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4.7-4.9 Development
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Using a real-life example, explain why a lack of access to infrastructure & appropriate technology hinders development.
Lack of transportation infrastructure hinders efficiency (e.g. Nepal / India etc.) or lack of educational technology in Kenya hinder quality of labor resources
Explain why the IHDI always has a lower value than the HDI.
Each country will bound to have some inequalities (same value = perfect equality in these values)
Identify the components of the HPI.
Well-being, Life expectancy at birth (adjusted for inequalities) / ecological footprint
Using a real-life example, explain why dependence on primary sector production may hinder development.
Since crop yields can be unstable due to external factors (e.g. weather), GDP can be very volatile if the country is over-dependent on the primary sector.
Identify ONE reason why indebtedness may be a barrier to economic development, and a country with a high debt-to-GDP ratio.
Countries with high levels of debts may not be able to fund investment projects
Using a real-life example, explain why tropical climates might be an economic barrier to development
Malaria → lower labor productivity → higher population growth → fewer resources per capita; 90% deaths in sub-saharan African
Using a real-life example, explain why capital flight might be a barrier to development
Libya lost $2bn within 3 months in 2011 after start of Libyan Civil War / Arab Spring; lose money to invest in development
Outline TWO reasons why landlocked countries' geography may hinder development.
Higher transportation costs (50%) + lower agricultural output
Using a real-life example, explain TWO reasons why the informal economy hinders development.
working conditions + no taxes: South Africa street vendor example
Outline TWO reasons why low-income countries may struggle to generate tax revenues.
Smaller tax base for income tax, lower corporate taxes, lower trade (tariffs)
Outline a real life example to explain why a lack of access to international markets could be a barrier to development.
West Africa 4 countries and cotton exports example.
Define infrastructure.
Infrastructure refers to the large public facilities that adds to the capital stock of a country and is necessary for economic activity, e.g. transportation
Identify the 5 steps of the poverty cycle.
Low income --> low savings --> low investment --> low productivity --> low income growth
Identify THREE sustainable development goals.
Any 3 SDGs.
Differentiate between economic growth and economic development
Economic development about standards of living and quality of life, economic growth just about increase in real GDP.
Identify the components of HDI.
Life expectancy at birth, Mean years of schooling, GNI per capita at PPP
Identify THREE single indicators to measure development.
GNI per capita, adult literacy rate, access to electricity
Define sustainable development.
Development that meets the needs of present generations + future generations
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