foreign exchange)
- Tourism lifts AD (multiplier effects)
- Accelerator effects from investment
3
Q
Tourism cons
A
- Exploitation of workers by TNC’s
- Many workers are migrants suffering from poor conditions
- Outflow of profits from resorts
- Negative externalities e.g. waste, pressure on environment
- Highly cyclical
4
Q
Fairtrade scheme pros
A
- Guarantee price to certified producers
- achieve greater price stability for growers
- improve production standards (has to have good working conditions etc)
5
Q
Fairtrade scheme cons
A
- Impact on non-participating farmers
- who captures the gains from Fair trade coffee (premium price goes to producers not farmers
- Greater investment needed fair trade does not deal with core problem
- other investment better
6
Q
Overseas Aid pros
A
- Overcome savings gap
- fast-forward investment in critical infrastructure
- long term aid for health + education projects (build human capital)
- targetted aid may help lift people out of extreme poverty
7
Q
Overseas Aid cons
A
- Poor governance (e.g. corruption)
- lack of transparency
- dependency cultures
- aid may lead to distortion of market forces
8
Q
Debt Relief definition
A
cancellation, rescheduling or refinancing of a nation’s external debts
9
Q
Debt relief pros
A
- high debt and interest payments can impoverish - money devoted to paying back debt
- Poor countries vulnerable to global economic shocks
- debt relief can be made partially conditional (e.g. social reforms)
10
Q
Debt relief cons
A
- Moral Hazard (governments might spend recklessly)
- If governments ran better macroeconomic policies interest rates would fall making repayment easier
