Limits to economic growth and development

edwinesosa's version from 2015-06-14 18:43


Question Answer
characteristics of LDCslarge number in absolute poverty; high levels of unemployment as urban migration isn't matched by job creation; low literacy and life expectancy; young population structure
limits to growth and developmentsavings gap + uneducated workforce + foreign exchange gap + war and disease + population + lack of infrastructure + corruption + dependence on primary products + debt repayments + capital flight
problems with rapidly increasing populationdrags down gdp per capita + more dependants + lack of food supply strain on public services and infrastructure
evaluation for problems of rising populationlong term large workforce + GM crops and advanced food growing techniques + foreign aid used well [45% of nigerians aged between 0-14]
problems of primary product dependencyinstability + worsening terms of trade due to low YED for primary products as shown by Prebisch-singer hypothesis so less able to purchase imports for development + declinging prices due to tech improvements like GM crops increasing supply +protectionism by MEDCS eg CAP + low value added
evaluation for primary product dependencyrecent rising food prices due to rising poopulations in india and china and extreme weather in food producing countries + agriculture is comparative advantage + some commodities high YED Eg precious metals and oil will rise + less risk if many commodities [Ghana 40% exports gold]
corruption problemsless money to vital public services + discourage business activity


Question Answer
disease problemsFDI fall + smaller/less efficient workforce + health spending oppurtunity cost + foreign aid
disease evaluationsome diseases falling eg aids due to education + medicine developments
debt problemsinterest oppurtunity cost + lackof public spending de to payments
debt evaluationshort term worth it + some debt is sustainable
human capital inadequacieslow productivity + less FDI or foreign firms just bring over foreigners + social impacts eg family planning sanitation awareness
types of lack of infrastructureschools + hospitals + roads + water and sewage systems + communication eg internet
foreign exchange gap problems and evaluationunable to import needed capital goods [in trinadad and tobago firms apply to central bank to get permission to import the good if its seen as vital to development, they use foreign currency reserves]
problems of capital flightlack of MNC benefits (income, new tech, ideas sharing, tax, infrastructure)
evaluation of capital flightsignificance - alot worse if it's all at once, eg if war hits + consequence not cause

Recent badges