ILO:
a) Impact of economic factors in different countries:
o primary product dependency o volatility of commodity prices
o savings gap: Harrod-Domar model o foreign currency gap
o capital flight o demographic factors
o debt o access to credit and banking
o infrastructure o education/skills
o absence of property rights
b) Impact of non-economic factors in different countries
a) Impact of economic factors in different countries:
o primary product dependency o volatility of commodity prices
o savings gap: Harrod-Domar model o foreign currency gap
o capital flight o demographic factors
o debt o access to credit and banking
o infrastructure o education/skills
o absence of property rights
b) Impact of non-economic factors in different countries
Primary Product Dependency & Volatile commodity prices
What is meant by a primary product?
Why might an LDC be dependent on it? Why is this problematic in world trade? Explain how primary exports can harm a countries terms of trade and therefore current account using the: Prebisch–Singer hypothesis |
Prebisch-Singer Hypothesis
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Case study example of primary dependency:
Explain how primary dependency has had a negative impact on Venezuela and South Africa.
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The collapse of Venezuela, explained
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Worst drought in 30 years hits Sout Africa - BBC News
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Figure 9.1
The agricultural trade balance and share of agricultural exports
The agricultural trade balance and share of agricultural exports
Figure 9.3
Dependence on agricultural export earnings by commodity, 1997/99
Share of export earnings in total mechandise exports (percentage)
Dependence on agricultural export earnings by commodity, 1997/99
Share of export earnings in total mechandise exports (percentage)
http://www.fao.org/docrep/005/y4252e/y4252e11.htm
Access to credit & banking
Explain how access to credit and banking is linked to economic growth according to the Harrod-Domar growth model.
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Banking Explained – Money and Credit
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Harrod Domar Growth Model
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Case study example: Somalia
Activity:
Research Somalia's current development figures and the factors which are leading to a lack of growth and development in 2017, using the economic terms above. What would you suggest as a solution?
Research Somalia's current development figures and the factors which are leading to a lack of growth and development in 2017, using the economic terms above. What would you suggest as a solution?
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A complex crisis: conflict and climate affecting Somalis
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Somalia's Future in 2018 the new Somalia HD
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Case study example: Nigeria
Comment on two factors which impact growth within Nigeria?(8 marks)
How would the analysis need to change if the question asked about the impact on development instead?
How would the analysis need to change if the question asked about the impact on development instead?
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Can Nigeria's booming economy lift its poorest people?
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Nigeria in worst economy recession in decades
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Sub-Saharan Africa Regional Economic Outlook, April 2019
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Additional reading:
Nigeria: Why is it struggling to meet its tax targets?
Nigeria: Out of Recession and Looking Beyond Oil
Nigeria: Why is it struggling to meet its tax targets?
Nigeria: Out of Recession and Looking Beyond Oil