Strategies influencing growth and development 4.3

Question 1

Market-orientated strategies

Answer 1

Trade liberalisation (removal of trade barriers) - Output increases when countries specialise

Promotion of FDI - Helps create employment

Privatisation - more incentive to operate efficiently

Question 2

Interventionist strategies

Answer 2

Development of human capital - Improves skills in the economy e.g. T-Levels in the UK

Protectionism - Can protect infant industries e.g. US & Japan 20th century & reduce trade deficit (less imports due to tariffs and quotas)

Infrastructure development - Greater geographical mobility of labour and lower supply costs for firms (sometimes doesn’t work in countries with high corruption like sub-saharan Africa)

Question 3

Development of tourism

Answer 3

Creates jobs & more attractive for FDI. Dubai benefitted hugely from extensive programmes encouraging tourism.

Question 4

Aid

Answer 4

Consumers in LEDCs have low propensity to consume. Capital inflows, like Aid, can fill this savings gap.
Relies on non-corrupt leaders & size of the aid payment