Strategies To Promote Development In Two Or More Countries

Question 1

How has economic planning been employed in Ethiopia?

Answer 1

• Roads account for 4.2% GDP (Education 4%, health 1.2%)
• Absolute poverty declined from 45% to 26%
• GDP increased by more than 10% per annum for last 5 years
• Over next decade, spending on infrastructure needs to be sustained to maintain it

Question 2

What investments has China made in Ethiopia?

Answer 2

• Payed for road, railway and social development
• Top 5 recipient for FDI (46% rise in 2016)
• East Africa’s largest economy

Question 3

What is Hawassa Park, Ethiopia?

Answer 3

• Employs over 100,000 (Soon to be largest job provider in Africa)
• 1.3 million m²
• Attracted investment from Europe, USA and China (16 major MNCs)
• State of the art residential compound for workers

Question 4

What is the ‘Top down approach’ by aid agencies?

Answer 4

• Large scale aid give directly to government
• Effective in large project
• Corruption sees money siphoned off

Question 5

What is the ‘Bottom up approach’ by aid agencies?

Answer 5

• Small scale aid given directly to people who need it

- Digging of wells or small scale agricultural projects

Question 6

Give an example of ‘Top down’ aid

Answer 6

British spending on Nigerian education:

• $160 given to Nigerian education between 2010-15
• Many funds go to rich, private schools in South
• 80-100 in a class in North (Chalk and talk education)

Question 7

What are NGOs?

Answer 7

Non-profit organisation that operates independently of any government e.g. Oxfam

Question 8

What are micro-finance projects?

Answer 8

Low cost loans with aim to increase productivity and stimulate development

Question 9

Give an example of a successful and unsuccessful micro-finance project

Answer 9

Sierra Leone;
- E.L.A. provides financial support and advice
- Stimulate growth in local economy
DRC:
- Banks gone bust due to overloading to risk businesses
- Resulted in suicides and reverse development

Question 10

What is the World Bank?

Answer 10

• International organisation owned by 184 countries

- Goal to reduce poverty and improve living standards in LICs

Question 11

Name 2 World Bank agencies

Answer 11

• International Development Association

- International Finance Corporation

Question 12

How is World Bank support provided?

Answer 12

Through project or policy-based loans and grants

Question 13

Give an example of an area that has received World Bank investment

Answer 13

Great Lakes region:

• $1bn to help development in 4 countries (DRC, Uganda, Burundi and Rwanda)
• Mainly $490m to HEP projects, $180m to infrastructure and $165m to road construction

Question 14

What is the purpose of the IMF?

Answer 14

Ensure stability of international monetary system through providing financial assistance to countries experiencing balance-of-payment problems

Question 15

What are the main 3 strands of the IMF?

Answer 15

1) Policy advice
2) Lending
3) Knowledge sharing

Question 16

Give an example of an area that has received IMF funding?

Answer 16

Mozambique cashew industry